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  • FC-1.2 Face-to-face Business

    • Natural Persons

      • FC-1.2.1

        If the customer is a natural person, investment firm licensees must obtain and record the following information (in hard copy or electronic form), before providing financial services of any kind:

        (a) Full legal name and any other names used;
        (b) Full permanent address (i.e. the residential address of the customer; a post office box is insufficient);
        (c) Date and place of birth;
        (d) Nationality;
        (e) Passport number (if the customer is a passport holder);
        (f) CPR or residency permit number (for residents of Bahrain or GCC states);
        (g) Telephone/fax number and email address (where applicable);
        (h) Occupation or public position held (where applicable);
        (i) Employer's name and address (if self-employed, the nature of the self-employment);
        (j) Type of account, and nature and volume of anticipated business dealings with the licensee;
        (k) Signature of the customer(s); and
        (l) Source of funds.
        Amended: July 2018
        Amended: July 2010
        Amended: January 2007

      • FC-1.2.2

        See the Guidance Notes (filed under Supplementary Information in Part B of Volume 4) for further information on source of funds (FC-1.2.1(1)) and CDD requirements for Bahrain residents (FC-1.2.1(c) & (f)).

      • FC-1.2.3

        Investment firm licensees must verify the information in Paragraph FC-1.2.1(a) to (f), by the following methods below; at least one of the copies of the identification documents mentioned in (a) and (b) below must include a clear photograph of the customer:

        (a) Confirmation of the date of birth and legal name, by taking a copy of a current valid official original identification document (e.g. birth certificate, passport, CPR or residency permit);
        (b) Confirmation of the permanent residential address by taking a copy of a recent utility bill, bank statement or similar statement from another licensee or financial institution, or some form of official correspondence or official documentation card, such as CPR, from a public/governmental authority, or a tenancy agreement or record of home visit by an official of the licensee; and
        (c) Where appropriate, direct contact with the customer by phone, letter or email to confirm relevant information, such as residential address information.
        Amended: July 2010
        Amended: January 2007

      • FC-1.2.4

        Any document copied for the purpose of identification verification must be an original. An authorised official of the licensee must certify the copy, by writing on it the words 'original sighted', together with the date and his signature. Equivalent measures must be taken for electronic copies.

        Amended: January 2007

      • FC-1.2.5

        Identity documents which are not obtained by an authorised official of the licensee in original form (e.g. due to a customer sending a copy by post following an initial meeting) must instead be certified (as per FC-1.2.4) by one of the following from a GCC or FATF member state:

        (a) A lawyer;
        (b) A notary;
        (c) A chartered/certified accountant;
        (d) An official of a government ministry;
        (e) An official of an embassy or consulate; or
        (f) An official of another licensed financial institution or of a licensed associate company of the licensee.
        Amended: July 2010
        Amended: January 2007

      • FC-1.2.6

        The individual making the certification under FC-1.2.5 must give clear contact details (e.g. by attaching a business card or company stamp). The licensee must verify the identity of the person providing the certification through checking membership of a professional organisation (for lawyers or accountants), or through checking against databases/websites, or by direct phone or email contact.

        Amended: January 2007

    • Legal Entities or Legal Arrangements (such as trusts)

      • FC-1.2.7

        If the customer is a legal entity or a legal arrangement such as a trust, the licensee must obtain and record the following information from original identification documents, databases or websites, in hard copy or electronic form, to identify the customer and to take reasonable measures to verify its identity, legal existence and structure:

        (a) The entity's full name and other trading names used;
        (b) Registration number (or equivalent);
        (c) Legal form and proof of existence;
        (d) Registered address and trading address (where applicable);
        (e) Type of business activity;
        (f) Date and place of incorporation or establishment;
        (g) Telephone, fax number and email address;
        (h) Regulatory body or listing body (for regulated activities such as financial services and listed companies);
        (hh) The names of the relevant persons having a senior management position in the legal entity or legal arrangement;
        (i) Name of external auditor (where applicable);
        (j) Type of account, and nature and volume of anticipated business dealings with the licensee; and
        (k) Source of funds.
        Amended: October 2017
        Amended: January 2007

      • FC-1.2.8

        The information provided under FC-1.2.7 must be verified by obtaining certified copies of the following documents, as applicable (depending on the legal form of the entity):

        (a) Certificate of incorporation and/or certificate of commercial registration or trust deed;
        (b) Memorandum of association;
        (c) Articles of association;
        (d) Partnership agreement;
        (e) Board resolution seeking the financial services (only necessary in the case of private or unlisted companies);
        (f) Identification documentation of the authorised signatories of the account (certification not necessary for companies listed in a GCC/FATF state);
        (g) Copy of the latest financial report and accounts, audited where possible (audited copies do not need to be certified); and
        (h) List of persons authorised to do business on behalf of the company and in the case of the opening of an account, a Board resolution (or other applicable document) authorising the named persons to operate the account (resolution only necessary for private or unlisted companies).
        Amended: July 2016
        Amended: January 2007

      • FC-1.2.8A

        For customers that are legal persons, Investment firm licensees must identify and take reasonable measures to verify the identity of beneficial owners through the following information:

        (a) The identity of the natural person(s) who ultimately have a controlling ownership interest in a legal person, and
        (b) To the extent that there is doubt under (a) as to whether the person(s) with the controlling ownership interest is the beneficial owner(s), or where no natural person exerts control of the legal person or arrangement through other means; and
        (c) Where no natural person is identified under (a) or (b) above, the identity of the relevant natural person who holds the position of senior managing official.
        Added: October 2017

      • FC-1.2.9

        Documents obtained to satisfy the requirements in Paragraph FC-1.2.8 above must be certified in the manner specified in Paragraphs FC-1.2.4 to FC-1.2.6.

        Amended: January 2007

      • FC-1.2.9A

        For the purpose of Paragraph FC-1.2.8(a), the requirement to obtain a certified copy of the commercial registration, may be satisfied by obtaining a commercial registration abstract printed directly from the Ministry of Industry, Commerce and Tourism's website, through "SIJILAT Commercial Registration Portal".

        Added: January 2017

      • FC-1.2.10

        The documentary requirements in Paragraph FC-1.2.8 above do not apply in the case of listed companies: see Section FC-1.8 below. Also, the documents listed in Paragraph FC-1.2.8 above are not exhaustive: for customers from overseas jurisdictions, documents of an equivalent nature may be produced as satisfactory evidence of a customer's identity.

        Amended: January 2007

      • FC-1.2.11

        Investment firm licensees must also obtain and document the following due diligence information. These due diligence requirements must be incorporated in the licensee's new business procedures:

        (a) Enquire as to the structure of the legal entity or trust sufficient to determine and verify the identity of the ultimate beneficial owner of the funds, the ultimate provider of funds (if different), and the ultimate controller of the funds (if different);
        (b) Ascertain whether the legal entity has been or is in the process of being wound up, dissolved, struck off or terminated;
        (c) Obtain the names, country of residence and nationality of Directors or partners (only necessary for private or unlisted companies);
        (d) Require, through new customer documentation or other transparent means, updates on significant changes to corporate ownership and/or legal structure;
        (e) Obtain and verify the identity of shareholders holding 20% or more of the issued capital (where applicable). The requirement to verify the identity of these shareholders does not apply in the case of listed companies;
        (f) In the case of trusts or similar arrangements, establish the identity of the settlor(s), trustee(s), and beneficiaries (including making such reasonable enquiries as to ascertain the identity of any other potential beneficiary, in addition to the named beneficiaries of the trust); and
        (g) Where a licensee has reasonable grounds for questioning the authenticity of the information supplied by a customer, conduct additional due diligence to confirm the above information.
        Amended: January 2007

      • FC-1.2.12

        For the purposes of Paragraph FC-1.2.11, acceptable means of undertaking such due diligence might include taking bank references; visiting or contacting the company by telephone; undertaking a company search or other commercial enquiries; accessing public and private databases (such as stock exchange lists); making enquiries through a business information service or credit bureau; confirming a company's status with an appropriate legal or accounting firm; or undertaking other enquiries that are commercially reasonable.

        Amended: January 2007

      • FC-1.2.13

        In cases where an investment firm licensee is providing investment management services to a regulated mutual fund, and is not responsible for receiving investors' funds being paid into the fund, it may limit its CDD to confirming that the administrator of the fund is subject to FATF-equivalent customer due diligence measures (see FC-1.6 for applicable measures). Where there are reasonable grounds for believing that investors' funds being paid into the fund are not being adequately verified by the administrator, then the investment firm licensee should consider terminating its relationship with the fund.

        Amended: January 2007

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