Recital 73

(73) Terminating the business relationship where customer due diligence measures cannot be complied with reduces the obliged entity’s exposure to risks posed by possible changes in the customer’s profile. However, there might be situations where the termination should not be pursued due to public interest goals. This is the case, for example, in relation to life insurance contracts, where obliged entities should, where necessary, as an alternative to termination take measures to freeze the business relationship including by prohibiting any further services to that customer and withholding the payout to beneficiaries, until customer due diligence measures can be complied with. Additionally, certain products and services require the obliged entity to continue holding or receiving the customer’s funds as defined in Article 4, point (25), of Directive (EU) 2015/2366, for example in the context of lending, payment accounts or the taking of deposits. That should however not be treated as an impediment to the requirement to terminate the business relationship, which can be achieved by ensuring that no transactions or activities are carried out for the customer.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04 · Text as adopted (Official Journal); later amendments are not incorporated in this text.