The Money Laundering Regulations 2003

Identification procedures

4.—(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.