AXA MPS Financial Limited

Background to the breaches Contravention 1 concerns a failure by the Firm to meet one of the reliance conditions of section 40(4) CJA 2010, such that the Firm was in breach of the customer due diligence requirements of section 33 and 35(1) CJA 2010 concerning the identification and verification of customers. Where a firm wishes to rely on a third party to perform its due diligence requirements under sections 33 and 35(1) CJA 2010, it can only do so if it fulfils the conditions in section 40(4)(a) and (b) CJA 2010 which require: (a) An arrangement between the firm and the third party under which it has been agreed that the firm may rely on the third party to apply any such measure; and (b) That the firm is satisfied, on the basis of the arrangement, that the third party will forward to the firm, as soon as practicable after a request from the firm, any documents or information relating to the customer that have been obtained by the third party in applying the measure. The Firm relied on a third party to carry out its customer due diligence obligations. Due to delays experienced in receiving requested documentation or information, it could not have been satisfied, within the meaning of section 40(4)(b) of the CJA 2010, that documents or information relating to customers would, in fact, be forwarded to the Firm as soon as practicable after a request from it. Contravention 2 concerns a breach of section 37 CJA 2010 which deals with the requirements for politically exposed persons (“PEP”s).