AML Policy

1. Compliance and Oversight Functions

The Compliance and Anti–Money Laundering and Counter–Terrorist Financing (AML/CFT) functions are performed by the AML Compliance Officer (MLRO). The AML Compliance Officer carries out these functions independently from the activities and services subject to oversight and reports directly to the Board of Directors.

2.1 AML Regulatory Function

The Compliance function holds the following responsibilities:

• To conduct regular internal reviews to ensure that the Company’s organizational arrangements are appropriate, effective, comprehensive, and proportionate to the services and activities undertaken by the Company.
• To implement appropriate corrective measures where deficiencies in the Company’s organizational arrangements are identified.
• To advise and assist employees involved in the provision of services and activities in complying with the Company’s obligations under applicable laws, regulations, and directives.
• To ensure that the Company’s Internal Regulations are made available to all employees in electronic form and to encourage employees to review such Regulations at least on a biannual basis.
• To ensure that the provisions of the Internal Regulations are consistently and effectively implemented across the Company. Following any material changes in legislation or internal organizational structure, updated Internal Regulations shall be distributed to employees within a reasonable timeframe to ensure awareness of such changes. New employees are required to review the Internal Regulations upon joining the Company. Records shall be maintained evidencing that all employees, including branch staff, have read and understood the Internal Regulations.
• To provide guidance, advice, and relevant information to employees regarding their roles, responsibilities, and regulatory obligations.
• To prepare, on an annual basis, a written Compliance Report outlining the status of the Company’s compliance framework and detailing any remedial actions taken to address identified deficiencies. This report shall be submitted to the AML Compliance Officer and the Board of Directors.

Powers of the AML Compliance Officer

• The AML Compliance Officer shall have full authority to make final determinations regarding the eligibility of prospective account holders, including decisions on account opening.
• The AML Compliance Officer shall have the authority to assess the legitimacy of transactions and to suspend or refuse the execution of any transaction where such action is deemed necessary.
• The AML Compliance Officer shall have the authority to report any suspicious or improper activity to the relevant competent authorities, with or without the prior approval of senior management.

Duties of the AML Compliance Officer

Monitoring of Company Activities

The AML Compliance Officer shall continuously oversee the activities of the Company and its customers to identify potential indicators of money laundering or other illicit activity. This includes the review of trade blotters, account statements, exception reports, and any other relevant reports or documentation that may reveal suspicious behavior.

The AML Compliance Officer shall also be responsible for cooperating fully with regulatory and law enforcement investigations related to anti–money laundering matters, including the timely provision of all requested information and documentation to relevant federal, state, and self-regulatory authorities.

Receipt of Suspicious Activity Reports

The AML Compliance Officer shall receive and handle all internal reports of suspicious activity or suspected breaches of the AML Program. Such reports may be submitted confidentially by department supervisors or directly by any employee, and shall be treated with strict confidentiality.

Investigation

The AML Compliance Officer shall conduct a thorough investigation of each reported instance of suspicious activity. The investigative process, any information or data gathered, and the AML Compliance Officer’s conclusions and determinations shall be fully documented and retained in accordance with applicable recordkeeping requirements.

2.2 The Company’s AML Framework and Obligations

The Company shall implement all reasonable measures to ensure that its accounts are not used to hold assets derived from criminal activity, to facilitate the commission of any unlawful act, or for any purpose that contravenes the Money Laundering (Prevention) Act and applicable regulations. In order to mitigate the risk of money laundering, the Company does not accept cash deposits.

2.2.1 Implementation of a Risk-Based Approach

The Company shall adopt and apply appropriate measures, policies, and procedures based on a risk-based approach, directing its resources and controls toward areas where the risk of money laundering and terrorist financing is assessed to be higher.

A risk-based approach shall:

(a) Acknowledge that the risk of money laundering and terrorist financing varies depending on the customer profile, geographic location, services offered, and financial instruments used;

(b) Enable the Board of Directors to differentiate between customers in a manner that is proportionate to the level of risk associated with their business activities;

(c) Allow the Board of Directors to design and implement tailored policies, procedures, and internal controls that appropriately address the Company’s specific risks, circumstances, and operational characteristics;

(d) Contribute to the development of an efficient and cost-effective compliance framework; and

(e) Support the prioritization of the Company’s resources and actions based on the likelihood and potential impact of money laundering or terrorist financing occurring through the Company’s services.

2.2.2 Obligations When Establishing Business Relationships

The Company shall not enter into a business relationship or execute a one-off transaction in the course of relevant financial activities unless the following conditions are met:

(i) The Company has established and maintains effective anti–money laundering procedures, including:

• customer identification and verification procedures;
• record-keeping and monitoring mechanisms;
• processes for identifying and detecting suspicious transactions;
• internal reporting procedures; and
• other appropriate internal controls and communication measures designed to prevent and deter money laundering.

(ii) Employees are made aware of their statutory obligations and the Company’s internal policies and procedures relating to anti–money laundering; and

(iii) Appropriate and ongoing training programs are maintained to ensure employee awareness and compliance.

For the purposes of this section, a one-off transaction refers to any transaction conducted outside the scope of an established business relationship.

The Company shall not establish or maintain business relationships with individuals using clearly fictitious names or addresses and shall not operate anonymous accounts.

Any request for statements or information from the media or other external sources shall be immediately referred to the Money Laundering Reporting Officer (MLRO) for handling.

2.2.3 Identification Procedures

The Company shall ensure that, as soon as reasonably practicable following initial contact—and in any event prior to transferring or disbursing any funds to a third party—satisfactory evidence is obtained to verify the identity of each customer or counterparty (the “Applicant”). Where a client is acting on behalf of another person or entity, the identification and verification requirements shall extend to that third party.

If satisfactory identification evidence is not provided, the Company shall not proceed with the business relationship and shall terminate any preliminary understanding reached with the client. Where there is knowledge or suspicion of money laundering or terrorist financing, a report shall be made without delay to the Money Laundering Reporting Officer (MLRO) in accordance with these procedures.

Methods of Identification

The Company shall take appropriate steps to ensure that it is dealing with a genuine natural person or legal entity and shall obtain sufficient evidence to establish the Applicant’s true identity. Where reliance is placed on a third party to conduct identification or verification, the Company retains ultimate responsibility for ensuring that all identification measures and documentation meet regulatory requirements.

As no single document can be relied upon as conclusive proof of identity, the identification process shall be cumulative. Except where a reliable, multi-source database is used, no single document or data source shall be used to verify both the Applicant’s name and permanent address.

The Company shall apply all measures required under the applicable Money Laundering (Prevention) Act and Regulations to verify the identity of clients and beneficial owners. As a general rule, all prospective clients must be introduced by an existing client and/or have an established relationship with the Company.

All identification documents must be original or certified true copies issued by a lawyer, public notary, or authorized financial intermediary. Copies shall be taken at the Company’s premises or in the presence of an Executive Director, the MLRO, or another duly authorized person.

Customer Due Diligence

The Company shall collect and retain information sufficient to understand the client and the purpose of the relationship, including:

• source of funds;
• source of wealth (including a description of the economic activity generating the client’s net worth);
• estimated net worth;
• references or other documentation supporting reputation, where available; and
• purpose of the account and the nature of the business relationship.

Individual Customers

The identity of individual clients shall be verified using official identity documents or other reliable evidence, including but not limited to:

• full name;
• date and place of birth;
• nationality;
• marital status;
• name of spouse (if applicable);
• parents’ names;
• full residential address (including telephone number and area code);
• contact details (telephone and email);
• signature;
• occupation;
• income details and overall financial situation.

Identification documents must be valid and current at the time of account opening.

Acceptable forms of identification include:

• a valid passport or national identity card bearing a photograph;
• income tax registration number; and
• reliable proof of residential address.

Separate verification of the client’s permanent residential address shall be obtained from the most reliable available source. Documents that do not contain a photograph or signature and are easily obtainable (e.g., birth certificates or driving licences) shall not be accepted as the sole means of identification.

Corporate Customers

Where the Applicant is a company listed on a recognized or approved stock exchange, or a wholly owned or controlled subsidiary of such a company, no additional identity verification beyond standard commercial due diligence will normally be required.

For unlisted companies where none of the principal directors or shareholders holds an existing account with the Company, the following documentation shall be obtained from reliable and independent sources:

• certificate of incorporation or equivalent;
• evidence of registered address;
• certificate of good standing;
• list of shareholders and directors;
• authorized mandate to establish the business relationship;
• extract from the Commercial Register or equivalent;
• names and addresses of at least two authorized signatories and directors;
• names and addresses of beneficial owners;
• Memorandum and Articles of Association or equivalent documents;
• description of the nature of business, including:
  • date of commencement;
  • products or services offered;
  • principal place of business; and
• recent financial statements, where available.

Where practicable, the Company shall obtain a register of members or details of shareholders holding a controlling interest. Enhanced due diligence shall be conducted on beneficial owners holding ten percent (10%) or more of the issued share capital, in accordance with individual client identification requirements.

Trusts

Where the client is a trustee, the Company shall obtain sufficient information to understand the structure and purpose of the trust, including identifying the settlor, trustees, beneficiaries, and any individuals or entities with control or removal powers. The identity of the settlor and any person contributing assets to the trust shall be verified in accordance with the procedures applicable to individual clients. The Company shall assess the need for additional due diligence based on the nature and risk profile of the trust.

Beneficial Owners

Due diligence shall be conducted on all beneficial owners in accordance with the following principles:

• Natural persons: The Company shall establish whether the individual client is acting on their own behalf.
• Legal entities: The Company shall obtain sufficient information to understand the ownership and control structure, including identifying the source of funds, principal shareholders, directors, and individuals exercising control over the entity.

Where appropriate, the Company shall determine whether further due diligence is required in respect of other shareholders. These requirements apply irrespective of whether shares are held in registered or bearer form.

2.2.4 High-Risk Countries and Clients

The Company shall apply enhanced due diligence and heightened scrutiny to clients, beneficial owners, and funds originating from countries identified by credible sources as having inadequate anti–money laundering standards or presenting elevated risks of crime and corruption. Transactions involving clients or beneficial owners from such jurisdictions shall be subject to stricter verification and monitoring procedures.

Offshore Jurisdictions

Entities organized in offshore jurisdictions are subject to the Company’s standard due diligence procedures. However, additional scrutiny and more stringent measures shall be applied to transactions involving clients or beneficial owners headquartered in these jurisdictions.

High-Risk Activities

Clients and beneficial owners whose source of wealth or income arises from industries or activities considered susceptible to money laundering shall be closely monitored, and transactions shall be reviewed with heightened attention.

Public Officials

Individuals who hold, or have held, positions of public trust—including government officials, senior executives of state-owned enterprises, politicians, political party officials, and their immediate family members or close associates—shall be subject to enhanced scrutiny in accordance with applicable anti–money laundering requirements.

2.2.5 Verification Responsibility

The Money Laundering Reporting Officer (MLRO) is responsible for verifying the identity of each new applicant before establishing a client relationship. Verification procedures must be fully completed, and satisfactory evidence of the applicant’s identity must be obtained prior to issuing a customer agreement, except in exceptional circumstances approved in writing by the Compliance Officer.

2.2.6 Verification Procedures

The verification process shall be documented using the Company’s Client Identification Questionnaire. If staff are uncertain about the information or documentation required to verify an applicant’s identity, they must consult the MLRO immediately and before conducting any transactions.

2.2.7 AML Compliance Officer Approval

Once completed, the Client Identification Questionnaire must be signed by the responsible employee or a designated representative of the Company and submitted to the Compliance Officer for record keeping. The Compliance Officer shall countersign the form for each applicant and determine whether any additional information or documentation is required before commencing business with the client.

2.2.8 Record Keeping Procedures

The Company shall retain all client identification records, including verification documents and transaction records, for a minimum of five (5) years from the date of completion of the relevant transaction.

2.2.9 Monitoring and Periodic Reviews

The Company shall apply a risk-based approach to determine any additional due diligence required for existing clients. In addition, the Company shall implement a system of periodic reviews of customer account activity according to the following schedule:

• Low-risk clients: every 22 months
• Medium-risk clients: every 18 months
• High-risk clients: every 12 months

Further due diligence shall be conducted where circumstances or changes in client behavior indicate potential increased risk.

2.3 Education and Training

Staff who handle or are managerially responsible for handling transactions which may involve money laundering will be made aware of:

• their responsibilities under the Company’s anti-money laundering arrangements, including those for obtaining sufficient evidence of identity, recognizing and reporting knowledge or suspicion of money laundering and use of findings of material deficiencies;
• the identity and responsibilities of the MLRO;
• the law and regulations relating to money laundering; and
• the potential effect on the Company, its employees and its clients of any breach of money laundering provision.

All members of staff will have access to the Laws and any relevant Guidelines and will receive periodic training in addition to the information provided in this document. This is expected to include seminars organised by the Compliance Officer. Employees should ensure that they regularly update their knowledge of these procedures given the seriousness of the consequences of breaching the Act and the Regulations.

A record of anti-money laundering training supplied must be maintained and will include the dates, nature and names of recipients of such training.

2.4 Duty to Report

All staff have a statutory and regulatory obligation to report any information that comes to their attention which may give rise to knowledge, suspicion, or reasonable grounds for knowledge or suspicion of money laundering. This obligation applies even if a staff member does not actually know or suspect money laundering but reasonably should have known or suspected; failure to report in such circumstances constitutes an offence.

To fulfill this duty, staff must continuously monitor transactions and maintain vigilance for any suspicious activity. Understanding and verifying the identity of clients and counterparties is the Company’s primary line of defense against money laundering. It is essential that the Company ensures that new counterparties are engaged in legitimate business activities and uphold high standards of integrity and business conduct.

For the purposes of AML compliance:

• Knowledge of money laundering is broadly defined and includes willfully ignoring obvious signs, recklessly failing to make reasonable inquiries, or being aware of circumstances that would indicate suspicious activity to a reasonable and honest person.
• Suspicion is assessed subjectively but extends beyond mere speculation.
• Reasonable grounds for suspicion introduce an objective standard, which may include willful blindness, negligence in conducting adequate inquiries, or failure to properly assess relevant information. Suspicion must be considered in the context of the relationship, transaction, and specific circumstances.

The Company shall ensure that all staff take all reasonable steps, under the particular circumstances, to understand their clients and the rationale for any transaction or instruction. All reports made by staff, as well as any reports submitted to the relevant Supervisory Authority, shall be documented and maintained for compliance purposes.

2.5 Suspicious Transactions

A suspicious transaction is typically one that appears inconsistent with a customer’s known legitimate business activities. To effectively assess such transactions, it is essential to have a clear understanding of the client’s business, maintain accurate and comprehensive records, and monitor account activity. All staff have a responsibility to report any knowledge or suspicion of money laundering.

To determine whether a transaction may be suspicious, the following questions may be considered:

• Is the transaction inconsistent with the client’s normal business activities?
• Is the size or frequency of the transaction unusual compared to the client’s typical pattern?
• Are there linked transactions that could be intended to disguise or divert funds to other forms, destinations, or beneficiaries?
• Is the transaction economically or commercially rational for the client?
• Has the client’s transaction behavior changed unexpectedly?
• Does the client have a legitimate reason for conducting business in the relevant jurisdiction?
• Is the proposed method of payment unusual or atypical for the client?

Even minor suspicions of money laundering must be reported immediately to the Money Laundering Reporting Officer (MLRO). An internal reporting form for documenting knowledge or suspicion of money laundering is included in this manual.

Special attention should also be given to accounts held by individuals in positions of public trust, such as government officials or politicians, as well as any known accounts connected to such individuals, with appropriate monitoring and scrutiny applied.

2.6 Confidentiality

Reporting a suspicion of money laundering serves as a defense against claims of breach of confidentiality. However, any statements to the press or other public communications must be directed through the Money Laundering Reporting Officer (MLRO) or their designated deputy.

Reports made in good faith shall protect the individuals involved from criminal, civil, or administrative liability. Maintaining confidentiality during an ongoing investigation is critical, and employees must be aware that unauthorized disclosure of a suspicion, commonly known as “tipping-off,” constitutes a criminal offence.

2.7 Internal Reporting

All employees are required to report any suspicions of money laundering promptly to the Money Laundering Reporting Officer (MLRO).

Reports should be comprehensive and documented, including:

• The name and location of the reporting employee;
• Full details of the client or counterparty; and
• A clear account of the information or circumstances giving rise to the suspicion.

Any internal inquiries or investigations conducted in relation to the report, as well as the rationale for deciding whether or not to escalate the matter, must also be documented.

The MLRO shall advise the reporting employee to avoid “tipping off” the subject of the suspicion and ensure that information concerning the report is not disclosed to any unauthorized third party.

This reporting obligation applies even in cases where a business relationship or transaction does not proceed due to circumstances that give rise to a suspicion of money laundering.

2.8 Record Keeping

The Company shall maintain comprehensive records of all customer verification processes. This includes:

• All identifying information provided by the customer;
• The methods used for verification and the results obtained;
• The resolution of any discrepancies in the identification information.

For documentary verification, records shall include:

• A description of the documents relied upon to verify the customer’s identity;
• The type of document, any identification number, place of issuance, date of issuance, and expiration date.

For non-documentary verification, records shall include details of the methods employed and the results of the measures taken to confirm the customer’s identity.

All identification records shall be retained for a minimum of five (5) years following the closure of the account. Records related to verification procedures shall also be maintained for five (5) years from the date the record was created.

2.9 Know-Your-Client (KYC) Questionnaire

The Company is responsible for ensuring that each client completes and submits a duly signed Know-Your-Client (KYC) Questionnaire.

The Company shall provide clients with guidance and support to accurately complete the KYC, and shall explain the importance of providing precise information. Accurate KYC completion enables the Company to deliver appropriate services, protect the client’s interests, and tailor investment recommendations effectively.

To assess a client’s investment experience, the Company shall collect information regarding:

• Previous transactions in financial instruments, including the type, quantity, and frequency of such transactions;
• The client’s investment objectives, including intended investment horizon (short-, medium-, or long-term) and risk tolerance (low, medium, or high).

The evaluation of the client’s financial position shall consider the broader context of the client’s portfolio, including:

• Income and primary assets (e.g., real estate, financial holdings, valuables, or other significant assets);
• Monthly expenses and existing debt obligations.

Clients shall also be informed of their responsibility to promptly notify the Company of any changes in their personal or financial information to ensure the accuracy of records and the suitability of services provided.

2.10 Internal Reporting Form

All staff are obligated to report any knowledge or suspicion of money laundering in accordance with the Company’s procedures. Failure to report when there are reasonable grounds for suspicion or knowledge constitutes an offence. Therefore, even minor suspicions must be reported immediately.

Reporting Procedure:

1. Immediate Notification: Promptly inform the Money Laundering Reporting Officer (MLRO) verbally and complete this reporting form. By doing so, you are protected from personal criminal liability. You must, however, comply with any instructions from the Compliance Officer or management regarding the customer and transaction until the matter is resolved.
2. Suspension of Management Activities: You may not continue to manage the customer’s portfolio until clearance is granted by the Compliance Officer.
3. Review Process: The Compliance Officer will review the matter promptly with senior management.
4. Outcome of Review: The review will either confirm or dismiss the suspicion. If the suspicion is confirmed, the Company will make a confidential report to the relevant authorities, who will provide instructions on how to proceed.
5. Confidentiality: Under no circumstances should the client or any other party be informed that a report has been made (“tipping-off”).
6. Guidance: If you are uncertain, seek immediate guidance from the Compliance Officer.

Reporting Form:

Customer Information:

• Name of Customer:
• Country of Incorporation/Origin:
• Type of Customer (underline as appropriate): Corporation / Partnership
• Name of Contact:
• Position:
• Contact Details:
  • Telephone:
  • Facsimile:

Customer Status:

• Existing Customer: Yes / No
  • If No, provide all available identification information.

Suspicion During Identification:

• How was the customer introduced to us?
• Is verification of identity complete?
• Was verifying the customer’s identity unusually difficult?
  • If yes, please specify:

Details of Suspicion or Knowledge: Provide a detailed account of the knowledge or suspicion of money laundering, explaining why the transaction or activity appears suspicious. Include any relevant information, such as:

• Unusual roles of fiduciaries in managing the portfolio;
• Payments into the account via third-party cheques without apparent connection to the investor;
• Payments where the account holder, signatory, and prospective investor differ;
• Any other suspicious circumstances.

MLRO Review: The MLRO will add any additional relevant information to either support or negate the suspicion.