|
Article 13-2
|
An offshore securities branch may rely on overseas institutions or professionals (hereinafter, "intermediaries") to assist in performing CDD measures for offshore customers in accordance with the provisions of these Regulations and the Money Laundering Control Act, or with standards not less strict than the aforesaid provisions. The following requirements shall be met, and the execution plan and list of intermediaries shall be filed with the FSC for recordation:
- The intermediary's actions in assisting the offshore securities branch to perform CDD measures shall comply with or do not violate the laws and regulations of the place where the intermediary is located.
- The intermediary is registered in a jurisdiction that is supervised by a signatory member of the International Organization of Securities Commissions Multilateral Memorandum of Understanding, and shall hold relevant business licenses and be supervised by a competent authority of that jurisdiction.
- The intermediary has been rated satisfactory, without downgrade, or without material deficiency in the most recent AML/CFT audit by the competent authority or an external institution in the jurisdiction where it is located; or the intermediary's relevant deficiencies have been remedied and recognized as remedied or it has been upgraded after being downgraded. If the intermediary is subsequently downgraded by a competent authority or external institution in the jurisdiction where it is located, or sanctioned by a competent authority in that jurisdiction for any material deficiency, the offshore securities branch shall halt its reliance on assistance by that intermediary in performing CDD until improvements by the intermediary have been recognized.
- The offshore securities branch shall enter into a cooperation agreement with the intermediary, specifying the scope of assistance provided for CDD measures and appropriate measures for customer data confidentiality and data preservation, and clearly assigning the rights and responsibilities of each party. The intermediary shall keep records of the assistance measures it carries out, and shall be able, whenever requested by the offshore securities branch, to promptly provide any documents or information obtained when assisting in performing CDD.
- The offshore securities branch shall use a risk-based approach (RBA) to audit and supervise, regularly and from time to time, the intermediary's execution of assistance in CDD measures and its use, processing, and management of customer data. The offshore securities branch may engage external institutions to conduct related auditing.
The scope of the intermediaries referred to in the preceding paragraph means the following overseas institutions or professionals:
- A subsidiary or branch of the securities firm to which the offshore securities branch belongs, a financial institution with which that securities firm has an equity investment relationship, or another financial institution recognized by the Competent Authority.
- A professional such as a lawyer or certified public accountant.
The execution plan referred to in paragraph 1 shall include at least the scope of the intermediary's assistance for CDD measures, and the internal control system for customer data confidentiality and data preservation.
An offshore securities branch shall review the results of CDD measures assisted by intermediaries, and shall be held ultimately responsible for the CDD and data preservation.
|