Definitions. Circular no. 2. Anti- Money Laundering (AML) Division. Subject: Instructions regarding how to know Your Customer.

Transcription

1 Circular n. 2 Anti- Mney Laundering (AML) Divisin Subject: Instructins regarding hw t knw Yur Custmer Target: Pursuant t Anti-Mney Laundering / Cunter_ Terrrist financing ( CTF ) and prvide necessary arrangements fr implementing Paragraph Tw f Article-14 cntained in Mnetary and Banking State Law (Apprved Dated Tir,1351 and Amendments after that ), Paragraph A f Article-7 the law against mney launderings (passed by Islamic Parliament Dated secnd Bahman,1386 ), Chapter II f the Executive Regulatins t cmbat mney laundering Subscribe t the Department f Inspectin and Audit Directive 91 issue f the Legal Department, Regulatins dcument the flw f funds in the cuntry Subject f Decree N.H3935 T/21815 Dated T be annunced as fllws:: Definitins The instructins theren the terms and phrases used is defined as fllws: Central bank: Central bank f Islamic Republic f Iran; Law: The law against mney laundering apprved ; Regulatins: Executive Regulatins t cmbat mney laundering Subject Thread a member f the Cmmittee f Ministers decree n. T/ Dated and Amendments after that ;( the Department f Inspectin and Audit Directive 91 issue f the Legal Department) 1

2 Credit institutins: Banks (Including Iranian banks and branches and Agencies f freign banks based in Islamic Republic f Iran), Nn-bank credit institutins, Credit Unins, Fund lan, Leasing cmpanies, Investee cmpanies and Other legal entities deal with Intermediatin f funds. Nte: Abve-mentined Credit institutins include Islamic Republic f Iran branches and agencies lcated in the cmmercial-industrial free znes and special znes as well as. Senir Management: Chief executive directr/ Members f the executive bard and Grup f executives and Senir emplyees f credit institutins theref directly under any member f the executive bard f r the CEO bear respnsibility fr implementing strategies and plicies apprved by the Bard f Directrs/ Bard f Trustees r Operating staff accrding t case. Operatinal Risk: The risk f lss resulting frm Inapprpriate and Insufficiency f Prcesses and prcedures, Peple and internal systems r Caused by events utside the branch including Operatinal interruptins, Custmers crimes, Prducts and jb perfrmance, Emplyment perfrmance and Wrkplace safety. Reputatin Risk: The risk f lss resulting frm Lss f reputatin fr sme reasn including Unfavrable financial situatin, Credit rating dwngrade r the lss f public cnfidence. Cmpliance: It is banking peratin Cmpliance with laws, Standards gverning the activities f the Institute. Cmpliance Risk: Including pssible fines, penalties, legal, Regulatry sanctins, Expsure t significant lsses r Damage t the reputatin f credit institutins, due t Nn-cmpliance with laws, regulatins and standards. Custmer (Clientele): Natural r legal persn wh has an (bank) accunt at the branch r in his favr r n behalf f him the bank accunt is pened; 2

3 Any natural r legal persn (Beneficiary r Stakehlders) ppsite side branch in cnjunctin with ther banking and credit services and frm whm the credit institutin may be at the expsure f several risks especially peratin and reputatin risk. Bank custmer is been divided int tw types: permanent and walk in custmer as described belw: Walk in custmer: Custmer that In rder t get nn-basic services referring t the branch and prviding services t whm des nt require filing. Client relatinship with the branch Lacks "Cntinuity" features. Instances walk in custmers include the applicants' receipt f payment Cheque, mney transfers and Pay bills. Permanent custmer: Custmer relatinship with the bank has imprtant features f "Cntinuity" hence fr nature and type f required services filing fr inclusin its identity infrmatin r ther required infrmatin is necessary. Custmer identificatin: Knwing and certifying the custmer identity by use f infrmatin surces, dcuments and independent reliable and valid data. Custmer identificatin divided int tw grups f "Primary identificatin" and " Secndary identificatin". Primary identificatin: Registering and cmplying the declared custmer identificatin r If actin by the agent r lawyer with identity dcument, register principle identificatin as well as the lawyer r reprehensive. Secndary identificatin: Custmer accurate identificatin when prviding basic services as the instructin fr hw t knw the Iranian custmer f credit institutin Banking and credit services: It refers t types f services prvided t custmer by branch. Banking and credit services divided int tw grups f "Nn-Basic" and "Basic services" as fllw. Nn-Basic services: It refers t types f services that deliver them t custmer has n precnditin and necessity prviding ther services r sustain client relatinship with branch. Prvide these services t custmer are nly required primary identificatin as the instructin fr hw t knw the Iranian custmer f credit institutin. The fllwing are amng the instances f nn-basic services: 3

4 Mney transfer; D any payment r receive; Freign exchange including cash, draft, traveler's check and similar cases: Issuance f banker 'checks, inter-bank checks (certified check) and sight payment; Basic services: Banking and credit services upn regulatin are pre-cnditin and necessity fr prviding ther banking services and prviding them fr custmer causes their referral cntinuity f btaining services. The fllwing are amng the instances f basic services: Opening f bank accunts; Credit facilities/granted and Leasing; Letter f Credits; Issuance f any Letter f Guaranties and endrsement; (t) factr, Cllectin r discunt cmmercial/banking dcuments (including bills, check and prmissry nte) and endrsement theref; Safe depsit bx; Issuance debit/credit Card; Natinal Identificatin: Exclusive number upn reslutin n.h39271t/16169 dated is being allcated t all legal entities. Nn-financial businesses: Peple wh are ding many cash transactin and expse t mney laundering risk. The fllwing are amng nn-financial businesses: Car r Husing pre-sale agents Gldsmiths; Car sellers; Precius carpet sellers; Rare cmmdities and expensive cultural prducts sellers; 4

5 Financial Intelligence Unit: Financial unit, fcused, and independent which has the respnsibility fr receiving, analyzing and referring "Suspect Transactin Reprt" (STR) t authrities' cncerned. Threshld transactin: It is the amunt f 150,000,000Rls, r its equivalent the cin and/r paper mney f any cuntry, and precius gds if necessity, Cabinet shall mdify the mentined threshld upn ecnmic cnditins. Cuncil: Anti-Mney laundering supreme cuncil; Secretariat: Anti-Mney laundering supreme cuncil secretariat; S.A.H.A system: (Authenticatin System entities): It is the system established in Ministry f Ecnmic Affairs and Finance which by means f relatin with theret registratins (The Civil Registratin, stats deeds and prperty registratin, Pst Cmpany, and Tax Affairs rganizatin), which facilities respnding t call regarding authenticatin entities, and the address theref. Whlesale Sharehlder: It refers t a persn whse shares in name f a legal entity ver the level in herewith instructin (individual persn 5 percent, and 10 percent). Custmer acceptance plicy Clause 1-It is the branch duty having specific and clearly measurements fr custmer acceptance. Herewith measurements shall be bserved as fllw: 1-1-Opening any accunts are being required t knwing custmer upn authenticated dcuments. 1-2-It is the branch duty t cmply the custmer and cncerned agents (guardian, testatr, and lawyer) declared identity and entities with authenticated dcuments and upn said regulatin. 1-3-The branch is bliged t apply necessary cntrl prir t pen accunt t ensure there is nt any cmpliance between the accunt applicant identities with wh are nt allwed t pen accunt fr. 5

6 Clause 2- It is upn branch duties t prtect and cnserve custmers' infrmatin and it is necessary t ta undertake necessary measurements t prevent disclsure and unauthrized use theref. Clause 3- It is upn branch duties t d necessary actin fr identificatin f frmerly custmers as sn as pssible and in the event that there is existed any discrepancy in cmpliance prcedure theref, take actin t reslve the discrepancy. If custmer fails t reslve the discrepancy, it shall be upn staff r branch duty t reprt theren t anti-mney laundering divisin. Clause 4- If it is nt pssible fr branch t acquire necessary infrmatin fr identifying custmer fr sme reasn such custmer lack f cperatin r custmer prvide false infrmatin, Pst-clarifying the case t custmer branch shall prevent t prvide service theref. Clause 5- It is upn branch duty t reprt t anti-mney laundering divisin the custmers' identificatin wh declared false infrmatin. Clause 6- It is prhibited t prvide basic services fr fllwing persns by branch and if any prir t instructin ntificatin herewith it shall be branch duty t quit custmer relatinship theref: - The persn wh prevent t prvide the necessary infrmatin r dcuments; - Illicit mney exchangers; - The persn wh are nt allwed t pen an accunt accrding t judiciary verdict; - The Iranian natinal wh has lack f natinal r ID Number; "Knw Yur Custmer" prcedures Clause 7- Custmer identificatin is categrized int tw types, Primary and secndary identificatin upn theren requested services (nn-basic and basic services). 7-1-Primary identificatin: It is upn branch duty t take measure fr custmer primary identificatin as inserted descriptin in herewith instructins and t register data theren at wn Infrmatin system meanwhile prviding any banking service (whether basic r nn-basic service) and undertaking any mnetary r financial peratin (even less than limits n the funds) including any payment and receive, mney transfer rder, draw r pay a check, prviding facilities, issuance any credit and debit card, letter f guaranties issuance, freign currency, securities and bnd exchange, 6

7 acceptance f letter f guaranties and c-signers affidavit in any frm such as signing sears, bills and letter f credits. Nte: It makes n necessity fr custmer identificatin regards t less than limits n the funds, Payment f gvernment bills and bills fr utilities Primary natural persn's identificatin: Required infrmatin: It insists f Name and surname, natinal ID n., date f birth, father's name, full address theret pstal cde and phne n. It is upn branch duty pst acquiring the abve-mentined infrmatin, theret cmply with natinal ID card therein cntents and register the same in relevant dcuments. Nte 1: It is necessary regarding whm under custdianship, acquire guardian theret infrmatin beside the persn's. Nte 2: Branch has nly authenticatin t pen investment r saving depsit accunt theret whm under custdianship. Opening ATS accunt, prviding lan and credit facilities, issuing letter f credit (LC ),issuing letter f guarantees ( LG ) f each, and the same fr herein with persns still is frbidden. Nte 3: Custmer primary identificatin is permitted upn driving license, dmicile certificate r valid passprt whereas there is exist pssibility fr branch nline cmmunicatin (direct r indirectly) with The Civil Registratin r ther authrities theret and such institutin having pssibility t cmply therein custmer Specificatins declared with cntents theref. Nte 4: Primary identificatin f natural persn presented by legal persn is upn criteria set frth persn theref Primary identificatin f legal persn Regards t the natural persn refer t branch n behalf f the legal persn, primary identificatin f such persn is upn criteria set frth natural persn. 7

8 If there is existed any ambiguity regards t authenticatin f the custmer presented identificatin dcuments, it shall be upn branch custmer primary identificatin perating staff duty t take necessary measures fr demystifying and identifying custmer by means f survey f ther systems and data base, btaining valid dcuments-upn prvisin f instructins theren- r inquiry f authrity theret. Prviding service shall be quitted till demystifying ambiguity. It is upn branch duty prmpt shall reprt t AML besides preventing f service cntinuity whereas there is n dubt cncerned frge identity dcuments Basic identificatin: It is upn branch duty t take measure fr the basic identificatin and the estimated level f activity meanwhile prviding any service fr permanent client Basic identificatin f natural persn: It is upn branch duty t btain the fllwing custmer infrmatin and dcuments accrding t case besides primary identificatin theref: 1. Valid certificate signed by at least ne f knwn custmer r branch cnfident persn r certificate issued by ne f central bank licensed credit institutin, gvernment agencies r Institutins, and fficial prfessinal assciatins. 2. Custmer recrds f crrespndent with any central bank licensed credit institutin and theret institutin inquiry fr authenticatin f custmer declared infrmatin. 3. Valid business license specially regards t nn-financial businesses. 4. Certificate f emplyment fr natural persn hlder f business license r legal entities have natinal ID. 5. Infrmatin regards t type, level, and target f custmer activity fr determining expected custmer cash flw cncerned activity area theret. 8

9 Nte 1: Basic identificatin f natural persn entitles t act in the name f legal entity (Iranian r freign) is upn stipulated criteria Basic identificatin f legal entity: Fr basic identificatin f legal entities, it is upn branch duty t btain fllwing dcuments and infrmatin besides theref primary identificatin: Type, subject, nature and level f legal entity activities; The infrmatin pertaining t legal entity ranking (including authrities as the president deputy strategic planning and cntrl credit rating agency r ther expert authrities); Nte: It is upn branch duty t take actin fr determining custmer expected level f activity frm reviewing financial statement cnfirmed by each member f certified public accuntant whereas cmpany lack f ranking. Identificatin f persn(s) wh have liability t withdraw funds frm legal entity accunt (including name and surname, natinal id, father's name, date f birth, address and pstal cde) and theref rganizatinal level ( herein with theref authenticated signature); Names, Prfile, Residence address f Bard members, Bard / CEO, Independent auditr (auditrs), Legal inspectr(s) and sharehlders (partners) having pssessin f mre than 5 percent f legal entity (capital stck) share (cncerning ther legal entities including nn-prfit rganizatin and fundatins and like, bard f Trustees and like theref specificatin); Headquarters, Central ffice address and pstal cde, phne number and fax theret, authenticated signature hlder names and specimen signature theref and infrmatin cncerning mdes f authenticating all financial dcuments and crrespndence theret; 9

10 Nte: Cncerning gvernmental and municipal institutin and rganizatin (subject t article 587 cmmercial law) whereas have the ability t acquire legal entity at nce f establishing with n need f register, btaining registry date and number theret is ut f agenda. Herewith regards btaining natinal ID r inquiry SAHA system and keep theret in recrds prvide assessing adequacy f data s there is existed n need t carry ut due duties cncerning basic custmer identificatin Fr custmer basic identificatin, it is upn branch duty t authenticate prvided infrmatin (including natinal ID n., natinal ID and the like) accrding t case. The inquirer shall certify the date f cnfirmatin taken frm theret database besides t theref persnal identificatin n said dcuments. Nte: Upn the case, it is pssible fr authenticating prvided infrmatin, seeking inquiry frm fllwing databases: Natural persns: Database fr natural persns natinal ID n.; Legal entities: Database fr legal persns natinal ID; Address: The Pst Cmpany; Ecnmic cde: State taxatin affairs rganizatin; (The abve-mentined cases shall be btainable frm SAHA system). Guilds cde: Department f Cmmerce; Iran Cde: Department f Cmmerce; Official Gazette database Fr basic identificatin f legal entity, it is a must t cmply theret declared identificatin with riginal cpy f authenticated dcuments by authenticated signature hlders' and pst inserting certified cpy theret, is kept in custmer recrds by theref persn If the lawyer, guardian and testatr n behalf f ther persn(s) apply fr services, it shall be necessary fr branch t identify persn(s) prxy and principle theref besides dcumenting theret upn cntents f herein prvisins. 10

11 7-2-6-Dcumenting custmer address in primary identificatin is undertaken thrugh cmpliance f custmer declared pstal cde with cde endrsed therein natinal ID card and regarding basic identificatin theret, the declared cde is cmplied with pstal cde database infrmatin(herein database access is pssible thrugh SAHA system) If there exist an exclusive number fr custmer upn theret creating different accunts, it shall nt be necessary each accunt basic identificatin If whlesale sharehlders whse shares in name f legal entity are been amng persns(natural, legal) whm unknwn fr branch, it shall be necessary t identify custmers as well as theref sharehlders. Anyway the legal entity peratin shall be under special supervisin. (Upn cncerned criteria f supervising suspect persns instructin) Regards t grup f services under framewrk f rules and specific prvisins shall be deemed necessary t receive ther dcument and infrmatin as well, it shall be upn branch duty t bserve cnditin cntained in herein instructin, meanwhile applying fllwing regulatins t identify custmer It is upn branch duty regarding persns wh has general pwer f attrney fr ding all affairs f legal r natural persns t take measure fr basic identificatin f principle and trustee (as cntained herewith instructin ) meanwhile reprting t AML It is upn branch duty t cmply custmer btained infrmatin with said cntents f valid dcuments and t ensure theref authenticatin. The valid dcuments cnsist f: (Fr) Natural persns: - Natinal ID card; - Birth certificate (nly fr persns under 15 year); Birth certificate r driving license r passprt (n cnditin branch interactin with SAHA system pssibility t determine the accuracy f theret infrmatin). Nte: Regards t the under-guardianship, it shall be necessary t receive fficial dcument fr cnfirming the guardian, testatr title authenticatin as well as a/m (abve-mentined) dcuments. 11

12 (Fr) Legal entities: - Cmpany Certificate f registry cpy r riginal cpy; - Registratin statement r Articles f assciatin (upn cmpany cnditin); - Apprval f bard f directrs pursuant t pen accunt (in name f cmpany) and intrducing the hlder f authenticated signature; If custmer des nt prvide a/m said dcuments r there exists suspect transactin and likewise crimes regards t theref activities, it shall be upn branch duty t refrain frm prviding services theref and reprt the matter t AML. Article 8-It is frbidden regards t e-banking basic services with n custmer basic identificatin as well as any annymus r nn-traceable electrnic transactin and prviding theret facilities. Article 9-It is upn branch duty while as prviding services fr persns whse name and identificatin theref declared by authrities and central ffices theret t prvide mre accurate mnitring and cnstantly mnitrs theref financial perfrmance. Nte: It is upn branch duty t pay special careful attentin pursuant t fllwing: - The persn r institutin whse name enlisted by AML as well as accused f terrrist crimes and theref name annunced by central bank t banks theret branches; - Guilds with n cdes'; Article 10-If branch des nt cmply infrmatin system theret regards t the persn identificatin and the registered real estate with relevant database, it shall be necessary transferring said infrmatin t mentined database pst prviding the custmer basic service due at mst ne mnth and verifying theret authenticatin. Article 11-It is upn branch duty t update infrmatin theret already has been cmplied with relevant databases nce every tw mnth. If it is being established the natural persn has been deceased therwise herein matter des nt declared t bank due date, it shall be necessary t blck theref accunt immediately and in case there exists transactin r deal pursuant t theref accunt further than limits n the funds, herein matters shall be reprted t AML. 12

13 Article 12-It is upn f the branch prviding basic services, cntinuusly and specifically pursuant t fllwing matters, the infrmatin regards t custmer basic identificatin shall be updated: A- Anytime based n evidence and appearance there exists pssibility f majr changes in the cnditin f the custmer. B- In the event that based n evidence and appearance, branch estimates custmer expsure f mney laundering peratin r terrrism financing. Article 13- Fr purpse f custmer infrmatin dcumentary, It is necessary pst inquiry f relevant authrities and ensuring authenticatin regards theref infrmatin, the image f herein dcuments shall be certified as a true cpy f the riginal by getting it signed by the authenticated persn. Article 14- Six mnths after the ntificatin f herein instructin, it shall be necessary matching the permanent custmer legal residence address and pstal cde the infrmatin cntained in theret database (Registry rt registry f deeds). Regarding transient custmer, branch shall be bliged t acquire the custmer declared infrmatin cmpliance with pstal cde inserted therein natinal ID card. Article 15- Prviding custmer services imply apprval f theret emplyees' apprach regards custmer identificatin and if based n herein framewrk there is happened t exist any deficiency, they shall be expsed t theret respnsibility. 13