SECTION 1: Identification of Ultimate Beneficial Owners

We consider the ultimate beneficial owner (“UBO”) to be our client and they are any natural person having material control through ownership, either directly or indirectly, of the entity we provide services to.

For a corporate entity that issues shares, we define the UBO as any individual who owns 25% or more of the shares or voting rights. In certain circumstances, the UBO threshold might be reduced below 25%; this will be advised to you prior to establishing the business relationship.

Where the entity we provide services to is owned within a layered structure, we will apply identification measures to these layers.

We also verify the identity of individuals with significant control and interest in other types of entities we provide services to as described in Section 2, such as:

• Trustees and Settlor in a Trust;

• Council members and Founder in a Foundation; or

• Partners in a Partnership.

SECTION 2: Client Due Diligence (“CDD”) to Collect

We are required to collect certain information from a client prior to establishing the business relationship and  will advise you of our specific CDD requirements at the outset; the following is a guide:

a) Natural person – details to verify:

• full legal name;

• date, place of birth and nationality;

• document identification number;

• country and date of issue; and

• signature.

This information is normally provided by a passport or, if not available, a national identity card.

• permanent residential address;

The permanent residential address should be evidenced by a bank statement or utility bill (not more than 3 months old) or correspondence from a central or local government. Please note that retail cards, mobile telephone statements or addresses that feature only a PO Box number or ‘care of’ are not acceptable as confirmation of a residential address.

The above documents can be provided in original form to an authorised representative of Fiduchi (who will take copies) or certified in accordance with Section 5 below.

We reserve the right to request due diligence from other related parties, for example, a remitter of funds into the structure that we provide services to who has not already been identified.

We can in certain instances employ the use of an Electronic Identification Verification (“EIDV”) application to collect some of the required documentation. This is an efficient and secure means of collecting and verifying information and documentation.

We currently use EIDV to verify information on natural persons only. In certain jurisdictions and circumstances, EIDV is not accepted. We will advise you when EIDV can be utilised.

b) Corporate bodies

Where the structure involves a private or listed company, CDD includes collecting and verifying the following, unless such documents are available to us on a public registry:

• full name of company;

• registered and trading addresses;

• names, addresses and date of birth of directors, main shareholders and other controllers within the structure;

• percentage of shares held by each member;

• annual accounts / Annual return;

• details of trading or current operations; and the Certificate of Incorporation and Memorandum and Articles of Association.

c) Trusts

Where the structure involves a Trust, CDD includes collecting and verifying the following:

• the Trust Deed including name;

• date of establishment; and

• names, addresses and date of birth of Settlors, Trustees, main beneficiaries and any other controllers within the Trust, e.g. Protector.

d) Foundations

Where the structure involves a Foundation, CDD includes collecting and verifying the following:

• Foundation Charter;

• date of establishment;

• and names, addresses and date of birth of Foundation Council Members, the Founder, main beneficiaries and any other controllers within the structure, e.g. Guardian.

e) Partnerships

Where the structure involves a Partnership, CDD includes collecting and verifying the following:

• Partnership agreement;

• date of establishment;

• names, addresses and date of birth of partners and any other controllers within the structure; and

• details of General Partner where applicable.

Where a natural person is identified as a Politically Exposed Person (“PEP”), we will undertake additional due diligence which will be requested from you. Please see Section 4 below for details of PEP status.

We reserve the right to request due diligence from other related parties, for example, a remitter of funds into the structure that we provide services to who has not already been identified.

SECTION 3: Source of Wealth & Source of Funds

a) Source of Wealth

We are required to understand the background as to how our clients’ wealth has evolved over time and to verify this information by reference to relevant documentation where required. This could simply be based on earnings or ownership of a business but could also include an inheritance or other ‘milestone’ event.

Verification of source of wealth can usually be achieved by reference to the individual’s business/employment history or evidence of the specific event. Fiduchi will advise you of the verification requirements prior to establishing the business relationship.

b) Source of Funds

We are also required to understand and verify, where required, the source of funds that will be used to fund the structure that we are providing services to. This differs to source of wealth as it refers to:

• where the funding for the structure will be sent from, e.g. the specific bank account and jurisdiction; and

• from what circumstance e.g. property sale, loan or accumulation of earnings.

Fiduchi will advise you of the verification requirements prior to establishing the business relationship. Please note that generic or vague descriptions must be avoided.

SECTION 4: Politically Exposed Person (“PEP”)

A PEP is an individual who has been entrusted with a prominent or public function. In addition, any close associate or family member of such a person will also be deemed as being a PEP by association.

Examples of a PEP include:

• Heads of State, Heads of Government, Ministers and Deputy/Assistant Ministers;

• Members of Parliament;

• Members of Supreme Courts, of Constitutional Courts, or of other high-level Judicial Bodies;

• Members of Courts of auditors or of the boards of central banks;

• Ambassadors, charges d’affairs and high-ranking officers in the Armed Forces;

• Senior executives of state-owned corporations;

• Members of the administrative, management or supervisory bodies of state-owned enterprises;

• important political party officials;

• a prominent person in an international organisation e.g. United Nations, World Health organisation.

An immediate family member of a PEP could include any of the following:

• a spouse;

• a partner – someone considered by his or her national law as equivalent or broadly equivalent to a spouse;

• children and their spouses or partners, as defined above;

• parents;

• grandparents and grandchildren;

• siblings.

A Close Associate includes:

• any person who is known to maintain a close business relationship with a PEP, including a person who is in a position to conduct substantial financial transactions on their behalf.

In certain jurisdictions, regulations allow that an individual can potentially be relieved of PEP status after a period of time since leaving their position; this is generally between 12 months and 5 years.

Fiduchi reserves the right to determine the PEP status of an individual after leaving the role.

SECTION 5: Suitable Certification

a) Certification Requirements:

Where EIDV has not been utilised and original documents have not been presented, copies can be provided on the following basis:

• they are certified by a suitable person as being a true copy of the original;

• all information is legible;

• any photograph submitted as proof of identity must be clear and the document presented in colour and high resolution; and

• the passport page and both sides of any identity card must copied in full.

The certifier should adopt the following wording:

Photographic Identification – “I certify that this is a true and accurate copy of the original document that I have seen, and a true likeness of the individual who I have met”

Other documents – “I certify that this is a true and accurate copy of the original document that I have seen”

Photographic Identification – Malta – “I certify that this is a true and accurate copy of the original document that I have seen, and the photograph is a true likeness of ‘individuals name’ with ID document number xxxx”

b) Suitable Certifiers

Any one of the following may be considered a suitable certifier:

• a Member of the Judiciary;

• a senior Civil Servant;

• a serving Police or Customs Officer;

• a Lawyer or Notary Public who is a member of a recognised professional body;

• an Actuary or Accountant who is a member of a recognised professional body; or

• a Director /Manager of a regulated financial services business in an equivalent jurisdiction.

For Maltese structures, certification must be provided by:

• a Maltese professional who holds an EU warrant; typically a notary public, lawyer or accountant. The warrant number must be recorded on the document(s) being certified.

Each certified copy must contain:

• the full name of the person performing the certification;

• the signature of the person performing the certification;

• the date the document was certified;

• the position or capacity of the certifier;

• the contact details of the certifier (including email address); and

• any relevant membership number where a member of a professional body.

If a copy of a document is more than one page, the certifier must either:

• certify each individual page; or

• certify the first page and add a statement as to the total number of pages of the original document seen.

SECTION 6: Other Services

a) Yacht Charters

Where an entity managed by Fiduchi owns a commercially operated yacht we require the following due diligence to be sent to us in respect of the lead charterer:

• a copy of a valid passport / identity document (this does not need to be certified)

b) Crew Management

Where we provide crew payroll services, we require the following due diligence to be sent to us in respect of each crew member:

• a copy of a valid passport / identity document (this does not need to be certified);

• evidence of relevant professional qualifications e. g. Yachtmaster.

c) Local Representative for a Jersey registered yacht

Where we are acting as a Local Representative for a Jersey registered yacht we require the following due diligence to be sent to us in respect of the yacht owner.

For Natural person:

• a suitably certified copy of a valid passport /identity document and address; or

• EIDV application can also be used to verify identity and address, where available, of the yacht owner (please refer to Section 2 above);

Corporate bodies:

• the Certificate of Incorporation and Memorandum and Articles of Association;

• the Register of directors;

• the Register of shareholders.

And in respect of the UBO:

• a suitably certified copy of a valid passport/identity document and address; or

• EIDV application can also be used to verify identity and address, where available, of the yacht owner (please refer to Section 2 above).

d) Yacht Registration

Where we are assisting in the registration of a yacht, we require the following due diligence to be sent to us in respect of the yacht owner:

For Natural person:

• a suitably certified copy of a valid passport /identity document and address; or

• EIDV application can also be used to verify identity and address, where available, of the yacht owner (please refer to Section 2 above).

Corporate bodies:

• the Certificate of Incorporation Memorandum and Articles of Association;

• the Register of directors; and

• the Register of shareholders.

And in respect of the UBO:

• a suitably certified copy of a valid passport/identity document and address; or

• EIDV application can also be used to verify identity and address, where available, of the yacht owner (please refer to Section 2 above).

SECTION 7: Delegation of Authority

In certain circumstances, Fiduchi may issue a Power of Attorney or a Letter of Authority to a third party on behalf of the entity we provide services to. These documents delegate specific powers to the appointed individual or organisation, enabling them to act on behalf of the entity in a defined capacity.

In these circumstances we require the following due diligence on the attorney / appointee:

• EIDV application to be used to verify identity and address, where available, (please refer to Section 2 above); or

• a certified copy of a valid passport / identity document and address;

• if applicable, evidence of relevant qualifications and experience.

IMPORTANT NOTE

From time to time, we may contact you for updated or additional details; this is to protect both you and Fiduchi’s best interests and to satisfy legislative requirements.

In the event of a change of beneficial owner and / or controllers to the structure that we provide services to, you are required to notify Fiduchi immediately so that we can take appropriate action to notify the relevant Registry.

Subject to the nature of the change, updated or new information and/or documentation may be required.

Please refer to our published Terms of Business and Data Privacy Notice on www.fiduchi.com.