Why you need to do it.
The AML/CFT Act requires reporting entities to record the nature and purpose of their business relationship with their clients.
The Act also requires reporting entities to undertake client due diligence (CDD) on their clients. However, CDD only must be done on those clients whose business relationship with the reporting entity involves the reporting entity performing certain "captured" activities for the client. These activities are listed in section 5 of the Act, under the definition of "designated non-financial business or profession".
Recording the nature of your business relationship with your clients in Connectworks.
In Connectworks, you can record the nature of your business relationship with a client in terms of the captured activities given in the Act.
This allows you to ensure that you're fulfilling your obligations, while helping to avoid performing CDD unnecessarily on clients you don't have to.
To record your business relationship with a client, go to the AML Compliance section of the client's Connectworks profile. Do this by selecting the company, trust, or individual in the appropriate Clients list, clicking on the cogs menu, and clicking Edit profile:
The Nature of business relationship field is then located in the AML Compliance tab:
The list of options corresponds to the list of captured activities given in the Act. Select as many activities as apply, and click the Update button. You can also upload files or record any optional notes:
How the Nature of business relationship field interacts with our CDD workflow
The AML/CFT Act only requires reporting entities to perform CDD on clients whose business relationship with the reporting entity involves the performance of "captured" activities.
If your business relationship with a client doesn't involve any of the captured activities, you should select the No AML relevant business relationship option. When it comes time to running the CDD workflow, any clients you've set with this option will be automatically flagged as not requiring CDD.
This means you'll easily be able to distinguish clients who don't require CDD, from those whose CDD you haven't performed.
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