Section 7H: Time to Identify the Customer

1) Before opening an account or establishing a business relationship, verify the client and the real owner in the event of a business relationship and accidental transactions.

2) Notwithstanding anything contained in sub-section (1), if the following conditions exist, the referring institution shall be able to confirm the identity of the customer as soon as possible within a maximum of three days after establishing the business relationship or transaction:

(a) If the referring institution is convinced that the identity can be practically at any time,

(b) If, for practical reasons, it is not possible to verify the identity of the customer immediately and the verification of the identity may cause disruption in the regular operation of the business, and it is not found necessary to do so, and

(c) If conditions exist to effectively manage the risks associated with financial investment in asset laundering and terrorist activities.

3) Notwithstanding anything contained in sub-section (2), the indicting agency shall verify the identity of the customer and the actual beneficiary in accordance with sub-section (1) concerning the following customers and transactions:

(a) the client is a high-risk or high-profile individual or a family member or associate of such individual or

(b) The client’s work performance is questionable.