Countries may allow financial institutions to rely on third parties to implement elements a-c) of the CDD measures covered in Recommendation 10 or to establish transactions, provided the following criteria are met. Where such an agreement is acceptable, ultimate responsibility for CDD actions remains within the purview of the third-party financial institution. 8.39 You compensate TMF for all shares, claims, fees (including all legal costs), receivables, charges, commitments and procedures that create MMTs directly under or in connection with the use of insurance and guarantees regarding your identification procedures, the system for verifying and retaining up-to-date information and documents, and the provision of KYC documents to TMF on request, in accordance with the information and documents provided in this application. 1. This recommendation does not apply to outsourcing or agency relationships. In a third-party dependency scenario, the third party should be subject to CDD and registration requirements in accordance with Recommendations 10 and 11 and should be regulated, monitored or monitored. The third party generally has an existing business relationship with the client, independent of the client`s training relationship with the trust establishment, and would use its own procedures to implement the actions in CDD. This is contrary to an outsourcing/agency scenario in which the outsourced entity applies the CDD measures on behalf of the delegated financial institution in accordance with its procedures and is subject to the control of the delegated financial institution over the effective implementation of these procedures by the outsourced entity. The customer identification requirements in 31 CFR 1023.220 apply to all customers who open a new account, as these conditions are set out in the Bank Secrecy Act and the terms and conditions of application, including DVP accounts. Companies can use documentary, non-documentary methods or a combination of the two methods to verify the identity of DVP accounts.
The documents that can be used may be very different, including, but not limited, to certified statutes, commercial licenses, partnership agreements or government-issued trust datasets. Some companies use external providers to conduct non-documentary audits of DVP accounts. Depending on the type of account and the risks associated with it, companies can carry out additional vigilance obligations on these accounts and obtain information on the actual beneficiaries. For more information, please refer to FinCEN`s guidelines for collecting and retaining information on actual beneficiaries and SIFMA`s proposed due diligence practices for hedge funds. Under this definition, the “customer” does not refer to people who fill out account opening documents or give information necessary to create an account if they are not also the account holder.