A relevant person must develop and implement anti-money laundering (AML) policies, procedures, and controls when relying on third parties or appointing an outsourced service provider to undertake customer due diligence (CDD) measures on their behalf. The policies should clearly outline the areas where a reliance can be placed on a third party to undertake due diligence, relevant controls, and the responsibilities of each party.

This Practice Note elaborates and guides a relevant person about the process to be followed when CDD is outsourced to, or reliance is placed on third parties and the necessary control measures to be implemented.

• 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: