Anti-Money Laundering Know Your Customer

292 Pages·2013·8.67 MB·English

www.pwc.co.uk
Know Your Customer:
Quick Reference Guide
Anti-Money Laundering
Understanding global
KYC differences
January 2013
Anti-Money Laundering
Know Your Customer: Quick Reference Guide
Understanding global KYC differences
Record-breaking fines issued by regulators worldwide, notably in Please rollover map to select your region then click to select country of choice
the US and UK, dominated the financial services landscape in 2012.
This looks set to continue in 2013 if regulators identify further failings
in firms’ compliance with money laundering, sanctions and tax
requirements. Cultural changes towards compliance-driven objectives
should be a key priority for financial services firms if they wish to
avoid their reputation being tarnished by similar scandals. Firms
operating on a global basis will also need to demonstrate a robust
compliance framework ensuring that each territory has sufficient
oversight and that Anti Money Laundering (‘AML’) regulatory
requirements are being adhered to at both a local and global level.
In light of the above, we have developed a Know Your Customer
(‘KYC’) quick reference guide which provides quick and easy access
to global AML and KYC information, to assist firms operating
internationally in mitigating their risk.
This year’s guide has been expanded to include additional new
countries and incorporates the main local AML requirements for
over 74 different countries.
The guide details many regulatory and other cultural issues which
need to be addressed when doing business across territories. Useful
links to Financial Action Task Force (‘FATF’) reports and country
evaluations are also included. There are also questions on the topic
of reporting requirements within the various territories such as
whom to report suspicious activity to, reporting obligations and any
penalties for non compliance.
Information about whether local regulators support the use of the
risk based approach to AML; how to deal with Politically Exposed
Persons (‘PEPs’) and whether doing business with shell banks is
prohibited can all be found in our guide.
From time to time, you may need expert advice from AML
specialists. We’ve included details of the appropriate PwC AML
professionals in the countries featured. They would be happy to
discuss any AML issues you might have.
Anti-Money Laundering
Know Your Customer: Quick Reference Guide
Understanding global KYC differences
Record-breaking fines issued by regulators worldwide, notably in
the US and UK, dominated the financial services landscape in 2012.
This looks set to continue in 2013 if regulators identify further failings
in firms’ compliance with money laundering, sanctions and tax
requirements. Cultural changes towards compliance-driven objectives
should be a key priority for financial services firms if they wish to
avoid their reputation being tarnished by similar scandals. Firms
operating on a global basis will also need to demonstrate a robust
compliance framework ensuring that each territory has sufficient
oversight and that Anti Money Laundering (‘AML’) regulatory
requirements are being adhered to at both a local and global level.
In light of the above, we have developed a Know Your Customer
(‘KYC’) quick reference guide which provides quick and easy access
to global AML and KYC information, to assist firms operating
internationally in mitigating their risk.
This year’s guide has been expanded to include additional new
countries and incorporates the main local AML requirements for
over 74 different countries.
The guide details many regulatory and other cultural issues which
need to be addressed when doing business across territories. Useful
links to Financial Action Task Force (‘FATF’) reports and country
evaluations are also included. There are also questions on the topic
of reporting requirements within the various territories such as
whom to report suspicious activity to, reporting obligations and any
penalties for non compliance.
Information about whether local regulators support the use of the
risk based approach to AML; how to deal with Politically Exposed
Persons (‘PEPs’) and whether doing business with shell banks is
prohibited can all be found in our guide.
Europe
From time to time, you may need expert advice from AML
specialists. We’ve included details of the appropriate PwC AML Austria Germany Isle of Man Poland Switzerland
professionals in the countries featured. They would be happy to
Belgium Gibraltar Italy Portugal Turkey
discuss any AML issues you might have.
Czech Republic Greece Jersey Romania UK
Denmark Guernsey Luxembourg Russia
Finland Hungary Netherlands Spain
France Ireland Norway Sweden
Anti-Money Laundering
Know Your Customer: Quick Reference Guide
Understanding global KYC differences
Record-breaking fines issued by regulators worldwide, notably in
the US and UK, dominated the financial services landscape in 2012.
This looks set to continue in 2013 if regulators identify further failings
in firms’ compliance with money laundering, sanctions and tax
requirements. Cultural changes towards compliance-driven objectives
should be a key priority for financial services firms if they wish to
avoid their reputation being tarnished by similar scandals. Firms
operating on a global basis will also need to demonstrate a robust
compliance framework ensuring that each territory has sufficient
oversight and that Anti Money Laundering (‘AML’) regulatory
requirements are being adhered to at both a local and global level.
In light of the above, we have developed a Know Your Customer
(‘KYC’) quick reference guide which provides quick and easy access
to global AML and KYC information, to assist firms operating
internationally in mitigating their risk.
This year’s guide has been expanded to include additional new
countries and incorporates the main local AML requirements for
over 74 different countries.
The guide details many regulatory and other cultural issues which
need to be addressed when doing business across territories. Useful
links to Financial Action Task Force (‘FATF’) reports and country
evaluations are also included. There are also questions on the topic
of reporting requirements within the various territories such as
whom to report suspicious activity to, reporting obligations and any
penalties for non compliance.
Information about whether local regulators support the use of the
risk based approach to AML; how to deal with Politically Exposed
Persons (‘PEPs’) and whether doing business with shell banks is
prohibited can all be found in our guide.
Americas
From time to time, you may need expert advice from AML
specialists. We’ve included details of the appropriate PwC AML
professionals in the countries featured. They would be happy to
discuss any AML issues you might have.
Anti-Money Laundering
Know Your Customer: Quick Reference Guide
Understanding global KYC differences
Record-breaking fines issued by regulators worldwide, notably in
the US and UK, dominated the financial services landscape in 2012.
This looks set to continue in 2013 if regulators identify further failings
in firms’ compliance with money laundering, sanctions and tax
requirements. Cultural changes towards compliance-driven objectives
should be a key priority for financial services firms if they wish to
avoid their reputation being tarnished by similar scandals. Firms
operating on a global basis will also need to demonstrate a robust
compliance framework ensuring that each territory has sufficient
oversight and that Anti Money Laundering (‘AML’) regulatory
requirements are being adhered to at both a local and global level.
In light of the above, we have developed a Know Your Customer
(‘KYC’) quick reference guide which provides quick and easy access
to global AML and KYC information, to assist firms operating
internationally in mitigating their risk.
This year’s guide has been expanded to include additional new
countries and incorporates the main local AML requirements for
over 74 different countries.
The guide details many regulatory and other cultural issues which
need to be addressed when doing business across territories. Useful
links to Financial Action Task Force (‘FATF’) reports and country
evaluations are also included. There are also questions on the topic
of reporting requirements within the various territories such as
whom to report suspicious activity to, reporting obligations and any
penalties for non compliance.
Information about whether local regulators support the use of the
risk based approach to AML; how to deal with Politically Exposed
Persons (‘PEPs’) and whether doing business with shell banks is
prohibited can all be found in our guide.
Africa
From time to time, you may need expert advice from AML
specialists. We’ve included details of the appropriate PwC AML
professionals in the countries featured. They would be happy to
discuss any AML issues you might have.
Anti-Money Laundering
Know Your Customer: Quick Reference Guide
Understanding global KYC differences
Record-breaking fines issued by regulators worldwide, notably in
the US and UK, dominated the financial services landscape in 2012.
This looks set to continue in 2013 if regulators identify further failings
in firms’ compliance with money laundering, sanctions and tax
requirements. Cultural changes towards compliance-driven objectives
should be a key priority for financial services firms if they wish to
avoid their reputation being tarnished by similar scandals. Firms
operating on a global basis will also need to demonstrate a robust
compliance framework ensuring that each territory has sufficient
oversight and that Anti Money Laundering (‘AML’) regulatory
requirements are being adhered to at both a local and global level.
In light of the above, we have developed a Know Your Customer
(‘KYC’) quick reference guide which provides quick and easy access
to global AML and KYC information, to assist firms operating
internationally in mitigating their risk.
This year’s guide has been expanded to include additional new
countries and incorporates the main local AML requirements for
over 74 different countries.
The guide details many regulatory and other cultural issues which
need to be addressed when doing business across territories. Useful
links to Financial Action Task Force (‘FATF’) reports and country
evaluations are also included. There are also questions on the topic
of reporting requirements within the various territories such as
whom to report suspicious activity to, reporting obligations and any
penalties for non compliance.
Information about whether local regulators support the use of the
risk based approach to AML; how to deal with Politically Exposed
Persons (‘PEPs’) and whether doing business with shell banks is
prohibited can all be found in our guide.
Middle East
From time to time, you may need expert advice from AML
specialists. We’ve included details of the appropriate PwC AML
professionals in the countries featured. They would be happy to
discuss any AML issues you might have.
Anti-Money Laundering
Know Your Customer: Quick Reference Guide
Understanding global KYC differences
Record-breaking fines issued by regulators worldwide, notably in
the US and UK, dominated the financial services landscape in 2012.
This looks set to continue in 2013 if regulators identify further failings
in firms’ compliance with money laundering, sanctions and tax
requirements. Cultural changes towards compliance-driven objectives
should be a key priority for financial services firms if they wish to
avoid their reputation being tarnished by similar scandals. Firms
operating on a global basis will also need to demonstrate a robust
compliance framework ensuring that each territory has sufficient
oversight and that Anti Money Laundering (‘AML’) regulatory
requirements are being adhered to at both a local and global level.
In light of the above, we have developed a Know Your Customer
(‘KYC’) quick reference guide which provides quick and easy access
to global AML and KYC information, to assist firms operating
internationally in mitigating their risk.
This year’s guide has been expanded to include additional new
countries and incorporates the main local AML requirements for
over 74 different countries.
The guide details many regulatory and other cultural issues which
need to be addressed when doing business across territories. Useful
links to Financial Action Task Force (‘FATF’) reports and country
evaluations are also included. There are also questions on the topic
of reporting requirements within the various territories such as
whom to report suspicious activity to, reporting obligations and any
penalties for non compliance.
Information about whether local regulators support the use of the
risk based approach to AML; how to deal with Politically Exposed
Persons (‘PEPs’) and whether doing business with shell banks is
prohibited can all be found in our guide.
Asia/Pacific
From time to time, you may need expert advice from AML
specialists. We’ve included details of the appropriate PwC AML Austrailia India Malaysia Philippines Taiwan
professionals in the countries featured. They would be happy to
China Indonesia New Zealand Singapore Thailand
discuss any AML issues you might have.
Hong Kong Japan Pakistan South Korea Vietnam
Questions and Answers:
‘Know Your Customer’ quick reference guide
Country by country comparison of high level Know Your Customer and Anti-Money Laundering information
Zambia
Keycontact:NasirAli Postaladdress:StandNo.2374 Lastupdated:
Email:[email protected] ThaboMbekiRoad January2013
Tel:[phone] P.OBox30942,Lusaka,Zambia
General
Q1. InwhatyeardidtherelevantAMLlawsandregulationsbecomeeffective?
A1. 2001(Prohibition&PreventionofMoneyLaunderingAct),2010(Prohibition&PreventionofMoneyLaundering(Amendment)Act#442004
(BankofZambiaAnti-MoneyLaunderingDirectives)andtheFinancialIntelligenceCentreAct2010.
Q2. IftheAMLlawsand/orregulationsbecameeffectiveinthelast2years,whatweretherequirementsofthepreviousAMLregime?
A2. N/A.
Q3. WhoistheregulatorforAMLcontrolsfor:(a)Banking;(b)OtherfinancialServices;(c)Nonfinancialsector(e.g.casinos,highvaluegoods
etc.).Pleaseincludelinktotheregulator(s)website
A3. BankofZambia-http://www.boz.zm/
PensionsandInsuranceAuthority–www.pia.org.zm
Q4. IsthereanypracticalguidanceprovidedtofirmsbypublicauthoritiesregardingAMLrequirements,beyondtheFATFrecommendationsand
locallegislation?Pleaseincludelinktowebsite,whereavailable.
A4. No.
Q5. IstherearequirementtoretrospectivelyverifytheidentityofcustomersbeforethedatethenewAMLregimewasintroduced?
A5. No.
Q6. Isariskbasedapproachapprovedbythelocalregulator(s)?
A6. Yes.
Q7. HasthecountrybeenthesubjectofaFATF(orFATF-style)MutualEvaluationorIMFassessmentexerciseinthelastthreeyears?Ifyes,
pleasefindalinktoarelevantreport(ifpubliclyavailable).
A7. http://www.imf.org/external/pubs/ft/scr/2010/cr1017.pdf
Customer due diligence
Q8. Arethereminimumtransactionthresholds,underwhichcustomerduediligenceisnotrequired?
IfYes,whatarethevariousthresholdsinplace?
A8. Therearenominimumtransactionthresholds,underwhichcustomerduediligenceisnotrequired.
.
Thispublicationhasbeenpreparedforgeneralguidanceonmattersofinterestforthepersonaluseofthereader,anddoesnotconstituteprofessionaladvice.Youshouldnotactupontheinformation
containedinthispublicationwithoutobtainingspecificprofessionaladvice.Theapplicationandimpactoflawscanvarywidelybasedonthespecificfactsinvolved.Norepresentationorwarranty(express
orimplied)isgivenastotheaccuracyorcompletenessoftheinformationcontainedinthispublication,and,totheextentpermittedbylaw,PricewaterhouseCoopersLLP,itsmembers,employeesand
©a g2e0n1t3s PdwoCno. tAall crcigehpttso rresaesrsvuemd.e Naonty foliar bfuilrittyh,erre dsipstornibsuibtiiolinty woirthdouutyt tohfec paerermfoisrsaionny ocfo PnsweCq.u “ePnwceCs” oreffyeorsu toor tahney noenteweolrske oaf cmtinemg,boerr rfierfmrasin oinf gPrtoiceawcta,tienrhreoluiasnecCeooonpethrse Iinntfeorrnmaatitoionnal cLoimntiateinde (dPiwnCthILis), or, as the
cpounbtelicxat trieoqnuoirrefso, rinadniyviddueacil smioenmbbaesre fidrmons iot.f the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services
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r©es2p0o0n9sibPlrei coerw liaatbelerh foour stehCe oaocptse orsr. oAmllisrisgihotnssr oesf earnvye odt.h“ePrr imceewmabteerr hfiormus neoCro coapne rits c”orenfterorsl tthoet heexenrecitsweo orkf aonfomtheemr bmeermfirbmesr fiorfm’s professional judgment or bind another member firm or PwCIL in any way.
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The Design Group 21383 (01/13)
Questions and Answers:
‘Know Your Customer’ quick reference guide
Country by country comparison of high level Know Your Customer and Anti-Money Laundering information
Q9. Whatarethehighlevelrequirementsforverificationofcustomeridentificationinformation(individualsandlegalentities)?
A9. Individuals:
AZambiannationalhastopresentanationalregistrationcardoravalidpassportordrivinglicence.Inthecaseofaforeignnational,a
nationalregistrationcardandavalidpassport(andwhereapplicable,anissuedvisa).
Legalentities:
Verifytheidentityofthedirectors,beneficialownersandmanagementi.e.obtainCertificateofIncorporationorequivalentanddetailsofthe
registeredoffice/placeofbusiness;detailsofthenatureoftheirbusiness;thereasonfortheaccountbeingopened;indicationofthe
expectedturnover;thesourceoffundsandacopyofthelastavailableaccountswhereapplicable.
TheFinancialIntelligenceCentreActstipulatesthat:
Areportingentityshall,withrespecttoeachcustomerobtainandverifythefollowing:
a) Foranaturalperson,thefullnameandaddressanddateofbirthandplaceofbirth,
b) Foralegalentity,thecorporatename,theheadofficeaddress,identitiesofdirectors,proofofincorporationorsimilarevidenceof
legalstatusandlegalform,provisionsofgoverningtheauthoritytobindthelegalperson,andsuchinformationasisnecessaryto
understandtheownershipandthecontrolofthelegalperson,
c) Forlegalarrangement,thenameaddressofthetrustees,thesettlerandthebeneficiaryofexpresstrusts,andanyotherparties
withtheauthoritytomanage,varyorotherwisecontrolthe arrangement
d) Inadditiontotheidentityofacustomer,theidentityofanypersonactingonbehalfofthecustomer,includingevidencethatsuch
personisproperlyauthorisedtoactinthatcapacity,
e) Informationontheintendedpurposeandnatureofeachbusinessrelationship;and
f) Sufficientinformationaboutthenatureandbusinessofthecustomertopermitthereportingentitytofulfilitsobligationsunderthe
Act.
Q10. Wherecopiesofidentificationdocumentationareprovided,whataretherequirementsaroundindependentverificationorauthentication?
A10. CertificationofrelevantidentificationcopiesbyaCommissionerofOaths.
Q11. Whatarethehighlevelrequirementsaroundbeneficialownership(identificationandverification)?
A11. Regulatedinstitutionsshouldidentifythebeneficialownerofanaccount(regardlessofwhetheritisacorporatebodyortrustopeningthe
account)andifitfailstoascertaintheidentityofthesaidownerorperson,itshouldmakeareporttotheAMLInvestigationsUnit.
TheFinancialIntelligenceCentreActstipulatesthatareportingentityshallidentifythebeneficialownerandshalltakereasonablemeasures
toverifytheidentityofthebeneficialownerunlesstheMinisterprescribesthecircumstances,suchastheownershipofpubliclyheld
corporations,inwhichsuchidentificationandverificationisnotnecessary.
Q12. Inwhatcircumstancesarereduced/simplifiedduediligencearrangementsavailable?
A12. Forregulatedinstitutions,thecircumstancesaretobedeterminedbytheregulatedinstitutionandapprovedbyBankofZambia.
Q13. Inwhatcircumstancesareenhancedcustomerduediligencemeasuresrequired?
A13. Inthecaseoftrustsandinternetbanking.Alsoincircumstancesofsuspicionasstatedbelow:
a) suspiciouscustomerbehaviour;
b) suspiciouscustomeridentificationcircumstances;
c) suspiciouscashtransactions;
d) suspiciouswiretransfertransactions;
e) suspicioussafedepositareaactivity;
f) suspiciousactivityincredittransactions;
g) suspiciouscommercialaccountactivity;
h) suspicioustradefinancingtransactions;
i) suspiciousinvestmentactivity;and
j) suspiciousdeposits.
.
Thispublicationhasbeenpreparedforgeneralguidanceonmattersofinterestforthepersonaluseofthereader,anddoesnotconstituteprofessionaladvice.Youshouldnotactupontheinformation
containedinthispublicationwithoutobtainingspecificprofessionaladvice.Theapplicationandimpactoflawscanvarywidelybasedonthespecificfactsinvolved.Norepresentationorwarranty(express
orimplied)isgivenastotheaccuracyorcompletenessoftheinformationcontainedinthispublication,and,totheextentpermittedbylaw,PricewaterhouseCoopersLLP,itsmembers,employeesand
agentsdonotacceptorassumeanyliability,responsibilityordutyofcareforanyconsequencesofyouoranyoneelseacting,orrefrainingtoact,inrelianceontheinformationcontainedinthis
publicationorforanydecisionbasedonit.

©2009PricewaterhouseCoopers.Allrightsreserved.“PricewaterhouseCoopers”referstothenetworkofmemberfirmsof
PricewaterhouseCoopersInternationalLimited,eachofwhichisaseparateandindependentlegalentity.
Questions and Answers:
‘Know Your Customer’ quick reference guide
Country by country comparison of high level Know Your Customer and Anti-Money Laundering information
Q14. InwhatcircumstancesisadditionalduediligencerequiredforPoliticallyExposedPersons(‘PEPs’)?
A14. ThecircumstancesaretobedeterminedbytheregulatedinstitutionandapprovedbyBankofZambia.
Q15. Whatenhancedduediligencemustbeperformedforcorrespondentbankingrelationships(cross-borderbankingandsimilarrelationships)?
A15. Afinancialinstitutionshallrequireitsforeignbranchesandmajorityownedsubsidiariestoimplementtherequirementstotheextentthatthe
domesticapplicablelawsofthehostcountrysopermit.Wherethelawsofthecountryinwhichitsbranchormajorityownedsubsidiaryis
situatedpreventcompliancewiththeobligationsstipulated,institutionsmustadviseitssupervisoryauthority,whichmaytakesuchstepsas
itbelievestobeappropriatetoaccomplishpurposesoftheAct.
Q16. Arerelationshipswithshellbanksspecificallyprohibited?
A16. Yes,theFinancialIntelligenceCentreActstipulatesthatashellbankshallnotbeestablishedorpermittedtooperateinorthroughthe
territoryofZambia.
Q17. Inwhatcircumstancesisadditionalduediligencerequiredfornonface-to-facetransactionsand/orrelationships?
A17. Thestandardduediligenceprocedureofidentificationandverificationappliesfornonface-to-facetransactionsand/orrelationships.
FinancialIntelligenceCentreActstatesthatwhereanybusinessrelationshiporexecutionoftransactionsismadewithacustomerthatisnot
physicallypresent,thefollowingisrequiredforpurposesofidentification:
a) Takeadequatemeasurestoaddressthespecificriskofmoneylaundering,financingofterrorismandanyotherseriousoffence;
b) Ensurethattheduediligenceconductedisnolesseffectivethanwherethecustomerappearsinperson;and
c) Requireadditionaldocumentaryevidenceorsupplementarymeasurestoverifyorcertifythedocumentssuppliedbythecustomer,
orconfirmatorycertificationfromfinancialinstitutionsorotherdocumentaryevidenceormeasuremaybeprescribed.
Reporting
Q18. TowhomareSuspiciousActivityReports(SARs)made?Pleaseincludealinktotheirwebsite.
A18. SuspiciousActivityreportsaremadetotheAntiMoneyLaunderingInvestigationsUnit andforfinancialinstitutionstheFinancialIntelligence
Centre
Q19. WhatwasthevolumeofSARsmadetotheauthoritiesinthemostrecentyear?PleasestatetheGDPfortheequivalentyear.
A19. InformationonthevolumeofSARsisnotpubliclyavailable.
Q20. Arethereanyobligationstoreportanythingmorethansuspicioustransactionse.g.unusualtransactions,cashtransactionsaboveacertain
threshold,internationalwiretransfers,othertransactionsetc.?
A20. Nothereisnoobligationtoreportanythingmorethansuspicioustransactions–pleaseseeresponsetoQ13.
Financialinstitutionsareobligedtoreportwherethereissuspicionorreasonablegroundstosuspectthatanypropertyistheproceedsof
crime,orisrelatedtoorlinkedto,oristobeusedforterrorism,terroristactsorbyterroristorganisationsorpersonswhofinancedterrorism.
Q21. Arethereanyde-minimisthresholdsbelowwhichtransactionsdonotneedtobereported?
A21. No
.
Thispublicationhasbeenpreparedforgeneralguidanceonmattersofinterestforthepersonaluseofthereader,anddoesnotconstituteprofessionaladvice.Youshouldnotactupontheinformation
containedinthispublicationwithoutobtainingspecificprofessionaladvice.Theapplicationandimpactoflawscanvarywidelybasedonthespecificfactsinvolved.Norepresentationorwarranty(express
orimplied)isgivenastotheaccuracyorcompletenessoftheinformationcontainedinthispublication,and,totheextentpermittedbylaw,PricewaterhouseCoopersLLP,itsmembers,employeesand
agentsdonotacceptorassumeanyliability,responsibilityordutyofcareforanyconsequencesofyouoranyoneelseacting,orrefrainingtoact,inrelianceontheinformationcontainedinthis
publicationorforanydecisionbasedonit.

©2009PricewaterhouseCoopers.Allrightsreserved.“PricewaterhouseCoopers”referstothenetworkofmemberfirmsof
PricewaterhouseCoopersInternationalLimited,eachofwhichisaseparateandindependentlegalentity.