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Third-Party CDD

Rely on third parties —
with the registry the Act demands

Sections 37 and 38 let you rely on another reporting entity's CDD work, but only if you can show you maintain the relationship properly. duely's reliance partner registry tracks every arrangement: who, what scope, what agreement, when it was last reviewed, and when it expires.

Why this matters

Reliance is genuinely useful — your firm doesn't need to re-verify a customer your bank has already KYC'd, provided the legal conditions are met. But the conditions in s37 and s38 carry teeth: you have to maintain the arrangement, periodically review the partner, and demonstrate the agreement on demand.

duely's reliance system is a full registry. Every partner has a record with their entity details, the scope of reliance, the underlying agreement, the periodic review schedule, and the expiry tracking. When a review or expiry comes up, the calendar surfaces it. When an evidence pack is generated for a matter that used reliance, the partner reference goes with it.

What is included now

01

Reliance partner registry

Central record per partner with entity details, scope of reliance, contact data, and the matters that depend on the arrangement.

02

s37 vs s38 distinction

The system tracks which section your reliance falls under — s37 (one-off reliance on another reporting entity) versus s38 (ongoing reliance under a written arrangement) — so the right conditions are applied to each partner.

03

Agreement PDF generation

Generate the underlying reliance agreement document directly from the registry data. Keeps the paperwork consistent and tied to the partner record rather than a Word file in a shared drive.

04

Periodic review automation

The RelianceReview scheduled job watches review dates daily and surfaces them on the compliance calendar with escalating reminders. Periodic review never silently slips.

05

Agreement expiry tracking

The RelianceAgreementExpiry job flags agreements approaching renewal so reliance never silently lapses between agreement versions.

06

Matter-level reliance linkage

When a matter relies on a partner's CDD, the partner reference is captured on the matter and flows through into the evidence pack so the reliance is defensible later.

07

Drift propagation to bound matters

Partner status changes feed the customer-baseline drift detection, so changes in a reliance partner propagate to every matter that uses them — Apply, Rebind, or Upgrade with rationale.

Regulatory basis

AML/CTF Act sections 37 & 38

  • s37 — reliance on another reporting entity's CDD (one-off basis)
  • s38 — reliance under a written arrangement (ongoing basis)
  • Reporting entity remains responsible for the reliance work
  • Periodic review of the reliance partner is required
  • Written agreement required for s38 arrangements; must be available on demand

Reliance you can defend in audit

Registry, agreements, reviews, and expiries — all in one place.