What information can a bank request about our client account?
Our bank requested information on specific client account payments, including the purpose of payments, source of funds, client’s address, line of business and other financial information. Is there any AML requirement for such a disclosure?
Banks can request some information.
It is a pre-condition to the application of simplified due diligence to pooled client accounts (PCA) that information on the identity of the persons on whose behalf money is held shall be available to the bank on request (see regulation 37(5)(b) of the Money Laundering Regulations 2017, MLRs 2017).
“Information on the identity of the persons” is not defined in the MLRs 2017.
However, it means the name of the person, not necessarily the customer due diligence (CDD) documents you obtained from them.
This means you would have to tell the bank whose money is in the client account, but not provide them with a copy of the person’s identity documents.
You should obtain your client’s consent to disclose identity in this situation, for example by including a suitable clause in your terms of business.
Information about payments and purposes is not required by the MLRs 2017.
For further information, see our practice note on client information requirements, and part I, annex 5: pooled client accounts of the Joint Money Laundering Steering Group (JMLSG) guidance.
Disclaimer
While every effort has been made to ensure the accuracy of the information in this article, it does not constitute legal advice and cannot be relied upon as such. The Law Society does not accept any responsibility for liabilities arising as a result of reliance upon the information given.
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