PART 2 U.K.CUSTOMER DUE DILIGENCE

Requirement to cease transactions etc.U.K.

11.—(1) Where, in relation to any customer, a relevant person is unable to apply customer due diligence measures in accordance with the provisions of this Part, he—

(a)must not carry out a transaction with or for the customer through a bank account;

(b)must not establish a business relationship or carry out an occasional transaction with the customer;

(c)must terminate any existing business relationship with the customer;

(d)must consider whether he is required to make a disclosure by Part 7 of the Proceeds of Crime Act 2002 or Part 3 of the Terrorism Act 2000.

(2) Paragraph (1) does not apply where a lawyer or other professional adviser is in the course of ascertaining the legal position for his client or performing his task of defending or representing that client in, or concerning, legal proceedings, including advice on the institution or avoidance of proceedings.

(3) In paragraph (2), “other professional adviser” means an auditor, accountant or tax adviser who is a member of a professional body which is established for any such persons and which makes provision for—

(a)testing the competence of those seeking admission to membership of such a body as a condition for such admission; and

(b)imposing and maintaining professional and ethical standards for its members, as well as imposing sanctions for non-compliance with those standards.