An authorised firm is required to develop anti-money laundering policies, procedures, and controls to apply adequate measures, including customer due diligence while establishing a correspondent banking relationship.

The Practice Note provides an overview of the various measures to be undertaken by an authorised firm and the factors to be considered to manage and mitigate money laundering and financing of terrorism risks associated with a correspondent banking relationship with a respondent bank.

• 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:

    • The natural persons who ultimately have a controlling ownership interest in the body corporate, whether legal or beneficial, direct or indirect.