Law Summary
Verification Requirements for Customers
- Banks must maintain a robust system to verify the true identity of their customers.
- For corporate and juridical entities, verification of legal existence, organizational structure, and authority of persons acting on behalf is mandatory.
Identification Requirements for Individual Customers
- Accounts must be opened under the customer's true and full name.
- Use of aliases is permitted only if officially registered with the relevant government agency pursuant to existing laws.
Identification Requirements for Corporate and Juridical Entities
- Accounts must be opened under the true and full name of the entity.
- Banks must develop systematic procedures to identify entities such as corporations, partnerships, and sole proprietorships.
- Identification must extend to stockholders, partners, owners, directors, officers, and authorized signatories.
Identification of Trustors, Beneficial Owners, and Related Persons
- Banks must establish the true and full identity of trustors, principals, beneficial owners, trustees, nominees, agents, and intermediaries.
- This ensures transparency and control over accounts opened on behalf of others.
Identification of Unregistered Associations and Organizations
- Associations, organizations, societies, groups or bodies of persons not registered with the Securities and Exchange Commission must comply with individual customer identification rules.
Regulatory Authority and Implementation
- The guidelines are pursuant to Section X806 of the MORB.
- Banks are reminded to observe these procedures as a regulatory mandate to maintain systemic integrity.