Due Diligence: Broker KYC met regulatory standard, revocation set aside and licence restored after hearsay and covert survey evidence rejected.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Revocation of a customs broker licence was set aside because findings rested on assumptions, covert market surveys and hearsay rather than admissible proof; the broker's KYC and documentary checks satisfied the due diligence standard under Regulation 10(n) and did not require physical inspection; procedural defects including failure to consider replies and delayed inquiry vitiated disciplinary action; consequential forfeiture and penalty were quashed and the licence restored with directions to return security and penalty, the Tribunal concluding evidence was insufficient and the inquiry procedurally flawed.....