Section 13: Substitution of regulation 14 of principal regulations For regulation 14 of the principal regulations

there is substituted the following "14. Due diligence Due diligence shall be carried out by an accountable person- (a) to identify a customer; (b) to verify the identity of a customer or a person using reliable, independently sourced documents, data or information, and in the case of a person acting on behalf of a customer or person, to identify and verify the identity of that person and the authority to act on behalf of the person or customer; (c) to identify beneficial owners, and to take reasonable measures to verify the identity of beneficial owners; (d) to ascertain, in the case of a legal person, the ownership and control structure of a customer or person; (e) to obtain information relating to the purpose and nature of the business relationship; and (f) to ensure that the business relationship and any transaction being conducted is consistent with the accountable person's knowledge of the customer or person, their nature of business and risk profile, including where necessary, the source of funds." Regulation 15 of the principal regulations is amended- (a) by substituting for subregulation (5) the following- "(5) Subject to subregulation (6), where the risk identified by an accountable person is lower, the accountable person may apply simplified due diligence measures commensurate with the lower risk."; (b) by inserting after subregulation (5) the following- "(6) Simplified measures shall not apply- (a) in specific cases where there is a suspicion of involvement of money laundering or terrorism financing; or (b) where these Regulations specifically stipulate that higher risk scenarios apply."