{"id":11709,"date":"2021-04-29T21:06:47","date_gmt":"2021-04-29T20:06:47","guid":{"rendered":"https:\/\/tenintel.com\/?page_id=11709"},"modified":"2024-03-11T16:07:26","modified_gmt":"2024-03-11T16:07:26","slug":"financial-crime-compliance-counter-terror-financing-and-ultimate-beneficial-ownership-guidance","status":"publish","type":"post","link":"https:\/\/tenintel.com\/financial-crime-compliance-counter-terror-financing-and-ultimate-beneficial-ownership-guidance\/","title":{"rendered":"Financial Crime Compliance, Counter Terror Financing and Ultimate Beneficial Ownership guidance"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row full_width=&#8221;stretch_row&#8221;][vc_column]\n\n\n    <h2 id=\"hd-662ce922e8a75\" class=\"li-heading  left fw-light         vc_custom_1593694249157\" style=\"color: #ffffff;\" >\n        TenInsight            <\/h2>\n\n\n\n    \n\n\n    <h2 id=\"hd-662ce922e8a93\" class=\"li-heading  left fw-bold        \"  >\n        Financial Crime Compliance, Counter Terror Financing and Ultimate Beneficial Ownership guidance            <\/h2>\n\n\n\n    [vc_column_text]<em>Good financial crime compliance and anti-money laundering\u00a0directives all require\u00a0organisations to introduce a risk-based approach to customer and\u00a0enhanced due diligence.<\/em><\/p>\n<p><b><i>Counter Terror Financing<\/i><\/b><\/p>\n<p>When assessing the risks of money laundering and terrorist financing, organisations should check whether any\u00a0high-risk factors\u00a0apply.<\/p>\n<p>When dealing with individuals or companies established in high-risk jurisdictions, or are exposed to other cases of high risk, organisations should identify the areas of risk and apply enhanced due diligence measures to\u00a0manage and mitigate those risks\u00a0appropriately.<\/p>\n<p>Specifically, look out for:<\/p>\n<ul>\n<li>whether any business relationships are conducted in unusual circumstances<\/li>\n<li>customers that operate in geographical areas of higher risk, including areas of non AML\/CTF legislation, significant levels of corruption, countries subject to UN sanctions and\/or countries harbouring designated terrorist organisations<\/li>\n<li>whether any individuals are using personal asset-holding\u00a0vehicles<\/li>\n<li>customers who only have nominee shareholders\u00a0or shares<\/li>\n<li>if any customers are\u00a0cash-intensive<\/li>\n<li>ownership structures of customers who appear unusual or excessively complex\u00a0given the nature of their business<\/li>\n<li>whether any business relationships are based on\u00a0anonymity<\/li>\n<li>if your organisation has received funds from\u00a0unknown parties<\/li>\n<\/ul>\n<p><b><i>Ultimate Beneficial Owners<\/i><\/b><\/p>\n<p>Identifying accurate, audited and up-to-date\u00a0information on beneficial owners\u00a0is a powerful tool in deterring financial crime activity, and to help identify those who might hide their identity behind corporate structures.<\/p>\n<p>A beneficial owner means any\u00a0natural person or persons, who ultimately owns or controls an\u00a0organisation.<\/p>\n<p>Most Anti-Money Laundering directives state that a shareholding of 25% or more, whether it be a natural person or corporate entity, shall be an indication of direct ownership.<\/p>\n<p>Depending on an organisation\u2019s risk-based approach, a lower percentage can be set depending on their criteria.\u00a0\u00a0In exceptional cases, organisations having exhausted all other means of identification and provided there are no grounds for suspicion, may consider the senior managing\u00a0officials\u00a0to be the beneficial owners.<\/p>\n<p>As part of the risk-based approach, organisations can reduce the likelihood of financial crime, assisting with customer and enhanced due diligence by;<\/p>\n<ul>\n<li>identifying the customer and verify the\u00a0customer\u2019s identity\u00a0on the basis of documents, data or information obtained from a reliable and independent source<\/li>\n<li>take reasonable measures to verify the\u00a0beneficial owner\u2019s identity<\/li>\n<li>take\u00a0reasonable measures\u00a0to understand the ownership and control structure of the customer<\/li>\n<li>verify the\u00a0control structure\u00a0and ultimate beneficial owner<\/li>\n<li>conduct ongoing monitoring of the business relationship including\u00a0scrutiny of transactions undertaken throughout the course of that relationship to ensure compliance<\/li>\n<li>verify that any person purporting to act on behalf of the customer is\u00a0authorised\u00a0and identify and verify the identity of that person<\/li>\n<\/ul>\n<p><b><i>Politically Exposed Persons (PEPs)<\/i><\/b><\/p>\n<p>With respect to transactions or\u00a0business relationships with PEPs, organisations must implement\u00a0appropriate risk-based procedures, to determine whether the customer or the beneficial owner of the customer, is a PEP.\u00a0 Approval from senior management to establish or continue business relationships with PEPs is required.<\/p>\n<p>Organisations can help satisfy\u00a0PEP compliance by:<\/p>\n<ul>\n<li>checking and verifying\u00a0sanction lists and registers\u00a0to identify PEPs, close associates and subjects of interest<\/li>\n<li>establishing the\u00a0source of wealth\u00a0or funds that are involved in business relationships or transactions with PEPs<\/li>\n<li>conducting enhanced,\u00a0ongoing monitoring\u00a0of business relationships with PEPs<\/li>\n<\/ul>\n<p>Notes:<\/p>\n<p>If a PEP is no longer entrusted with a prominent public role, organisations are still obliged, for a period of at least 12 months, to continue enhanced due diligence with respect to the PEP until such a time that the PEP is deemed to pose no further risk.<\/p>\n<p>EU Directive measures are of a preventative and not criminal nature and should not be interpreted as categorising a PEP as being involved in criminal activity. Although PEPs are considered a risk due to their public life making them vulnerable to corruption, organisations should not simply refuse a business relationship on the basis that he or she is a PEP, as this is contrary to the ethos of the Directive.[\/vc_column_text][\/vc_column][\/vc_row][vc_row full_width=&#8221;stretch_row&#8221; css=&#8221;.vc_custom_1570460800951{margin-top: -5px !important;margin-bottom: 0px !important;padding-bottom: 30px !important;background-color: #58a2e2 !important;}&#8221;][vc_column width=&#8221;1\/4&#8243;][vc_empty_space]\n\n    <div id=\"tb-662ce922e8a9f\" class=\"li-textblock         \"  >\n        <h2 class=\"section_header\"><span style=\"color: #575756;\">Our<\/span><br \/>\n<span class=\"highlight\" style=\"color: #ffffff;\">Services<\/span><\/h2>\n    <\/div>\n\n\n     [\/vc_column][vc_column width=&#8221;1\/4&#8243; css=&#8221;.vc_custom_1570375740876{background-color: #58a2e2 !important;}&#8221;]\n\n    <div id=\"tb-662ce922e8ad5\" class=\"li-textblock         \"  >\n        <h2 style=\"text-align: center;\"><a href=\"\/\/tenintel.com\/due-diligence\/\"><span style=\"color: #575756;\">Due Diligence<\/span><\/a><\/h2>\n    <\/div>\n\n\n     \n\n    <div id=\"tb-662ce922e8af5\" class=\"li-textblock   content-center-md      \"  >\n        <h4 style=\"text-align: center;\"><a class=\"white\" href=\"https:\/\/tenintel.com\/international-background-checks\/\">International Background Checks<\/a><\/h4>\n<h4 style=\"text-align: center;\"><a class=\"white\" href=\"\/\/tenintel.com\/financial-crime-compliance\/\">Financial Crime Compliance<\/a><\/h4>\n<h4 style=\"text-align: center;\"><a class=\"white\" href=\"\/\/tenintel.com\/strategic-intelligence\/\">Strategic Intelligence<\/a><\/h4>\n    <\/div>\n\n\n     [\/vc_column][vc_column width=&#8221;1\/4&#8243; css=&#8221;.vc_custom_1570375730154{background-color: #58a2e2 !important;}&#8221;]\n\n    <div id=\"tb-662ce922e8b18\" class=\"li-textblock         \"  >\n        <h2 style=\"text-align: center;\"><a href=\"\/\/tenintel.com\/investigations\/\"><span style=\"color: #575756;\">Investigations<\/span><\/a><\/h2>\n    <\/div>\n\n\n     \n\n    <div id=\"tb-662ce922e8b32\" class=\"li-textblock         \"  >\n        <h4 style=\"text-align: center;\"><a class=\"white\" href=\"\/\/tenintel.com\/corporate-fraud\">Corporate Fraud<\/a><\/h4>\n<h4 style=\"text-align: center;\"><a class=\"white\" href=\"\/\/tenintel.com\/litigation-support\">Litigation Support<\/a><\/h4>\n<h4 style=\"text-align: center;\"><a class=\"white\" href=\"Digital-Forensics\">Digital Forensics<\/a><\/h4>\n    <\/div>\n\n\n     [\/vc_column][vc_column width=&#8221;1\/4&#8243; css=&#8221;.vc_custom_1570375664571{background-color: #58a2e2 !important;}&#8221;]\n\n    <div id=\"tb-662ce922e8b51\" class=\"li-textblock         \"  >\n        <h2 style=\"text-align: center;\"><a href=\"https:\/\/tenintel.com\/corporate-security\/\">Corporate Security<\/a><\/h2>\n    <\/div>\n\n\n     \n\n    <div id=\"tb-662ce922e8b76\" class=\"li-textblock         \"  >\n        <h4 style=\"text-align: center;\"><a class=\"white\" href=\"\/\/tenintel.com\/brand-protection\/\">Brand Protection<\/a><\/h4>\n<h4 style=\"text-align: center;\"><a class=\"white\" href=\"https:\/\/tenintel.com\/corporate-security\/\">Cyber Security<\/a><\/h4>\n<h4 style=\"text-align: center;\"><a class=\"white\" href=\"https:\/\/tenintel.com\/corporate-security\/\">Corporate Security<\/a><\/h4>\n    <\/div>\n\n\n     [\/vc_column][\/vc_row][vc_row full_width=&#8221;stretch_row&#8221; css=&#8221;.vc_custom_1570379858100{margin-bottom: -20px !important;padding-top: 20px !important;padding-bottom: 20px !important;background-color: #243d6b !important;}&#8221;][vc_column]\n\n\n    <h5 id=\"hd-662ce922e8b9d\" class=\"li-heading  right fw-normal        \" style=\"color: #ffffff;\" >\n        Our Intelligence | Your Assurance            <\/h5>\n\n\n\n    [\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>[vc_row full_width=&#8221;stretch_row&#8221;][vc_column][vc_column_text]Good financial crime compliance and anti-money laundering\u00a0directives all require\u00a0organisations to introduce a risk-based approach to customer and\u00a0enhanced due diligence. Counter Terror Financing When assessing the risks of money laundering and terrorist financing, organisations should check whether any\u00a0high-risk factors\u00a0apply. When dealing with individuals or companies established in high-risk jurisdictions, or are exposed to other cases [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[7],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v22.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Counter Terror Financing &amp; Beneficial Ownership - TenIntelligence<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tenintel.com\/financial-crime-compliance-counter-terror-financing-and-ultimate-beneficial-ownership-guidance\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Financial Crime Compliance, Counter Terror Financing and Ultimate Beneficial Ownership guidance\" \/>\n<meta property=\"og:description\" content=\"[vc_row full_width=&#8221;stretch_row&#8221;][vc_column][vc_column_text]Good financial crime compliance and anti-money laundering\u00a0directives all require\u00a0organisations to introduce a risk-based approach to customer and\u00a0enhanced due diligence. Counter Terror Financing When assessing the risks of money laundering and terrorist financing, organisations should check whether any\u00a0high-risk factors\u00a0apply. When dealing with individuals or companies established in high-risk jurisdictions, or are exposed to other cases [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/tenintel.com\/financial-crime-compliance-counter-terror-financing-and-ultimate-beneficial-ownership-guidance\/\" \/>\n<meta property=\"og:site_name\" content=\"TenIntelligence\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/TenIntelligence\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-29T20:06:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-11T16:07:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/tenintel.com\/wp-content\/uploads\/2023\/05\/Untitled-2.png\" \/>\n\t<meta property=\"og:image:width\" content=\"500\" \/>\n\t<meta property=\"og:image:height\" content=\"267\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Neil Miller\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@TenIntelligence\" \/>\n<meta name=\"twitter:site\" content=\"@TenIntelligence\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Neil Miller\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Counter Terror Financing & Beneficial Ownership - TenIntelligence","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/tenintel.com\/financial-crime-compliance-counter-terror-financing-and-ultimate-beneficial-ownership-guidance\/","og_locale":"en_GB","og_type":"article","og_title":"Financial Crime Compliance, Counter Terror Financing and Ultimate Beneficial Ownership guidance","og_description":"[vc_row full_width=&#8221;stretch_row&#8221;][vc_column][vc_column_text]Good financial crime compliance and anti-money laundering\u00a0directives all require\u00a0organisations to introduce a risk-based approach to customer and\u00a0enhanced due diligence. Counter Terror Financing When assessing the risks of money laundering and terrorist financing, organisations should check whether any\u00a0high-risk factors\u00a0apply. 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