AML compliance—FSMB proposes new Standard for client onboarding documentation and processes

Article summary

The Financial Markets Standards Board (FMSB) has published for consultation, a draft template FMSB Standard entitled ‘Standard for Client Onboarding: Documentation and Processes’. The proposed Standard would be applicable to firms when onboarding or reviewing client files under UK anti-money laundering (AML) requirements around know-your-customer (KYC) (or customer due diligence (CDD)).  The proposals are intended to apply to all client industries, however, the draft Standard places specific focus on financial institutions including asset managers and funds. Responses are requested by 3 May 2024.