Customer due diligence (CDD) is a central pillar of the anti-money laundering (AML) and counter-terrorist financing (CTF) regime: the requirements for CDD underpin the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended.
You must conduct CDD on customers who instruct you in relation to regulated activities. There is no obligation to conduct CDD on customers who instruct you in relation to non-regulated activities. For more information, see Practice Note: Money Laundering Regulations 2017—scope and application.
The component parts of CDD are:
identifying any customer, unless the identity of that customer is already known to you and has been verified by you
verifying that identity unless the customer's identity has already been verified by you, and
assessing, and where appropriate obtaining information on, the purpose and intended nature of the business relationship or occasional transaction
See further Practice Note: Money Laundering Regulations 2017—customer due diligence.
You must apply CDD measures when you:
establish a business relationship
carry out an occasional transaction:
that
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