KYC.IO

Global Regulations and Requirements for KYC Onboarding
(powered by KYC-Chain)

KYC to onboard domestic persons

name

KYC to onboard international persons

name

corporate requirements

verify the identityverify the beneficial ownerobtain sufficient and satisfactory evidence for identities

National ID card name

Qatari ID Card

National ID Photo

back of national id photo back

Does the country have Esignature Laws?

The Electronic Commerce and Transactions Law 2012; Decree Law No. (16) of 2010 on the Promulgation of the Electronic Commerce and Transactions Law

E-sig law files

What year did the relevant AML laws and regulations become effective?

2002

Further details on AML regime

2002

Who is the regulator for AML controls for Banking

Qatar Central Bank

Link to site

www.qcb.gov.qa

Other financial Services

Qatar Financial Centre Regulatory Authority

Website of Regulator

www.qfcra.com

Financial Sector regulator

N/A

Practical Guidance for AML

Yes. The QFCRA has a rulebook giving practical AML/CFT guidance to firms within its jurisdiction.

Practical guidance PDF's

Is there a requirement to verify the identity of customers retroactively?

Retroactive details

Has the country been the subject of FATF mutal evaluation in the last 3 years?

Yes

PDF of FATF review

Are there minimum transaction thresholds (Y/N)

More details on minimum transaction thresholds.

What are the requirements for customer identification information for individuals

With regards to identification requirements for individuals and legal entities, authorised firms should: a) verify the identity of any customer with or for whom the authorised firm acts or proposes to act; b) establish whether the customer is acting for himself or on the behalf of another person, verify the beneficial owner of any relevant transaction, and obtain sufficient and satisfactory evidence of all of their identities. In cases where the customer is acting on behalf of another person, the authorised firm must obtain a written statement from that person.

Details to be Collected on Corporates

What are the high level requirements around beneficial ownership (identification and verification)?

Beneficial ownership is defined as: a) the natural person(s) who own(s) or control(s) directly/indirectly 10% or more of the shares of a legal person, not being a company listed on an official stock exchange; b) the natural person(s) who directly/indirectly is beneficiary to 10% or more of the property of a legal person or trust, not being a company listed on an official stock exchange; or c) the natural person(s) on whose behalf a transaction or activity is being conducted. The authorised firm is expected to establish to its satisfaction the true identity of a customer and any other person on whose behalf the customer is acting, including that of the beneficial owner of the relevant funds which may be the subject of a transaction to be considered. It also should obtain evidence of verification that is sufficient to establish that the person is indeed who he/she claims to be. Where the principal owner is another corporate entity or trust, there is a requirement to look behind that company or trust and to verify the identity of the ultimate beneficial owner or settlor. The capacity of the signatories to act on behalf of the club or society and the identity of beneficial owners of the funds should be established and verified.

What circumstances are enhanced customer due diligence measures required?

The authorised firm must assess its risks in relation to money laundering and perform enhanced due diligence investigations on higher risk products, services and customers having regard to guidance issued by the regulatory authority.

How should FI's deal with Politically exposed persons

The authorised firm must implement and maintain detailed monitoring and due diligence procedures for each customer who is, or becomes a PEP. The monitoring and due diligence procedures must include: a) analysis of any complex structures used by the customer (for example, structures involving trusts or multiple jurisdictions); b) measures to establish the origin of funds and the source of wealth or income: i. the requirement that senior management approval be obtained before the customer opens an account with the relevant person; or ii. if an account has been opened, to engage in any transaction with the customer; c) development of a profile of expected activities for the customer relationship to provide a basis for transaction and account monitoring; and d) regular oversight of the relationship by senior management

What enhanced due diligence must be performed for correspondent banking relationships?

The authorised firm that establishes, operates or maintains a correspondent account for a correspondent banking client must ensure that it has arrangements to: a) conduct due diligence at the opening of an account for a correspondent banking client including measures to identify its ownership and management structure, major business activities and customer base, location and the intended purpose of the correspondent account; b) ensure that the correspondent banking client has verified the identity of and performs ongoing due diligence on those customers who have direct access to the correspondent account, and that the correspondent banking client is able to provide customer due diligence information upon request to the authorised firm; and c) monitor transactions processed through such account, in order to detect and report any suspicion of money laundering. The authorised firm must not: a) establish a correspondent banking relationship with a shell bank; b) establish or keep anonymous accounts or accounts in false names; or c) maintain a nominee account which is held in the name of one person, but controlled by or held for the benefit of another person whose identity has not been disclosed to the authorised firm.

Are relationships with banks who might be considered a 'shell' and without substance permitted?

Yes

In what circumstances is additional due diligence required for non face-to-face transactions and/or relationships?

None stated in local regulations or guidance.

To whom are SAR's made? (suspicious activity reports)

Qatar Financial Information Unit

Link to website of SAR reporting

www.qfiu.gov.qa

Other Suspicious or unusual transactions obligations.

The regulations require firms to report where they have reasonable grounds to know of or suspect that the funds are the proceeds of criminal conduct or terrorist activities.

Are there any de-minimis thresholds below which transactions do not need to be reported?

The regulation does not give a minimum or maximum threshold, but rather expresses the obligation of the firm to report where there are reasonable grounds to know of or suspect that the funds are the proceeds of criminal conduct or terrorist activities.

Are there any penalties for non compliance with reporting requirements e.g. tipping off?

In the event of non compliance with the reporting requirements, Article 44 of the Qatar Law shall apply: A supervisory authority, in case of a violation of the obligations established under this law by a financial institution, NPO, or DNFP, made intentionally or by gross negligence, is evidenced, may impose one or more of the following measures and sanctions: a) requesting regular reports on measures it is undertaking; b) requesting compliance with specific instructions; c) sending written warnings; d) replacing or restricting the powers of managers, board members, or controlling owners, including the appointing of an ad hoc administrator; e) barring individuals from employment within a business, profession or activity, either permanently or for a provisional period; f) imposing supervision, suspending license, restricting or withdrawing any other form of permission and prohibiting the continuation of a business, profession or activity; g) imposing financial penalty in an amount no greater than QAR10m. h) any other measures. The supervisory authority shall inform the Unit of the measures and sanctions imposed.

Are there any requirements (legal or regulatory) to use automated Suspicious Transaction monitoring technology?

Yes. The Qatari and QFC law requires firms to have systems in place to enable them to monitor all complex, unusual, large transactions, or unusual patterns of transactions, that have no apparent or visible economic or lawful purpose. The firm must examine as far as possible the background and purpose of all complex, unusual large transactions and make a record of its findings.

Is there a requirement to obtain authority to proceed with a current/ongoing transaction that is identified as suspicious?

It is not mentioned expressly in the Law or in the QFC Regulations whether a firm is allowed to proceed with the legal advice/transaction in the event that a suspicious transaction report has been filed.

Does the local legislation allow transactions to be monitored outside the jurisdiction?

While the Law or QFC Regulations do not expressly state that transactions should be monitored outside the jurisdiction, it does stipulate that a firm must conduct enhanced customer due diligence measures and enhanced ongoing monitoring for customers from high risk jurisdictions whose line of business is more vulnerable to corruption.

Is there a legal requirement for a bank’s external auditor/other external organisation to report on the bank’s AML systems and controls?

N/A

If an external report on the bank’s AML systems and controls is required: a) how frequently must the report be provided?

N/A

To whom should the report on AML systems be submitted?

N/A

Is an AML system part of the financial statement audit?

N/A

What are the requirements for the content of this external report on a bank’s AML systems and controls? Does it require: a) sample testing of KYC files? b) sample testing of SAR reports? c) examination of risk assessments?

N/A

Data Protection Laws And Personal Data

N/A

Data Protection for Corporate Data

N/A

Data protection for "sensitive Data" and additional protections.

N/A

Do any restrictions on the transfer of credit reports exist?

N/A

Regulator Acronym

QCB

Year of last FATF mutual evaluation

2008

Field 67

none stated

National ID card details

As of 2014 the government has issued a Qatari ID Card to every Qatari citizen and resident over the age of 15.

Compulsory?

National ID source

http://www.identity-cards.net/record/quatar

Passport Photo

practical Guidance yes / no

Is there a risk based approach

Legal Requirement

Regulator allows for monitoring transactions outside jurisdiction

Requirement to proceed

requirement to use automated suspicious transaction tools

Yes

Who are SARS made to?

QFIU

shell banks

Yes

EDD for correspondent banking

Yes

If the AML laws and/or regulations became effective in the last 2 years, what were the requirements of the previous AML regime?

N/A

Non financial sector (e.g. casinos, high value goods etc.)

N/A

Does the country have a risk based approach?

Yes

Where copies of identification documentation are provided, what are the requirements around independent verification or authentication?

Copies must be verified against the original document. If the original document is not available, a certified copy of such document must be presented for verification. Certification can be done by any of the following: a registered lawyer, a registered notary, a chartered accountant, a government ministry, a post office, a police officer or an embassy or consulate.

Is there case law, other constitutional law or any other laws or regulations that may impact upon the transfer of information to this jurisdiction?

N/A

List of case law, constitutional law or any other laws or regulations that may impact upon the transfer of information.

N/A