The most recent evaluation report of the Financial Action Task Force has led to government proposals to amend this Act on a number of points.
As the majority of shortcomings found by the FATF related to client due diligence, most of the proposed amendments relate to that aspect of the Act:
- In all instances, organisations will have to identify the beneficial owner or establish that he or she does not exist.
- When an individual presents himself as a client, organisations must verify if the individual acts on his own behalf, or someone else's.
- If the client is a legal entity, the organisation must know which individuals may legally represent the legal entity.
- Rules are proposed for the interaction with trusts. The exemption from carrying out client audits that applies to trust offices will be limited to designated trust services and will not cover the other services offered by trust offices.
- Organisations must consider whether a notification of an unusual transaction is necessary when the client and the beneficial owner cannot be identified and their identity cannot be verified, and the purpose and intended nature of the business relationship cannot be established.
The Act will also be clarified and amended on a number of other aspects.