Anti-Money Laundering and Counter- Terrorist Financing Policy

Transcription

1 Anti-Money Laundering and Counter- Terrorist Financing Classification: Public Last Update: 17 November 2016

2 LIST OF CONTENTS 1. BACKGROUND SCOPE CONCEPTS VIOLATION LIABILITY INTERNAL METHODS AND PROCEDURES TO COMBAT ML&FT INTERNAL REGULATIONS PRIOR IDENTIFICATION MECHANISMS (KNOW YOUR CLIENT - KYC) MONITORING AND CONTROL MECHANISMS (KNOW YOUR TRANSACTIONS - KYT) COMMUNICATION OF SUSPECT TRANSACTIONS STAFF TRAINING CORRESPONDING BANKING RECORD RETENTION INTERNAL ORGANISATION... 7 Página 2 de 7

3 1. BACKGROUND Banco BIC Português, S.A. (hereinafter the Bank) is a Portuguese financial institution under Portuguese law, registered in Banco de Portugal and in Securities Market Commission under numbers 0079 and 135, respectively. The Bank operates in strict compliance with the Anti- Money Laundering and Counter-Terrorist Financing Programme (hereinafter AML&CTF). This conduct is conveyed through the observance of a set of principles and techniques used to mitigate the risks of money laundering and terrorist financing (hereinafter ML&TF) situations, pursuant to internationally accepted legal requirements and best practices, such as Wolfsberg Questionnaire and US Patriot Act, both of them available on the website of the Bank. The Bank operates in accordance with laws and in constant compliance with the applicable regulatory provisions, namely: i. Article 368-A of the Criminal Code: portuguese concept of laundering; ii. iii. iv. Law 11/2002, of 16 February: sets the penal system for the application of sanctions to cases of non-compliance with the financial or trade sanctions imposed by a resolution of the United Nations Security Council or a European Union regulation, which determines restrictions on the establishment or maintenance of financial or trade relations with States, entities or individuals expressly identified in the corresponding subjective scope of application; Law 52/2003, of 22 August: approves the law on the combat of terrorism; Executive Order 150/2004, of 13 February: list of countries, territories and regions with clearly privileged taxation systems; v. Law 25/2008, of 05 June: Portuguese law of AML&CTF; vi. vii. viii. ix. Decree-Law 125/2008, of 21 July: national measures required for effective application of Regulation (EC) 1781/2006, of the European Parliament and Council of 15 November, relative to information required on the provider in the transfer of funds; Law 49/2008, of 27 August: Law on the Organisation of Criminal Investigation; Executive Order 150/2013, of 19 February: list of countries or jurisdictions to which subparagraph 8) of Article 2 of Law 25/2008, of 05 June refers; Circular Letter 23/2010 of Banco de Portugal (internal): offshores list; Página 3 de 7

4 x. Notice 5/2013, of 18 December: establishes the conditions, mechanisms and procedures required for effective compliance with ML&TF obligations; xi. xii. xiii. xiv. xv. Regulation (EC) 1791/2006 of the European Parliament and Council of 15 November 2006 relative to information required on the provider in the transfer of funds; Directives 2005/60/EC and 2006/70/EC of the European Union, published in 2005 and 2006 respectively, that establish the alignment of national regulatory frameworks; Regulation (EU) 2015/751 of the European Parliament and Council of 29 April, on the exchange rates applicable to payment operations based on cards; Directive (EU) 2015/849 of the European Parliament and Council of 20 May, on the prevention of the use of the financial system for the purposes of ML&FT. This Directive is awaiting transposition to the portugueses legal system until June 2017; and International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation. 2. SCOPE In its pursuit to combat ML&FT, and in order to comply with the afore-mentioned legislative framework, in addition to ML&FT related international best practices and principles, the Bank has internal regulations and the present, directly applicable to the universe of the Bank, and particularly to his Agencies. 3. CONCEPTS Money Laundering is the process in which the offenders of criminal activities dissimulate the illicit source of goods and income (advantages), transforming the liquidity from such activities into legal reusable funds, by dissimulating the source or true proprietor of such funds. Terrorism Financing is the process in which the agent supplies, gathers or holds funds or goods of any kind, including products or rights, which may be transformed into funds for such purposes as to plan, prepare or effectively practice terrorist acts. Página 4 de 7

5 4. VIOLATION LIABILITY Money Laundering and Terrorist Financing are forbidden and punished by law, in accordance with Article 368 -A of the Criminal Code and Article 5 -A of Law 52/2003, of 22 August. Consequently, non-compliance with and /or violation of the obligations laid down within the scope of ML&TF incurs a violation liability on the Bank, for which the facts and respective penal framework are established in Law 25/2008. Furthermore, companies are jointly and severally liable for the payment of fines and costs of their managers, staff or representatives are sentenced to pay. The members of corporate bodies of companies who, although within their power to do so, did not oppose the practice of the infraction, are individually and subsidiarily liable for the payment of the fines and costs they have been sentenced to pay. 5. INTERNAL METHODS AND PROCEDURES TO COMBAT &FT 5.1 INTERNAL REGULATIONS The Bank has a specific set of internal regulations within the scope of AML&FT, which are constantly updated to ensure that the Bank acts are in compliance with the various guidelines at all times. 5.2 PRIOR IDENTIFICATION MECHANISMS (KNOW YOUR CLIENT - KYC) The Bank has a Customer Acceptance which aims the prevention of the occurrence of practices that may put in risk its activity or reputation, which establishes the principles to be observed before an eventual business relationship, through the adoption of the internal procedures required to ensure compliance therewith. In this respect, and in order to guarantee compliance with the relevant legislation and regulations, the Bank has implemented a risk-based approach to its Money Laundering and Terrorist Financing Management Model, which considers the Página 5 de 7

6 specific operating reality of the Bank and enables the identification of higher risk customers, tailoring the diligence and monitoring measures accordingly. With recourse to technological tools, the Bank filters its customers by checking the relevant lists to identify Sanctioned and Politically Exposed Persons (hereinafter PEPs). 5.3 MONITORING AND CONTROL MECHANISMS (KNOW YOUR TRANSACTIONS - KYT) The implementation of KYT control mechanisms allows constantly and appropriately monitor of all the transactions that are carried out. Within this context, the Bank has human and technological resources to automatically detect transactions with relevant evidence or suspicion of ML&FT. Furthermore, the Bank has bolstered its monitoring of transactions in which the Customers or Beneficial Owners are PEPs or perform/have performed political and/or public duties. 5.4 COMMUNICATION OF SUSPICIOUS TRANSACTIONS Whenever the Bank is confronted with a possible situation involving the practice of ML&TF crimes, the Portuguese authorities are notified in a timely manner, thus ensuring the independence of the body entrusted with the respective analysis. 5.5 STAFF TRAINING The Bank has defined and implemented an AML&FT training policy. The professional development of its employees is fostered by promoting both inhouse and external training, presential or by e- learning, with a view to boosting their development and optimising their skills to make easier for them to identify the main ML&FT risks, but also to provide them full, constant and updated knowledge on the issue. Página 6 de 7

7 5.6 CORRESPONDENT BANKING The Bank has also adopted a risk-based approach to this issue. This approach calls for the collection of sufficient information on the Corresponding Bank, in order to understand its activity, procedures and internal control, namely in terms of AML&FT. Furthermore, a periodic review is conducted. The frequency of that review depends on the risk level, to ensure that, at all times, the Bank is fully familiar with the Corresponding Banks with which it establishes and maintains business relationships. 6. DOCUMENT RETENTION In terms of retaining records that attest compliance with other obligations established by the Law, the Bank observes the deadlines stipulated therein. 7. INTERNAL ORGANISATION The Executive Committee is the body with the ultimate responsibility of actively promoting an effective AML&FT institutional culture, and approves the Overall Risk Management Model of Money Laundering and Terrorist Financing and any amendments thereof. In turn, the Compliance Department, delegated authority by the Executive Committee of the Bank, is the responsible for the development of the above-mentioned model, and plays a key role in the identification, evaluation and continuous monitoring of the Model. Moreover, it is the duty of the Internal Audit Department to independently evaluate the model and policies, in addition to the established proceedings, procedures and control. The present Anti-Money Laundering and Counter Terrorist Financing was approved in the meeting of the Executive Committee on 17 November Página 7 de 7