As a general rule, Keystone must not establish a business relationship or undertake work until the Firm's client due diligence requirements have been satisfied.
In limited circumstances, Keystone permits a of up to 14 days between matter opening and completion of the outstanding CDD requirements. Its purpose is to permit very limited preparatory work where this is genuinely necessary to avoid interrupting the normal conduct of business and the risk of money laundering and terrorist financing is low and there are no other material financial crime concerns. The may only be used where Keystone has sufficient information to identify the client, understand the ownership and control arrangements, assess the purpose and risk of the instruction and identify no cause for concern, but limited verification evidence remains outstanding.
The is intended to facilitate the completion of outstanding verification requirements. It is not intended to avoid, delay or replace the Firm's client due diligence obligations.
The decision to apply a should always be considered in light of the risks presented by the client and matter. A should not be used where:
Where a matter is opened under a , the responsible lawyer remains responsible for ensuring that all outstanding due diligence requirements are completed promptly.
During the , lawyers must not:
Any departure from these restrictions requires prior written approval from the MLRO and may only be permitted where lawful and consistent with the Firm's risk appetite. Work during the is limited to preparatory steps such as initial meetings, fact-finding and review of documents. It must not commit the Firm or client to a transaction or materially advance a matter for which the outstanding CDD may prove unsatisfactory.
A does not reduce the level of due diligence required. It merely provides a limited period during which outstanding requirements may be completed.
The Firm's current requirements and restrictions are maintained within Keyed-In and may be amended from time to time. Lawyers should ensure they remain familiar with the current process.
Where consumer-contracting requirements apply, work must not begin until the Firm has received the documents and authority required under the section of this Operating Manual dealing with contracting with consumers.
Any work undertaken during the is carried out at risk. If CDD is not completed and the matter must be closed, the time incurred may not be capable of being invoiced. If due diligence cannot be completed within the prescribed period, or if concerns arise during the process, the matter must be escalated immediately.