The relevant person is required to implement a robust customer onboarding process as part of the anti-money laundering (AML) program to identify and manage the risk posed by individual customers. This customer onboarding process involves the identification of the customers and verification of their identities before or at the time of establishing a business relationship.

This Practice Note will provide an overview of how relevant persons can develop a customer due diligence (CDD) process for onboarding individual customers for effectively managing and mitigating money laundering (ML) and terrorist financing (TF) risks.

• AML: Anti-money laundering.

• Authorised person: Authorised firm or an authorised market institution.

• Authorised firm: An authorised person who holds a licence to carry on one or more financial services in or from the DIFC and is not an authorised market institution.

• Authorised market institution: An authorised person operating an exchange, a clearing house or an alternative trading system.

• Beneficial owner: A beneficial owner includes the following:

  • In relation to a customer, means a natural person who ultimately owns or controls the customer or a natural person on whose behalf a transaction is conducted, or a business relationship is established.

  • In relation to a body corporate: