Article 5 of Anti-Money Laundering Law

Financial institutions are prohibited from opening any anonymous accounts or accounts under fictitious names, or maintaining such accounts. Financial institutions and designated non-financial businesses and professions must take into consideration the results of the risk assessment pursuant to the provisions of the preceding Article and take the following due diligence measures: Law Index 439 Home Page Anti-Money Laundering Law Law No. 106 of 2013 concerning Combating Money Laundering a- Identify and verify the identity of the customer and the beneficial owner using reliable and independent documents, data, or information. b - Understand the purpose and nature of the business relationship; additional information may be requested in this regard. c - Conduct ongoing monitoring of all matters relating to the business relationship and scrutinize any transactions carried out to ensure their consistency with the available information concerning the customer, business activities, and risk profile, and, where necessary, the sources of the customer's funds. d- Identify the customer's ownership and control structure. They must implement the due diligence measures specified in the second paragraph of this Article as follows: 1 - Before and during the opening of an account or establishment of a business relationship with the customer. 2 - Before conducting a transaction exceeding the threshold prescribed in the Executive Regulations of this Law for a customer who has no business relationship with them, whether this is a single transaction or several transactions that appear to be connected. 3 - Before conducting a domestic or international electronic transfer for a customer. 4 - When money laundering or terrorist financing operations are suspected. h - When the accuracy or adequacy of previously obtained customer identification data is suspected. The supervisory authorities may specify the cases in which financial institutions and designated non-financial businesses and professions may postpone verification of the identity of the customer or beneficial owner until after establishment of the business relationship. Financial institutions and designated non-financial businesses and professions must refrain from opening the account, commencing the business relationship, executing the transaction, or terminating the relationship if compliance with the provisions of the second paragraph of this Article is impossible. They must also consider notifying the Unit pursuant to the provisions of Article (12) of this Law. Financial institutions and designated non-financial businesses and professions shall apply specific and adequate measures to address money laundering and terrorist financing risks when opening an account, entering into business relationships, or conducting transactions with a customer who is not physically present for identification purposes. Financial institutions and designated non-financial businesses and professions shall establish appropriate risk management systems to determine whether the customer or beneficial owner is a politically exposed person. If they find this to be the case, they shall apply additional measures—in addition to those prescribed in the second paragraph of this Article—and the Executive Regulations shall specify those measures. Financial institutions and designated non-financial businesses and professions shall apply enhanced due diligence to all complex and unusually large transactions and unusual patterns of transactions that have no clear, legitimate economic purposes or objectives. They shall examine the background and purpose of such transactions, document all information relating thereto and the identity of all parties participating therein, and retain those records pursuant to the provisions of Article (11) of Law Index 440 Home Page Anti-Money Laundering Law Law No. 106 of 2013 concerning Combating Money Laundering this Law. This information shall be made available to the competent authorities upon request. Financial institutions and designated non-financial businesses and professions must apply enhanced due diligence measures to business relationships and transactions involving persons or financial institutions in countries identified as high-risk pursuant to Article (4). Existing accounts and customers—existing at the time this Law enters into force—shall be subject to due diligence measures under the provisions of this Article within an appropriate period, on the basis of material circumstances and the degree of risk, or as determined by the supervisory authorities. Financial institutions and designated non-financial businesses and professions must conduct periodic reviews to verify the validity of the data, information, and documents obtained and update them. Financial institutions and designated non-financial businesses and professions may engage third parties to perform certain elements of due diligence processes as specified by the Executive Regulations.