1. COMPANY’S COMPLIANCE FUNCTIONS
The responsibilities of Compliance and Anti-Money Laundering (AML) & Counter-Terrorist Financing (CTF) Compliance are carried out by the AML Compliance Officer (MLRO). This officer operates independently of the activities and services they monitor and reports directly to the Board of Directors.
2.1 AML COMPLIANCE FUNCTION
Responsibilities of the Compliance Function:
Conduct periodic internal reviews to ensure the company's organizational framework is appropriate, effective, and proportionate to its services and activities.
Address and rectify deficiencies in organizational requirements as needed.
Provide guidance and support to employees to ensure adherence to the company’s obligations under relevant laws and regulations.
Ensure internal regulations are readily accessible to all employees electronically and encourage a review at least bi-annually.
Monitor compliance with internal regulations and ensure updates are communicated promptly following legislative or organizational changes. All employees, including new hires, must acknowledge having read and understood these regulations.
Offer advisory support to employees regarding their responsibilities and obligations.
Prepare an annual Compliance Report outlining the company’s compliance status and remedial actions. This report is presented to the AML Compliance Officer and the Board.
AML Compliance Officer Authority:
Determine the eligibility of potential account holders and assess the legitimacy of transactions, with authority to halt suspicious activities if deemed necessary.
Report suspicious or improper activities to authorities, independently of senior management's approval.
AML Compliance Officer Duties:
Monitoring: Oversee the firm's activities and customer transactions to identify potential money laundering through a review of trade records, account statements, and exception reports.
Cooperation: Assist with investigations, providing required documents and information to regulatory and law enforcement bodies.
Investigation: Conduct thorough investigations into reported suspicious activities and maintain detailed documentation, including final decisions.
2.2 THE COMPANY’S AML PROCEDURES AND OBLIGATIONS
General Measures:
The company ensures accounts are not misused for criminal activities by prohibiting cash deposits and implementing stringent AML procedures.Implementation of a Risk-Based Approach:
The company adopts measures tailored to the varying risks of money laundering across different customers, countries, and services, ensuring a cost-effective and focused compliance system.Establishing Business Relationships:
The company will only engage in business transactions when:Proper identification, record-keeping, and internal reporting procedures are in place.
Employees are trained and aware of their obligations.
No anonymous or fictitious accounts are involved.
Identification Procedures:
The company will verify client identities using reliable documentation and will not proceed with transactions unless satisfactory evidence of identity is obtained. Third-party involvement in verification requires the company's oversight.Methods of Identification:
Evidence will be cumulative and include documents like passports or national IDs and confirmation of residential addresses. All documents must be originals or certified true copies.
2.3 EDUCATION AND TRAINING
Employees involved in handling transactions will receive training on:Their roles in the company’s AML framework.
Legal obligations and the significance of compliance.
Recognizing and reporting suspicious activities.
Records of training sessions, including participants and materials, will be maintained for accountability.
2.4 REPORTING OBLIGATIONS
Duty to Report:
All employees are obligated to report any knowledge or suspicion of money laundering. Failure to do so, even unintentionally, constitutes a legal offense.Confidentiality:
Reports made in good faith protect employees from legal consequences. However, confidentiality during investigations is critical, and employees must avoid "tipping off" clients.Suspicious Transactions:
Transactions inconsistent with a client’s profile or business activity must be reported. Indicators include unusual transaction sizes, methods, or patterns.
2.5 RECORD KEEPING
All identification and transaction records will be maintained for at least five years. These include documents verifying client identity and transaction logs.
2.6 PERIODIC REVIEWS
The company will periodically review customer accounts based on their risk profile:Low-risk clients: Every 22 months.
Medium-risk clients: Every 18 months.
High-risk clients: Every 12 months.
2.7 KNOW-YOUR-CLIENT (KYC) QUESTIONNAIRE
Clients must complete a detailed KYC questionnaire covering investment experience, financial condition, and risk appetite. The company must assist clients in accurate completion and ensure periodic updates to the information provided.2.8 INTERNAL REPORTING FORM
Employees must promptly report any money laundering suspicions using an internal reporting form. The form includes details of the client, transaction, and reasons for suspicion. The MLRO will review and decide on further action, ensuring confidentiality and compliance.