While the risk-based approach allows for simplified due diligence in certain circumstances, it also requires enhanced due diligence where appropriate. This permits financial service providers to implement procedures which are appropriate to the type and size of their business and nature of the clients.
Simplified due diligence can be applied in low risk scenarios for:
· Cayman Islands entities that are financial service providers and subject to the Revised AML Regime;
· government organisations, statutory bodies or government agencies of foreign countries and territories in Approved Countries;
· entities which are regulated in an Approved Country;
· companies listed on a recognised stock exchange; and
· customers introduced through an intermediary financial/professional firm (Eligible Introducer), where such financial/professional firm certifies that it has undertaken AML identification of that person.
Where simplified due diligence may be applied, identification/verification documents do not need to be obtained.
Where "enhanced due diligence" is required, more detailed and more regular AML identification of the beneficial owner(s) of a corporate investor is required. The definition of beneficial owner is based on the FATF recommendations.