Compliance

Explaining the procedures that need to be followed to ensure full UK legal compliance

1Due diligence requirements

A. Individuals

As a licensed entity, we operate a ‘Risk Based Approach’ in respect of our Know Your Client (“KYC”)/due diligence procedures, therefore, the exact KYC which we require is entirely dependent on perceived risk and is obtained in order to satisfy the HMRC Guidance Notes on Systems of Control and Requirements (‘the requirements’). Any relationships which we regard as higher risk will be subjected to a more detailed KYC procedure and may result in a request for additional supporting documentation. Below is a summary of typically requested KYC Information and documentation. Exact requirements may differ.

For all beneficial owners, directors, Shareholders and/or holders of Power of Attorney:-

  1. Proof of Identification;
  2. Proof of Address;
  3. Professional Reference;
  4. Occupation and place of work:normally provided in the form of a curriculum vitae

(Once the particulars of a business proposal are known, a Risk Assessment is completed and the KYC requirements are finalised.)

B. Corporate Bodies

In the case that the registered shareholders and/or directors are corporate bodies, the following would be required:

  • Copy of the Certificate of Incorporation, Memorandum and Articles of Association, duly certified by the competent authority in the relevant jurisdiction (or legalised);
  • Certificate of Good Standing (recent original or legalized copy);
  • Board Resolution/Evidence confirming the appointment of the present directors and shareholders;
  • Documents as above for the directors, shareholders and ultimate beneficial owner (s) if the directors and/or shareholders are corporate bodies.

C. Trusts

In the case that the registered shareholders and/or directors are trusts, the following would be required:

  • Copy of the Trust Deed and any amendments thereto;
  • Satisfactory evidence of proper appointment of trustees e.g. a copy of extracts from the deed of trust or a letter from an advocate or notary public verifying same (if not included in the certified copy trust deed or amendments);
  • Certified copy of the Certificate of Registration (or jurisdiction equivalent, if any);
  • A certified copy of the latest financial statements of the Settlement; and
  • Evidence as to the source and origin of the assets under the control of the trustees.
  1. For the Settlor, Trustees (Corporate or Individual), Enforcer or Protector of the Trust please provide the details listed in the Individuals section of the Due Diligence Requirements as above.
  2. For the Beneficiaries of the Trust please provide the details listed in the relevant Individuals and Companies sections above, together with details of discretionary and contingent beneficiaries (if applicable).

2Source of funds/wealth

A. Source of funds

Details including written evidence of where the funds are to be transferred from i.e. Bank/Building Society Name and Branch

B. Source of wealth

Written evidence and supporting documentation of how the source of funds was initially generated - examples as below:

  • Paid employment – Details of annual income in the form of a payslip, written confirmation from the named employer or bank statements showing regular salary payments.
  • Self-employment – A copy of the latest accounts.
  • Retirement – Bank statement showing pension etc.
  • Compensation payment – Letter/court order showing the date, amount, total amount received and the reason for the payment.
  • Royalties – Bank statements showing the regular payments and details of the amounts including dates and who these are received from.
  • Rental income – Copy of the rental agreement.
  • Investment income – Investment/savings certificate including details of amount invested, date invested, length of time held and details of company payment received from.
  • Property sale – A copy of the sale contract or a signed letter from your Solicitor or Estate Agent and details of the property address and sale amount.
  • Sale of business – Signed letter from Solicitor or regulated accountant or copy of contract of sale and sight of investment monies on a bank statement.
  • Inheritance or Gifts – Confirmation letter from a Solicitor or a copy of the Grant of Probate or a copy of the Will which must include the value of the estate. For gifts a letter from the donor confirming the gift details.
  • Company profits – Certified copies of the latest accounts.
  • Lottery win – A letter from the appropriate organisation confirming the win and amount.
  • Sale of shares – Contract notes or stock transfer form or dealing statement.

3Verification of individuals

The following are the types of documents we would expect to receive in respect of due diligence.

A. Proof of Identification

Passports, ID cards and driving licenses (the document must show a clear photo, date of birth, issue and expiry dates, together with the holder’s signature.

B. Proof of Address

Fixed line telephone bill, water bill, gas bill, municipal / council bill, bank statement or credit card statement. The Document must be dated within the last 3 months and must show the full residential address. Mobile telephone bills are not acceptable.

C. References

Should be from an independent professional who has known the individual for at least two years, the professional needs to confirm the individual’s integrity, financial standing, and length of relationship and confirmation of residential address where known. Please note that we only take references from lawyers, accountants (chartered or certified), bank officials, notary publics, or the Introducer.

4Certification

All due diligence documentation requested is required in original format; however, in situations where this is not possible, certified true copies are acceptable. These documents shall only be acceptable from lawyers, accountants (chartered or certified), bank officials, notary publics, or the Introducer. All certifications must contain the following:

  • The words “true certified copy and true likeness of the original” (for Identification documents);
  • The words “true and certified copy of the original document” (for all other documents);
  • The date the certification was made;
  • The signature of the certifying officer;
  • The name, address and professional occupation of the certifying officer legibly printed below the signature.

5Additional Controls/Enhanced Due Diligence

In some cases following completion of our initial risk assessment checks it may be necessary for us to obtain enhanced due diligence, this would include up to any three more of the additional sets of documents as below:*

6Additional verification documentation Includes:

  • Contact details verified i.e. landline, address;
  • Proof of Identification;
  • Proof of Address;
  • Professional Reference;

*Plus any other documents we feel necessary to satisfy our requirements.

7Politically Exposed Persons (‘PEP’)

A Politically Exposed Person is defined in ‘the requirements’ as “natural persons who are or have been entrusted with prominent public functions and immediate family members known to be close associates of such persons.” As such, reference to any individual or associated individual who has recently acted in the political arena of a country will be defined as a PEP. Examples include:

  • MPs;
  • Judiciary or military officials;
  • Heads of government;
  • Senior politicians;
  • Lords and ladies;
  • Government departments and councils and authorities.

Where an individual is recognised as a PEP agent may require further information in order to assess further a potential business relationship with such applicants.

8Existing Clients

PO Box address cannot be accepted as part of the verification process.

9Existing Clients

PO Box address cannot be accepted as part of the verification process.

We wish to stress, that these requirements have been imposed on our jurisdiction over the last few years to encourage good, healthy business and to protect all CSPs and Agents against unscrupulous use of our services
Despite the above requirements, we must have a face to face meeting at some points within the tax year.

If the Fiduciary acts as a nominee director or shareholder we only ever operate under the instruction of the appointing company or corporation. You can be assured that your assets are always protected together with your confidentiality.

To ensure that the arrangement is in full accordance with our compliance requirements, we will ask you to supply us with a number of documents that clearly confirm you and your organisation as our client.

Please contact us for further details.

We wish to stress, that these requirements have been imposed on our jurisdiction over the last few years to encourage good, healthy business and to protect all CSPs and Agents against unscrupulous use of our services Despite the above requirements, we must have a face to face meeting at some points within the tax year.

If the Fiduciary acts as a nominee director or shareholder we only ever operate under the instruction of the appointing company or corporation. You can be assured that your assets are always protected together with your confidentiality.

To ensure that the arrangement is in full accordance with our compliance requirements, we will ask you to supply us with a number of documents that clearly confirm you and your organisation as our client.

Please contact us for further details.