20th May 2021

The Financial Intelligence Analysis Unit (FIAU) has today issuing a revised version of its Implementing Procedures – Part I, which version incorporates changes to Section 4.3.2.4 and Section 4.3.2.5 thereof.

These sections set out the identification and verification of identity requirements that subject persons are to meet when their customer happens to be a foundation, an association or a trust.  As part of these requirements, subject persons are to identify and verify the identity of the beneficial owner/s of any such customer.  Situations can arise where the subject person finds that any one of the persons listed in Section 4.3.2.4 (iv) and Section 4.3.2.5 (iii) as having to be considered as a beneficial owner is not a natural person but rather a body corporate, a body of persons or a legal arrangement.

Earlier versions of the Implementing Procedures – Part I used to require that the subject person simply looks beyond any such entity or arrangement, and to identify the individuals behind this, when the entity or arrangement happened to be the beneficiary of the foundation, association or trust.  The revised version of the Implementing Procedures released today extends this requirement to all other instances. 

Thus, whenever it results that:

(a) a founder, administrator, protector or beneficiary of a foundation or association; or

(b) the settlor, trustee, protector or beneficiary of a trust

are body corporates, bodies of persons or a legal arrangement, the subject person is required to identify and verify the said body corporate, body of persons or legal arrangements in line with the requirements of Section 4.3.2.1 to Section 4.3.2.5 of the Implementing Procedures – Part I and also determine who is the beneficial owner of any such body corporate, body of persons or legal arrangement.

Additional changes which were the subject of the consultation exercise conducted in March/April 2021 are in the process of being implemented and a further revised version of the Implementing Procedures will be released early in June 2021. 

The revised version of the Implementing Procedures – Part I can be accessed by clicking the button below. Any queries in relation to the amendments carried out can be forwarded to the FIAU via email on [email protected] .