Forms Process Guide

CDD For Client & DD For Unrepresented Counterparty Form Flow

In compliance with the Council for Estate Agencies (CEA) regulations, all real estate salespersons are required to perform Customer Due Diligence (CDD) and Unrepresented Counterparty Due Diligence (UCPDD) as part of their obligations to prevent money laundering and terrorism financing.

Q1: What is the purpose of these revised forms under the CEA Guidelines for CDD?

CDD Form

A: These forms are implemented to comply with the Council for Estate Agencies (CEA)’s Customer Due Diligence (CDD) requirements, effective from 30 June 2025. They aim to ensure estate agents (EAs) and real estate salespersons (RESs) properly identify and assess individual clients and the entities they may represent in real estate transactions.

Q2: Which forms are required for an individual client acting on their own behalf?

Form A1 + Form B

A: For clients acting on their own behalf, the following forms must be completed:
1) Form A1 – Customer Particulars Form (For Individual)
2) Form B – Risk Determination and Screening Checklist

Q3: What forms are needed when a client is acting on behalf of another individual?

Form A1 + Form A3 + Form B

A: In this case, the following forms are required:
1) Form A1 – Customer Particulars Form (For Individual)
2) Form A3 – Particulars of the individual the client is acting on behalf of
3) Form B – Risk Determination and Screening Checklist (for each person)

Q4: What if the client is acting on behalf of an entity or legal arrangement?

Form A1 + Form A4 + Form B

A: When the client represents an entity or legal arrangement, these forms must be completed:
1) Form A1 – Customer Particulars Form (For Individual)
2) Form A4 – Particulars of the Legal Person or Entity
3) Form B – Risk Determination and Screening Checklist (for each person)

Q5: When is Form C (Enhanced Customer Due Diligence) required?

Form C

A: Form C must be completed for higher-risk transactions. EAs and RESs should assess the risk level using Form B, and if a transaction is deemed high risk, they must obtain the additional information required in Form C.

Q6: When is Form D (On-going Due Diligence) required?

Form D

A: Form D is necessary for ongoing client relationships that require continued monitoring. This ensures that the relationship remains compliant over time, particularly where there are changes in risk profile or circumstances.

Q1: Who is considered an "Entity / Legal Arrangement Client"?

A: An "Entity / Legal Arrangement Client" refers to clients such as companies, partnerships, trusts, or any legal arrangements that engage in real estate transactions. These are not individual persons but legally recognized organizations or structures.

Q2: What forms are required if the entity is acting on its own behalf?

Form A2 + Form B

A: If the entity or legal arrangement is acting for itself, the following forms must be completed:
1) Form A2 – Customer Particulars Form (For Entity / Legal Arrangement)
2) Form B – Risk Determination and Screening Checklist (one for each person involved)

Q3: What forms are needed when an entity is acting on behalf of an individual?

Form A2 + Form A3 + Form B

A: In this case, the following forms are required:
1) Form A2 – Customer Particulars Form (For Entity / Legal Arrangement)
2) Form A3 – Particulars of the individual the client is acting on behalf of
3) Form B – Risk Determination and Screening Checklist (for each person)

Q4: What if the entity is acting on behalf of another entity or legal arrangement?

Form A2 + Form A4 + Form B

A: Then the following forms must be submitted:
1) Form A2 – Customer Particulars Form (For Entity / Legal Arrangement)
2) Form A4 – Particulars of the legal person or entity the client is acting on behalf of
3) Form B – Risk Determination and Screening Checklist (for each person)

Q5: When is Form C (Enhanced Customer Due Diligence) required?

Form C

A: Form C must be completed for higher-risk transactions. EAs and RESs should assess the risk level using Form B, and if a transaction is deemed high risk, they must obtain the additional information required in Form C.

Q6: When is Form D (On-going Due Diligence) required?

Form D

A: Form D is necessary for ongoing client relationships that require continued monitoring. This ensures that the relationship remains compliant over time, particularly where there are changes in risk profile or circumstances.

Q1: Who is considered an “Individual UCP” under the CEA Guidelines?

CDD Form

A: An “Individual UCP” refers to an Unrepresented Counterparty who is an individual involved in a real estate transaction without professional representation. The CEA requires that estate agents (EAs) and real estate salespersons (RESs) apply due diligence processes when dealing with UCPs.

Q2: What forms are required if a UCP is acting on their own behalf?

Form U1 + Form U5

A: If a UCP (individual) is acting for themselves, the following forms must be completed:
1) Form U1 – UCP Particulars Form (For Individual)
2) Form U5 – Risk Determination and Screening Checklist (one for each person)

Q3: What forms are needed when a UCP is acting on behalf of another individual?

Form U1 + Form U3 + Form U5

A: In this case, the UCP must complete:
1) Form U1 – UCP Particulars Form (For Individual)
2) Form U3 – Particulars of the individual the UCP is acting on behalf of
3) Form U5 – Risk Determination and Screening Checklist (one for each person)

Q4: What if the UCP is acting on behalf of a legal entity or legal arrangement?

Form U1 + Form U4 + Form U5

A: Then the UCP must complete:
1) Form U1 – UCP Particulars Form (For Individual)
2) Form U4 – Particulars of the legal person or entity the UCP is acting on behalf of
3) Form U5 – Risk Determination and Screening Checklist (one for each person)

Q5: When is Form U6 (Enhanced Customer Due Diligence for Unrepresented Counterparty) required?

Form U6

A: Form U6 must be completed when the transaction is assessed to be high risk. EAs and RESs must evaluate each situation using Form U5, and if the UCP presents elevated risk, Form U6 is required to meet enhanced due diligence obligations.

Q6: When is Form D (On-going Due Diligence) required?

Form D

A: Form D must be used for ongoing client relationships that require continuous monitoring. This ensures compliance with ongoing due diligence obligations for UCPs over time, especially if there are changes in transaction risk or client profile.

Q1: What is meant by "Entity / Legal Arrangement UCP"?

CDD Form

A: An "Entity / Legal Arrangement UCP" refers to an unrepresented counterparty that is a company, organization, trust, or legal arrangement involved in a property transaction without professional representation. Under the CEA Guidelines, such parties are subject to specific due diligence procedures.

Q2: What forms are required if the UCP (Entity / Legal Arrangement) is acting for itself?

Form U2 + Form U5

A: If the unrepresented entity or legal arrangement is acting on its own behalf, the following must be completed:
1) Form U2 – UCP Particulars Form (Entity / Legal Arrangement)
2) Form U5 – Risk Determination and Screening Checklist (one for each person)

Q3: What forms are needed if the UCP (Entity / Legal Arrangement) is acting on behalf of an individual?

Form U2 + Form U3 + Form U5

A: In this case, the following forms are required:
1) Form U2 – UCP Particulars Form (Entity / Legal Arrangement)
2) Form U3 – Particulars of the individual the UCP is acting on behalf of
3) Form U5 – Risk Determination and Screening Checklist (one for each person)

Q4: What if the UCP (Entity / Legal Arrangement) is acting on behalf of another legal person or entity?

Form U2 + Form U4 + Form U5

A: Then, the required documentation includes:
1) Form U2 – UCP Particulars Form (Entity / Legal Arrangement)
2) Form U4 – Particulars of the legal person or entity the UCP is acting on behalf of
3) Form U5 – Risk Determination and Screening Checklist (one for each person)

Q5: When must Form U6 (Enhanced Customer Due Diligence for Unrepresented Counterparty) be submitted?

Form U6

A: Form U6 is mandatory when the transaction is assessed to be high risk based on the screening in Form U5. This form ensures enhanced checks are conducted for unrepresented counterparties with elevated risk profiles.

Q6: When is Form D (On-going Due Diligence) required?

Form D

A: Form D must be completed for ongoing client relationships that require continuous monitoring. This ensures estate professionals stay compliant with evolving risks and maintain up-to-date due diligence for long-term engagements.