CDD on Clubs and Societies in Jersey and elsewhere

Clubs and societies

1. There is a wide variety of clubs and societies, ranging from
   1. large, nationally and internationally active organisations subject to a high degree of public interest and quasi-accountability, to
   2. small, local clubs and societies funded by small, individual donations or subscriptions from local communities, serving local needs.
2. It is important, in putting proportionate AML/CTF processes into place, and in carrying out their risk assessments, that firms take account of the different money laundering or terrorist financing risks that clubs and societies of different sizes, areas of activity and nature of the business being conducted, present.
3. Where an application is made on behalf of a club or society, firms should, therefore, make an appropriate distinction between
   1. those that serve a limited social or regional purpose; and
   2. those where the activities and connections are more sophisticated or are geographically based and with financial links to other countries.
4. Many local clubs and societies are small, with limited resources, and it is important to apply identity & verification requirements that are appropriate in the context of the financial crime risk presented by the club or society. This might be particularly relevant in deciding which of the trustees or office holders should be made subject to identity verification.
5. For the vast majority of clubs and societies, either there will be no individual who is a beneficial owner within the meaning of the ML rules, or at most a class of persons who stand to benefit from the club or society’s objects must be identified. These persons will be self-evident from a review of the club or society’s objects in its constitution.

Obtain standard evidence

6. For many clubs and societies, the money laundering or terrorist financing risk will be low. The following information should be obtained about the customer:
   1. Full name of the club/society
   2. Legal status of the club/society
   3. Purpose of the club/society
   4. Names of all officers
7. The firm should as a minimum
   1. VERIFY the identities of the officers who have authority to operate an account or to give the firm instructions concerning the use or transfer of funds or assets.
   2. TAKE APPROPRIATE steps to be reasonably satisfied that the person the firm is dealing with is properly authorised by the customer.
   3. CONSIDER whether documents relied upon are forged.
8. NOTE: if DOCS are in a foreign language, appropriate steps should be taken to be reasonably satisfied that the documents, in fact, provide evidence of the customer’s identity.
9. All the above is supported by
   1. the JFSC AML handbook and
   2. in particular,
      1. Section 3 – Identification measures – overview
      2. Section 4 – Identification measures – finding out identity and obtaining evidence
   3. SPECIFICALLY
      4. 4.5.1 Finding out identity – legal person that is a company
      5. NOTE – In this part, it says on page 16 –  In the case of other bodies, anstalts, associations, clubs, societies, charities, church bodies, institutes, mutual or friendly societies, co-operatives and provident societies, senior individuals will often include members of the governing body or committee plus executives