Supplementary AML/CFT CDD Questionnaire

Transcription

1 Supplementary AML/CFT CDD Questionnaire This supplementary AML/CFT questionnaire provides an overview of Maybank and its subsidiaries Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) policies and practices compliant with relevant laws and regulations, as well as its due diligence requirements associated with the provision of correspondent banking services in conducting international business. INSTITUTIONAL INFORMATION Name of Institution Country of Incorporation Registered Office : Malayan Banking Berhad : Malaysia : 14TH FLOOR, MENARA MAYBANK 100, JALAN TUN PERAK KUALA LUMPUR MALAYSIA Tel : (6) Fax : (6) Registration Number/Date of Incorporation : 3813K / 31st May 1960 SWIFT Code Corporate Website Regulator Authority s Name Stock Exchange Listing Ownership Structure Management Structure Principal Activities Number of Offices (Local & Foreign) Name of External Auditors: : MBBEMYKL : : CENTRAL BANK OF MALAYSIA (BNM) : Main Market of Bursa Malaysia Securities Berhad (Listed since 17 February 1962) : Please refer to Annual Report available at corporate website: : Please refer to Annual Report available at corporate website: : All aspects of commercial banking and related financial services. The subsidiaries are principally engaged in the businesses of banking and finance, Islamic banking, investment banking including stockbroking, underwriting of general and life insurance, general and family takaful, trustee and nominee services and asset management. : Over 2,400 offices in 20 countries : Ernst & Young

2 I. General AML Policies, Practices and Procedures Yes No 1 Please provide a description of how the AML/CTF policy is enforced throughout the Group: Please refer to our AML/CFT Policy Statement in The Policy is cascaded and made available in Maybank s internal repository system which is easily retrievable by all staff. Group Internal Audit function is in place to review the effectiveness and compliance with AML/CFT policies. 2 Does FI s AML policy and procedures cover all financial crimes? Maybank is subject to the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFA), where predicate offences are listed under the Second Schedule of the AMLATFA. 3 Does FI keep the policy up to date and apply the changes required based on changes in regulatory requirements, best practices set by international standards etc.? The policy will be reviewed on periodical basis and amendments will be made from time to time (if any) to suit Maybank Group and regulatory bodies requirements. 4 Does the FI have documented policies outlining the processes regarding escalation of financial crime risk issues including, where appropriate, customer exits process for those deem to pose unacceptable ML/TF/sanction/bribery and corruption risk? 5 Is the FI s home country a member of FATF or its associated members, e.g. APG, CFATF, MONEYVAL, EAG, etc.? If yes, please indicate which body: FATF and APG 6 Has the home country been evaluated by FATF or its associated members, e.g. APG, CFATF, MONEYVAL, EAG, etc.? If yes to provide details: FATF and APG in 2015 II. Risk Assessment Yes No 7 Does the FI s ML/TF risk assessment consist of the following risk variables:- a) Customer risk (e.g. resident or non-resident, type of customers, occasional or one-off, legal person structure, types of PEP, types of occupation). b) Geographical location of business or country of origin of customers c) Products, services, transactions or delivery channels (e.g. cash-based, faceto-face or non-face-to-face, cross-border) 8 Are there any categories of customers that are prohibited? Please provide details:- Sanctioned entities and individuals Individual and entities listed in our internal watch list/blacklist and known to pose significant ML/TF risks

3 III. Know Your Customer, Due Diligence and Enhanced Due Diligence Yes No 9 Does a mechanism exist for KYC renewal to be triggered off-cycle? 10 Does the FI review the Source of Fund and/or Source of Wealth (where applicable) when conducting due diligence on new customers rated as high risk including PEPs? 11 Does the approval authority differ for customer with different risk rating? Senior Management approval is required for high risk customers. 12 Describe the FI s ECDD process in terms of what it consists of and who it applies to? All high risk clients are subject to ECDD. 1. Source of funds, source of wealth 2. Senior management approval is obtained 3. Enhanced monitoring 13 Does your AML KYC/CDD policies and procedures allow for : a) Opening or maintaining anonymous accounts. b) Fund transfers or bank transactions on behalf of non customers, without obtaining proof of identification. 14 Are customers from countries having on-going/substantial ML/TF risks treated as high risk throughout the duration of business relationship with the FI? (if applicable) 15 In the case of potential customer, can FI proceed with the transaction without completing the CDD? IV. Reportable Transactions and Prevention and Detection of Transactions with Illegally Obtained Funds 16 Please specify that third party (customer) commercial payments will only be transmitted through MT202 COV or Serial MT103 MT202 COV MT Please confirm that for all MT202 payments for which there is an associated MT103, MT202 COV is used Confirmed Yes No V. Transaction Monitoring Yes No 18 Does the FI use automated transaction monitoring system? Is this system developed: In House Purchased Name of the vendor: Oracle Name of System: Mantas 19 Are cash transaction incorporated into the automated system? 20 Does the FI have dedicated staff to process alerts?

4 VI. Training and Awareness Program Yes No 21 How frequent is training conducted? On-going. At a minimum, once a year. VII. Correspondent Banking Relationship Yes No 22 Does the FI allow direct use of the correspondent account by third parties to transact business on their behalf? (Payable-through accounts)? 23 Does the FI have a standard AML/CFT CDD questionnaire that is provided to correspondent banks? 24 Does the FI gather sufficient information about the Correspondence Banks customers, its AML Policies and Procedures, whether it possesses license to operate in its country of origin? 25 Does the FI have policies to reasonably ensure that it only operates with correspondent banks that possess licenses to operate in their countries of origin? 26 Does the FI provide services to Internet Banking based institutions or banks located in countries identified by FATF as having on-going or substantial ML/TF risk? 27 Does the FI have any units operating under an offshore banking license? Please specify jurisdiction: Labuan, Malaysia VII. Payment Transparency Yes No 28 Does the FI have system and processes in place to request complete payer information from the ordering institution in cross border fund transfer instructions if that information is incomplete and needed? 29 Does the FI have systems and processes in place to flag all incoming fund transfer instructions which do not have complete payer information? IX. Sanctions Yes No 30 How frequent does the FI screen its existing customer database? On quarterly basis 31 Do you screen your customers and international telegraph transfers against a particular Sanctions program? If Yes, please indicate the Sanctions program(s) used: OFAC DFAT (Australia) HM Treasury (For UK operations) HKMA (For HK operations) United Nations European Union NZRBA Others (Please specify) Country specific listings depending on the local requirements

5 32 If Yes to Question 31, please state how frequent you conduct this search over your customer database? Daily checking for all new accounts prior to on-boarding of customers and/or when performing trade and wire transfers transactions and quarterly checking for all customers (new and existing accounts). 33 Is the screening process through an automated system and does the FI subscribe to a third party service provider for a screening database? Automated Name of third party service provider: SideSafewatch 34 Does FI sanctions requirement applicable to the following: All new customers All existing customers on a periodic basis Associates and related parties Beneficiary names at the creation stage and also prior to executing transactions Key parties in a trade finance transaction including vessels used Correspondent banks Employees 35 Does the FI have a presence in any of the US sanctioned countries, i.e. Iran, North Korea, Syria, Sudan and Cuba? 36 Please elaborate on whether your FI allows business dealings (transactions with/or accepting clients located in) the afore-mentioned sanctioned countries If Yes, please indicate the extent and nature of the business with the above mentioned countries. Sudan - On exceptional and sparing basis Syria For individual opening account in MYR (no USD, GBP and EURO) Iran On exceptional and sparing basis (No USD, GBP,EURO, RMB and JPY) X. Politically Exposed Person Yes No 37 Does the FI has an internal definition of a PEP? The internal definition is in line with FATF and BNM guidelines. 38 Are domestic PEPs treated the same as foreign PEPs? i. Foreign PEPs are classified as high risk and subject to ECDD. ii. Domestic PEP or person entrusted with a prominent function by an international organization are classified as high risk and subject to ECDD when the level of ML/TF risk posed is assessed as high. 39 Which list(s) is used for PEP screening? World Check 40 How often are the FI s PEP lists updated? As and when there is an update made to the list by the vendor(s). 41 Does the FI obtain the approval of senior management for opening of an account for PEPs?

6 42 Does the business ascertain the source of wealth and source of funds before accepting a PEP as customer? XI. AML/CFT Compliance Program Yes No 43 To whom does the designated Compliance Officer responsible for the FI antimoney laundering program report? The designated CO responsible for AML program reports to Group Chief Compliance Officer who has direct reporting line to Board of Directors. 44 Does the FI have a formal/independent anti-money laundering compliance function? 45 Please describe the governance and structure of the AML compliance function, including the approximate number of employees As of January 2018, at the Group level, there are approximately 100 staff manning the Financial Crime Compliance (FCC) department covering areas on Anti-Money Laundering, Sanctions, Anti-Bribery and Corruption, FCC Operations and FCC Technology. 46 When was the last AML examination by regulator conducted? Are the results of the review by the Internal Audit and regulator escalated to Senior Management? 48 Are steps taken to close any AML/CFT gaps identified by such reviews? 49 Has the FI been subject to any investigation, indictment, conviction or civil enforcement action related to money laundering and terrorism financing in the past five years. Please be advised that the Bank is neither able to confirm affirmatively nor otherwise as the regulatory regime, as practiced by Bank Negara Malaysia, does not publicized such offences and the actions taken against a reporting institution which comes under their purview prior to To be consistent with this approach, we will abstain from providing a definitive answer accordingly. XII. Suspicious Transaction Reporting (STR) 50 Does the FI have policy to protect the employees, if they, in good faith, report suspicious transactions? 51 Does the FI ensure the confidentiality of Suspicious Transaction Report (STR) filings or any information that would reveal the existence of a STR? 52 Does the staff understand the issues and potential consequences if they become involved in tipping off?