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IOSCO Principles on Client Identification and Beneficial Ownership for the Securities Industry (May 2004) - Client Due Diligence Obligations for Authorized Securities Service Providers

The IOSCO Principles on Client Identification and Beneficial Ownership for the Securities Industry (May 2004) set out the Client Due Diligence (CDD)…

What IOSCO Principles on Client Identification and Beneficial Ownership for the Securities Industry (May 2004) - Client Due Diligence Obligations for Authorized Securities Service Providers requires

The IOSCO Principles on Client Identification and Beneficial Ownership for the Securities Industry (May 2004) set out the Client Due Diligence (CDD) process that Authorized Securities Service Providers (ASSPs, such as broker-dealers, collective investment schemes, futures firms and investment advisers) should apply. Principle 1 requires ASSPs to identify and verify each client's identity using reliable, independent source documents, data or information; Principle 1a requires specific CDD policies for omnibus accounts; Principle 2 requires obtaining sufficient information to identify persons who beneficially own or control securities accounts; Principle 3 requires obtaining client circumstances and investment objectives and conducting ongoing due diligence; Principle 4 requires keeping CDD records for at least five years after the business relationship ends; Principle 5 permits reliance on reliable third parties while the ASSP remains responsible; Principle 6 requires written policies for when CDD cannot be completed or illegal activity is suspected; Principles 7 and 8 address the regulator's powers to enforce CDD and to cooperate with other jurisdictions. The principles support investor protection and the prevention of the illegal use of the securities industry on a risk-sensitive basis.

Pillar: Financial Crime, AML & Sanctions · Authority: International Organization of Securities Commissions (IOSCO) · Version: 1.1.0 · Last updated:

Primary source: https://www.iosco.org/library/pubdocs/pdf/IOSCOPD167.pdf

SHA-256 integrity: f9de8862d9b1583b7d3c1e652d3e0410db0093d2af6370ec33133b2d265e401c

Primary Citations — 9 traced to source

  • IOSCO, Principles on Client Identification and Beneficial Ownership for the Securities Industry (May 2004), Principle 1: Authorized Securities Service Providers, when establishing a business relationship with a client, should identify and verify the client's identity using reliable, independent source documents, data or other information.
  • IOSCO (May 2004), Principle 1a: Authorized Securities Service Providers should have specific Client Due Diligence policies for omnibus accounts.

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