The Money Laundering Regulations 1993

Identification procedures; exemptions

10.—(1) Subject to paragraph (2) below, identification procedures under regulations 7 and 9 above shall not require any steps to be taken to obtain evidence of any person’s identity—

(a) where there are reasonable grounds for believing that the applicant for business is a person who is bound by the provisions of regulation 5(1) above;

(b) where there are reasonable grounds for believing that the applicant for business is otherwise a person who is covered by the Money Laundering Directive;

(c) where any one-off transaction is carried out with or for a third party pursuant to an introduction effected by a person who has provided an assurance that evidence of the identity of all third parties introduced by him will have been obtained and recorded under procedures maintained by him, where that person identifies the third party and where—

(i) that person falls within sub-paragraph (a) or (b) above; or

(ii) there are reasonable grounds for believing that the conditions mentioned in regulation 9(5)(a) and (b) above are fulfilled in relation to him;

(d) where the person who would otherwise be required to be identified, in relation to a one-off transaction, is the person to whom the proceeds of that transaction are payable but to whom no payment is made because all of those proceeds are directly reinvested on his behalf in another transaction—

(i) of which a record is kept, and

(ii) which can result only in another reinvestment made on that person’s behalf or in a payment made directly to that person;

(e) in relation to insurance business consisting of a policy of insurance in connection with a pension scheme taken out by virtue of a person’s contract of employment or occupation where the policy—

(i) contains no surrender clause, and

(ii) may not be used as collateral for a loan;

(f) in relation to insurance business in respect of which a premium is payable in one instalment of an amount not exceeding ecu 2,500; or

(g) in relation to insurance business in respect of which a periodic premium is payable and where the total payable in respect of any calendar year does not exceed ecu 1,000.

(2) Nothing in this regulation shall apply in circumstances falling within Case 2.

(3) In this regulation “calendar year” means a period of twelve months beginning on 31st December.