Section 28, Terrorism Act, 2012

(1) When entering into correspondent bankingrelationships, a financial institution shall– Customers not physically present. High risk customers politicallyexposed persons. Identification and account opening for correspondent banking relationship. 36 37 (a) identify and verify the identification of respondent institutions with which it conducts correspondent banking relationships; (b) collect information on the nature of the respondent institution's activities; (c) based on publicly available information, evaluate the respondent institution's reputation and the nature of supervision to which it is subject; (d) obtain approval from senior management before establishing a correspondent banking relationship; (e) evaluate the controls implemented by the respondent institution with respect to antimoney laundering and combating the financing of terrorism; (f) agree in writing with the respondent institution the respective responsibilities of each party in the relationship; (g) not enter into or continue business relations with a shell bank; and (h) not enter into or continue business relations with a respondent financial institution in a foreign country if the respondent institution permits its accounts to be used by a shell bank. (2) Where the relationship is a payable-through account, a reporting entity shall ensure that the person with whom it has established the relationship– (a) has verified the identity of and performed ongoing due diligence on such of that person's customers that have direct access to accounts of the reporting entity; and (b) is able to provide the relevant customer identification data upon request to the reporting entity. (3) The Unit shall stipulate the deadline by which banks must collect and implement the requirements in this section with respect to correspondent banking relationships which were established prior to the date on which this Act came into operation.