Corporate clients

(1) IFS Practitioners shall exercise appropriate care with respect to corporate clients and shall obtain relevant information relating to client identity as described in this regulation. (2) IFS Practitioners shall obtain a copy of the certificate of incorporation and, where applicable, certificate of change of name, certificate of good standing, and a properly authorised mandate of the company to establish the business relationship. (3) IFS Practitioners shall have an understanding of the nature of the business conducted by a company and should be able to identify the directors of the same. (4) In the case of an overseas corporation, IFS Practitioners shall obtain certificates of incorporation, certificates of good standing, and a properly authorised mandate of the company to establish the business relationship. (5) IFS Practitioners shall, as far as practicable, obtain copies of identification documents of at least two directors (if there is more than one) and authorised signatories of the company in accordance with the general procedure for the verification of the identity of individuals and shall also obtain a copy of the memorandum and articles of association or byelaws of the company. (6) With the exception of publicly traded companies, IFS Practitioners shall, as far as practicable, obtain the register of members or a list of the names and addresses of shareholders holding a controlling interest in the company and where necessary, shall obtain details which would be required of an individual client in respect of the beneficial owners of corporate shareholders shown to be holding ten percentum (10%) or more of the issued shares of a company or of any shareholder who appears to have a controlling interest. (7) In the case of corporate shareholders, IFS Practitioners shall obtain the appropriate information regarding ultimate beneficial ownership particularly if the shareholders of the company appear to be nominees. (8) Common sense shall be applied as to what evidence of identity is required to establish the beneficial ownership of the controlling interest in the company and what verification of ultimate beneficial ownership is needed in cases in which there are nominee directors or shareholders, and where there is any doubt, it may be necessary to institute a company search or make inquiries of a credit reference agency.