Octabis Anti-Money Laundering & Countering Terrorism Financing Policy
1 GENERAL PROVISIONS
Octabis (including its future direct and indirect subsidiaries, any holding companies and related companies) is a duly incorporated and registered international company operating in various jurisdictions (hereinafter referred to as the Company or also WE).
This Anti-Money Laundering and Countering Terrorist Financing Policy (hereinafter referred to as the Policy or also as AML/CTF) is Company’s strategy used to prevent and effectively combat money laundering, terrorist financing and other financial crimes.
The aim of this Policy is to prohibit and actively prevent money laundering and any activity that facilitates money laundering or the funding of terrorist or criminal activities by complying with all applicable laws and requirements.
The Policy inter alia is designed to comply with the European AML/CTF Legislation, Financial Action Task Force (FATF) standards on Combating Money Laundering and the Financing of Terrorism & Proliferation, European Directive 2005/60/EC of October, 26, 2005 on the prevention of use of the financial system for the purpose of money laundering and terrorist financing.
The Policy will be reviewed and updated on a regular basis to ensure appropriate procedures and internal controls are in place to account for both changes in law regulations and changes in Company’s business.
Company defines money laundering as any activity that is carried out in an attempt to misrepresent the source of funds actually acquired through illegal processes as funds that were acquired through lawful sources/activities. Examples of types of fraudulent activities inter alia include insider trading, market manipulation, ponzi schemes, cybercrime and other investment-related fraudulent activity.
We ensure complete compliance with laws and regulations pertaining to AML/CTF. All our affiliates (subsidiaries, holding companies and other related entities) are obligated to comply with the Policy and with all applicable AML/CTF laws and regulations as well as Company requires its management and employees to adhere to these standards to prevent use of the services for money laundering purposes.
We have established, documented and maintained a written Customer Identification Procedure (CIP). We will collect certain minimum customer identification information from each customer who makes a transaction; utilize risk-based measures to verify the identity of each customer; record customer identification information and the verification methods and results; provide the required adequate CIP notice to customers that we will seek identification information to verify their identities. Company implements an accurate identification of any financial activities that may constitute or are related to AML/CTF. This helps ensure a money laundering-free financial operations throughout Company’s platform.
The Policy is mandatory for all customers which shall do everything in their power to ensure that
they are not involved in money laundering and terrorist financing. The customer shall comply with
all relevant AML/CTF requirements.
Prior starting cooperation with the customer, Company accurate collects identification data in accordance and to the extent set forth in CIP.
Company will analyze the information and ensure that we have a reasonable belief that we know the true identity of customer (KYC) by using risk-based procedures to verify and document the accuracy of the information we get about our customers.
Based on the risk, and to the extent reasonable and practicable, Company will verify customer identity through documentary means, non-documentary means or both. We will use documents to verify customer identity when appropriate documents are available.
In light of the increased instances of identity fraud, Company will supplement the use of documentary evidence by using the non-documentary whenever necessary. We may also use non- documentary means, if we are still uncertain about whether we know the true identity of the customer. In verifying the information, Company will consider whether the identifying information that we receive, inter alia such as the customer’s name, street address, zip code, telephone number (if provided), date allow us to determine that we have reasonable belief that we know the true identity of the customer (e.g., whether the information is logical or contains inconsistencies).
We understand that we are not required to take steps to determine whether the document that the customer has provided to us for identity verification has been validly issued and that we may rely on a government-issued identification as verification of a customer’s identity. If, however, Company notes that the document shows some obvious form of fraud, we must consider that factor in determining whether we can form a reasonable belief that we know the customer’s true identity.
If a potential or existing customer either refuses to provide the information required under CIP, or appears to have intentionally provided misleading information, Company will not make a transaction and, after considering the risks involved, consider any transaction. In either case, we will determine whether we should report the situation to competent state authority.
We may, under the following circumstances, rely on the performance by another entity (including any affiliate) of some or all of the elements of our CIP with respect to any customer that has established a transaction.
2 RISK-BASED APPROACH (RBA)
A risk-based approach takes a number of steps in assessing the most cost effective and proportionate way to manage and mitigate AML/CTF risks faced by the Company:
- identify and assess the money laundering and terrorist financing risks that are relevant to the Company;
- design and implement controls to manage and mitigate the assessed risks;
- monitor and improve the effective operation of these controls.
Risk management generally shall be regarded as a continuous process, carried out on a dynamic basis. We therefore ensure that our risk management processes for managing money laundering and terrorist financing risks are kept under regular review. It is recommended that we revisit our assessments at least annually.
Country risk, in conjunction with other risk factors, provides useful information as to potential
money laundering and terrorist financing risks. Country risk is not solely related to the country of
origin of a customer.
It should also be taken into account that a customer may have business interests in or relevant links to a country that may signify that the customer should be placed in a higher risk category.
Company is prohibited from transacting with customers that are on prescribed jurisdictions in accordance with the FATF policy:
- The Bahamas
- Democratic People’s Republic of Korea (DPRK)
- Trinidad and Tobago
Company retains the right at its own discretion to extent the above mentioned list of prohibited
For the purposes of this Policy, Company recognizes three types of judicial jurisdiction, i.e.:
- Personal Jurisdiction – is the authority over a person, regardless of their location;
- Territorial Jurisdiction – is the authority confined to a bounded space, including all those present therein, and events which occur there;
- Subject Matter Jurisdiction – is the authority over the subject of the legal questions involved in case.
The customer risk profile will serve as a baseline for assessing potentially suspicious activity. Determining the potential money laundering and terrorist financing risks posed by a customer, or category of customers, is critical to the development of an overall risk framework. Company determines whether particular customers pose a higher risk of money laundering and terrorist financing and whether, in some cases, mitigating factors are sufficient to conclude safely that customers engaged in such activities do not.
Company does not provide products which may pose a high risk of money laundering or terrorist financing and does not offer services which may facilitate high degree of anonymity, or involve the handling of high volumes of currency or currency equivalents.
3 CUSTOMER ACTIVITY MONITORING
We will monitor Customer’s activity for unusual size, volume, pattern or type of transactions, taking
into account risk factors and indicators that are appropriate to our line of business. The monitoring
procedures include types of customer’s transactions.
The Company would not do business with:
- Anonymous customers;
- Customers from prohibited jurisdictions;
- Customer is engaged in activity which is deemed to be black listed (e.g. by a regulators);
- Customer which are currently under any sanctions (international, national, other foreign applicable sanctions).
Any information pointing to money laundering or terrorist financing must be reported to the relevant authorities in accordance with the requirements of applicable legislation.
4 RECORD KEEPING
We will document our verification, including all identifying information provided by a customer, the methods used and results of verification, and the resolution of any discrepancies identified in the verification process. We will keep records containing a description of any document that we relied on to verify a customer’s identity, noting the type of document, any identification number contained in the document, the place of issuance, and if any, the date of issuance and expiration date.
With respect to non-documentary verification, Company will retain records of all identification information not less than for five years after transaction has been closed; we will retain records made about verification of the customer's identity not less than for five years after the record is made.
5 CONFIDENTIALITY AND PERSONAL DATA PROTECTION
The information about customers and their transactions obtained in the course of fulfilling AML/CTF
internal control is considered as confidential.
The employees of Company should avoid disclosure to third persons the AML/CTF ways and means implemented by the Company. The “tipping off” is strictly prohibited.
One of the most important controls over the prevention and detection of money laundering or terrorist financing is to have employees that are alert to the risks of money laundering/terrorist financing and well trained in the identification of mandatory control transactions and unusual activities or transactions which may prove to be suspicious. Our training will occur on at least an annual basis or often, if necessary. It will be based on Company’s size, customer base, and its resources and be updated as necessary to reflect any new developments in applicable legislation.
Our training will include, at a minimum: (1) how to identify signs of money laundering/terrorist financing; (2) what to do once the risk is identified (including how, when and to whom to escalate unusual customer activity or other signs for analysis and, where appropriate); (3) what employees' roles are in Company’s compliance efforts and how to perform them; (4) record retention terms and conditions; and (5) the disciplinary consequences (including civil and criminal penalties) for non- compliance with the Policy.
Company enforces a strict anti-money laundering policy with law or even zero tolerance for money laundering and terrorism financing activities and is committed to the highest standards of Anti- Money Laundering and Countering Terrorist Financing.