If a client has any of the following situations in the customer due diligence process, the attorney shall consider declining to establish the attorney-client relationship or terminating the attorney-client relationship:
1. The client is suspected of using an anonymous name, a fake name, or the name of a shell firm, or a shell corporation or entity.
2. The client uses forged or altered identification documents.
3. The client refuses to provide identification documents.
4. The client procrastinates in providing identification documents in an unusual manner.
5. Documents provided by the client are suspicious or unclear, or the client refuses to provide other supporting documents, or the documents provided cannot be authenticated without reasonable explanations.
6. The client is an individual, a legal person or an organization sanctioned under the Counter-Terrorism Financing Act, or a terrorist or terrorist group identified or investigated by a foreign government or an international anti-money laundering organization. However, this does not apply to payments made under paragraph 1, Article 6 of the Counter-Terrorism Financing Act.
If an attorney retains a third party to conduct the customer due diligence process on the client, agent, and beneficial owner or the attorney-client relationship, the attorney shall still bear the responsibility for the customer due diligence process, and shall comply with the following provisions:
1. The necessary customer due diligence information shall be obtainable.
2. Appropriate measures shall be taken to assure that the retained third party will provide copies of identification data and other relevant documentation relating to customer due diligence as instructed by the attorney.
3. It shall be confirmed that the third party has appropriate measures in place for compliance with relevant requirements for customer due diligence and record retention.
4. It shall be confirmed that the jurisdiction where the third party is located has anti-money laundering and countering financing of terrorism regulations in place that are consistent with the standards set out by the Financial Action Task Force (FATF).
Before conducting new business, an attorney shall assess money laundering and terrorism financing risks, and shall establish corresponding risk management measures to mitigate the risks identified.
New business under the preceding paragraph includes new payment mechanism and the use of new technology for new or existing business.
The Ministry of Justice shall conduct the risk-based supervision, and shall conduct by itself or entrust the bar association to conduct the site or off-site audits every two years.
The leading attorney or the managing attorney shall cooperate in the audits under the preceding paragraph, shall explain the status of establishment and implementation of internal control and audit system of the firm in respect of anti-money laundering and countering financing of terrorism matters, and shall provide information relating to internal control and audit system without evasion, hindrance or refusal thereof.