Questions and Answers on customer information update for private individuals
|Why am I required to provide/update my information?
||The bank must follow the principle “Know your customer”. For a bank it means to follow statutory procedures and requirements that are created for prevention of anti-money laundering and terrorism financing. Following this principle, banks have e.g. the obligation to obtain information about customers, affiliated persons and the origin of customers’ funds. Once the information is obtained it shall be periodically reviewed and updated.By the updating required information you will enable bank to provide the best banking services in accordance with Your needs. At the same time, by answering the questions of the bank You will help to prevent crimes, particularly money laundering and terrorism financing.
|What laws and regulations are behind the "Know Your Customer" principle?
||The "Know your customer" principle is governed by Money Laundering and Terrorism Financing Prevention Act.
|To whom the data provided by the customer are shared?
||The Bank protects all the information provided by the customer. Any information about a customer is strictly confidential and Bank`s duty is to guarantee the confidentiality of all information provided by customer. The Bank shall disclose any information only in accordance with General Terms and Conditions of the bank and under relevant laws.
|Why the customer is asked to provide information about the relation with politically exposed persons (*)?
||Politically exposed persons are often associated with some potential risks to be involved in the bribery and corruption schemes. Pursuant to the statutory requirements for prevention of anti-money laundering and terrorism financing the Bank must apply strengthened scrutiny in case the relationship with politically exposed person or affiliated person is being started or continued.
|What channels customer can use to provide the required information?
For the convenience of the customer we have established several channels where the information can be submitted:
Post: Customers will receive pre-paid letters with the KYC questionnaire enclosed, which can be completed and returned to the bank;
Netbank: Customers can complete the client questionnaire available on the ‘Settings’ page under ‘Customer data’;
Nordea branch: Customers can visit Nordea Branch in the country where their account has been opened. Please note that this will be the only option to complete the questionnaire for those customers, who have received closing letters.
|What happens if customer does not provide the information to the bank?
||If a customer does not provide the requested information and documents required also in cases when false information is provided, the bank may limit provision of banking services or may terminate the business relationship with the customer and request for early execution of obligations.
|What is a deadline for providing information?
||The customer has to provide required information within 30 days since the day he has received a message to update his/ her data. If fully completed KYC questionnaire has not been received by the set deadline Nordea may limit the provision of banking services or terminate the business relationship with the customer.
|How often Bank has to renew customer information?
||Considering the fact that customers’ data and financials change constantly bank needs to renew and keep customer’s information up to date. Banks are obliged to obtain and update necessary KYC information on regular basis, by asking Customers to complete special questionnaires or other forms.Based on The law on Prevention of Money Laundering and Terrorism Financing and Regulatory rules by the FCMC regarding enhanced customer due diligence issued for credit and licensed payment and digital money institutions.
(*) Politically exposed persons - natural person who are or have been entrusted with prominent public functions, including functions in the Republic of Latvia,
European Community, international or foreign states’ institutions:
- head of State, head of government, minister and deputy or assistant minister, state secretary, the chancellor of the parliament,
- government or ministry;
- member of parliament;
- member of supreme court, of constitutional court or of other high-level judicial body whose decisions are not subject to further appeal;
- members of court of auditors or of the board of central bank;
- ambassadors, chargés d'affaires and high-ranking officers in the armed forces;
- members of the administrative, management or supervisory bodies of State-owned enterprise;
- head, deputy head, member of the administrative, management or supervisory body of international intergovernmental organization;
- leader, deputy leader, member of the administrative, management body of the political party
Close family members – means the spouse, the person with whom partnership has been registered (hereinafter – cohabitant), parents, brothers, sisters,
grandparents, grandchildren, children and children’s spouses, children’s cohabitants.
Close associate - means a person who participates in the same legal entity or maintains other business relations.