CDD Risk Tables | clppartneradmin

Client Due Diligence Documentary Requirements

Client Type: UK Individual

Requirement

Regular due diligence applies unless you have identified circumstances in your CDD risk assessment form that mean enhanced due diligence applies.

Actions

Obtain one document from list A and one document from list B

current signed passport
current photo card driving license
birth certificate

council tax or utility bill
bank, building society, mortgage or HMRC tax statement
house or motor insurance certificate
record of home visit
current photo card driving license (if not being used in A)

Conduct Tracesmart check on each client.

If the Tracesmart check fails, revert to the documents listed in A and B above..

Enhanced due diligence applies if you do not meet face-to-face with the client, you must:

require that the documents provided are certified by a lawyer, bank manager, accountant or GP whose identity we can check by reference to a professional directory, or
electronically verify the client’s identity
and ensure that the first payment in a retainer is from an account in the client’s name.

Client Type: Overseas Individual

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies

If documents are in a foreign language you must be satisfied that the documents in fact provide evidence of the individual’s identity. If in doubt, ask for them to be translated.

Actions

Obtain one document from list A and one document from list B

current signed passport
current national identity card

council tax or utility bill
bank, building society, mortgage or HMRC tax statement
house or motor insurance certificate
official, reputable overseas directory
confirmation of address from a regulated person in the relevant jurisdiction

Enhanced due diligence applies if you do not meet face-to-face with the client, you must:

require that the documents provided are certified by a lawyer, bank manager, accountant or GP whose identity we can check by reference to a professional directory, or
electronically verify the client’s identity
and ensure that the first payment in a retainer is from an account in the client’s name.

Client Type: Agent or representative or an individual

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies.

Actions

Obtain:

appropriate documents for the agent, and
appropriate documentary evidence of the underlying individual

Enhanced due diligence applies if you do not meet face-to-face with the client, you must:

require that the documents provided are certified by a lawyer, bank manager, accountant or GP whose identity we can check by reference to a professional directory, or
electronically verify the client’s identity
and ensure that the first payment in a retainer is from an account in the client’s name.

Client Type: Professional regulated by The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

Requirement

Simplified due diligence applies unless you have identified circumstances in your risk assessment that mean regular or enhanced due diligence applies or there is suspicion of money laundering or terrorist financing.

Actions

Obtain:

evidence from their regulator’s directory that they are registered, e.g. printout from the Law Society’s online register of solicitors

Enhanced due diligence applies if you do not meet face-to-face with the client, you must:

require that the documents provided are certified by a lawyer, bank manager, accountant or GP whose identity we can check by reference to a professional directory, or
electronically verify the client’s identity
and ensure that the first payment in a retainer is from an account in the client’s name

Client Type: Politically Exposed Person (PEP)

Requirement

You must apply enhanced due diligence.

Actions

Obtain:

the required documents as for individual above (whether in the UK or overseas), and
the approval of the MLRO or Business Quality Team to accept the instructions
Take steps to establish the source of funds. Consider whether there are signs of corruption or evidence that government or state funds are being used inappropriately, and
Conduct enhanced on-going monitoring—keep a closer eye on the matter

If you do not meet face-to-face with the client you must:

require that the documents provided are certified by a lawyer, bank manager, accountant or GP whose identity we can check by reference to a professional directory, or
electronically verify the client’s identity
and ensure that the first payment in a retainer is from an account in the client’s name

Client Type: UK credit or financial institution

Requirement

Actions

Obtain:

evidence that the client is regulated for the purpose of anti-money laundering, e.g. through a printout of their entry in the FCA Register

[There is no need to obtain information on beneficial owners]

Client Type: Credit or financial institution in the EEA

Requirement

Actions

Obtain:

evidence that the client is regulated for the purpose of anti-money laundering, e.g. through a regulator’s directory

[There is no need to obtain information on beneficial owners]

Client Type: Credit or financial institution outside the EEA where equivalent AML provisions apply

Requirement

Actions

Treat as credit or financial institution in the EEA.

Client Type: Credit or financial institution outside the EEA where there are no equivalent AML provisions

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies.

Actions

Treat as private unlisted company outside the EEA as below.

Client Type: UK partnership

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies.

Actions

For smaller partnerships, treat the partners as individuals and obtain the required documentation for each (see above)
Treat larger partnerships as private unlisted companies (see below)

Client Type: UK partnership made up of regulated individuals (e.g. solicitors, accountants, etc)

Requirement

Actions

Confirm the firm’s existence and trading address from a reputable professional directory or with the relevant professional body (e.g. obtain a printout from the Law Society’s online directory of firms for a solicitor partnership)

If this is not possible, obtain evidence of:

the identity of the partner instructing you
one other partner, and
the firm’s trading address

Client Type: UK private unlisted company (often denoted by Ltd) and UK LLP not made up of regulated individuals as above

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies.

Actions

Where the client is a corporate body, you must obtain and verify:

The name of the corporate body;
Its company number or other registration number;
The address of the registered office, and if different, its principal place of business.

You must also take reasonable measures to determine and verify:

The law to which the corporate body is subject, and its constitution (whether set out in its articles of association or other governing documents); and
The full names of the board of directors (or if there is no board, the members of the equivalent management body) and the senior persons responsible for the operations of the corporate body.

You will not satisfy the above requirements by solely relying on information available at Companies House (or equivalent), therefore, additional enquiries must be made.

You should consider obtaining the following information to meet the requirements:

Copies of company documents directly from the client;
Copies of documents available at Companies House;
Copies of individual ID documents.

Individuals instructing the firm on behalf of a corporate body:

You must ensure that any person instructing you on behalf of the client has authority to do so and full ID checks should be carried out for this individual (see checks for ‘Individuals’ above).

Beneficial owners:

You must also identify the beneficial owners of the corporate body. The requirements are that you must:

Identify the beneficial owner;
Take reasonable measures to verify the identity of the beneficial owner so that you are satisfied that you know who the beneficial owner is; and
If the beneficial owner is a legal person, trust, company, foundation or similar legal arrangement take reasonable measures to understand the ownership and control structure of that legal person, trust, company, foundation or similar legal arrangement.

Client Type: Well-known ‘household name’ company or partnership (i.e. the entity is well-known, reputable, has a long history in its industry and there is substantial public information about them)

Requirement

Actions

Obtain and record the following information:

name
registered address, if any
trading address, and
nature of the business

Client Type: Subsidiary of existing private unlisted company for whom CDD has been conducted

Requirement

Actions

Obtain:

evidence of the subsidiary relationship to the existing, client usually through the annual return or audited accounts

Client Type: UK company listed on a regulated market (often denoted by PLC)

Requirement

Actions

Obtain:

confirmation of the company’s listing

e.g.

a copy of the dated page of the website of the relevant stock exchange, or
a photocopy of the listing in a reputable daily newspaper

Client Type: Subsidiary of a UK listed company

Requirement

Actions

Obtain:

confirmation of the company’s listing

e.g.

a copy of the dated page of the website of the relevant stock exchange, or
a photocopy of the listing in a reputable daily newspaper
evidence of the subsidiary relationship through the annual return or audited accounts

Client Type: Private unlisted company in the EEA

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies.

Actions

Obtain:

documentation as for UK private unlisted company above

Client Type: Private unlisted company outside the UK or EEA

Requirement

You must apply enhanced due diligence.

Actions

Obtain:

documentation as for UK private unlisted company above and require that the documents provided are certified by a lawyer, bank manager, accountant or GP whose identity we can check by reference to a professional directory

Client Type: Overseas company listed on a regulated market

Requirement

Actions

Record steps taken to establish the status of the listing market
Obtain evidence of the listing as for UK listed companies above

Client Type: Companies with capital in the form of bearer shares

Requirement

You must apply enhanced due diligence.

Actions

Obtain:

documentation as for UK private unlisted company above
and establish the identities of the holders and material beneficial owners of the shares
and obtain an assurance that you will be notified whenever there is a change of holder and/or beneficial owner

Client Type: Standard risk trust

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies.

Actions

Consider whether the client is the trustee, settler or beneficiary
Obtain documentation as for relevant client category for the client
If you are acting for more than one trustee, obtain relevant documentation for at least two trustees
Consider beneficial ownership if you are acting for trustees

Client Type: High risk trust

Requirement

You must apply enhanced due diligence.

Actions

Consider whether the client is the trustee, settler or beneficiary
Obtain documentation as for relevant client category for the client
If you are acting for more than one trustee, obtain relevant documentation for at least two trustees
Consider beneficial ownership if you are acting for trustees

conduct CDD on all the trustees or the settler,
make a record of the purpose of the trust and the source of the funds used to create it, and
obtain a copy of the trust deed

Client Type: Foundation

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies.

Actions

Consider whether the client is the trustee, settler or beneficiary
Obtain documentation as for relevant client category for the client
If you are acting for more than one trustee, obtain relevant documentation for at least two trustees

Consider beneficial ownership if you are acting for trustees

If the foundation is a charitable institution obtain documentation as for charities:
For a registered charity obtain a printout from the Charity Commission’s website evidencing the client’s registered status
For a small, unknown or obscure or unregistered charity consider the business structure and conduct appropriate CDD as set out for companies

Client Type: Registered charity

Requirement

Actions

Obtain a printout from the Charity Commission’s website evidencing the client’s registered status.

Client Type: Small, unknown or obscure or unregistered charity

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies (e.g. there are financial restrictions placed on the charity).

Actions

Consider the business structure and conduct appropriate CDD as set out for companies.

Client Type: Deceased person’s estate

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies.

Actions

Conduct CDD on the executor or administrator as above for individuals. If there is more than one, conduct CDD on at least two

And obtain:

a copy of the death certificate, and
a copy of the grant of probate or letters of administration

Client Type: Church or place of worship

Requirement

Actions

If a registered charity obtain a printout from the Charity Commission’s website evidencing the client’s registered status
If not a registered charity obtain and record confirmation from the General Register Office (GRO)

Client Type: School or college

Requirement

Actions

Obtain printout of relevant entry on the Department of Education and Skills’ list of approved educational facilities

if registered as a charity, obtain a printout from the Charity Commission’s website evidencing the client’s registered status

Client Type: Club or association

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies

Actions

Obtain and record:

full name
legal status
purpose
registered address
names of all office holders
and obtain:
articles of association
recent audited accounts
listing in a telephone directory

Client Type: Employee pension fund

Requirement

Actions

Obtain evidence that the fund is an employee pension fund e.g. a copy of the page showing the name of the scheme from the most recent deed, or

a consolidating deed for the scheme

Client Type: Other pension fund

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies

Actions

Obtain CDD as appropriate to the business structure

Client Type: UK public authority

Requirement

Actions

Obtain evidence of the existence of the authority from an official government website

Client Type: Overseas public authority which:

is entrusted with public functions
has publicly available, transparent and certain identity
has transparent activities and accounting practices, and
is accountable to a community institution, the authorities of an EEA state or is otherwise subject to appropriate check and balance procedures

Requirement

Actions

Obtain evidence of the existence of the authority from an official government website

Client Type: Other overseas public authority in non-high risk jurisdiction

Requirement

Regular due diligence applies unless you have identified circumstances in your risk assessment that mean enhanced due diligence applies.

Actions

Obtain evidence of the existence of the authority from an official government website

And obtain and record

full name of the entity
its nature and status
address
name of the home state authority
name of the directors or equivalent

Client Type: Other overseas public authority in high risk jurisdiction

Requirement

You must apply enhanced due diligence.

Actions

Obtain evidence of the existence of the authority from an official government website

And obtain and record

full name of the entity
its nature and status
address
name of the home state authority
name of the directors or equivalent

And

Consider whether there is a heightened risk of corruption or misappropriation of government monies in your matter, and
Conduct a greater level of on-going monitoring