AML PROCEDURE FOR MULTIPLE DIRECTORS

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If you act for a company that has multiple directors but you only act for one of the directors personally, are you required to carry out AML procedures for every director? 

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Stepurhan
By stepurhan
16th Apr 2024 12:42

You are required to undertake AML on any persons of significant control of a company. Do the other three directors exert sufficient control to require checking? You haven't mentioned if any of them are also shareholders, which is a factor to consider.

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By FactChecker
16th Apr 2024 14:39

Can you please explain what you mean by "If you act for a company that has multiple directors but you only act for one of the directors personally"?

Is it the company that is your client?
Or just an individual (who happens to be a Director of a company) that is your client?

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Replying to FactChecker:
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By Plok89
17th Apr 2024 14:06

Yes we act for the Ltd company and one of the directors.

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Replying to Plok89:
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By FactChecker
17th Apr 2024 15:03

In which case, see David's excellent post.

[It was the reference to 'and one of the directors' that threw me as that is irrelevant to the requirements about which you are enquiring - and those apply to having a limited company as a client.]

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David Winch
By David Winch
17th Apr 2024 10:07

If you act for the company you are certainly required to know who all the directors are, see Reg 28(3)(b)(ii). Opinions differ as to how much work you have to do to "take reasonable measures to determine and verify" the full names of all directors. Ask your supervisory body what they require. You may be able to determine and verify the names of the directors without asking them for sight of documents such as passports or driving licences.
Obviously you do not have to do address checks, AML risk assessments or consider sources of wealth in relation to directors of a client company who are not personally clients of the firm and who are not beneficial owners of the company.
David

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Replying to davidwinch:
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By Plok89
17th Apr 2024 14:11

Yes this makes sense. I was planning on contacting my regulatory body to make sure all is in order but thought i'd ask here first. Thanks for your comment.

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By I'msorryIhaven'taclue
17th Apr 2024 14:40

https://www.ccab.org.uk/wp-content/uploads/2023/08/AMLGAS-update-June-20...

per Section B.2.5
"For a normal risk client, the business should verify the identity of the director who is the key client contact. Verification of additional directors should be considered for high-risk clients."

There you have it, from the horse's mouth. You'll need to read it in context, of course.

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