|
Text of the Recommendation and Interpretative Note
See also: The full text of the 40 Recommendations, glossary and interpretative notes 
 Return to the FATF 40 Recommendations page.
|
Recommendation 9
|
|
B. MEASURES TO BE TAKEN BY FINANCIAL INSTITUTIONS AND NONFINANCIAL BUSINESSES AND PROFESSIONS TO PREVENT MONEY LAUNDERING AND TERRORIST FINANCING
Customer due diligence and record-keeping
Countries may permit financial institutions to rely on intermediaries or other third parties to perform elements (a) – (c) of the CDD process or to introduce business, provided that the criteria set out below are met. Where such reliance is permitted, the ultimate responsibility for customer identification and verification remains with the financial institution relying on the third party.
The criteria that should be met are as follows:
|
a)
|
A financial institution relying upon a third party should immediately obtain the necessary information concerning elements (a) – (c) of the CDD process. Financial institutions should take adequate steps to satisfy themselves that copies of identification data and other relevant documentation relating to the CDD requirements will be made available from the third party upon request without delay.
|
|
b)
|
The financial institution should satisfy itself that the third party is regulated and supervised for, and has measures in place to comply with CDD requirements in line with Recommendations 5 and 10.
It is left to each country to determine in which countries the third party that meets the conditions can be based, having regard to information available on countries that do not or do not adequately apply the FATF Recommendations.
|
|
|
General
|
1.
|
Reference in this document to “countries” should be taken to apply equally to “territories” or “jurisdictions”.
|
|
2.
|
Recommendations 5-16 and 21-22 state that financial institutions or designated non-financial businesses and professions should take certain actions. These references require countries to take measures that will oblige financial institutions or designated non-financial businesses and professions to comply with each Recommendation. The basic obligations under Recommendations 5, 10 and 13 should be set out in law or regulation, while more detailed elements in those Recommendations, as well as obligations under other Recommendations, could be required either by law or regulation or by other enforceable means issued by a competent authority.
|
|
3.
|
Where reference is made to a financial institution being satisfied as to a matter, that institution must be able to justify its assessment to competent authorities.
|
|
4.
|
To comply with Recommendations 12 and 16, countries do not need to issue laws or regulations that relate exclusively to lawyers, notaries, accountants and the other designated non-financial businesses and professions so long as these businesses or professions are included in laws or regulations covering the underlying activities.
|
|
5.
|
The Interpretative Notes that apply to financial institutions are also relevant to designated non-financial businesses and professions, where applicable.
|
Recommendation 9
This Recommendation does not apply to outsourcing or agency relationships.
This Recommendation also does not apply to relationships, accounts or transactions between financial institutions for their clients. Those relationships are addressed by Recommendations 5 and 7.
|
