Identification requirements

3.1

Statutory requirements

Both the law and HD Faculty™ require that all Clients, including Infrabanx Agencies and their respective nominee financial institutions carrying on financial business to maintain client identification procedures in accordance with the relevant jurisdiction prevailing practices. The essence of these requirements is that, except where the law states that client identification need not be made, subsidiary and its portfolio manager or custodian as appropriate must verify the identity of a prospective client.

HD Faculty™ as the Compliance Supervisor for all Clients, including Clients, including Infrabanx Agencies and their authorised agents, and/or portfolio managers as appropriate issues these Rules, Regulations, and Instructions under the provisions of the law in order to set out the practice to which Clients, including Infrabanx Agencies and their authorised agents, and/or portfolio managers as appropriate should adhere in order to comply with the requirements of the law and HD Faculty™s set rules and regulations on the subject of clients, investors, participants, and partners' identification.

3.2

Know your client

The need within financial sector businesses for the “know your client” process is vital for the prevention of money laundering and underpins all other activities. subsidiary and its portfolio manager or custodian as appropriate should establish to its satisfaction that it is dealing with a person (natural or legal) that actually exists, and identify those persons duly authorised to undertake investment transactions.

When a business relationship is being established, the nature of the business that the Client expects to conduct with the subsidiary and its portfolio manager or custodian concerned should be ascertained to show what might be expected as normal activity.

In order to be able to judge whether a transaction is or is not suspicious, a subsidiary and its portfolio manager or custodian as appropriate needs to have a clear understanding of the pattern of its client’s business, as this develops into an ongoing relationship. Suspicious transactions may arise at any stage and frequently occur within an established business relationship rather than at the outset.

3.3

Identity and verify

A person’s identity comprises his/her name and all other names used (including nick names), together with the current permanent address at which the person can be located. Date of birth is also a useful indicator. Ideally, to identify someone face to face an official document bearing a photograph of the person should also be obtained. However, photographic evidence of identity is only of value to identify clients who are seen face to face. It is neither safe nor reasonable to require a prospective client to send a passport through the post.

Whenever a business relationship is to be established, or a one-off transaction or series of linked transactions of two (2) or more is undertaken, the identification procedures must be followed. Once identification procedures have been satisfactorily completed, then as long as records are maintained in accordance with this Part (handbook), and some contact is maintained with the Client no further evidence is needed when subsequent transactions are undertaken.

Irrespective of the size and nature of the transactions and any exemptions in force, identity should be verified in all unusual and unexplained circumstances and, if money laundering is known or suspected, identity must be verified and the details reported in line with the procedures set out herein.

3.4

Establishing Satisfactory Evidence of Identity

In circumstances other than those covered by the exemptions set out in the paragraphs above, identity must be verified. Other than in general terms, the law does not specify what constitutes effective and adequate verification of identity. This section of Part 6 (rules, requirements, and instructions) therefore sets out what might reasonably be expected of subsidiaries and their authorised agents, and/or portfolio managers as appropriate in this respect.

The verification procedures necessary to establish the identity of the prospective client should basically be the same regardless of what type of financial services is required. The best identification documents possible should be obtained from the prospective client i.e. those that are the most difficult to obtain illicitly and those issued by reputable sources. However, it must be appreciated that no single form of identification can be fully guaranteed as genuine or representing correct identity and the identification process will generally need to be cumulative.

Some forms of identification are more reliable than others and, in many cases, it will be prudent for the subsidiary and its authorised agents, and/or portfolio managers as appropriate to carry out more than one check, by requesting more than two (2) pieces of identification document. It is recommended that each client’s file should show the steps taken to verify his/her identity. Where practical, file copies of the supporting evidence should be retained. Alternatively, the reference numbers and other relevant details should be recorded. The member of Client Care Department undertaking the account opening procedures or the initial transaction should be recorded in the Client’s file. Whenever possible, the prospective client should be interviewed personally using the KlirView system requirement checklist.

3.5

Timing of Verification Requirements

Where evidence of identity is required, the law provides that this must be obtained “as soon as is reasonably practicable” after contact is first made between the Client and the subsidiary and its portfolio manager or custodian as appropriate. What constitutes an acceptable time span must be determined in the light of all the circumstances including the nature of the business and the geographical location of the parties concerned. As a rule, subsidiaries and their authorised agents, and/or portfolio managers as appropriate should only start processing the business provided that satisfactory evidence of identity has been obtained.

3.6

Procedures to verify identity

3.6.1 Personal Clients

The following information should be obtained from prospective personal clients and should be independently verified:

true name and/or names used;
current temporary the host country address (if any), including postal code;
current permanent address outside the host country;
date of birth;
profession or occupatio

Ideally the name or names used should be verified by reference to a document obtained from a reputable source which bears a photograph. Wherever possible a current valid full passport or national identity card should be requested and the number registered. In addition, subsidiaries and their authorised agents, and/or portfolio managers as appropriate are advised, if in any doubt, to seek to verify identity with a reputable credit or financial institution in the Client’s country of residence.

There are obviously a wide range of other documents that clients might produce as evidence of their identity and it is for each subsidiary and its portfolio manager or custodian as appropriate to decide the appropriateness of such documents.

In addition to the name verification, it is important that the current temporary and/or permanent address should also be verified. Some of the best means of verifying address are:

requesting sight of a recent utility bill, local authority tax bill, bank statement (to guard against forged or counterfeit documents care should be taken to check that the documents offered are originals);
a face-to-face visit to the applicant for business at his temporary or permanent home address or at his work;
checking a local telephone directory where a temporary or permanent address is maintained.

In addition to the above, an introduction from a respected client personally known to the subsidiary and its portfolio manager or custodian as appropriate, or from a trusted member of Client Care Department, may assist the verification procedure but such personal introductions without full verification should not become the norm. Details of the introduction should be recorded in the Client’s file.

For prospective clients who request the subsidiary’s portfolio manager or custodian’s services via post, it will not be practical to seek sight of a passport or national identity card. Verification of identity should therefore be sought from a reputable credit or financial institution in the applicant’s country of permanent or temporary residence. Verification details should be requested covering true name or names used, current temporary and/or permanent address and verification of signature through the domestic C.I.S.R.A.E.D. Operating Centre, if any, (or its nominee).

3.6.2 Partnerships and Unincorporated Business Clients

In the case of partnerships and other unincorporated businesses whose partners/directors are not known to the subsidiary and its portfolio manager or custodian as appropriate, the identity of at least two partners should be verified in line with the requirements for personal clients. Furthermore, in the case of partnerships, subsidiaries and their authorised agents, and/or portfolio managers as appropriate should also obtain the original or certified copy of the certificate of registration.

In cases where a formal partnership arrangement exists, a mandate from the partnership authorising those persons duly authorised to undertake investment transactions on behalf of the partnership should be obtained.

3.6.3 Corporate Clients

Because of possible difficulties of identifying beneficial ownership and the complexity of their organisations and structures, corporate clients are one of the most likely vehicles for money laundering, particularly when fronted by a legitimate trading company. Particular care should be taken to verify the legal existence of the Client and to ensure that any person purporting to act on behalf of the Client is so authorised. The principal requirement is to look behind the corporate entity to identify those who have ultimate control over the business and the company’s assets, with particular attention paid to any shareholders or others who inject a significant proportion of the capital or financial support. Enquiries should be made to confirm that the company exists for a legitimate trading or economic purpose.

Before a business relationship is established, measures should be taken by way of company search and/or other commercial enquiries to ensure that the prospective corporate client has not been, or is not in the process of being, dissolved, struck off, wound up or terminated.

The company’s business profile in terms of the nature and scale of its activities must also be established. Where deemed appropriate under the circumstances, a search of the file at the Companies’ Registry should be made.

The following documents must be obtained:

the original or certified copy of the Certificate of Incorporation;
the original or certified copy of its Memorandum and Articles of association;
in the case of a regulated related company within the host country that is structured as an international business company (“IBC”) or overseas company registered in the host country, a copy of the Exchange Control permit granted to the Regulatory Authorities.

Any subsidiary that need to be identified in connection with such companies must be identified in accordance with the procedures outlined in these Rules, Regulations, and Instructions.

Subsidiaries and their authorised agents, and/or portfolio managers as appropriate may accept as clients companies whose own shares or those of their holding companies (if any) have been issued or may be issued in the form of bearer shares, provided that the prospective corporate client fulfils one of the under-mentioned prerequisites:

Its shares are traded on a recognised stock exchange;
It is authorised as a collective investment programme, under the laws of properly regulated and supervised jurisdictions;
Its shares are beneficially owned or controlled by governments or governmental undertakings;
Multinational corporations with a good international reputation and a proven track record of financial stability beneficially own its shares.

Subsidiaries and their authorised agents, and/or portfolio managers as appropriate may also establish business relationships with companies whose own shares or those of their holding companies (if any) have been issued or may be issued to bearer and do not meet the above prerequisites provided that:

The identity and background of the beneficial owners/director(s) of the company is ascertained before establishing the business relationship.
Before establishing the business relationship, the director(s) is/are asked to provide an estimation of the amount of funds likely to be invested. The bigger the estimated amount, the more reluctant the subsidiary and its portfolio manager or custodian should be. At least twice a year, a review should be carried out and a note prepared summarising the results of the review, which must be kept in the Client’s file. Any serious deviation from the estimates, should be investigated.
The subsidiary and their portfolio manager or custodian obtains a confirmation from a bank that it has under its custody the bearer share certificates and, in case of their release, shall inform it accordingly.
At least once every year, the directors confirm that the capital base and the shareholding structure of the company or that of its holding company (if any) has not been altered by the issue of new bearer shares or the cancellation of existing ones.
When the company’s beneficial ownership changes then the subsidiary and its portfolio manager or custodian as appropriate should consider whether it is advisable to continue the business relationship.

3.6.4 Trustee or Nominee clients

Subsidiary and its portfolio manager or custodian as appropriate must always establish the identity of a trustee or nominee acting in relation to a third party in accordance with the identification procedures for personal or corporate clients as the case may be.

Subsidiary and its portfolio manager or custodian as appropriate must also take all measures deemed appropriate under the circumstances for the purpose of establishing the identity of any person or persons on whose behalf a trustee or nominee is acting

Identification requirements

PAYMENT AND SETTLEMENT

NOTICE

Totalinfra Initiatives

IDENTIFICATION REQUIREMENTS AND PROCEDURES
3.1	Statutory requirements
	Both the law and HD Faculty™ require that all Clients, including Infrabanx Agencies and their respective nominee financial institutions carrying on financial business to maintain client identification procedures in accordance with the relevant jurisdiction prevailing practices. The essence of these requirements is that, except where the law states that client identification need not be made, subsidiary and its portfolio manager or custodian as appropriate must verify the identity of a prospective client. HD Faculty™ as the Compliance Supervisor for all Clients, including Clients, including Infrabanx Agencies and their authorised agents, and/or portfolio managers as appropriate issues these Rules, Regulations, and Instructions under the provisions of the law in order to set out the practice to which Clients, including Infrabanx Agencies and their authorised agents, and/or portfolio managers as appropriate should adhere in order to comply with the requirements of the law and HD Faculty™s set rules and regulations on the subject of clients, investors, participants, and partners' identification.
3.2	Know your client
	The need within financial sector businesses for the “know your client” process is vital for the prevention of money laundering and underpins all other activities. subsidiary and its portfolio manager or custodian as appropriate should establish to its satisfaction that it is dealing with a person (natural or legal) that actually exists, and identify those persons duly authorised to undertake investment transactions. When a business relationship is being established, the nature of the business that the Client expects to conduct with the subsidiary and its portfolio manager or custodian concerned should be ascertained to show what might be expected as normal activity. In order to be able to judge whether a transaction is or is not suspicious, a subsidiary and its portfolio manager or custodian as appropriate needs to have a clear understanding of the pattern of its client’s business, as this develops into an ongoing relationship. Suspicious transactions may arise at any stage and frequently occur within an established business relationship rather than at the outset.
3.3	Identity and verify
	A person’s identity comprises his/her name and all other names used (including nick names), together with the current permanent address at which the person can be located. Date of birth is also a useful indicator. Ideally, to identify someone face to face an official document bearing a photograph of the person should also be obtained. However, photographic evidence of identity is only of value to identify clients who are seen face to face. It is neither safe nor reasonable to require a prospective client to send a passport through the post. Whenever a business relationship is to be established, or a one-off transaction or series of linked transactions of two (2) or more is undertaken, the identification procedures must be followed. Once identification procedures have been satisfactorily completed, then as long as records are maintained in accordance with this Part (handbook), and some contact is maintained with the Client no further evidence is needed when subsequent transactions are undertaken. Irrespective of the size and nature of the transactions and any exemptions in force, identity should be verified in all unusual and unexplained circumstances and, if money laundering is known or suspected, identity must be verified and the details reported in line with the procedures set out herein.
3.4	Establishing Satisfactory Evidence of Identity
	In circumstances other than those covered by the exemptions set out in the paragraphs above, identity must be verified. Other than in general terms, the law does not specify what constitutes effective and adequate verification of identity. This section of Part 6 (rules, requirements, and instructions) therefore sets out what might reasonably be expected of subsidiaries and their authorised agents, and/or portfolio managers as appropriate in this respect. The verification procedures necessary to establish the identity of the prospective client should basically be the same regardless of what type of financial services is required. The best identification documents possible should be obtained from the prospective client i.e. those that are the most difficult to obtain illicitly and those issued by reputable sources. However, it must be appreciated that no single form of identification can be fully guaranteed as genuine or representing correct identity and the identification process will generally need to be cumulative. Some forms of identification are more reliable than others and, in many cases, it will be prudent for the subsidiary and its authorised agents, and/or portfolio managers as appropriate to carry out more than one check, by requesting more than two (2) pieces of identification document. It is recommended that each client’s file should show the steps taken to verify his/her identity. Where practical, file copies of the supporting evidence should be retained. Alternatively, the reference numbers and other relevant details should be recorded. The member of Client Care Department undertaking the account opening procedures or the initial transaction should be recorded in the Client’s file. Whenever possible, the prospective client should be interviewed personally using the KlirView system requirement checklist.
3.5	Timing of Verification Requirements
	Where evidence of identity is required, the law provides that this must be obtained “as soon as is reasonably practicable” after contact is first made between the Client and the subsidiary and its portfolio manager or custodian as appropriate. What constitutes an acceptable time span must be determined in the light of all the circumstances including the nature of the business and the geographical location of the parties concerned. As a rule, subsidiaries and their authorised agents, and/or portfolio managers as appropriate should only start processing the business provided that satisfactory evidence of identity has been obtained.
3.6	Procedures to verify identity
	3.6.1 Personal Clients
	The following information should be obtained from prospective personal clients and should be independently verified: true name and/or names used; current temporary the host country address (if any), including postal code; current permanent address outside the host country; date of birth; profession or occupatio
	Ideally the name or names used should be verified by reference to a document obtained from a reputable source which bears a photograph. Wherever possible a current valid full passport or national identity card should be requested and the number registered. In addition, subsidiaries and their authorised agents, and/or portfolio managers as appropriate are advised, if in any doubt, to seek to verify identity with a reputable credit or financial institution in the Client’s country of residence. There are obviously a wide range of other documents that clients might produce as evidence of their identity and it is for each subsidiary and its portfolio manager or custodian as appropriate to decide the appropriateness of such documents. In addition to the name verification, it is important that the current temporary and/or permanent address should also be verified. Some of the best means of verifying address are: requesting sight of a recent utility bill, local authority tax bill, bank statement (to guard against forged or counterfeit documents care should be taken to check that the documents offered are originals); a face-to-face visit to the applicant for business at his temporary or permanent home address or at his work; checking a local telephone directory where a temporary or permanent address is maintained.
	In addition to the above, an introduction from a respected client personally known to the subsidiary and its portfolio manager or custodian as appropriate, or from a trusted member of Client Care Department, may assist the verification procedure but such personal introductions without full verification should not become the norm. Details of the introduction should be recorded in the Client’s file. For prospective clients who request the subsidiary’s portfolio manager or custodian’s services via post, it will not be practical to seek sight of a passport or national identity card. Verification of identity should therefore be sought from a reputable credit or financial institution in the applicant’s country of permanent or temporary residence. Verification details should be requested covering true name or names used, current temporary and/or permanent address and verification of signature through the domestic C.I.S.R.A.E.D. Operating Centre, if any, (or its nominee).
	3.6.2 Partnerships and Unincorporated Business Clients
	In the case of partnerships and other unincorporated businesses whose partners/directors are not known to the subsidiary and its portfolio manager or custodian as appropriate, the identity of at least two partners should be verified in line with the requirements for personal clients. Furthermore, in the case of partnerships, subsidiaries and their authorised agents, and/or portfolio managers as appropriate should also obtain the original or certified copy of the certificate of registration. In cases where a formal partnership arrangement exists, a mandate from the partnership authorising those persons duly authorised to undertake investment transactions on behalf of the partnership should be obtained.
	3.6.3 Corporate Clients
	Because of possible difficulties of identifying beneficial ownership and the complexity of their organisations and structures, corporate clients are one of the most likely vehicles for money laundering, particularly when fronted by a legitimate trading company. Particular care should be taken to verify the legal existence of the Client and to ensure that any person purporting to act on behalf of the Client is so authorised. The principal requirement is to look behind the corporate entity to identify those who have ultimate control over the business and the company’s assets, with particular attention paid to any shareholders or others who inject a significant proportion of the capital or financial support. Enquiries should be made to confirm that the company exists for a legitimate trading or economic purpose. Before a business relationship is established, measures should be taken by way of company search and/or other commercial enquiries to ensure that the prospective corporate client has not been, or is not in the process of being, dissolved, struck off, wound up or terminated. The company’s business profile in terms of the nature and scale of its activities must also be established. Where deemed appropriate under the circumstances, a search of the file at the Companies’ Registry should be made. The following documents must be obtained: the original or certified copy of the Certificate of Incorporation; the original or certified copy of its Memorandum and Articles of association; in the case of a regulated related company within the host country that is structured as an international business company (“IBC”) or overseas company registered in the host country, a copy of the Exchange Control permit granted to the Regulatory Authorities. Any subsidiary that need to be identified in connection with such companies must be identified in accordance with the procedures outlined in these Rules, Regulations, and Instructions. Subsidiaries and their authorised agents, and/or portfolio managers as appropriate may accept as clients companies whose own shares or those of their holding companies (if any) have been issued or may be issued in the form of bearer shares, provided that the prospective corporate client fulfils one of the under-mentioned prerequisites: Its shares are traded on a recognised stock exchange; It is authorised as a collective investment programme, under the laws of properly regulated and supervised jurisdictions; Its shares are beneficially owned or controlled by governments or governmental undertakings; Multinational corporations with a good international reputation and a proven track record of financial stability beneficially own its shares. Subsidiaries and their authorised agents, and/or portfolio managers as appropriate may also establish business relationships with companies whose own shares or those of their holding companies (if any) have been issued or may be issued to bearer and do not meet the above prerequisites provided that: The identity and background of the beneficial owners/director(s) of the company is ascertained before establishing the business relationship. Before establishing the business relationship, the director(s) is/are asked to provide an estimation of the amount of funds likely to be invested. The bigger the estimated amount, the more reluctant the subsidiary and its portfolio manager or custodian should be. At least twice a year, a review should be carried out and a note prepared summarising the results of the review, which must be kept in the Client’s file. Any serious deviation from the estimates, should be investigated. The subsidiary and their portfolio manager or custodian obtains a confirmation from a bank that it has under its custody the bearer share certificates and, in case of their release, shall inform it accordingly. At least once every year, the directors confirm that the capital base and the shareholding structure of the company or that of its holding company (if any) has not been altered by the issue of new bearer shares or the cancellation of existing ones. When the company’s beneficial ownership changes then the subsidiary and its portfolio manager or custodian as appropriate should consider whether it is advisable to continue the business relationship.
	3.6.4 Trustee or Nominee clients
	Subsidiary and its portfolio manager or custodian as appropriate must always establish the identity of a trustee or nominee acting in relation to a third party in accordance with the identification procedures for personal or corporate clients as the case may be. Subsidiary and its portfolio manager or custodian as appropriate must also take all measures deemed appropriate under the circumstances for the purpose of establishing the identity of any person or persons on whose behalf a trustee or nominee is acting

Identification requirements

Authenticated user login

PAYMENT AND SETTLEMENT

NOTICE

Totalinfra Initiatives