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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

You are viewing the version of the document as on 2021-01-01.

Status: In this content, we have included all amendments made by EU exit-related instruments up to end September 2020. There will be more amendments to be made later this year, further to the September QCP.

Article 6 Transfer of customer data to the United Kingdom

Where the third country's law prohibits or restricts the transfer of data related to customers of a branch and subsidiary undertaking established in a third country to the United Kingdom for the purpose of supervision for anti-money laundering and countering the financing of terrorism, credit institutions and financial institutions shall at least:

  1. (a)

    inform their competent authority in the United Kingdom without undue delay and in any case no later than 28 calendar days after identifying the third country of the following:

    1. (i)

      the name of the third country concerned;

    2. (ii)

      how the implementation of the third country's law prohibits or restricts the transfer of data related to customers for the purpose of supervision for anti-money laundering and countering the financing of terrorism;

  2. (b)

    carry out enhanced reviews, including, where this is commensurate with the money laundering and terrorist financing risk associated with the operation of the branch or subsidiary undertaking established in the third country, onsite checks or independent audits, to be satisfied that the branch or subsidiary undertaking effectively implements group-wide policies and procedures and that it adequately identifies, assesses and manages the money laundering and terrorist financing risks;

  3. (c)

    provide the findings of the reviews referred to in point (b) to their competent authority in the United Kingdom upon request;

  4. (d)

    require the branch or subsidiary undertaking established in the third country regularly to provide relevant information to the credit institution's or financial institution's senior management, including at least the following:

    1. (i)

      the number of high risk customers and aggregated statistical data providing an overview of the reasons why customers have been classified as high risk, such as politically exposed person status;

    2. (ii)

      the number of suspicious transactions identified and reported and aggregated statistical data providing an overview of the circumstances that gave rise to suspicion;

  5. (e)

    make the information referred to in point (d) available to their competent authority in the United Kingdom upon request.