1. In addition to the Due Diligence measures required in respect of the Customer and the Beneficial Owner, Financial Institutions shall apply Due Diligence and ongoing monitoring measures with respect to the beneficiary of life insurance policies and other types of investment-related insurance classes, as soon as the beneficiary is identified or designated, as follows: a. Where the beneficiary is designated by name, name of the person shall be obtained, whether the person is a natural person, a Legal Person, or a Legal Arrangement. b. Where the beneficiary is designated by category or description, such as by family relationship (including spouse or children) or by other means such as a will or estate, sufficient information about the beneficiary shall be obtained to ensure that the Financial Institution will be able to identify the beneficiary at the time of payment of compensation or entitlements. c. In all cases, the identity of the beneficiary shall be verified at the time of payment of compensation or entitlements, or upon the exercise of any rights related to such policies. 2. In all cases, Financial Institutions shall consider the beneficiary of life insurance policies as a risk factor when determining the applicability of Enhanced Customer Due Diligence measures. Where it is determined that such beneficiary is a Legal Person or Legal Arrangement that presents high risk, Financial Institutions shall apply Enhanced Customer Due Diligence measures, which shall include reasonable procedures to identify and verify the Beneficial Owner of the beneficiary of the insurance policy at the time of payment of compensation or entitlements, or upon the exercise of any rights related to such policies.
Interpretation and application must be checked against the official text and current version.