Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions)
Ordinance
- (c) a customer, or a beneficial owner of a customer, of a financial institution is involved in a situation referred to in section 15 of this Schedule,
the financial institution must, in monitoring its business relationship with the customer under this section, take additional measures to compensate for any risk of money laundering or terrorist financing that may be caused by the fact that the customer or beneficial owner is a customer or beneficial owner falling within paragraph (a), (b) or (c).
6. Provisions relating to pre-existing customers
(1) In relation to a pre-existing customer who is not a customer to whom section 7 of this Schedule applies, a financial institution must, in addition to the situations specified in section 3(1)(d) and (e) of this Schedule, carry out the customer due diligence measures when—
- (a) a transaction takes place with regard to the customer that—
- (i) is, by virtue of the amount or nature of the transaction, unusual or suspicious; or
- (ii) is not consistent with the financial institution’s knowledge of the customer or the customer’s business or risk profile, or with its knowledge of the source of the customer’s funds; or
- (b) a material change occurs in the way in which the customer’s account is operated.
(2) If a financial institution is unable to comply with subsection (1), it must terminate its business relationship with the customer as soon as reasonably practicable.
7. Provisions relating to pre-existing respondent banks
(1) This section applies to a customer (referred to in this section as respondent bank) of an authorized institution—
