ANTI-MONEY LAUNDERING POLICIES OF REMAX ZEST (ZEST FOR REALTY LTD)

Transcription

1 ANTI-MONEY LAUNDERING POLICIES OF REMAX ZEST (ZEST FOR REALTY LTD) A. Introduction 1. REMAX ZEST. 2. The agency has adapted money-laundering policies and procedures appropriate to its size and risk profile. 3. The agency has adopted a General Policy Statement as well as the specific anti-money laundering policies and procedures mentioned below. A copy of that Statement is attached to this document. B. Services provided by the agency The agency provides services in the following areas: SELLING HOMES C. Current Policies and Procedures Corporate Governance 1. In order to prevent money laundering and terrorist financing the agency is under a legal obligation to have procedures and systems in place to manage the risks associated with becoming involved with such activities. This requires: staff being responsible for the prevention and detection of money laundering and the financing of terrorism; the implementation of risk management control systems and training; and the appointment of an officer with responsibility for such matters. 2. Responsibility falls on the partners of the agency to: - consider the money laundering and terrorist financing risks; ensure that the systems that are in place are as effective as they can be to manage those risks; ensure that all staff (including staff dealing with accounting issues) have an appropriate understanding of the applicable regulatory regime; and ELMARIE BEZUIDENHOUT assumes the functions of the Money Laundering Compliance Officer ( MLCO ) and ERIC CHASE absence, of Deputy Money Laundering Compliance Officer. ELMARIE BEZUIDENHOUT assumes the function of the Money Laundering Reporting Officer ( MLRO ). 3. The agency recognises that it is under a continuing obligation to assess the money laundering and terrorist financing risks associated with the business and its client base. To discharge that obligation, the agency conducts and documents, in a manual, a business risk assessment. These documents can be found in REMAX ZEST office. This will be maintained and updated, as required and business risk will be kept under annual review. Annual review meetings will be attended by all members of staff of the agency. 4. One of the aims of the meetings will be to provide a forum for feedback on the effectiveness of the agency s AML/CFT policies and procedures and an opportunity for constructive and critical comment although such comments can be made by any member of staff at any time. The policies and procedures are to be overseen by ELMARIE BEZUIDENHOUT in her/his capacity as the MLCO and checked by the partners of the agency. 1

2 5. The systems that have been put in place involve the following: - Client due diligence ( CDD ) procedures, including: (i) (ii) the development and implementation of client acceptance policies and procedures; and the identification and verification of the identity of an applicant for the agency s services. Reporting to the Financial Intelligence Unit ( FIU ) where it knows or suspects or has reasonable grounds to suspect that money laundering or terrorist financing is taking place or attempts to implement such transactions are taking place; Screening employees when they are recruited and where they change role; Educating employees, with the aim being to ensure that they are aware of the risks of becoming involved in such transactions and are aware of their obligations and of the internal policies and procedures; The keeping of proper records; and Appropriate liaison with the Department of Internal Affairs ( DIA ) and the FIU. The systems that have been put in place are applied to all work undertaken by the agency. 6. The following will ultimately be decisions for/matters handled by ELMARIE BEZUIDENHOUT or, in her/his absence from the office, ERIC CHASE Approval of all CDD and client acceptance in respect of certain categories of client; Restriction of work where CDD obligations have not been discharged; - The following will ultimately be decisions for/matters handled by ELMARIE BEZUIDENHOUT: The recording of situations of concern coming to her/his attention and decisions about how they are to be handled. (If required ELMARIE BEZUIDENHOUT will seek independent advice or assistance in relation to areas of doubt, noting that in so doing she/he in no way delegating his responsibilities.) ELMARIE BEZUIDENHOUT will keep a log of situations of concern, suspicious activity reports (both internal and external) and all enquiries made by law enforcement authorities. 7. The ultimate objective of the policies and procedures that are in place is to ensure that the following aims are met: - a) That there is a culture of openness in relation to all aspects relating to AML/CFT procedures. b) That any concern is raised, considered and dealt with, to the extent possible, within 48 hours. c) That the procedures that have been put in place are observed and complied with. 8. The agency has adopted a number of systematic approaches to minimise risk and note the outcome of consideration of risk. 9. In particular, the agency adopts the following approach in relation to the handling of vendors- a) There is an almost absolute prohibition on the handling of cash payments. b) Care is taken when accepting new vendors. Enquiries will be made as to the owners of the property before they are accepted, in other words a risk assessment will be undertaken. If the matter has been assessed as high risk the MLCO should be consulted. If the matter has been assessed as high risk the head office will be notified. 2

3 c) A risk-based approach will be utilised in monitoring the property the vendors are looking to sell 10. The agency takes particular account to the following factors when assessing risk: a) The nature, size and complexity of the agency s business; b) The products and services that the agency offers; c) The way the agency delivers its products and services; d) The types of customers the agency deals with; e) The countries the agency deals with; and f) The institutions the agency deals with. 11. The agency s Risk Assessment will draw attention to these factors, among others, and to warning signs which may heighten a client s risk profile or give cause for concern (for example, secretive clients, unusual instructions. Client due diligence requirements 12. The agency has adopted CDD procedures to achieve the following objectives: - a) Identifying the applicant for the agency s services and verifying the applicant s identity, using reliable and independent source documents, data and information to do so; b) Where the applicant is not an individual, the beneficial ownership and control of the applicant and taking reasonable measures to verify the identity of the beneficial owner(s) and controller(s) of the applicant, so that the agency knows who the owner(s) and controller(s) are; c) Obtaining information about the nature and purpose of the client relationship; d) In the event that client funds are to be held, taking reasonable measures to verify the source of those funds and in the event of apparent higher risk, the client s source of wealth; and e) Keeping the information up to date, and monitoring activity and transactions undertaken throughout the course of a client relationship to ensure that the activity or transaction being conducted is consistent with the agency s knowledge of the client. 13. The agency s approach to client take on procedures (and the collection of CDD information) is described in detail in the document which is at the REMAX ZEST office. Identification and Verification of Identity 14. The agency has in place procedures for identifying and verifying the identity of vendors At the outset of a client relationship; Before carrying out an occasional transaction or activity (as defined in AML/CFT Act 2009); Where there has been a change in (i) identification information relating to a client; or (ii) the beneficial ownership and control of a client; or (iii) the third parties (or the beneficial ownership or control of third parties) on whose behalf an applicant or client acts; or 3

4 Where any member of the agency has knowledge or suspicion of money-laundering or some doubt as to the veracity of evidence of identity that is already held. 15. The agency has prepared detailed guidelines which set out the identification information and documents required by reference to (i) the status of the applicant and (ii) the risk category (i.e. whether standard or higher risk). These guidelines can be found at the REMAX ZEST office. Ongoing monitoring 16. The agency recognises its obligations to monitor client relationships and have in place procedures to identify and scrutinise complex, unusual or higher risk activity or transactions that may indicate money laundering or terrorist financing activity, especially where there is no apparent economic or visible lawful purpose. 17. The agency s monitoring system will include a review of live client relationships on a periodic basis (dependent on risk), generally high-risk client relationships and all ongoing client relationships (continuing advice / general advice files) will be reviewed annually. Where appropriate (with due regard to tipping off issues), enquiries will be made to determine whether there is a rational explanation for an activity or transaction which may be connected with money laundering or terrorist financing. 18. The agency pays particular attention to the general warning signs identified in the agency s risk assessment. Reporting Money Laundering and Terrorist Financing Activity and Transactions 19. The agency has adopted a Money Laundering Reporting Procedure found at REMAX ZEST office. The staff of the agency are all alert to the possibility that the agency s services could be used for money laundering purposes or that, in the course of their work, they could become aware of criminal or terrorist property. Staff of the agency are required to report any knowledge or suspicion of money laundering or terrorist financing to ELMARIE BEZUIDENHOUT immediately. 20. ELMARIE BEZUIDENHOUT is fully aware of the circumstances under which she/he is required as MLO to make an external suspicious activity report (SAR) to the FIU and the information which the SAR must contain. In accordance with the reporting procedure, the agency will keep records of any internal reports made by staff and of any suspicions. The staff of the agency recognise that the requirement to report knowledge or suspicion of moneylaundering does not apply in certain cases of legal professional privilege. All decisions on the applicability of such privilege will be taken by ELMARIE BEZUIDENHOUT who has considered any applicable guidance which has been given by the DIA. Screening, awareness raising and training 21. The agency has developed and discussed with existing staff the agency s identification, record keeping and internal reporting procedures and the agency s anti-money laundering policies. ELMARIE BEZUIDENHOUT is to ensure that staff are aware of their obligations under the relevant enactments and of the guidelines prepared by the DIA. 22. ELMARIE BEZUIDENHOUT will need to ensure that the agency is aware of all relevant developments and its policies and procedures remain current. The agency will provide induction training within 10 working days of either the start of employment or a change of role and will ensure that all employees receive training once every two years. Measures will be taken to raise staff awareness of policies and procedures and the context for them on an ad hoc basis but at least twice yearly. 23. The agency will adopt screening procedures for future employees that require: - Obtaining written references; 4

5 Obtaining employment history and qualifications disclosed; Requesting information on whether or not any regulatory action has been taken against the individual and, if so, obtaining details; and Requesting information on whether or not the individual has any criminal convictions and obtaining details. Record keeping 24. The agency has adopted procedures to ensure that records are kept of enquiries made and information obtained while exercising client due diligence for AML/CFT purposes and to ensure that these records are retained as required for legal and regulatory purposes. Records are kept by way of original documents, photocopies (certified where appropriate), in scanned form or in computerised or electronic form. 25. Records are kept for a minimum of five years from the date that a client relationship ends or, in the case of a one-off transaction, for five years from the date that the transaction was completed. However, in the case of clients who have been subject to SAR (whether internal or external), relevant records will be retained separately from the agency s routine archives and not destroyed, even after the five-year period has elapsed. 26. ELMARIE BEZUIDENHOUT as MLCO is responsible for ensuring that all records are kept in the appropriate places and are maintained in a consistent manner so that they are readily accessible by and comprehensible to all authorised persons. She/He is also responsible for ensuring that, if information requested for AML/CFT purposes has not been forthcoming or explanations provided have not been satisfactory, a full record is kept. 27. Finally, it is noted that the agency understands its obligation to keep adequate and orderly records as follows: records of vendors and transactions for a minimum of five years from the date that a client relationship ends or, in the case of a one-off transaction, for five years from the date that the transaction was completed its business risk assessment and records of its systems and controls (including policies and procedures) for at least five years after the end of the calendar year in which they are superseded assessment of the effectiveness of, and compliance with, systems and controls (including policies and procedures), including reports presented by the MLCO on compliance matters and MLRO on reporting for five years after the end of the calendar year in which a matter is considered a record of what barriers (including cultural barriers) exist to prevent the operation of effective systems and controls (including policies and procedures) for five years after the end of the calendar year in which a matter is considered records to demonstrate experience and skills, independence, access to resources, and technical awareness of the MLCO for five years after the end of the calendar year training provided on the prevention and detection of money laundering and the financing of terrorism for five years after the end of the calendar year in which training was provided. 28. The Agency will periodically test access to records. Audit of process effectiveness 29. The MLCO will investigate and review the effectiveness of the agency s systems and controls at least annually. This will include reviewing the number and nature of high-risk relationships, 5

6 relationships declined or terminated because of a CDD issues, the number and nature of relationships where delayed verification was permitted, any breaches of policies and procedures and the results of tests of the underlying records of obliged persons. 6