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 entity administered by us. The ultimate beneficial owner(s) should be a natural person. In certain circumstances, the beneficial owner threshold might reduce below 25%
We are also required to identify those who may be a “controller and is able to exert control through other means for example, where an individual is granted a Power of Attorney or equivalent.
We also verify the identity of other connected parties, such as:
We are required to verify the information we receive from a client prior to establishing a business relationship.
The preferred means of verification is to meet a client in person to receive their respective photographic identity, address evidence and any other documentation that may be required.
When this is not possible, we will employ the use of an Electronic Identification Application (“EIDV”) to collect some of the required documentation. This process is only suitable to identify a natural person, not a corporate body.
The advantages of using this system are cost and efficiency as listed below:
The application will capture the following information:
This information is supplied by a passport; 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:
We will also require sight of one of the following documents showing the permanent residential address of each individual:
Please note that cards provided by retailers, mobile telephone statements or addresses that feature only a PO Box number or “care of” are not acceptable as confirmation of a residential address.
As the EIDV application does not cover all nationalities and countries, we will then collect the above documents in original or suitably certified form as detailed in Section 5 below.
Where a natural person is identified as a Politically Exposed Person (PEP), we will undertake more enhanced due diligence, please 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 does 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 due diligence 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 the due diligence requirements.
Where the structure is controlled by a Foundation we will require identification verification which will include but is not limited to:
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.
a) Source of Wealth
We are required to understand the background to our clients’ source of wealth (e.g. inheritance, company sale, employment salary etc.) and at times to independently verify this information by reference to relevant documentation supporting the event. Please note that one-word answers such as “inheritance” must be elaborated.
In most instances, the verification of a client’s source of wealth can usually be achieved by reference to the individual’s business history.
b) Source of Funds
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 processing the application for services.
Where a beneficial owner is identified as a PEP, Fiduchi undertakes more enhanced due diligence.
As an example of a PEP, Jersey Law defines them as follows:
(a) an individual who is or has been entrusted with a prominent public function in a country or territory outside Jersey including but not limited to:
(b) an immediate family member of a PEP mentioned in subparagraph (a), includes any of the following:
(c) close associates of a PEP mentioned in sub-paragraph (a), includes any individual who is known to maintain a close business relationship with the PEP, including a person who is in a position to conduct substantial financial transactions on behalf of the PEP.
Fiduchi considers the following non-exhaustive list as 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:
The certifier should adopt the following wording for the purposes of verification:
Identification
Other documents
“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 documentation throughout the duration of the business relationship which identifies and verifies who our clients are. 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 understand their business activities and the anticipated relationship with Fiduchi. The following is a summary of the requirements taking account applicable Anti- Money Laundering, the Countering of Terrorist Financing and the Countering of Proliferation Financing legislation.
