Client Onboarding & AML/CFT Compliance

To comply with Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act), we must verify the identity of our transactional clients, understand the nature of the transaction they are asking us to act on, and understand their general background.  In some cases, we may need detailed independently verified information as to where a client’s wealth came from and how the particular transaction is being funded, or, in the case of a sale, where the funds are going to and what they will be used for.

To make this process as secure and efficient as possible, we partner with First AML, a specialist identity verification service to gather some information.

IMPORTANT:  If we do not have all the information we need, then we cannot act or continue to act for you. If this means that your transaction deadlines cannot be met, then we will not be liable to you or anyone else for any damage caused.  That is why it is critical to provide AML/CFT information as quickly as possible and not to agree to any urgent deadlines before checking with us.

1. Why we use FirstAML

We use First AML to manage the collection and verification of your information.

• Security: FirstAML uses bank-grade encryption to handle your private data securely.
• Convenience: You can complete the verification on your smartphone or computer at a time that suits you.
• Specialist Support: For complex structures like trusts or multi-level corporate groups, First AML’s specialists assist in identifying beneficial owners, which streamlines the process for you.
• Prior CDD: If you have previously provided AML materials to First AML we may be able to use those with your consent.  FirstAML will arrange this if applicable.
• Politically Exposed Persons (PEPs) searches:  FirstAML has access to up to date lists of individuals holding prominent public functions (e.g. Government Ministers and Officials) that are deemed at more risk under the AML/CFT Act.

2. What we need from you

When we begin a new matter, you will receive an email from FirstAML with a secure link. Depending on the nature of the entity, they will guide you through the following Customer Due Diligence (CDD) ID requirements:

• Individuals & Directors: Photo ID (Passport or Driver’s License), proof of address, and biometric verification (a "selfie" to match your ID).
• Entities: We must identify "Beneficial Owners"—anyone owning more than 25% or having significant effective control. This includes Trustees, Directors, or Shareholders.
• Overseas Structures: Please note that entities involving offshore companies or foreign trusts are inherently more complex. These require additional verification steps and documentation; therefore, we ask that you allow extra time for onboarding if your structure involves overseas jurisdictions.

3. Nature and Purpose of the Transaction

As part of CDD, the law requires us to understand the Nature and Purpose of the business relationship. This means we need to be satisfied that the transaction makes clear commercial sense.

We may ask questions regarding the background of the transaction to ensure it aligns with your known business activities. Understanding the logic behind a transaction is a standard part of our risk assessment process.

4. Enhanced Due Diligence (EDD)

Certain types of transactions are deemed "high risk" under the Act, requiring us to perform Enhanced Due Diligence. This applies to:

• Specific Sectors: Transactions involving cryptocurrency, emerging high-risk tech, or high-value cash-intensive businesses.
• Complex Entities: All Trusts and many offshore structures.
• Politically Exposed Persons (PEPs): Individuals holding prominent public functions.

In these cases, we must verify the Source of Wealth (how your total net worth was acquired) and the Source of Funds (the origin of the money for this specific transaction).

Typical evidence includes:

• Property Sale: Settlement statements and Sale & Purchase agreements.
• Earnings/Profits: Audited accounts, payslips, or tax summaries which may sometimes need to be verified by the client’s external accountant.
• Inheritance/Gifts: Copies of Wills or signed gift letters with evidence of the donor's source of funds.
• Transaction funding: Details of where the funds for this particular transaction are coming from and/or going to.

In some cases, we may already hold this information if we have acted on previous transactions and can see flow of funds and sources of wealth that way.

5. Our Legal Obligations & Reporting

Our commitment to our clients is paramount; however, the AML/CFT Act imposes strict legal duties that override our usual professional obligations.

• Suspicious Activity Reporting: If a transaction gives rise to a suspicion of money laundering or the financing of terrorism, we are required by law to file a Suspicious Activity Report (SAR) with the relevant authorities (such as the Financial Intelligence Unit).
• Tipping-Off Prohibitions: If a report is made, we are strictly prohibited by law from notifying the client or any third party that a report has been filed. This "non-disclosure" requirement is a mandatory legal safeguard that supersedes our usual duty to keep clients informed.

6. Frequently Asked Questions

"I am an existing client; why do I have to do this again?"

The Act requires us to keep information current. If your circumstances change—such as using a new Trust or a different company—we are legally obligated to perform a fresh check.

"What happens if I don't provide this?"

Unfortunately, the law prohibits us from acting for you or completing your transaction until we have satisfied these requirements.

"How long does it take?"

Digital verification for individuals usually takes minutes. However, for complex or overseas structures, the process can take several days as we verify various layers of ownership and obtain independent verification. We recommend completing the FirstAML request immediately to avoid delays in your matter.

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