KYC y AML

Know Your Customer (KYC) Guidelines and Anti-Money Laundering Preamble (AML)

  1. Definition of money laundering crime
  1. Obligations under the AML/CFT Act 2009
  1. Money laundering: risk perception
  1. Policy objectives
  1. Scope
  1. Definition of a customer
  1. Key elements of the policy

Customer Acceptance Policy

Procedures for customer identification

Transaction Tracking

  1. Customer Education
  1. AML and KYC in the introduction of new technologies and operations based on cryptocurrencies.
  1. KYC of existing accounts.
  1. Company correspondent
  1. Chief Officer [Money Laundering Reporting Officer]
  1. Revision of the Policy.

 

 

 

PREAMBLE

In terms of the Guidelines issued by Premium Zone  LLC  on Know Your Customer (KYC) Standards and Money Laundering (AML) Measures, financial institutions and service providers should implement a comprehensive policy framework covering KYC standards and AML measures.

The guidelines issued by Premium Zone  LLC  take into account the recommendations made by «The Financial Action Task Force» (FATF) and intergovernmental agencies, in AML standards and in the fight against the financing of terrorism. The guidelines also incorporate aspects covered in the Basel Committee’s document on customer due diligence, which is a reflection of the determination of the international financial community to assist law enforcement.

Authorities in the fight against financial crime.

This policy document is prepared in accordance with Premium Zone LCC guidelines and incorporates the company’s approach to client identification procedures, risk-based profiling and tracking transactions on an ongoing basis.

The purpose of the KYC guidelines is to prevent the Company from being used, intentionally or unintentionally by criminal elements for money laundering activities.

  1. Definition of money-laundering offence

In accordance with Section 5 on Interpretation contained in the Anti-Money Laundering Act and The Financing of Terrorism Act 2009 of St. Vincent and the Grenadines.

 

«Money laundering offence means an offence against section 243 of the Offences Act 1961 or section 12B of the Drug Misuse Act 1975 or any act committed abroad which, if committed in St. Vincent and the Grenadines, is an offence under those sections of those Acts.»

Money launderers use the banking system and any related services to clean up «dirty money» obtained from criminal activities with the aim of concealing/disguising its origin. The money process, laundering involves the creation of a network of financial transactions to hide the origin and true nature of these funds. For this document, the term money laundering would also cover financial transactions where the end use of the funds is intended for the financing of terrorism, regardless of the source of the funds.

  1. Obligations under the Anti-Money Laundering and Anti-Financing of Terrorism Act 2009

This AML/CFT Act, under Section 6 of Part 1, imposes an obligation to report on all companies, financial institutions and Intermediaries, according to the following:

  1. in the case of an entity that reports that it is a financial institution, the financial activities carried out by that entity fall within the activities described in the definition of financial institution; or
  1. a reporting entity, which is not a financial institution, is carrying out activities that may give rise to a risk of money laundering or terrorist financing. And it extensively exposes its compliance in Parts 2, 3 and 4: These requirements would enter into force in stages, starting in 2009, all of them already implemented at the time these guidelines are written and approved.
  1. Money laundering: risk perception

Money laundering activities expose the Company to various risks, such as operational risks, reputational risk, compliance risk and legal risk.

  1. Policy objectives
  1. To prevent criminal elements from using the Companion System in money laundering activities.
  1. To enable the Company to better know/understand clients and their financial transactions, this, in turn, would assist the Company in managing risks prudently.
  • Establish adequate controls for the detection and reporting of suspicious activity in accordance with applicable laws/established procedures.
  1. To comply with applicable laws and regulatory guidelines.
  1. Take the necessary measures to ensure that the personnel in question are adequately trained in KYC/AML procedures.
  1. Scope

This policy is applicable to all branches/offices of the Company and should be read in conjunction with related operating guidelines that are posted from time to time.

  1. Customer definition

A Customer for the purposes of this policy is defined as:

  • A person or entity that maintains an account and/or has a business relationship with the Company.
  • One in whose behavior the account is maintained {i.e. the beneficial owner}.
  • Beneficiaries of transactions carried out by professional intermediaries, such as StockBrokers,

Public accountants, lawyers, etc., as permitted by law and

  • Any person or entity related to a financial transaction.
  1. Key elements of the policy
  • Customer Acceptance Policy
  • Customer identification procedures
  • Transaction Monitoring
  • Risk management

7.1. Customer Acceptance Policy

The Company:

  • Classifies clients into several risk categories and, based on the perception of risk, decides the acceptance criteria for each category of clients:
  • Accept customers after verifying their identity as set forth in the Customer Identification Procedures:
  • Not to open accounts in the name of anonymous/fictitious persons/or name of third parties without their consent.
  • Strive not to cause inconvenience to the general public, especially those who are financially or socially disadvantaged.

7.2. Customer identification procedures

The first requirement of the customer identification procedure is to be satisfied that a potential customer is who he/she claims to be.

The second requirement of customer identification procedures is to ensure that sufficient information is obtained in nature from the business that the client expects to undertake an expected or predictable pattern of transactions.

The information collected will be used for customer profiling.

Identity to be verified for:

  • The named account holder
  • Beneficiaries
  • Signatories with access granted to an account and
  • Intermediate parties.

The Customer Identification Procedures will be carried out in the following stages:

  • When establishing a relationship with the company:
  • When the Company believes that it is necessary to obtain additional information from existing clients based on the conduct or behavior of the account.

Where applicable, information on the nature of the business activity, location, mode of payment, turnover volume, social and financial situation, etc. will be collected to complete the customer’s profile.

Clients will be classified into three risk categories, namely high, medium and low, according to the perception of risk. The risk categorization will be reviewed periodically.

Customer identification will be carried out with respect to non-account holders approaching the company. For unique high-value transactions, as well as any person or entity related to a financial transaction that may pose significant reputational or other risks to the Company.

7.3. Transaction Tracking

Transactions will be tracked taking into account the risk profile of the account.

Special attention will be paid to all complex and unusually large transactions and all unusual patterns, which have no viable or apparent economic legal purpose. 

Transactions involving large amounts of cash inconsistent with normal and expected client activity will be subject to detailed scrutiny.

After due diligence at the appropriate level at the Company, transactions of a suspicious nature and/or any other type of transaction reported under the PML Act 2002 shall be reported to the appropriate authority and a record of such transactions shall be kept and maintained for the period prescribed by the Act.

7.4. Risk management

While the Company has taken a risk-based approach to the implementation of this Policy. It is necessary to establish an appropriate framework covering the proper supervision of management, systems, controls and other related matters.

The company’s internal audit on compliance with the KYC/AML policy will provide an independent assessment of the same, including legal and regulatory requirements. Internal/concurrent auditors shall review and verify the application of KYC/AML procedures in branches and comment on observed failures in this regard. 

Compliance in this regard will be submitted to the Boarding Audit Committee at quarterly intervals.

All employee training programs will have a module on KYC standards – AML measures so that staff members are adequately trained in KYC/AML procedures.

The Chief Officer appointed by the Company in this regard will have an important responsibility in managing, supervising and coordinating with various officials the implementation of the KYC/AML policy.

  1. Customer Education

The Company recognizes the need to raise awareness among clients about KYC, anti-money laundering measures and the justification that it entails among clients and will take appropriate measures to that end.

  1. AML and KYC in the introduction of new technologies and operations based on cryptocurrencies

The Company will pay special attention to money laundering threats arising from new or developing technologies and will take the necessary measures to prevent their misuse for money laundering activities.

The company shall ensure that appropriate KYC Procedures are properly applied to customers using the new technology or products powered by them.

In the specific case of operations related to cryptocurrencies and wherever the client makes deposits or withdrawals in the same Solidarity Markets guarantee the same level of control as in the FIAT currency operations.

The control of origin is guaranteed by the identification and registration of the electronic wallet from which the destination of the funds originates or is carried out.

Likewise, Premium Zone  LLC  requires the client or supplier to complete a form, which guarantees knowledge of the origin of the funds.

Premium Zone  LLC , finally, guarantees immediate communication with the relevant monetary/regulatory authorities, of any unjustified or suspicious movement made in the cryptocurrency domain.

Premium Zone  LLC  will introduce quarterly improvements in its cryptocurrency transaction flow control and policies to remain at the checkpoint and optimized information about it.

  1. KYC for existing accounts

While kyC guidelines will apply to all new customers, the same would apply to customers based on materiality and risk.

However, transactions on existing accounts are continuously monitored for any unusual patterns in the operation of the accounts. Materiality-based and risk-based existing accounts of businesses, firms, trusts, charities, religious organizations and others.

Institutions are subject to minimum KYC standards that would establish the identity of the natural person/legal person and those of the «beneficial owners».

Similarly, the Company will also ensure that term/recurring deposit accounts are subject to revised KYC procedures at the time of renewal of deposits based on relative importance and risk.

  1. Company correspondent

This policy will apply to our relations with The Correspondent Companies. For the relationship of the Correspondent Company, an appropriate due diligence procedure will be established taking into account the KYC standards existing in the country where the Correspondent Company is located and the history of the correspondent company in the fight against money laundering and the financing of terrorism.

  1. Chief Officer [Money Laundering Reporting Officer]

The company has appointed a senior officer as the principal officer who will be responsible for the implementation and enforcement of this policy. Your experience and solid academic background will be our guarantee of compliance at any time.

Its illustrative duties are as follows:

  • Monitor the implementation of the Company’s KYC/AML policy.
  • Reporting of transactions and exchange of information as required by law.
  • Maintain liaison with law enforcement agencies.
  • Ensure regular reporting to senior management/Board.
  1. Review of the policy

I have read, understand and agree with all the information in this document. KYC y AML