For this purpose, we consider the beneficial owner to be our client. The beneficial owner is defined as any person owning or controlling, directly or indirectly, equal to or more than 25% of the shares or voting rights of any company administered. The ultimate beneficial owner(s) should be a natural person. Where there are high risk factors then the beneficial owner is defined as any person owning or controlling, directly or indirectly, equal to or more than 10% of the shares or voting rights of any company administered. We are also required to identify those who may be a “controller”, where that person may own less than the stated thresholds however remain able to exert control through other means.
The law also requires us to verify the identity of other connected individuals, such as:
We are required to verify the information we receive from a client, together with information that we have gathered. The most convenient means off verification is to meet a client in person to receive their respective photographic identity, address evidence and any other documentation that may be required (subject to the services provided and the individuals involved in the structure). When this is not possible, documents that are certified by a Suitable Certifier, see Section 5, may be acceptable.
Taking a copy of an original passport in person or the provision of a certified copy will suffice. Where a passport is not available, a national identity card or other government-issued document that contains a photograph may be sufficient if it discloses:
Please note that the copy of the photograph must be certified in accordance with section 5(b) below.
We will also require a copy of ONE of the following original documents (statements printed off the internet are not acceptable) showing the permanent residential address of each individual:
Please note that non-bank cards such as store 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.
Where a natural person is identified as a Politically Exposed Person (PEP), we will undertake more enhanced due diligence, see Section 4 for more details.
Where the structure involves a private or listed company, we will look to receive certified copies of documents that verify the following non-exhaustive list, unless such documents are available to us on a public registry:
Where the structure is controlled by a Trust and Fiduchi do not act as trustee, we will require the present trustee to provide the same due diligence as if we were appointed trustee, together with the CDD on the trustee. This may include, but is not limited to:
Where the trustee is a regulated service provider in an equivalent jurisdiction and is known to us, Fiduchi will use its discretion as to suitability of CDD provided.
Where the structure is controlled by a Foundation we will require identification verification which will include but is not limited to the following:
Where the structure is controlled by a Partnership we will require identification verification which will include but is not limited to the following:
These are important areas of understanding for Fiduchi with all new and existing clients.
We are required to understand the background as to our clients’ source of wealth (i.e. inheritance, company sale, etc.) and to independently verify this information by reference to third party information. The verification of a client’s source of wealth can usually be achieved by reference to the individual’s business history (i.e. one word answers such as “inheritance” MUST be elaborated).
We are required to understand the source of funds (i.e. contracts, payslips, bank statements, investments, etc.) that will be used to fund the structure that we are putting in place and/or we are administering. This is not the same as the source of wealth but refers to where the funding for the structure will be derived. Please note that any generic or vague descriptions received from a client in respect of the above will lead to a delay in CDD processing.
Where a beneficial owner is identified as a PEP, Fiduchi use a risk-based approach and undertake more enhanced due diligence.
In simplified terms, a PEP is someone who has been entrusted with a prominent or public position or influence. In addition, any close business associate or family member (parents, children, spouses, siblings and other family members) of such a person will also be deemed as being a PEP (by association). Jersey Law defines a PEP as follows:
A “politically exposed person” means a person who is:
(a) an individual who is or has been entrusted with a prominent public function in a country or territory outside Jersey or by an international organization outside Jersey, for example:
(b) an immediate family member of a person mentioned in subparagraph (a), including any of the following:
(c) close associates of a person mentioned in sub-paragraph (a), including any person who is known to maintain a close business relationship with such a person, including a person who is in a position to conduct substantial financial transactions on his or her behalf.
Fiduchi considers the following non-exhaustive list as PEPs:
Local legislation does not state a time limit as to when someone is or has been a PEP which means if a client has been identified as a PEP at any time, they will always be considered a PEP. Fiduchi applies enhanced due diligence measures for PEPs.
Any one of the following persons may be considered a suitable certifier:
Where original documents are not available, copies of documentation are acceptable, provided:
For this purpose, the certifier should adopt the following wording for the purposes of verification:
“I certify that this is a true copy of the original document that I have seen, and a true likeness of the individual who I have met”
“I certify that this is a true copy of the original document that I have seen”
Each certified copy must contain:
If a copy of a document is more than one page, the certifier must either:
Fiduchi is required to hold appropriate and up to date Client Due Diligence (“CDD”) documentation throughout the duration of the business relationship, which identifies and verifies who our clients are as a matter of local law. This means that we are required to identify and verify the ultimate beneficial ownership behind a company, partnership (e.g. Limited Liability Partnership), Trust or other legal body and to get a good understanding of their business and anticipated relationship with Fiduchi. The following is a summary of the requirements taking account of applicable Jersey Anti- Money Laundering (AML)/ Countering The Financing of Terrorism (CFT) legislation.
