In case of Co-Insurance/Banc assurance, the leading company has direct access to customers, how should the reporting entity exercise the CDD procedures?

Under section 12 of the SECP AML/CFT Regulation, 2018 the Regulated person may rely on a third party to conduct CDD on its behalf. However, it must satisfy itself that third party is regulated and has measures in place for compliance with CDD and record-keeping requirements in line with the regulations. However, the ultimate responsibility for CDD measures remains with the regulated persons relying on the third party.