AML

 

ARIANA EXCHANGE LIMITED
AML/CFT MANUAL

Incorporating ‘The Bribery Act 2010 2018

 

CONTENTS                                                                              PAGE NO.

 

  1. Introduction 3
  2. Definition 3 - 4
  3. Agents 4
  4. Our obligations 5
  5. Customer Due Diligence and Enhanced Due Diligence 5 - 6
  6. Sanctions and Politically Exposed Persons (PEPs) 6 - 7
  7. Provision of information about services to a potential client 7
  8. Private Clients 7 - 8
  9. Standard Procedure which must be followed 8
  10. Non UK/EU Citizens 8
  11. Corporate Clients 8 - 10
  12. Trusts 10
  13. Clubs and Societies 10 - 11
  14. Charities, Churches 11
  15. Third Party Payments 11
  16. Financially Excluded 11 - 12
  17. Training 12
  18. Record Keeping 12
  19. The Money Laundering Regulations 2007 13
  20. Suspicious Activity 13
  21. Reporting Suspicious Activity 13 - 14
  22. Tipping Off 14
  23. Money Laundering 14
  24. General 14 - 15
  25. The Bribery Act 2010 15 - 18

APPENDICES

  1. Money Laundering Checklist 19 - 29
  2. Introducer Certificate 30 - 31
  3. Corporate Account Opening Form – KYC 32 - 33
  4. Private Individual Account Opening Form – KYC 34
  5. Trust Account Opening Form – CDD 35
  6. Agent Registration Form – KYC 36 - 38
  7. Corporate Client Registration Form – KYC 39 - 41

 

1.       INTRODUCTION

 

  • 1.1Money Laundering is the process by which criminals attempt to hide and disguise the true origin and ownership of the proceeds of their criminal activities, thereby avoiding prosecution, conviction and confiscation of the criminal funds. Terrorist financing can be similarly described although the funds used for terrorist financing may in fact be legitimate.
  • 1.2The ability to launder the proceeds of criminal activity through the financial systems of the world is vital to the success of criminal operations. Money is the lifeblood of terrorist organisations and vital to the mounting of terrorist

 

  • 1.3The ever changing world of AML/CTF has resulted in the creation of a number of directives the latest of which in the European Union has been adopted in the summer of May 2014 and is referred to as 4MD. It creates a number of enhancements and changes to EU legislation it is yet to be adopted into national legislation but in anticipation of that process this manual is updated in this version to reflect the changes which will happen. As such changes are yet to be enacted, in this manual they are written in italics and underlined to reflect this.

 

 

2.       DEFINITIONS

 

  • 2.1Legal definitions of the crime of money laundering used in European Council Directive of 1991 and which have in the main been adopted into subsequent UK legislation are:
  1. The conversion or transfer of property for the purpose of concealing or disguising the origin of the property
  2. The concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to or ownership of illicitly gained property
  3. The acquisition, possession or use of property derived from criminal activity or participation in criminal
  • 2.2The legal definition of the funding of terrorism created by the United Nations can be summarised as

“Any person commits an offence if that person by any means, directly or indirectly, unlawfully and wilfully, provides or collects funds with the intention that they should be used or in the knowledge that they are to be used, in full or in part, in order to carry out terrorism Any other act intended to cause death or serious bodily injury to a civilian, or to any other person not taking an active part in the hostilities in a situation of armed conflict, when the purpose of such act, by its nature or context, is to intimidate a population, or to compel a government or an international organization to do or to abstain from doing any act."

  • 2.3Throughout this policy the term anti-money laundering (AML) and combating the financing of terrorism (CFT) are to be used
  • 2.4Historically, efforts to combat money laundering concentrated on the activities of the traditional banking sector. However, criminals have responded to the measures taken by banks over recent They have invested in other methods of converting illegally obtained money.
  • 2.5Increasingly criminals are turning to amongst others money service businesses as a valuable conduit for laundering their proceeds of criminal The ability to move money across different sovereign jurisdictions and the attendant issues of obtaining evidence from different jurisdictions has meant that Foreign Exchange in all its different versions is an attractive method of laundering. An issue recognised by FATF amongst others. Perversely the more respectable the firm, the more attractive it is as a target for the money launderer. Funds moved through money service businesses, such as Ariana Exchange Ltd are unlikely to attract as much attention as other MSBs from Law Enforcement as a result of Ariana Exchange Ltd known probity. Companies that become involved in money laundering offences risk prosecution and the loss of their reputation with its attendant loss of clients.
  • 2.6The nature of Ariana Exchange Ltd.’s business is primarily that of ‘home remittance’. Our clients are from the Indian sub-continent the Middle East and further afield. Most business is high volume small amounts. Our staff should reflect this in their everyday dealing with customers. The relationship between our clients and staff is one of actual knowledge of the client need. However it is the intention that Ariana Exchange Ltd should grow and the use of Agents is becoming much more common within the business. This manual is written to reflect both the actual nature of our business and its potential for growth.
  • 2.7Ariana Exchange is regulated by HMRC and authorised by the FCA as an Authorised Payment Institution, details of the registration and authorisation can be found and independently verified on the respective body’s

When entering into a relationship with a foreign country Ariana Exchange should ensure that their standards meet or exceed the EU standard

  • 2.8To ensure compliance with the fourth directive as outlined in the above paragraph Ariana Exchange have engaged the services of an outside subject matter expert Consultant, MICT Ltd. MICT Ltd are engaged by Ariana Exchange to ensure uniformity in compliance with national and international

Responsibility for subsidiaries and branches is to become more structured

 

3.       AGENTS

  • 3.1The increasing use of agents by “master” foreign exchange companies such as Ariana Exchange has led to a need for greater oversight of such agents. Ariana Exchange has therefore engaged to carry out agent visits and train all agents registered with Ariana Exchange.

4.       OUR OBLIGATIONS

  • 4.1In accordance with our responsibilities under the regulations we have appointed a Money Laundering Reporting Officer/Nominated Officer (MLRO/NO). Our MLRO/NO is Mr Faisal Yaqin. Our obligations contain but are not limited to:
    1. 1.a)Ensuring all relevant staff are trained regularly in anti-money laundering
    2. 1.b)Training is annually face to face and carried out on site, in either our Brick Lane or Southall offices staff employed external to these offices must attend for training at one of these two
    3. 1.c)Adopting a risk based approach to customer due diligence and enhanced due diligence including ongoing monitoring of any business relationships
    4. 1.d)Creating policies and procedures that relate to customer due diligence, ongoing monitoring, internal reporting and record

Fit and Proper Person tests will be mandatory for FX Trust and Company Service Providers and Gambling Providers

  • 4.2All new staff will be subject to Criminal Records checking and right of residence checks.
  • 4.3Responsibility for the creation and implementation of all policies and procedures resides with the senior management of Ariana Exchange Limited, will ensure full implementation and adhere to all

 

5.       CUSTOMER DUE DILIGENCE AND ENHANCED DUE DILIGENCE

 

  • 5.1Customer Due Diligence or CDD can be described as a combination of two elements Know Your Customer and Identification and
  • 5.2Know Your Client (KYC)
    1. 2.a)The KYC requirement is the cornerstone of our relationships with our clients. The requirement to carry out customer due diligence and enhanced due diligence has given it an increased
  • 5.3As a result of the necessity to carry out customer due diligence and/or enhanced due diligence in addition to the identification of private clients we are required in respect of corporate clients to identify all beneficial owners. The definition of a beneficial owner is any individual who ultimately owns or controls more than 25% of the shares or voting rights in the company or body. The term controls is important, while not a shareholder any person who exercises influence on the dealings of a corporate client or in the management of the corporate client exercises
  • 5.4The regulations also require that the company adopts a risk based approach to all As such it is our responsibility to assess the risks posed by any clients on amongst others the following basis:-
  • -Destination of the currency bought product
  • -Currency pairs, volume, frequency and value
  • -Customer profile
  • 5.5Clients will be grouped as to their risk level i.e. low, medium and high risk. The determination of the risk level will be the responsibility of the MLRO/NO. If a client is a high or medium risk then enhanced due diligence will be practiced and any ongoing business activity should be monitored by senior management in practice Ariana Exchange Ltd. For the risk assessment of Ariana Exchange Ltd and a list of high risk categories please see Appendix 1. Ariana has formed a Risk Committee to address risk issues on an ongoing basis, this committee will meet monthly and a risk report will be generated subsequent to these
  • 5.6All high risk client accounts will only be opened on the approval of the MLRO, Faisal Yaqin. The high risk accounts will then be marked as such in the CRM system and any front office staff dealing with an account marked ‘high risk’ must seek approval from compliance to carry out any
  • 5.7 All low risk accounts will be marked as such on the CRM system. Front office staff dealing with accounts that are marked ‘low risk’ do not need approval to carry out a trade from compliance.

 

6.       SANCTIONS AND POLITICALLY EXPOSED PERSONS (PEPs)

  • 6.1Although often referred to in the same sentence PEPs and Sanctions are separate entities although a Sanctioned entity may also be a
  • 6.2Sanctioned entities may never be traded or signed on as a client. Upon checking the HM Treasury Sanctions list (incorporating the EU and UN Sanctions list) a report must be made to the MLRO/NO immediately a Sanctioned entity is potentially identified who will then take the necessary steps to deal with the matter including reporting to the relevant authority in the case of the United Kingdom HM Treasury. While there is no obligation to do so Ariana Exchange Ltd will also comply with the OFAC Sanctions List.
  • 6.3PEPs are defined as individuals who have been entrusted with a prominent public function outside of the UK. In addition the definition of PEPs is extended to any immediate family member and/or close associate of a person referred to in the previous sentence
    1. 3.a)All accounts relating to PEP’s must be:-
    2. 3.b)Approved by senior management – MLRO
    3. 3.c)Be subject to enhanced due diligence
    4. 3.d)All transactions with PEP’s are considered high risk and the account on the CRM system will be marked red upon Staff must therefore get any future trades approved by compliance.

Domestic PEPs and PEPs in International organisations now included

  • 6.4Although not obliged by law to do so it has always been the policy of Ariana Exchange Ltd to include domestic PEPs in our risk based

7.       PROVISION    OF    INFORMATION    ABOUT    OUR    SERVICES    TO    A POTENTIAL CLIENT

 

  • 7.1It is not necessary to carry out customer due diligence and enhanced due diligence procedures with a client where the meeting is merely to provide information to a prospective client about our services or is a first interview/discussion prior to a relationship being

8.       PRIVATE CLIENTS

 

  • 8.1In accordance with our obligations to satisfy ourselves as to the identity of a client and in accordance with the principles of Know Your Client (KYC) the following procedures will be carried
  • 8.2The staff member will be required to obtain/complete the following documents/information:-
  • -Account opening documents
  • -KYC private individual account opening form
  • 8.3The client will be informed that the information is necessary to enable Ariana Exchange Ltd to satisfy ourselves as to his or her identity in accordance with our obligations under anti-money laundering
  • 8.4The information will contain but will not necessarily be confined to:
  1. 4.a)Full name
  2. 4.b)Date of birth
  3. 4.c)Address and if resident less than three years a previous address
  4. 4.d)Source of funds
  5. 4.e)(If appropriate source of wealth i.e. PEPs)

8.5Where an applicant produces non-standard documentation staff should not cite the Money Laundering Regulations 2007 as a reason for not opening an account. The matter should be referred to Compliance for a decision

  • 8.6Where the instruction is to refer the matter to Compliance the client should be informed that there is a problem with the identification and clarification needs to be sought from Compliance. Such clearance or refusal to trade will be available with 2 hours of contact

with Compliance. In the event of a refusal to trade responsibility for telling the client Ariana Exchange Ltd will not accept their business shall rest with Compliance.

  • 8.7In practising KYC, staff will satisfy themselves as to the rationale behind the instruction or business. Furthermore they should be satisfied that instructions to trade by a client are rational and make good business sense. A risk based approach across the business is
  • 8.8Our e-id system automatically checks against all sanctions lists worldwide and existing PEP lists.

9.       STANDARD PROCEDURE WHICH MUST BE FOLLOWED

  • 9.1The procedure to be followed in all cases with a new client will be as follows:-
  1. Obtain acceptable photographic identification
  2. A second independent verification of the address of the client will be obtained it will be photocopied and retained. NB it must be a recent document not older than 3 months.
  3. Note the unique reference number of the photographic identification on the account opening The account opening forms are to be kept separately to all other client identification. The unique reference number will probably be:-
  4. Passport number
  5. Driving licence number
  6. Certify the documentation by signing and dating and including the words ‘original seen’

10.   NON UK/EU CITIZENS

  • 10.1)Please ensure proof of entitlement to remain in the UK is .
  • 10.2)Consider a risk based approach to non-EU nationals
    1. 2.a)Be aware of clients who are domiciled in high risk geographical areas listed in Appendix 1. Should the client a citizen of or normally resident in high risk jurisdiction the account must be approved by the MLRO/NO before being opened.
    2. 2.b)Consider KYC and copy the VISA pages of the passport

11.   CORPORATE CLIENTS

  • 11.1In adopting a risk based approach staff should ensure they understand the company’s legal form structure and
  • 11.2The following information/documents must be obtained/completed in respect of corporate clients:-
  1. Account opening documents
  2. KYC corporate account opening form included in Appendix 4
  3. Money Laundering Checklist in Appendix 1
  4. Full corporate name
  5. Corporate registered number
  6. Corporate registered office
  7. Corporate trading address
  • 11.3Additionally in respect of private companies Ariana Exchange Ltd require the names of all directors and the names of beneficial owners holding over 25%.
  • 11.4Verification of ownership shall be by an online search of Companies House or other electronic search engine for
  • 11.5The identity of 2 Directors, all beneficial owners and all authorised signatories will be verified in accordance with the procedures set out for private
  • 11.6It is important that Ariana Exchange Ltd is satisfied that a person acting on behalf of a corporate client has authority to do Evidence of such authority is required on the account opening document
  • 11.7Corporate and Legal Entities provide an attractive vehicle for money laundering. The use of “brass plate” or shell companies is common Care must be taken to verify the identity of the client (i.e. the Company). Limited liability partnerships are to be treated as corporate clients.
  • 11.8In order to verify the information provided by the corporate client, the following procedures are to be followed:-
  • 11.9A company search will be carried out to verify the information supplied and the following information independently verified and recorded
  • - Registered number
  • - Registered corporate name and any trading name
  • - Registered address and any separate trading address
  • - List of Directors
  • - List of beneficial owners and shareholders
  • - Memorandum and Articles of Association
  • 11.10Publicly listed companies whether UK or non UK are generally considered to be low risk. When they are listed on a recognised or approved stock exchange. No further identification steps are required except independent verification that they are so listed.

Identification of natural persons who are owners of legal persons

  • 11.11In the event of a corporate client’s ownership structure including a legal person the ownership of that person must be followed until finalised at a natural person and relevant identification carried

 

12.   TRUSTS

 

  • 12.1Ariana Exchange Ltd will establish the following information regarding the trust:
  • - Full name
  • - Nature and purpose (e.g. discretionary, testamentary, bare)
  • - Country of establishment
  • - Names of all trustees, and
  • - Name and address of any
  • 12.2The nature and purpose of the trust will be verified by requesting a copy of the trust deed. The identity of each of the trustees will be verified in line with the standard evidence requirements for individuals.
  • 12.3Where the signatory to the plan is not one of the verified trustees, Ariana Exchange Ltd will obtain written authority from the trustees permitting the plan to be opened and granting permission for the signatory to act on behalf of the trust, together with a schedule of authorised
  • 12.4Where the nature of the trust is a simple bare or family trust (e.g. set up for inheritance tax planning purposes) the above verification information is sufficient. If the nature of the trust is more complex or where it is established or has activities/connections overseas then additional verification, such as establishing the identity of the settlor and the source of funds, may be required. Such cases should be referred to the

13.   CLUBS AND SOCIETIES

 

  • 13.1Ariana Exchange Ltd will establish the following information about the club/society:
  • - Full name
  • - Legal status
  • - Purpose and the names of all
  • 13.2Ariana Exchange Ltd will verify the identity of each of the officers who have authority to give instructions on the plan in accordance with the standard evidence requirements for
  • 13.3Written authority from the club/society permitting the plan to be opened and granting permission for the signatory to act on its behalf will be obtained, together with a schedule of authorised

14.   THIRD PARTY PAYMENTS

 

  • 14.1Where it is necessary for an individual / company to send funds on behalf of another registered client with Ariana Exchange Ltd, they too must register with Ariana Exchange Ltd and submit all relevant documents including passports of Directors, Memorandums of Association etc. Details of the working relationship between themselves and the party to which they are sending the funds to must be

CUSTOMERS WHO CANNOT PROVIDE STANDARD EVIDENCE

  1. FINANCIAL EXCLUSION

Financial inclusion is to be addressed

  • 15.1Some customers may not be able to provide identification information equivalent to the standard required. Such cases may include some low-income customers in rented accommodation, refugees asylum seekers migrant workers individuals dependant on the care of others dependant spouses/partners or minors customers with a legal, mental or physical inability to manage their affairs students
  • 15.2In these cases, the MLRO will be consulted to review options of alternative documentation that could be returned. If no other suitable alternatives are available, Ariana Exchange Ltd may accept as evidence of identity a written statement from a person in a position of responsibility who knows the prospective customer confirming in respect of that person (i) that they are who they say they are, and (ii) details of their full name and current permanent
  • 15.3Acceptable persons for this purpose are UK based and can be taken from the following list:-
    1. 3.a)Solicitors
    2. 3.b)Doctors
    3. 3.c)Minister of religion
    4. 3.d)Teachers
    5. 3.e)Care home managers
    6. 3.f)Social workers
  • 15.4Ariana Exchange Ltd may accept statements from additional
  • 15.5Where Ariana Exchange Ltd concludes that a customer is to be treated as financially excluded, a record of this and the reasons for doing so are retained on the customer’s file. This must be provided to the MLRO for notification and agreement. The MLRO will maintain a list of such cases and subject to reason for recording as financially excluded will monitor such

16.   TRAINING

 

  • 16.1One of Ariana Exchange Ltd key controls in mitigating the threat of being used for money laundering is having staff and agents who are aware of and alert to the All staff and agents, whether on a full-time, part-time or contract basis, are made aware of Ariana Exchange Ltd anti-money laundering policy, manual and the obligations arising from them for both themselves and Ariana Exchange Ltd.
  • 16.2Ariana Exchange Ltd provides training on anti-money laundering issues and the requirements of its policy and manual, to those relevant staff and
  • 16.3This training comprising two key elements:-
  1. Induction Training - The MLRO/NO is responsible for identifying relevant new Ariana Exchange Ltd staff who are required to undertake induction training. The training is provided by MICT Ltd and is face to face training. The content of the training includes awareness training, covering Money Laundering and Terrorist Financing. Understanding of the subject matter is assessed throughout the training through case Until a new member of staff has been signed off as competent no direct customer contact is allowed.
  2. Refresher Training - all relevant staff will must undertake face to face refresher training on an annual basis. The training is provided by MICT Ltd and assessment of staff understanding is carried out throughout the
  • 16.4Ariana Exchange Ltd obtains acknowledgements from staff that they have received the necessary training by requesting staff to sign their attendance at training sessions. Overall monitoring of attendance is recorded manually and stored on the AML file.

17.   RECORD KEEPING

  • 17.1Ariana Exchange Ltd will create and maintain sufficient documentation to give a clear and full record of all contacts and communications with every
  • 17.2It is the responsibility of all staff members to ensure completeness of records for the area in which they are
  • 17.3All records must be kept for at least 5 years after the business relationship has ended.
  • 17.4Where an investigation is being conducted all records must be kept for five years or until the investigation has ended; whichever is the

18.   THE MONEY LAUNDERING REGULATIONS 2007

 

  • 18.1The Money Laundering Regulations 2007 require that Ariana Exchange Ltd
  1. Ensure all relevant staff are trained regularly in their awareness of their obligations under all legislation
  2. Ensure that all relevant staff understand their training
  3. Adopt a risk based approach to customer due diligence and enhanced due diligence including the ongoing monitoring of any business relationships
  4. Create policies and procedures that relate to customer due diligence, ongoing monitoring, internal reporting and record keeping
  • 18.2The Money Laundering Regulations impose obligations on Ariana Exchange Ltd as a company and upon the Money Laundering Reporting Officer (“MLRO”). Any breach of the obligations carries the following penalties:-

-     Fines or imprisonment

 

  • 18.3Ariana Exchange Ltd (whether or not a staff member is prosecuted for failing to comply with the regulations) considers such failure to comply with the Regulations to be gross

THE PROCEEDS OF CRIME ACT 2002

  1. SUSPICIOUS ACTIVITY
  • 19.1The Proceeds of Crime Act 2002 (POCA) requires (amongst other things) that when in the course of business a member of staff of Ariana Exchange Ltd comes across what is described as Suspicious Activity that it should be reported in the first instance to the MLRO
  • 19.2There is no definitive list of what constitutes suspicious activity, however if the principles of KYC are rigorously applied then in the course of conducting business with the client sufficient information should be available, to make a judgement about what constitutes suspicious activity in each

20.   REPORTING SUSPICIOUS ACTIVITY

 

  • 20.1When suspicious activity is suspected, the following procedures will be followed:-
    1. 1.a)the person suspecting should immediately make a written report or e-mail to the MLRO/NO
    2. 1.b)if urgent telephone first, then follow up with a written report
    3. 1.c)no discussion with other members of staff should take place
    4. 1.d)a record of the date and time of report should be recorded
    5. 1.e)acknowledgement of the receipt of the report should be obtained from the MLRO/NO. This will be done via a receipt email from the MLRO/NO.
    6. 1.f)a copy of the Suspicious Activity Report (SAR) may be made
    7. 1.g)do not keep a copy in the client file
    8. 1.h)new suspicion of the same client means a new report must be made
    9. 1.i)under no circumstances may the suspicious activity be discussed with anyone other than MLRO or deputy
  • 20.2Failure to report knowledge or suspicions of laundering of the proceeds of crime1:

-     Maximum Five years imprisonment and/or an unlimited fine

 
   
  1. TIPPING OFF
  • 21.1It is an offence to make a disclosure which is likely to prejudice any investigation which might be conducted following the making of a Suspicious Activity Report:2

-     2 years imprisonment/or a fine

  • MONEY LAUNDERING
  • 22.1It is an offence to conceal, disguise, convert, transfer or remove criminal property from the United Kingdom3
  • -     Maximum Fourteen years imprisonment and/or a fine
  • 22.2It is an offence to enter into or become concerned in an arrangement which he knows or suspects facilitates the acquisition retention use or control of criminal property by or on behalf of another4

-     Maximum Fourteen years imprisonment and/or a fine

 

  • 22.3It is an offence to acquire use or have possession of criminal property5

-     Maximum Fourteen years imprisonment and/or a fine

  1. GENERAL
  • 23.1If in doubt report your suspicion to the MLRO/NO, you have then complied with your He will use his own judgement whether to report further to Serious Organised Crime Agency.
  • 23.2All contact with Law Enforcement Agencies will be handled by the MLRO/NO or his
  • 23.3The MLRO/NO will be responsible for providing information and updates to the legislation as and when they

24.   THE BRIBERY ACT 2010

  • 24.1INTRODUCTION

The recent introduction of the Bribery Act 2010 which came into force on the 1st of July 2011 has placed an obligation on all commercial entities to have in place policies and procedures to prevent any of the bribery offences outlined in the Act being committed by any person within Ariana Exchange Ltd or anyone associated with Ariana Exchange

 
   

Ltd. The legislation is wide in scope and introduces an extra territorial dimension seldom seen in the United Kingdom.

The key offences which could possibly affect Ariana Exchange Ltd are as follows:

  • Section 1 Offering a bribe
  • Section 2 Receiving or soliciting a bribe
  • Section 6 Bribery of a foreign public official
  • Section 7 Failure of a commercial organisation to prevent bribery

The above offences are necessarily written in plain language and are self explanatory. Ariana Exchange Ltd has always had a robust and transparent approach to business in keeping with the business ethos, the Bribery Act requires such an approach to be documented and available for inspection should it be required.

The Act recognises that any commercial organisation can become an unwitting accessory to a bribery offence and it is for that reason a written and robust policy is necessary. A defence to a Section 1, 2, or 6 offences is that adequate procedures were in place.

A Section 7 offence will be committed where no such procedures are in place. It is for Ariana Exchange Ltd to prove (should the need arise) that it has such a written policy.

This policy is designed to be proportionate to the risk the business faces. It has been prepared at the behest of and has the full support of the shareholders and all the key stakeholders in Ariana Exchange Ltd

24.2.                    RECRUITMENT

Every new employee undergoes induction and familiarisation training on the business or their particular area of it. Such induction training will now include a short introduction to the relevant offences and will require the employee to sign as having understood the policy on corrupt activity. It is accepted that most new employees will not be in a position to be subjected to the temptation to commit a bribery offence but it is policy that all employees understand the requirement. Thereafter the employee will receive training as and when required, such training to be determined by the person appointed to oversee the bribery prevention strategy of Ariana Exchange Ltd.

Ariana Exchange Ltd uses a number of methods of recruitment including recruitment agencies where such agencies are used it will ensure that a formal contract clearly delineating fees etc is produced, no informal ad hoc procedures with such agencies will be tolerated.

24.3.                    TRAINING

All staff will receive basic awareness training on a risk based basis and this training will be reviewed and renewed on a regular basis. The timing, content and method of the training will be determined by senior management.

Budget holders, senior management, and those charged with fiscal responsibilities within Ariana Exchange Ltd who could be considered more vulnerable to the bribery offences will receive face to face training on a regular basis.

Affiliates and associates introducers and agents where they exist will receive written advice on the anti-bribery policy and will be expected to agree in writing that they accept and will comply with the policy in all their dealings with Ariana Exchange Ltd.

24.4.                    THIRD PARTIES

Ariana Exchange Ltd has relationships with a number of third parties, suppliers and providers of different products Prior to entering into a relationship with any new third party basic due diligence will be carried out to determine their probity and vulnerability to exposure to bribery. All contracts with such parties will be transparent and based on sound commercial principles of value for money.

Where a relationship already exists with a third party prior to the implementation of the Act due diligence will be carried out over time using a risk based approach. All third parties of whatever nature shall be designated as high, medium or low risk as appropriate. Having had all areas of the business reviewed for compliance with the Bribery Act Ariana Exchange Ltd has determined that all areas to date are low risk but the situation will continue to be monitored

All such parties will be made aware of the policy with regard to combating bribery and all contracts will include a clause indicating that.

24.5.                    CHARITABLE DONATIONS/GIFTS

Ariana Exchange Ltd may from time to time give charitable donations to different organisations some possibly located outside the United Kingdom. Ariana Exchange Ltd recognises that where the donation is to be sent will determine its risk profile.

Therefore all donations of whatever nature will be transparent and documented, where the donation is solicited rather than offered due diligence will be carried out on the recipient. Where possible the relevant registration of a charitable organisation will be identified and independently verified.

Where a gift is given the name of the recipient, the nature of the gift (monetary or otherwise) the value of the gift and the reason for it will be recorded in a gift register retained by the relevant manager. Where a gift exceeds £20 in value authority must be sought from senior management for it.

Charitable donations will also be recorded in a charity register, outlining the charity, whether the donation was solicited or offered the location of the charity, the amount of the donation and its purpose i.e. education, child protection etc. The purpose will not be recorded if it is self evident e.g. the NSPCC.

 

24.6.                    SPONSORSHIP

Ariana Exchange Ltd may offer sponsorship of local events/teams/etc in order to raise the profile of the company. In the future all sponsorship will be formally documented and a contractual relationship entered into outlining our sponsorship in terms of its nature and the undertaking of the party so sponsored that no undue influence or unfair advantage has been given to the company as a result of such sponsorship.

Where the sponsorship could involve significant reputational risk to Ariana Exchange Ltd a clause detailing the need for ethical behaviour of the sponsored party will be contained within the contract of sponsorship. Breach of such a clause will result in the immediate termination of sponsorship.

24.7.                    CORPORATE HOSPITALITY

Ariana Exchange Ltd recognises and rewards loyalty both internally and externally with its many business relationships with outside parties. It is also recognised by the legislature that such hospitality is normal legitimate business practice and should not be discouraged. The group may also be the recipient of such hospitality. What is discouraged and indeed is an offence of bribery is where such hospitality is given or received for the purpose of impropriety in business.

Therefore Ariana Exchange Ltd may from time to time on an ad hoc basis offer hospitality for legitimate purposes. In such an event the hospitality in question will be proportionate and reasonable. Any request to engage in corporate hospitality will be made to senior management with a detailed explanation for its necessity in order to forestall any allegation of impropriety. A record of all such hospitality will be kept in a manner and form similar to that used for charitable donations/gifts.

It will be made clear to the recipient(s) that such hospitality is offered without the intention of obtaining an improper advantage or retaining business improperly. Where a member of Ariana Exchange Ltd is the recipient, he or she should make it clear that the acceptance of such hospitality will not result in any improper advantage being offered to the host by Ariana Exchange Ltd

 

24.8.                    CONFIDENTIAL REPORTING OF BRIBERY

Ariana Exchange Ltd is committed to ensuring bribery is combated wherever it may occur within Ariana Exchange Ltd or its associates or third parties. To that end Ariana Exchange Ltd has instigated a “whistle blowing” policy. Any employee or associate may in confidence and at no risk to their relationship with Ariana Exchange Ltd make a report of their suspicions with regard to an act of bribery to the head of HR, such a report shall remain confidential with the name of the person reporting kept secret.

 

24.9.                    SUMMARY

Ariana Exchange Ltd has always conducted business in an open honest and fair manner. This policy document sets out the written procedures to be followed by all members of Ariana Exchange Ltd, while such procedures may not have been documented in the past they have been adhered to. In preparing this policy document Ariana Exchange Ltd has engaged outside specialists and is fully committed to the full implementation of the Bribery Act requirements. It has taken cognizance of the six principles and the

guidance issued and commended by the Secretary of State for Justice Kenneth Clarke MP.

The six principles

  1. Proportionate procedures
  2. Top level commitment
  3. Risk assessment
  4. Due diligence
  5. Communication (including training)
  6. Monitoring and review

APPENDIX 1

Ariana Exchange Ltd MONEY LAUNDERING CHECKLIST

Applicant Client Name and Address:

I confirm that this Money Laundering Checklist has been completed accurately and in full to the best of my knowledge, and in accordance with the firm’s internal money laundering procedures.

Checklist completed by:

Date of completed checklist:

 

Confirmed by (Faisal Yaqin):

Date confirmed:

Client Identification

Section 1 : Unregulated Corporate Clients

1)    Is the client a corporate entity?

 

If NO to question 1 then go directly to SECTION 2

 

If YES to question 1 then answer question 2 and either part A or part B

 

2)    Please tick the appropriate box:

 

Have you conducted a Company Search

 

Or have you carried out an equivalent commercial enquiry

Yes/No

 

N.B. The ML Regs 2017 now require you to have identified all beneficial owners –

i.e. those individuals who own/control more than 25% of the company share capital

 

If completing this Section 1, choose either Part A or Part B below, according to the type of client

Part A : UK and non-UK publicly quoted companies

Please tick the appropriate boxes:

 

Is a copy of the latest company report and accounts attached?

 

Or which other check has been carried out?

 

 

Yes/No

Copy attached

 

Specify type

Part B : Private unquoted companies

3) Have you checked the Certificate of Incorporation or local equivalents?

Yes/No

Copy attached

AND

 

4) Have you checked either the latest company accounts or the company’s Memorandum of Association or local equivalent?

Yes/No

Copy attached

AND

 

 

5) Have you reviewed a current list of directors and shareholders?

Yes/No

Copy attached

 

Yes/No

6) Is the company carrying out higher risk

business listed in Appendix 1?

 

 

If YES to question 6, have you attached documentary evidence verifying the identity and residential address of all beneficial owners/2 directors and authorised signatories?

Yes/No

Copy attached

PLEASE REFER ACCOUNT TO COMPLIANCE FOR APPROVAL

 

Yes/No

Copy attached

If NO to question 6, have you obtained sufficient information to carry out an e-id

 

 

check on all beneficial shareholders/2 directors and all authorised signatories?

 

7) Have you checked evidence of the

individual’s authority to represent the Client?

Yes/No

Copy attached

 

Section 2 : Partnerships / Unincorporated Businesses

8) Is the client a partnership or unincorporated business?

 

If NO to question 8, go directly to SECTION 3

 

If YES to question 8, answer questions 9 and 10

Yes/No

9) Please tick all the applicable boxes:

 

i)          Have you reviewed a current list of partners, beneficial shareholders and authorised signatories?

Yes/No

Copy attached

ii)         Have you checked and attached documentary evidence of the trading address of business or partnership?

Yes/No

Copy attached

iii)        Have you checked and attached the latest report and accounts?

Yes/No

Copy attached

iv)        Have you checked the nature of the business or partnership?

Yes/No

Specify check carried out

10) If the client is a partnership, have you checked a mandate from the partnership conferring the relevant authorisations?

Yes/No

Copy attached

Section 3 : Individuals

11) Is the client acting as a private individual?

 

If YES to question 11, answer questions 12 or 13 and 14

Yes/No

12) If the individual is domiciled in the UK

have you obtained the following information to enable an e-id check

 

 

 

Please tick all the applicable boxes:

 

i)                    The individuals true full name and/or names used

 

ii)                   The individuals current permanent address (including postcode)

 

 

iii)                              The individuals full Date of Birth

 

iv)                  Either the individuals driving licence number or passport number

 

 

 

 

 

 

 

 

 

 

 

 

13) If the individual is not domiciled in the UK have you checked and attached the following documentary evidence:-

 

Please tick all the applicable boxes:

 

i)          Copy of the individuals identity from the list A

Yes/No

Copy attached

ii)         Copy of the individuals identity from list B

Yes/No

Copy attached

14) If the individual falls into one of the high risk categories listed in Appendix 1 have you done the following:-

 

Please tick all applicable boxes:

 

i)          Obtain documentary evidence as in question 13 above

AND

Yes/No

Copy attached

ii)         Referred the account to compliance for approval

 

The compliance requirements as revised are based on the likelihood the 4MD threshold will be reduced6

 

GBP Amount

ID Requirements

 

 

 

 

Any amount to £ 2500

Photo ID is mandatory

 

-   Passport - Full UK Driving License

 

-   Provisional driving licence.

 

-    Resident permit (with Photo)

£ 2501 to £5000

1.   Photo ID

 

2.   Proof of address

£5001and above

1.   Photo ID

 

2.   Proof of address

 

3.   Source of Funds (Bank Statement showing the funds not older than 3 months or cash withdrawal receipt verified by cashier)

4.   Large transaction form ( purpose of remittance)

 

Any transactions originating from or going to the same beneficiary which is linked and exceeds the thresholds in a 30 day period is to be treated as one transaction of that sum and relevant identification needs to be carried out.

Further notes for client history

Current signed passport EEA member state ID card Northern Ireland voters card Resident permit EU national

Current EEA or UK photocard driving licence Current full old style driving licence

Benefit book or original notification letter from relevant benefits agency Inland Revenue tax notification

Photographic registration cards for those who are self-employed in the construction industry Shotgun / Firearms certificate

Record of a home visit

Confirmation from the electoral register Recent utility bill / statement

Valid local authority tax bill

EEA Member state ID card containing a current address7 Current UK driving licence with address8

Recent systems generated or signed documentation from a regulated financial sector firm containing clients address

Solicitors letter confirming recent house purchase NIHE/Council private rent card / tenancy agreement

Benefit book or original notification letter from relevant benefits agency9 Inland Revenue correspondence addressed to applicant10

7 Not if already used as primary identification 8 Not if already used as primary identification 9 Not if already used as primary identification 10 Not if already used as primary identification

The risk assessment has highlighted the areas in the table below as a high risk in terms of money laundering and enhanced due diligence is required. This means the following action is required:-

  • Certified documentary evidence must be sought
  • Source of funds/wealth must be established
  • Account must be referred to MLRO and no trading must be carried out until account has been approved by MLRO

Risk Area

High Risk

Clients

Trust company clients PEP’s

Third party payments

Transaction value

Values 100,000 +

Geographic profile

Clients carrying out business through the following jurisdictions:-

-          Iran

-          Angola

-          North Korea

-          Ecuador

-          Ethiopia

-          Azerbaijan

-          Bolivia

-          Nigeria

-          Sudan

-          Syria

-          Turkey

-          Ukraine

-          Democratic People’s Republic of Korea (DPRK)

-          Algeria

-          Indonesia

-          Myanmar

CERTIFICATION

 

Independent professionals with the Regulated sector e.g. solicitors or accountants if in doubt contact the MLRO/NO for examination of the certification.

APPENDIX 2

Intermediary Introduction Certificate Confirmation of Verification of Identity Introduction by a Regulated Firm

  • Details of individual (see explanatory notes below)

Full name of customer:

Current address           :

Postcode

Previous address (if individual has changed address in the last three months):

Postcode: Date of birth

2   Confirmation

I/We confirm that:

  1. The information in Section 1 above was obtained by me/us in relation to the customer;
  1. The evidence I/we have obtained to verify the identity of the customer:-
  • meets the standard evidence set out within the guidance for the UK Financial Sector issued by JMLSG; or
  • exceeds the standard evidence (written details of the further verification evidence taken are attached to this confirmation).

Name Position

Signature                                                                      Date

 

3   Details of introducing firm (or sole trader)

Full name of Regulated Firm (or Sole Trader)

 

Regulated reference number Regulatory institution

4   Explanatory notes

A separate confirmation must be completed for each customer (e.g. joint holders, trustee cases and joint life cases). Where a third party is involved, e.g. a payer of contributions who is different from the customer, the identity of that person must also be verified, and a confirmation provided. This form cannot be used to verify the identity of any customer that falls into one of the following categories: - those who are exempt from verification as being an existing customer of the introducing firm prior to the introduction of the requirement for such verification; - those who have been subject to Simplified Due Diligence under the Money Laundering Regulations; or - those whose identity has been verified using the source of funds as evidence. This confirmation must carry an original signature, or an electronic equivalent.

Registration Form – Business Clients (KYC)
 

APPENDIX 3

 

Customer

 

Name

 

Customer

 

No.

 

How did you hear about us?

 

Registered number/VAT

 

Date of Incorporation

 

Nature of the Business

 

Name of all Directors

 

 

 

 

Name of all the beneficial owners who owns or control more than 25% of the company

 

 

 

 

Turnover of the business

 

Currency Required

What is the purpose of the transaction you will carry out with our company?

 

How often will you be sending money through our company?

Weekly

Monthly

Other (please specify)

What are the estimated currency transactions you will carry out through us?

 

What is the destination of funds (country)?
         
 
   

 

What is the relationship of

the beneficiary?

 

Please confirm that the funds are coming from the clients business account? If not Third Party Identification Form must be completed

Yes

No

Signed off by Compliance

 

Signed off by the MLRO

 

 

Registration form – private clients (KYC)
 

APPENDIX 4

 

Customer Name

 

Customer No.

 

How did you hear about us?

 

Occupation

 

Currency Required

 

What is the purpose of the transaction you will carry out with our company?

 

How often will you be sending money through our company?

Weekly

Monthly

Other (please specify)

What are your estimated currency transactions through our company?

 

What is the destination of funds (country)?

 

What is the relationship of the beneficiary?

 

Please confirm that the funds are coming from the clients own account? If not Third Party Identification Form must be completed

Yes

No

Comments

 

 

Registration form – Trusts (KYC)
 

APPENDIX 5

 

Customer name:                                                                                                                                    ID Ref.

 

Customer Address

 

Establishment Date:                                                     Country of Establishment:

 

Description of the type and purpose of the trust

 

  1. Attach the following
    • Names and Addresses of all trustees, protectors and controllers
  2. Complete an individual identification verification form for each of the Trustees (and any other person) who operates the account
  3. Obtain confirmation that the person the Firm is dealing with is properly authorised by the customer and is who he says he is

Tick if Attached Tick if Attached

Tick if Attached

  1. Describe the nature of the business the Firm can expect to see from the customer i.e. volumes, frequency, amounts etc.
  1. Money Laundering Risk Assessment
  • Does the client present a higher than standard money laundering risk?
  • Does the business to be undertaken with the client present a higher than standard money laundering risk?

Y/N Y/N

If the answer 5.2 Does the business to be undertaken with the client present a higher than standard money laundering

  1. Further Identification verification
  • Where possible, search appropriate register in country of establishment Tick if Attached
  • Obtain a summary of the instrument establishing the trust and/or a copy of the trust deed
  • Obtain other information as required, this could include:
    • Donor/settler/grantor of the funds (except where there are large numbers of small donors)
    • Domicile of business/activity
    • Nature of business/activity
    • Location of business/activity (operating address)
    • Names, or classes, of beneficiaries

Tick if Attached

Tick if evidence attached

  1. Prepared by: Print name and sign

Date of completion:

Authority for account to be opened granted by:

 

Date of completion:

 

 

 

Appendix 6

 

 

Registration form – Agent (KYC)

Name of company

 

CM No:

 

Company registered address

 

Company business address

 

Howe did you hear about us?

 

 

 

Company Contact Details

Landline

 

Mobile

 

Email address

 

Company registration number

 

FCA registration number

 

 

MLR certificate number and renewal date

 

 

 

Company Director Details

Name

 

Mobile/Land line & Email

 

Address

 

 

Name of all beneficial owners who own or control more than 25% of the company.

 

 

 

 

Name of MLRO / nominated officer

 

 

Name(s) of individual(s) authorised to represent the company for cash handling

 

 

How long has the business been operational?

 
           

 

Company turnover

 

Number of employees

 

 

How often do you expect to transfer money through our company?

Daily

Weekly

Monthly

Other

Estimated volume of transactions (£)

Daily

Weekly

     Monthly

Yearly

Expected number of transactions of £9,000 and over

Daily

Weekly

Monthly  Yearly

Other

What is the purpose of

transaction?

 

 

What is the source of fund?

 

 

 

 

What destination countries will the business be mainly sending transfers to?

 

 

 

 

 

 

 

Details of beneficiary company

Full name

 

Contact details (telephone

and email)

 

Address

 

 

Name of all company directors who owns shares in the company

 

 

 

 

I confirm that the information provided in this form is correct, accurate and to the best of my knowledge. I authorize you to verify and bear the responsibility to inform you within 30 days if there is/are any change(s) in the information provided above.

 

 

Date:    /      /                                                       Date:    /      /

Name of applicant                                        Signed off by MLRO/NO

Mandatory list of documentary requirement:

Name of Document Required

Please Tick (√)

 

Account Opening Application Form

 

 

MLR Certificate of Registration

 

FCA Approval Letter

 

Company House Certificate of Incorporation

 

 

Director Identification

Valid Passport                                       

Valid Proof of Address                         

 

 

MRLO Identification

Valid Photo ID                                      

Valid Proof of Address                         

Fit and Profit Test Approval Letter

 

 

Authorised Person Identification

Valid Photo ID

Recent Proof of Address (not older than                                                               three months)

Letter of Authorisation

 

Company Financial Status (if applicable)

Recent Financial Statements

Last Annual Returns

Copy of Compliance Policy

 

 

 

 

 

Beneficiary Company Incorporation Documents

 

  

 

MLR Certificate

 

  

 

Beneficiary Compliance Policy

 

  

 

Appendix 7

 
   

 

Name of company

 

CM No:

Company registered address

 

Company business address

 

How did you hear about us?

 

 

 

 

Company Contact Details

Landline

 

Mobile

 

Email address

 

Company registration number/VAT

 

Date of Incorporation

 

Nature of the business

 

 

 

 

Company Director Details

Name

 

Mobile/La ndline &

Email

 

Address

 

 

 

Name of all beneficial owners who own or control more than 25% of the compnay

 

 

 

 

 

Company turnover

 

Currency required

 

What is the purpose of transaction?

 

 

Number of employees

 

 

How often do you expect to transfer money through our company?

Daily

Weekly

Monthly   

Other

Estimated volume of transactions (£)

Daily

     Weekly

     Monthly

Yearly

Expected number of transactions of

£9,000 and over

Daily

Weekly

Monthly     Yearly

Other

 

What destination countries will the business be mainly sending transfers to?

 

 

 

 

Name(s) of individual(s) authorised to represent the company for cash handling

 

 

 

What is the relationship of the beneficiery?

 

Please confirm that the funds are coming from the client business account. If not, Third Party Identification Form must be completed

Yes / No

I confirm that the information provided in this form is correct, accurate and to the best of my knowledge. I authorize you to verify and bear the responsibility to inform you within 30 days if there is/are any change(s) in the information provided above.

 

 

Date:    /      /                                                       Date:    /      /

Name of applicant                                        Signed off by MLRO/NO

       
       

 

 

 

Mandatory list of documentary requirement:

;