Section 22, Terrorism Act, 2012

(1) If it is uncertain whether a customer is acting on hisown behalf, the reporting entity shall seek information by any means as to the true identity of the principal or party on whose behalf the customer is acting. (2) If, following verification, any doubt remains as to the true identity of the beneficial owner, the business relationship shall be terminated, without prejudice to the requirement to report suspicious business transactions. (3) A customer who is a legal practitioner, a public or private accountant, an individual with public powers of attorney or an authorised agent, acting as a financial intermediary, shall not invoke professional secrecy or confidentiality in order to refuse to disclose the true identity of the transacting party or beneficial owner. (4) In the case of existing customers and beneficial owners with which it established business relationships before the coming into operation of this Act, a reporting entity shall apply the identification and verification requirements but the competent supervisory authority or the Unit, where a competent supervisory authority does not exist, shall set deadlines and further details related to obligations for completing this process. (5) Without limiting the generality of subsection (4), a reporting entity shall– (a) when establishing a business relationship, obtain information on the purpose and nature of the business relationship; (b) monitor its business relationships and the transactions undertaken throughout the course of the relationship to ensure that the transactions conducted are consistent with the information that the reporting entity has of its customer and the profile of the customer's business. (c) if the transaction is conducted by an individual, adequately identify and verify the person's identity including information relating to– (i) the person’s name, address and occupation; (ii) the national identification document, passport or other official identifying document; (d) if the transaction is conducted by a legal entity, adequately identify and verify its legal existence and structure, including information relating to– Identification of beneficial owner. 30 31 (i) the customer's name, legal form, address and directors; (ii) the principal owners and beneficiaries and the control structure; (iii) provisions regulating the power to bind the entity and to verify that any person purporting to act on behalf of the customer is authorised to do so and identify those persons. (6) The identification and verification of the identity of each customer, and obtaining customer due diligence information and documentation shall, subject to subsection (7) take place before the establishment of an account or business relationship, or before carrying on of further business. (7) In exceptional circumstances where completing verification of identity and collecting the necessary customer due diligence information prior to commencing business would be impossible, the reporting entity may collect the required documentation as soon as practical after commencement of the business relationship only where– (a) the risk of money laundering or financing of terrorism is effectively managed; and (b) a delay in verification is essential in order not to interrupt the normal conduct of business; but in no circumstances shall collection of customer identity and other documentation be delayed longer than two months following commencement of business relations. (8) If, after two months, the reporting entity has not obtained all necessary customer identification and other necessary documentation, it shall consider reporting the transaction as suspicious to the Unit or closing the account and severing the business relationship. (9) If an individual conducts a transaction through a reporting entity and the reporting entity has reasonable grounds to believe that the person is undertaking the transaction on behalf of another person then, in addition to complying with subsections (1) and (2), the reporting entity shall identify or verify the identity of the other person for whom, or for whose ultimate benefit, the transaction is being conducted. (10) A reporting entity shall take reasonable measures to ascertain the purpose of any transaction if the amount is equal to or above thirty million Leones or its equivalent in foreign currency and the origin and ultimate destination of the funds. (11) Subsection (1), (2) or (4) does not apply– (a) if the transaction is part of an existing and regular business relationship with a person who has already produced satisfactory evidence of identity unless the reporting entity has reason to suspect that the transaction is suspicious or unusual; (b) if the transaction is an occasional transaction not exceeding thirty million leones unless the reporting entity has reason to suspect that the transaction is suspicious or unusual; or (c) in such other circumstances as may be determined by the Unit. (12) The Unit may determine– (a) the official or identifying documents, or the reliable and independent source documents, data or information or other evidence that is required for identification or verification of any particular customer or class of customers; 32 33 (b) the threshold for or the circumstances in which, this section shall apply in relation to any particular customer or class of customers.