Applying due diligence procedures here means that exchange shops monitor customer and true beneficiary financial transactions, ensure they understand and verify all operations they engage in, and ensure the accuracy and clarity of the membership creation data. Exchange shops in the Kingdom must apply basic due diligence procedures to all permanent and transient customers, including true beneficiaries, and ensure that these procedures are continuous and commensurate with the risk levels associated with the business and transactions conducted by customers, as follows:

1. Monitor financial transaction activities and ensure they align with the information provided by the customers.
2. Apply due diligence procedures when establishing a business relationship and enhance them when conducting occasional transactions exceeding previously disclosed limits or when there is suspicion of money laundering or terrorist financing, regardless of exemptions or specified transaction limits, or if there are doubts about the accuracy or adequacy of previously obtained data for identifying customers.
3. Verify if any person (natural or legal) is acting on behalf of the customer and ensure the legality of this.
4. Identify individuals (natural and legal) who have ownership or control over the customer.
5. Enhance due diligence procedures for high-risk customers and business relationships, which may be due to the customer’s business activity, ownership structure, volume, or types of expected or actual transactions, including those involving high-risk countries or those identified as high-risk under applicable laws or regulations, such as correspondent banking relationships and politically exposed persons.
6. Simplified due diligence procedures are not acceptable if there is suspicion of money laundering or terrorist financing.
7. Mitigate due diligence requirements for relationships classified as low-risk categories, such as:

8. Avoid terminating or restricting business relationships with entire customer categories solely to avoid risk management or limited financial returns (profits) without considering other risk mitigation measures for individual customers within a particular sector and evaluating each case individually.