Enhanced verification is generally required when a client is identified as high risk. The following provides a high-level overview of the requirements:
Australia
In Australia, Enhanced verification is generally required where:
it is determined that the money-laundering or terrorism financing risk is high;
the client is, or has a beneficial owner who is, a foreign politically exposed person;
a suspicion has arisen for the purposes of section 41 of the Act (suspicious matter reporting obligations); or
the client is transacting with a party located in a prescribed foreign country.
Please see the full list of qualifying circumstances in AML/CFT Act Section 15.9.
New Zealand
In New Zealand, Enhanced verification is generally required where the client is:
a trust;
a company with 1 or more nominee directors, or which has shares in bearer form;
a limited partnership with nominee general partners; or
determined by the customer to be high risk, e.g. the client is a politically exposed person.
Please see the full list of qualifying circumstances in the AML/CFT Act Section 22.
United Kingdom
In the United Kingdom, Enhanced verification is generally required where the client is:
- resident in a geographical area of high risk;
- a vehicle for holding personal assets;
- a company with 1 or more nominee directors, or which has shares in bearer form; or
- determined by the customer to be high risk, e.g. the client is a politically exposed person.
Please see the full list of qualifying circumstances in Reg 33 MLR 2017.