S.L. 373.1 Art. 12Reliance on performance by other subject persons or third  parties. 

(1) Subject persons may rely on another subject person or a third party to fulfil the customer due diligence requirements provided for under regulation 7(1)(a) to (c), with the subject person placing reliance remaining ultimately responsible for compliance with those requirements.

(2) For the purposes of this regulation "third party" shall mean any person or institution, including member organisations or representative bodies of such person or institution, situated in a Member State other than Malta or a third country that:

(a) apply customer due diligence requirements and record keeping requirements that are consistent with those laid down under these regulations; and

(b) have their compliance with anti-money laundering and counter-financing terrorism requirements monitored in a manner which is consistent with Section 2 of Chapter VI of Directive (EU) 2015/849: AND FUNDING OF TERRORISM Provided that subject persons may not rely on third parties from a non-reputable jurisdiction, or any other jurisdiction which is considered by the subject person to present a high risk of money laundering or funding of terrorism unless such third parties are branches or majority-owned subsidiaries of persons or institutions established in a Member State subject to national provisions implementing Directive

(EU) 2015/849 and which comply fully with group-wide policies and procedures equivalent to those mentioned under regulation 6.

(3) Subject persons relying on another subject person or a third party shall obtain from that other subject person or third party the information required in accordance with the provisions under regulation 7(1)(a) to (c).

(4) Subject persons relying on another subject person or a third party shall take adequate steps to ensure that, upon request, that other subject person or third party shall immediately forward to them relevant copies of the identification and verification data relevant to the customer and the beneficial owner and other relevant documentation required in terms of regulation 7(1)(a) to (c).

(5) Subject persons that are branches or majority owned subsidiaries of persons or institutions established in a Member State or a third country other than Malta and subject persons that have branches or majority owned subsidiaries in a Member State or a third country shall be considered to comply with the provisions of sub-regulations (2) to (4) through the group’s policies and procedures, where all the following conditions are met:

(a) the subject person relies on information provided by a third party that is part of the same group;

(b) that group applies customer due diligence measures, record keeping measures and anti-money laundering and counter-funding of terrorism policies and procedures equivalent to those under these regulations;

(c) the effective implementation of the measures and requirements referred to in paragraph (b) at group level is subject to supervision by a relevant authority.

(6) This regulation shall not apply to outsourcing or agency relationships where, on the basis of a contractual agreement, the outsourcing service provider or agent is to be regarded as part of the subject person.