S.L. 618.1 Art. 5Due diligence checks.

(1) As part of the compliance review, the Fund shall carry out due diligence checks which shall include:

(a) the identification and verification of the identity of the transferred depositor:

Provided that where the transferred depositor is a body corporate, a body of persons, or any other form of legal entity or arrangement, the Fund shall also verify the legal status of the transferred depositor:

Provided further that where the transferred depositor is a body corporate, a body of persons, or any other form of legal entity or arrangement incorporated and, or administered in any Member State, that is subject to the registration of beneficial owner information, the Fund shall also obtain proof that such beneficial ownership information has been duly registered with a designated beneficial ownership register;

(b) the identification, where applicable, of the beneficial owners, and the verification of the identity of the said beneficial owners;

(c) where a person purports to act on behalf of a transferred depositor, the verification that such person is duly authorised in writing to act on behalf of the transferred depositor, as well as the identification of that person and the verification of the identity of that person; and

(d) any additional due diligence checks which may be deemed necessary by the Fund.

(2) Without prejudice to sub-regulation (1), where the transferred deposit liabilities due to a transferred depositor are equal to or more than ten thousand euro (€10,000) or an equivalent value in any other currency, the Fund may carry out additional due diligence checks which may include:

(a) an assessment of the purpose and nature of the business relationship between the transferring institution and the transferred depositor, as well as the business and risk profile of the transferred depositor; (COMPLIANCE REVIEW)

(b) an inspection and scrutiny of transactions undertaken throughout the course of the relationship between the transferring institution and the transferred depositor to ensure that the transactions undertaken were consistent with the transferring institution’s knowledge of the transferred depositor and of his business and risk profile including, where necessary, the source of the transferred deposit liabilities due to the transferred depositor;

(c) an examination of any form of link of the transferred depositor with other transferred depositors to detect any unusual or suspicious transaction patterns;

(d) a consideration of any adverse information which links the transferred depositor to financial crime, including whether the transferred depositor is subject to any sanction;

(e) the verification of the source of the transferred deposit liabilities due to the transferred depositor; and

(f) any additional due diligence checks which may be deemed necessary by the Fund.

(3) Without prejudice to sub-regulation (1) and notwithstanding sub-regulation (2), the Authority may, in consultation with the FIAU, require the Fund to carry out additional due diligence checks as part of the compliance review to be carried out in relation to the transferred deposit liabilities transferred by a particular transferring institution.