Customer Due Diligence Checklist

Customer Due Diligence Checklist

Customer Due Diligence Checklist

As a result of the 5th Anti-Money Laundering Directive imposing obligations on the art market participants, it is our policy to identify our Clients at the outset of the transaction. The checklist below outlines which documents are accepted for the purpose of customer due diligence. 

We are required to hold copies of the customer due diligence for 5 years from the last transaction or the end of business relationship with the Client.

PRIVATE INDIVIDUALS

INFORMATION WE NEED TO COLLECT

  • Full name
  • Date of birth
  • Nationality
  • Permanent residential address 

VERIFICATION DOCUMENTS

Request a government issued photo ID showing customer’s name and address or customer’s name and date of birth. Examples include: 

  • Passport 
  • UK, EU, EEA Member State Driving License 
  • National ID card for EU or EEA Member State residents only

Acceptable proof of address includes:

  • utility bill
  • council tax bill 
  • bank or credit card statement
  • mortgage statement
  • notification from tax authority
  • state pension or benefits notification letter
  • UK driver’s licence (if not supplied as proof of identity)
  • EU state ID (if not supplied as proof of identity)

ULTIMATE BENEFICIAL OWNERS

It is necessary to establish if the customer is acting on behalf of another person.

If so, we require to obtain:

  • the same verification documents as for the acting agent (ID and proof of address)
  • proof that they are properly authorized to act, such as a power of attorney or letter of appointment


Notes:
1. At least one of the accepted documents/proofs of identity is required
2. The document must be valid.
3. One document cannot be used to verify the identity and the residential address.
4. Proof of address must be no more than 6 months old, unless it is a council tax or TV licence (12 months)
5. All four corners of the ID document must be visible, including any reference numbers

In certain circumstances where the Client is genuinely not able to provide a current document to verify their ID and/or address, an alternative document can be accepted. These are:

ID document

The expired ID document AND:

  • Birth certificate 
  • Bus pass which includes the name and photo of the client.
  • Marriage certificate (in circumstances where the ID document is in the maiden name of the Client)

Proof of address

  • Letter from a registered solicitor
  • Marriage certificate where the name and address is included
  • Pension statement
  • P60 tax form 
  • UK local authority rent card
  • Letters from HMRC if name and address are included in the letter
  • Letters from the Department for Work and Pensions if name and address are included in the letter

PRIVATE COMPANIES, INCORPORATED TRUSTS, TRUST COMPANIES

INFORMATION WE NEED TO COLLECT

  • Company name 
  • Company number 
  • Country of incorporation 
  • Registered address 
  • Trading address if different to above 
  • Director names 
  • Ultimate beneficial owner names (individuals who own 25% or more of the shares/voting rights)

VERIFICATION DOCUMENTS

1. Company documents

  • Certificate of incorporation or other equivalent document, for example trust deed
  • Extract from relevant company registry
  • Most recent tax return or audited accounts
  • Share certificate or shareholder register
  • Register of directors

AND 

2. If not verified by the above, evidence of directors (such as copy register of directors) and ultimate beneficial owners (such as copy of shareholders’ register).

ULTIMATE BENEFICIAL OWNERS

The ultimate beneficial owner (UBO) of a private company is any natural person (as opposed to a corporate entity) owning 25% or more of the shares or voting rights in the company. 

It is also necessary to establish if the corporate customer is acting on behalf of another person.  If so, we must obtain the name, address and date of birth of the person on whose behalf the customer is acting and proof that they are properly authorized to act, such as a power of attorney or letter of appointment.


Notes:
1. The identity of directors/persons with significant control/beneficial owners should be verified by obtaining the same documentation as for an individual.

PARTNERSHIPS

INFORMATION WE NEED TO COLLECT

  • Partnership name 
  • Registered address (if applicable) 
  • Trading address (if applicable) 
  • For formal/larger /regulated partnerships, names of partners who have 25% of the capital or profits or voting rights or any other person with control over the partnership 
  • For smaller, informal partnerships, the names of partners who own or control the business

VERIFICATION DOCUMENTS

At least one of the following documents should be obtained:

  • The partnership agreement, or 
  • Tax return, or 
  • Audited accounts filed within the last accounting year evidencing the names and shareholding of each partner

For smaller, informal partnerships where the above documents do not apply, verification documents as for private individuals (i.e. passport, driving licence or national ID card showing the customer’s name and permanent residential address or date of birth).

ULTIMATE BENEFICIAL OWNERS

The ultimate beneficial owner (UBO) of a partnership is any natural person (as opposed to a corporate entity) owning 25% or more of the shares or voting rights in the partnership. 

It is also necessary to establish if the partnership is acting on behalf of another person.  If so,  we must obtain the name, address and date of birth of the person on whose behalf the customer is acting and proof that they are properly authorized to act, such as a power of attorney or letter of appointment

EXECUTORS

INFORMATION TO COLLECT

  • Full names of executors/administrators  
  • Full name of deceased person

VERIFICATION DOCUMENTS

  1. Copy of will or grant of probate or where no will, letters of administration, AND 
  2. Government issued photo ID for executors/administrators

TRUSTS (UNINCORPORATED)

INFORMATION TO COLLECT

  • Full name of trust 
  • Trustee(s) names
  • Mailing address of trustee(s)
  • Settlor/Grantor name 
  • Beneficiary names or if no named beneficiaries, the class of persons in whose interest the trust operates
  • Official identification number (for example tax identification number or registered charity or non-profit organisation number)

VERIFICATION DOCUMENTS

  1. Trust deed or other document evidencing legal existence of the trust and confirming the names of trustees, settlor/grantor and beneficiaries AND
  2. Government issued photo ID and proof of address for trustee (if you are acting for more than one trustee verify the identity of at least two trustees)
  3. Government issued photo ID and proof of address for Settlor
  4. To verify whether the trustee has the power to sell the artwork we must obtain authorisation to act letter.

 

1. If any of the above are individuals, their identity should be verified by obtaining the same documentation as for an individual.

2. In any case where a settlor, protector, beneficiary, etc., is not an individual (i.e. a company), we must demonstrate that we have identified each beneficial owner or controller of that entity.

CHARITIES

INFORMATION TO COLLECT

  • Legal name of charity 
  • Purpose of charity 
  • Registered address 
  • Names of trustees and/or directors

VERIFICATION DOCUMENTS

  1. If the charity is registered, a copy of its listing on the charities register. If the charity is not registered, document evidencing legal existence.   
  2. Confirmation of current trustees and/or directors if not listed on the charity’s website (e.g. a letter from the charity confirming their names). 

 

1. The charity’s listing can be found on the charities register (https://www.gov.uk/find-charity-information)

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