A relevant person is required to implement a robust customer onboarding process involving the identification of beneficial owners when dealing with legal persons or legal arrangements. This customer onboarding process should include the identification of the customer’s beneficial owners and beneficiaries (in the case of a life insurance policy) 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 determine beneficial owners and beneficiaries and the process to be followed for identification and verification of the beneficial owner of the legal person (body corporate) or legal arrangements at the time of establishing a business relationship (or beneficiaries in case of life insurance before paying out the benefits) to effectively manage and mitigate money laundering and financing of terrorism 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.