Article 20 › 1

For the purpose of conducting customer due diligence, obliged entities shall apply all of the following measures: (a) identifying the customer and verifying the customer’s identity; (b) identifying the beneficial owners and taking reasonable measures to verify their identity so that the obliged entity is satisfied that it knows who the beneficial owner is and that it understands the ownership and control structure of the customer; (c) assessing and, as appropriate, obtaining information on and understanding the purpose and intended nature of the business relationship or the occasional transactions; (d) verifying whether the customer or the beneficial owners are subject to targeted financial sanctions, and, in the case of a customer or party to a legal arrangement who is a legal entity, whether natural or legal persons subject to targeted financial sanctions control the legal entity or have more than 50 % of the proprietary rights of that legal entity or majority interest in it, whether individually or collectively; (e) assessing and, as appropriate, obtaining information on the nature of the customers’ business, including, in the case of undertakings, whether they carry out activities, or of their employment or occupation; (f) conducting ongoing monitoring of the business relationship including scrutiny of transactions undertaken throughout the course of the business relationship to ensure that the transactions being conducted are consistent with the obliged entity’s knowledge of the customer, the business and risk profile, including where necessary the source of funds; (g) determining whether the customer, the beneficial owner of the customer and, where relevant, the person on whose behalf or for the benefit of whom a transaction or activity is being carried out is a politically exposed person, a family member or person known to be a close associate; (h) where a transaction or activity is being conducted on behalf of or for the benefit of natural persons other than the customer, identifying and verifying the identity of those natural persons; (i) verifying that any person purporting to act on behalf of the customer is so authorised and identify and verify their identity.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04