§ 17 — Prevention of money laundering, proliferation financing and terrorism financing

17.—(1) A registered corporate service provider must perform customer due diligence measures in each of the following circumstances:(a)

before providing any corporate service to a customer;

(b)

where the registered corporate service provider has reason to suspect money laundering, proliferation financing or terrorism financing;

(c)

where the registered corporate service provider has reason to doubt the veracity or adequacy of information obtained from earlier customer due diligence measures;

(d)

under other circumstances prescribed for the purposes of this subsection.

(2) A registered corporate service provider must not proceed to provide any corporate service to any person if there exist any circumstances prescribed for the purposes of this subsection.

(3) Unless subsection (2) applies, a registered corporate service provider may choose not to perform or complete any customer due diligence measures if —(a)

the registered corporate service provider has reason to suspect that the transaction for which the corporate service is intended to be provided relates to money laundering, proliferation financing or terrorism financing; and

(b)

the registered corporate service provider has reason to believe that performing the measures will tip off the customer or any other person.

(4) Where, in relation to any customer, a registered corporate service provider is for any reason unable or chooses not to complete performing any customer due diligence measure, the registered corporate service provider must —(a)

decline to provide any corporate service to the customer;

(b)

terminate any ongoing provision of any corporate service to the customer;

(c)

determine whether to make a disclosure under section 45 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 or section 8 or 10 of the Terrorism (Suppression of Financing) Act 2002;

(d)

record the basis of the determination under paragraph (c); and

(e)

carry out any other prescribed measures.

(5) A registered corporate service provider must keep, in the prescribed manner and for the prescribed period, all records that the registered corporate service provider obtains through the customer due diligence measures.

(6) A registered corporate service provider must comply with any other requirement prescribed for the purpose of —(a)

detecting or preventing money laundering, proliferation financing or terrorism financing;

(b)

recording and reporting transactions suspected by the registered corporate service provider to involve money laundering, proliferation financing or terrorism financing;

(c)

giving effect to any FATF recommendation; or

(d)

requiring the registered corporate service provider to assess, and to report to the Registrar on, his, her or its compliance with a requirement mentioned in paragraph (a), (b) or (c).

(7) A registered corporate service provider who fails to comply with subsection (1), (2), (4), (5) or (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.

(8) In this section, “customer due diligence measures” means the prescribed measures for —(a)

identifying a customer of the registered corporate service provider and the customer’s agent (if any), and verifying their identities;

(b)

identifying every beneficial owner of his, her or its customer and verifying the identity of the beneficial owner;

(c)

obtaining information on the purpose and intended nature of the business relationship between the registered corporate service provider and his, her or its customer; and

(d)

any other measures for detecting or preventing money laundering, proliferation financing or terrorism financing.

—(1) A registered corporate service provider must perform customer due diligence measures in each of the following circumstances:(a)

before providing any corporate service to a customer;

(b)

where the registered corporate service provider has reason to suspect money laundering, proliferation financing or terrorism financing;

(c)

where the registered corporate service provider has reason to doubt the veracity or adequacy of information obtained from earlier customer due diligence measures;

(d)

under other circumstances prescribed for the purposes of this subsection.

(2) A registered corporate service provider must not proceed to provide any corporate service to any person if there exist any circumstances prescribed for the purposes of this subsection.

(3) Unless subsection (2) applies, a registered corporate service provider may choose not to perform or complete any customer due diligence measures if —(a)

the registered corporate service provider has reason to suspect that the transaction for which the corporate service is intended to be provided relates to money laundering, proliferation financing or terrorism financing; and

(b)

the registered corporate service provider has reason to believe that performing the measures will tip off the customer or any other person.

(4) Where, in relation to any customer, a registered corporate service provider is for any reason unable or chooses not to complete performing any customer due diligence measure, the registered corporate service provider must —(a)

decline to provide any corporate service to the customer;

(b)

terminate any ongoing provision of any corporate service to the customer;

(c)

determine whether to make a disclosure under section 45 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 or section 8 or 10 of the Terrorism (Suppression of Financing) Act 2002;

(d)

record the basis of the determination under paragraph (c); and

(e)

carry out any other prescribed measures.

(5) A registered corporate service provider must keep, in the prescribed manner and for the prescribed period, all records that the registered corporate service provider obtains through the customer due diligence measures.

(6) A registered corporate service provider must comply with any other requirement prescribed for the purpose of —(a)

detecting or preventing money laundering, proliferation financing or terrorism financing;

(b)

recording and reporting transactions suspected by the registered corporate service provider to involve money laundering, proliferation financing or terrorism financing;

(c)

giving effect to any FATF recommendation; or

(d)

requiring the registered corporate service provider to assess, and to report to the Registrar on, his, her or its compliance with a requirement mentioned in paragraph (a), (b) or (c).

(7) A registered corporate service provider who fails to comply with subsection (1), (2), (4), (5) or (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.

(8) In this section, “customer due diligence measures” means the prescribed measures for —(a)

identifying a customer of the registered corporate service provider and the customer’s agent (if any), and verifying their identities;

(b)

identifying every beneficial owner of his, her or its customer and verifying the identity of the beneficial owner;

(c)

obtaining information on the purpose and intended nature of the business relationship between the registered corporate service provider and his, her or its customer; and

(d)

any other measures for detecting or preventing money laundering, proliferation financing or terrorism financing.