Counter-Terrorism Act 2008

Customer due diligence U.K.

10 (1) A direction may require a relevant person to undertake enhanced customer due diligence measures— U.K.

(a) before entering into a transaction or business relationship with a designated person, and

(b) during a business relationship with such a person.

(2) The direction may do either or both of the following—

(a) impose a general obligation to undertake enhanced customer due diligence measures;

(b) require a relevant person to undertake specific measures identified or described in the direction.

(3) “Customer due diligence measures” means measures to—

(a) establish the identity of the designated person,

(b) obtain information about—

(i) the designated person and their business, and

(ii) the source of their funds, and

(c) assess the risk of the designated person being involved in relevant activities.

(4) In sub-paragraph (3)(c) “relevant activities” means—

(a) terrorist financing;

(b) money laundering; or

(c) the development or production of nuclear, radiological, biological or chemical weapons or the facilitation of that development or production.

(5) A direction may not impose requirements of a kind mentioned in this paragraph on a person who is regarded as operating in the financial sector by virtue only of paragraph 5(2)(g) (certain insurance companies).