Regulation 4 Identification procedures

(1)

In this regulation and in regulations 5 to 7—

(a)

“A” means a person who carries on relevant business in the United Kingdom; and

(b)

“B” means an applicant for business.

(2)

This regulation applies if—

(a)

A and B form, or agree to form, a business relationship;

(b)

in respect of any one-off transaction—

(i)

A knows or suspects that the transaction involves money laundering; or

(ii)

payment of 15,000 euro or more is to be made by or to B; or

(c)

in respect of two or more one-off transactions, it appears to A (whether at the outset or subsequently) that the transactions are linked and involve, in total, the payment of 15,000 euro or more by or to B.

(3)

A must maintain identification procedures which—

(a)

require that as soon as is reasonably practicable after contact is first made between A and B—

(i)

B must produce satisfactory evidence of his identity; or

(ii)

such measures specified in the procedures must be taken in order to produce satisfactory evidence of B’s identity;

(b)

take into account the greater potential for money laundering which arises when B is not physically present when being identified;

(c)

require that where satisfactory evidence of identity is not obtained, the business relationship or one-off transaction must not proceed any further; and

(d)

require that where B acts or appears to act for another person, reasonable measures must be taken for the purpose of establishing the identity of that person.