Companies licensed under the Capital Markets Act will be required to obtain and maintain proper identification of clients as the regulator moves to prevent, detect and control possible money laundering in the capital markets.
Draft guidelines on prevention of money laundering in the capital markets published by the CMA state that the companies must in all circumstances identify beneficiaries or owners who control securities accounts.
They will be required to verify identities of clients, permanent or occasional, before or in the course of transactions and decline transacting with those who fail to identify themselves adequately.
“Boards of directors of a licensed or an approved entity shall ensure that the management puts in place appropriate measures to determine whether to proceed with a business transaction where initial checks give rise to suspicions that the information provided is false and to ensure appropriate reports are made to the Financial Reporting Centre where the entity decides to proceed with transaction,” the guidelines state.
Licensees will be barred from maintaining anonymous or fictitious accounts, and will be required to monitor transactions coming from countries known for drug and human trafficking, gun running and related crimes as well as verification of numbered accounts with a view to disclose beneficial owners or controlling persons behind nominee accounts.
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