ILS World, Isle of Man UK and Worldwide

Introduction | Services | Billing Guide | Due Diligence

THE QUESTIONS WE ASK: 'Due Diligence'

We are often asked "why do you ask so many questions?" by clients forming companies with us. As an organisation of the highest integrity, our rules, and those of most of the offshore world, seek to eliminate any criminal activity, and in particular money laundering, and we will always ask for a bank and professional reference on the ultimate beneficial owner together with a suitably certified copy of his passport. Similar information is required by the bank if we open accounts on a client's behalf. This procedure is known as 'due diligence'.

Legislation controlling corporate service providers in most of the offshore jurisdictions also places a great legally-enforced responsibility on us to ensure maintenance of correct records and compliance with regulatory legislation and stringent anti-money laundering laws. It is now also a requirement that either we or the client prepare accounts for companies administered by ILS.

Isle of Man Exempt Companies will not be subject to audit if they are specifically exempted in their Articles of Association.

We also require preparation of un-audited accounts for all companies on which we act as directors.

We are also required to review in detail every company file annually to ensure compliance with the requirements of the law and we regret that this incurs an additional administrative charge.

Due diligence requirements:

Professional references *
Certified copy passports to verify the beneficial owner's identity **
Signed Client Record Form
Confirmation of the Source of Wealth of the ultimate beneficial owner(s), (i.e. how did they accumulate their wealth ?)
Details of the estimated annual turnover (if trading) or asset value (if a holding company) expected through the proposed client company within the first 12 months

Where we provide directors:

Signed Directors' Deeds of Indemnity

Where bank accounts are opened:

A recent utility bill may well be required to verify the beneficial owner's residential address.
Business plan

Powers of Attorney
Where ILS is providing directors to the company, and we are asked to issue a Power of Attorney or appoint additional unknown third parties as directors, we require the following in respect of the persons to be appointed:

Full Name and Address
Professional Reference
Certified Copy Passport

Explanatory notes
* Professional References: These should be in an original format, they should be on the standard letter heading of the organisation providing the reference and should include the residential address details of the beneficial owner. The reference should be signed by a professional person signing in their individual professional capacity (for example, lawyer, banker, accountant).

** Certified Copy Passports: All copy passports should bear an original certification that the copy is a true copy by a UK resident notary public, a member of staff at any British Embassy, an EU resident regulated professional (e.g. lawyer, accountant, banker), or a member of ILS staff who has had sight of the original passport.

Across the world, controls on the use of offshore companies are becoming tighter. The underlying principle in the prevention of money laundering is that of 'know your client'. The avoidance of money laundering and proceeds from criminal activity of any sort is in all our interests. If your corporate service provider does not ask you questions, you should be suspicious of his integrity and the legality of its activities. We hope that this additional burden will make no difference to our clients with legitimate activities.

Please call us on +44 1624 682500 if you need assistance with any aspect of our due diligence procedures.