As we find ourselves in an increasingly digitized world, the threats to security, safety, and order are also becoming more digital. Money laundering and terrorist financing are serious financial crimes. Money laundering is the process whereby an individual will attempt to ‘clean’ the proceeds of crime by passing it through legitimate channels. This money can then be used to fund more illegal activity and even terrorism. It is both a legal and moral obligation to fight this phenomenon with the comprehensive implementation of AML policies.
Holdings ("Company") aims to detect, manage, and mitigate the risks associated with money laundering and the financing of terrorism. The Company has introduced a strict policy aimed at the detection, risk prevention, or mitigation in respect of any suspicious activities performed by customers.
The Company is required to constantly monitor its level of exposure to the risk of money laundering and the financing of terrorism. The Company believes that if it knows its client well and understands its instructions thoroughly, it will be better placed to assess risks and spot suspicious activities.
Effective Customer Due Diligence ("CDD") measures are essential to the management of money laundering and terrorist financing risk. CDD means identifying the customer and verifying their true identity on the basis of documents, data, or information both at the moment of starting a business relationship with the customer and on an ongoing basis. The customer identification and verification procedures require, first, the collection of data and, second, attempts to verify that data.
During the Capital Letter registration process individual customers provide the following identification information to the Company:
● Customer’s full name;
● Customer’s date of birth;
● Country of residence/location of the customer;
● Mobile telephone number and e-mail.
Documents may be required to confirm this identity such as:
● Copy of in date passport or other government-issued photographic ID;
● Proof of address such as tax bill or bill from a local authority (fixed-line phone, water, electricity, gas, etc);
● Copy of bank statement.
When making fund deposits or withdrawals via credit/debit card a customer is required to provide a scanned copy or photo of the credit/debit card (front and back). The front side of the credit/debit card should show the cardholder's full name, the expiry date, and the first six and the last four digits of the card number (the rest of the digits may be covered).
The copy or scan of the reverse side of the credit/debit card should show the cardholder's signature, the first six and the last four digits of the card number, but the CVC2/CVV2 code must be concealed.
If a customer either refuses to provide the information described above or if a customer has intentionally provided misleading information, the Company, after considering the risks involved, may close the account or refuse to open an account for the individual.
The Regulations require further research and identification of customers who may pose a potentially high risk of money laundering/terrorist financing. If the Company has assessed that the business relationship with a customer poses a high risk it will apply the following additional measures:
● Obtaining the information relating to the source of the funds or the wealth of the customer will be required (this will be done via email or phone);
● Seeking further information from the customer or from Company’s own research and third-party sources in order to clarify or update the customer’s information, obtain any further or additional information, clarify the nature and purpose of the customer’s transactions with Company.
When obtaining information to verify the customer's statements about the source of funds or wealth, the Company's staff will most often ask for and scrutinize details of the person's employment status or business/occupation.
The Company's staff will ask for whatever additional data or proof of that employment/occupation that may be deemed necessary in the situation, particularly the appropriate confirming documents (employment agreements, bank statements, letter from employer or business, etc.)
The Company will conduct ongoing customer due diligence and account monitoring for all business relationships with customers. This involves regularly reviewing and refreshing the Company's view of what its customers are doing, the level of risk they pose, and whether anything is inconsistent with information or beliefs previously held about the customer. It can also include anything that appears to be a material change in the nature or purpose of the customer's business relationship with the Company.
The Company’s payments policy is governed by the Regulations for Non-Trading Operations.
The Company shall appoint an AML Compliance Officer, who will be fully responsible for the Company’s AML and CFT program and report to the Board of the Company or a committee thereof any material breaches of the internal AML policy and procedures and of the Regulations, codes, and standards of good practice.
AML Compliance Officer’s responsibilities include:
a) Ensuring the Company’s compliance with the requirements of the Regulations;
b) Establishing and maintaining an internal AML program;
c) Establishing an audit function to test its anti-money laundering and combating the financing of terrorism procedures and systems;
d) Training employees to recognize suspicious transactions;
e) Receiving and investigating internal suspicious activity and transaction reports from staff and making reports to the FIU where appropriate;
f) Ensuring that proper AML records are kept;
g) Obtaining and updating international findings concerning countries with inadequate AML systems, laws or measures.
All Company employees, managers, and directors must be aware of this policy.
Employees, managers, and directors who are engaged in AML related duties must be suitably vetted. This includes a criminal check done at the time of employment and monitoring during employment. Any violation of this policy or an AML program must be reported in confidence to the AML Compliance Officer unless the violation implicates the AML Compliance Officer, in which case the employee must report the violation to the Chief Executive Officer. Employees who work in areas that are susceptible to money laundering or financing terrorism schemes must be trained in how to comply with this policy or the AML program. This includes knowing how to be alert to money laundering and terrorist financing risks and what to do once the risks are identified.
The Company provides AML training to employees who will be dealing with customers or will be involved in any AML checking, verification, or monitoring processes. The Company may conduct its training internally or hire external third-party consultants. Each person employed within the Company is assigned a supervisor who teaches him or her in relation to all policies, procedures, customer documentation forms, and requirements, forex markets, trading platforms, etc. There is a training plan for each new employee and tests which are being held for 2-3 months (depending on the level within the business). The Company's AML training programs are aimed to ensure its employees receive appropriate training levels with regards to any possible AML/TF risks.
The Company’s AML and risk awareness training includes the following content:
● The Company’s commitment to the prevention, detection, and reporting of ML and TF crimes. Examples of ML and TF that have been detected in similar organizations, to create an awareness of the potential ML and TF risks that may be faced by the Company’s employees Well known or recognized typologies, especially where made available by the FATF or AML Supervisors.
● The consequences of ML and TF for the Company, including potential legal liability.
● The responsibilities of the Company under the AML Act and Regulations.
● Those particular responsibilities of employees as identified in this AML Policy, and how employees are expected to follow the Company’s AML procedures.
● How to identify and report unusual activity that may be a suspicious transaction or attempted transaction.
● The rules that apply against unlawful disclosure of suspicious transactions (“tipping off”).