What is the first criterion for a non-listed business under Phase II?

For non-listed businesses under Phase II, one of the foundational criteria involves having an account that has been operational for a minimum duration. Specifically, maintaining an account for at least two months establishes a baseline for monitoring the business's activities and assessing its financial behavior over time. This timeframe allows financial institutions or compliance officers to gather sufficient transactional data, analyze patterns, and evaluate the legitimacy of the business’s sources of funds.

Additionally, the requirement for a two-month account duration supports a reduction of risk in identifying suspicious activities. It ensures there is a longer history of operation that can be examined for compliance with regulations and can help in establishing a clearer understanding of how the business conducts its activities. Overall, this criterion lays the groundwork for effective risk assessment and monitoring of non-listed businesses in compliance programs.