These are the Anti-Money Laundering (AML) Policy and Procedures adopted by “BRC IT LAB LP” (The Company) in compliance with the Criminal Justice Money Laundering and Terrorist Financing Act 2010, as amended by Part 2 of the Criminal Justice Act 2013 (“the Act”), that transposes the EU’s Fourth Money Laundering Directive (2015/849).
The purpose of this policy is to set the high-level principles and standards of management of financial crime risks, including money laundering, and terrorist financing, for the Company.
The Company will actively prevent and take measures to guard against being used as a medium for money laundering activities and terrorism financing activities and any other activity that facilitates money laundering or the funding of terrorist or criminal activities.
To these ends:
- The identities of all new and existing clients will be verified to a reasonable level of certainty
- A risk-based approach will be taken to the monitoring of client tax and accounting affairs
- Any suspicious activity will be reported, and all AML activities recorded
- All staff that meet or contact clients and potential clients of this firm are required to acknowledge that the policy and procedures have been read and understood before meeting or contacting clients.
For the purpose of this Policy, the act of Money Laundering shall have the same meaning as provided in Article 1(3) of the EU AMLD, which provides that it, when committed intentionally, encompasses:
1. the conversion or transfer of property, knowing that such property is derived from criminal activity or from an act of participation in such activity, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the commission of such an activity to evade the legal consequences of that person’s action;
2. the concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or ownership of, property, knowing that such property is derived from criminal activity or from an act of participation in such an activity;
3. the acquisition, possession or use of property, knowing, at the time of receipt, that such property was derived from criminal activity or from an act of participation in such an activity;
4. participation in, association to commit, attempts to commit and aiding, abetting, facilitating and counselling the commission of any of the actions referred to in points (a), (b) and (c).
Money laundering shall be regarded as such even where the activities which generated the property to be laundered were carried out in the territory of another Member State or in that of a third country.”
For the purpose of this Policy, the act of Terrorist Financing shall have the same meaning as provided in Article 1(5) of the EU AMLD, which provides that it encompasses; “the provision or collection of funds, by any means, directly or indirectly, with the intention that they be used or in the knowledge that they are to be used, in full or in part, in order to carry out any of the offences within the meaning of Articles 1 to 4 of Council Framework Decision 2002/475/JHA”.
For the purpose of this Policy the act of Terrorist financing refers to the provision or collection of funds, by any means, directly or indirectly, with the intention that they be used or in the knowledge that they are to be used, in full or in part, in order to carry out an act of terror, or that the funds will be used to support any terrorist group, persons or association.
The Company has established a Know-Your-Client (KYC) policy to ensure that the identities of all new and existing clients are verified to a reasonable level of certainty. This will include all individual clients. Identities will be verified either by email address confirmation or recognized by online identity verification agencies (such as Jumio®). These commercial agencies must have processes that allow the enquirer to capture and store the information they use to check and verify an identity.
The following documentation may be presented by the individual:
- Either a passport, driver’s license, or government-issued document featuring a matching photograph of the individual, and a full name and date of birth matching those provided.
If the Company fails to verify the identity of a client with reasonable certainty it will not establish a business relationship or proceed with the transaction. If a potential or existing client either refuses to provide the information described above when requested, or appears to have intentionally provided misleading information, the business shall refuse to commence a business relationship or proceed with the transaction requested.
The Company shall take a risk-based approach in monitoring the financial activities of its clients. This will be carried out whilst preparing the accounts, or conducting any other business with the client.
The Company will actively not accept high-risk clients that are identified as follows:
1. Clients with large one-off transactions, or a number of transactions carried out by the same customer within a short space of time.
2. Clients based in or conducting business in or through, a high-risk jurisdiction, or a jurisdiction with known higher levels of corruption, organised crime or drug production/distribution.
3. Unusual patterns of transactions that have no apparent economic or visible lawful purpose.
4. Money received from areas known to have high levels of criminality or terrorist activity.
5. The following are examples of changes in a client’s situation that may be considered suspicious:
6. A sudden increase of purchases from an existing customer;
7. Uncharacteristic transactions which are not in keeping with the customer’s known activities;
8. Peaks of activity at particular locations or at particular times;
Whenever there is cause for suspicion, the client will be asked to identify and verify the source or destination of the transactions, whether they be individuals or company beneficial owners.
No action need to be taken if there is no cause for suspicion.
A Suspicious Activity Report (SAR) will be made to the Competent authorities as soon as the knowledge or suspicion that criminal proceeds exist arises.
Records of all identity checks will be maintained for up to 2 years after the termination of the business relationship or 2 years from the date when the payment has been completed.
Copies of any SAR, together with any supporting documentation filed will be maintained for 5 years from the date of filing the SAR.
All records will be handled in confidence, stored securely, and will be capable of being retrieved without undue delay.
All affected employees are trained on their responsibilities in relation to money laundering legislation, and are aware of how to identify and deal with transactions that may involve money laundering.
The training and awareness programme is reflected in its usage by:
1. mandatory AML learning training programme in accordance with the latest regulatory evolutions;
2. brief academic AML learning sessions for all new employees.
This Policy is reviewed by the Company at least annually. Last update has been made 18.02.2021.