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The know your customer or know your client (KYC) guidelines and regulations for financial services require that professionals try to verify the identity, suitability, and risks involved with maintaining a business relationship.
Legal affairs
National regulatory framework regarding AML and effective date of the regulations
The rules regulating AML and KYC are set out in the Anit Money Laundering Law (“AML”) which was firstly introduced in 2014.
National regulator or relevant authority for AML controls
Supervision regarding application of the AML Law is divided between the following entities, depending on the type of entity subject to supervision: CBCG, Agency for Electronic Telecommunications and Postal Services, Capital Market Commission, tax authority, etc.
Customer Due Diligence
Conduct of a typical KYC identification process
Identification is conducted based on insight into the personal document of the person who is also physically present. As an exception, identity of the client can be determined using electronic and video identity verification procedures. However, utilization of electronic and video verification procedures entails several additional obligations.
Possibility to meet customer due diligence requirements by relying on third parties who are obliged by law themselves to comply with AML regulations
Yes.
Possibility to outsource customer due diligence by contract to other third parties who are not obliged by law to meet AML regulations and rely on these (e.g., WebID, IDnow, PostIdent)
No. Customer due diligence cannot be outsourced to a third party, who is not obliged to meet AML requirements. However, certain activities within the customer due diligence process can be outsourced to external advisers and/or representatives on a contractual basis. Neither of mentioned subjects is considered as a third-party subject or required to meet AML regulations.
Presence of a license or registration requirement for the third party in case of outsourcing customer due diligence
There are no special license requirements for external advisers and/or representatives.
Further questions
Entities that could be relied on specifically by law as a third party to comply with AML regulations (regardless of outsourcing)