In terms of Regulation 21 of the Regulations, a bank must obtain certain additional information whenever this information may reasonably be required to identify:

In most instances it is a combination of factors, not any one factor that will lead to a conclusion that a transaction or relationship poses a money laundering risk. All circumstances surrounding a business relationship or transaction should be reviewed.

The risk factors referred to in paragraph 3, above, may be helpful to banks in assessing when additional information may be required in order to enhance the institution's profile of a particular client. In addition there are a number of further factors that may indicate that a business relationship or single transaction poses a high risk of facilitating money laundering activities, or the presence of the proceeds of unlawful activity such as the following:

The circumstances referred to above may be legitimate features of certain categories of businesses, or may make business sense if viewed in the context of the client‘s business activities. However, it is equally possible that these features would be unexpected in relation to certain categories of businesses, or would have no apparent business purpose, given a particular client’s business activities. The purpose of obtaining additional information concerning certain clients in these circumstances is to assist the bank to more accurately identify truly suspicious behavior or relationships and transactions that pose a risk of money laundering, on the basis of a broader profile of the client than the mere client identification particulars.

The information that a bank must obtain in the circumstances referred to above must be adequate to reasonably enable the bank to determine whether transactions involving a client are consistent with the bank’s knowledge of that client and that client’s business activities and must include particulars concerning: