The Anti-Money Laundering and Financial Crime Investigation Department (hereinafter AmlFinCrime) reports directly to the Board of Directors of our company and is responsible for the implementation of international standards, national legislation and internal regulations in the following areas:
- Anti-money laundering (AML)
- Combating the financing of terrorism (CFT)
- Application of international sanctions against persons financing terrorism and the proliferation of weapons of mass destruction
- Money Laundering and Terrorist Financing Risk Assessment
- Counteraction and detection of the facts of fraud in relation to customers, company employees, as well as tangible and intangible property of the company
- Protection of personal data of customers and company employees
- Protection of the company's reputation, know-how and intellectual property
- Ensuring the implementation of high standards of business ethics by company employees
Prevention of money laundering, terrorist financing and international sanctions
1. What does money laundering and terrorist financing mean?
Money laundering is actions aimed at legalizing income or other property obtained by criminal means, as well as hiding the source of income or property.
Definition of the concepts of money laundering and terrorist financing from international legal acts against money laundering and terrorist financing:
Money Laundering :
1) change in the legal status of property or transfer of property, if it is known that this property was acquired as a result of a criminal act or with participation in such an act, in order to conceal or disguise the illegal origin of property or in order to assist any person participating in a criminal act to avoid the legal consequences of this act;
2) concealment or disguise of the true nature, true origin, source, place, disposal, movement of property, property rights or rights related to property, if it is known that this property was acquired as a result of a criminal act or with participation in such an act; < / p>
3) acquisition, management or use of property, if at the time of acquisition (transfer) it is known that this property was acquired as a result of a criminal act or with participation in such an act;
4) preparation, attempt to commit, complicity in the commission of any of the acts specified in paragraphs 1-3 of this part.
Terrorist financing - activities that are considered a crime in accordance with Art. 2 of the International Convention for the Suppression of the Financing of Terrorism of December 9, 1999
Anti-Money Laundering and Terrorist Financing - taking appropriate measures to prevent money laundering and terrorist financing.
The internal acts of our company provide for the obligation to implement the principle "Know your client"
International legal acts in the field of combating the legalization (laundering) of proceeds from crime and the financing of terrorism, which stipulate preventive measures and the conditions for their application by the company to prevent legalization (laundering) of proceeds from crime and the financing of terrorism, and establish obligations companies for identifying the identity of the client and beneficiary, as well as other legal acts developed for financial market participants, also aimed at preventing the legalization (laundering) of proceeds from crime and (or) the financing of terrorism, stipulate the company's obligation to implement the principle “Get to know your customer” in relation to your new and existing customers, as the company needs :
- Know what type of activity the client is engaged in (i.e. know the nature of his business), analyze his activities;
- Know the beneficiary of the client, that is, individuals in whose interests or in whose favor the transactions or activities are carried out (the beneficiary of the legal entity is established to the individual (s) of the person (s), regardless of the number of controlling legal entities);
- Conduct continuous monitoring of the client's business relations, including the study of transactions concluded within the framework of such relations, in order to ensure compliance with the customer information held by the company, monitor the client's business (its types and nature, the nature of transactions, business partners, territory of activity etc.) and the nature of its risk;
- Know the source (origin) of client funds.
The company can fulfill the above obligation to study transactions only after receiving clarifications from the client regarding operations on his accounts and documents in support of such operations, i.e. documents confirming the client's explanations
When assessing the risk of legalization (laundering) of proceeds from crime and financing of terrorism, the company must also ensure that only the latest and most accurate information is used, and therefore the company is obliged to constantly review and update documents, information and information provided during identification of the identity of the client and beneficiary. This provision applies not only to new, but also to existing customers of the company. If any information about himself changes, the client is obliged to inform the company about it.
General information on international sanctions
International sanctions are restrictive non-military measures imposed to preserve international peace and security and respect for human rights. They are imposed by the United Nations (UN), the European Union (EU) or individual countries (for example, the United States (USA)). International sanctions are introduced against entire states, as well as against individuals and legal entities that violate human rights, cause religious, ethnic, territorial conflicts, support terrorism, violate other international norms and principles.
The purpose of international sanctions is to influence behavior change, end prohibited activities, or rein in the person subject to sanctions. There are different forms of international sanctions, depending on their purpose (for example, preventing armed conflicts, countering terrorism). They can be individual (for example, a travel ban, seizure of property), can be aimed at goods and services (for example, an embargo on the supply of weapons or goods related to the proliferation of dual-use goods), can be imposed on major economic sectors ( for example, oil or finance) or be all-encompassing against an entire country (for example, North Korea).
Our company, as well as other financial institutions, are implementing international financial sanctions.
It should be noted that depending on the countries in which financial institutions operate, the lists of sanctions followed by financial institutions may differ slightly.
International sanctions applied by our company:
- United Nations sanctions (UN). All UN members are obliged to accept and implement Resolutions adopted by the UN Security Council.
- European Union sanctions (EU). Sanctions are implemented through EU Council regulations and have direct effect in all EU member states.
- United States of America (USA). Our company also applies the appropriate US financial sanctions based on the Financial Sanctions Policy. US financial sanctions are imposed by orders of the President of the United States and are implemented by the Office of Foreign Assets Control (OFAC) of the US Treasury Department.
In compliance with US financial sanctions, our company has the ability to maintain relationships with banks under US jurisdiction and provide its clients with transaction services, as well as other products / services in US currency, or conduct transactions related to US entities.
- Sanctions regimes OFAC USA,
- OFAC USA Search Tool,
- List of US OFAC Special Citizens and Prohibited Persons.
Our company applies the aforementioned international sanctions to the extent determined by the UN, EU, US or government authorities (i.e. government) and in accordance with the Financial Sanctions Policy. In addition, our company takes into account the requirements of correspondent banks, as well as its own risk appetite. Therefore, our company will not take any action directly or indirectly aimed at evading compliance with the prohibitions on the application of financial sanctions, the requirements of correspondent banks and our company's internal decisions.
Types of international sanctions
Below are the main types of international sanctions applied by our company:
- Targeted seizure of assets. These financial sanctions are applied to individuals and legal entities (prohibited persons) by restricting their access to funds and other property. Targeted seizure of assets or other actions required if prohibited persons are included in the following official sanctions lists:
- Consolidated list of EU sanctions,
- List of US OFAC Special Citizens and Banned Persons. (OFAC SDN USA list).
If the above sanctions are imposed, our company will reject the transaction or not provide related products / services.
- Arms embargo / restrictions on dual-use goods and technology and related activities for military purposes (defense sector). The same embargo / restriction may be imposed on other goods (eg equipment used for internal repression, telecommunications monitoring and interception equipment). Our company is obliged not to participate in the provision of financial assistance related to the specified goods or related services.
- Sanctions against major sectors of the economy - Sectoral sanctions. Our company will not provide financial services (for example, loans, borrowings, transactions with financial instruments), to persons who are subject to restrictions, and will not participate in transactions related to prohibited activities (for example, restrictions on the provision, export or re-export goods / services or technologies in support of exploration or production for deep water, arctic offshore or shale projects, with oil production potential).
- Comprehensive sanctions for specific countries / regions. For example, North Korea is subject to comprehensive sanctions from the UN, EU and US.
It is important to note that the asset freeze and some industry restrictions also apply to legal entities that are directly or indirectly controlled or owned by that entity. Although these entities may not be listed or included in the sanctions lists, they are subject to the same sanctions that our company is required to enforce.
Duty to report
International sanctions imposed by the EU (including sanctions imposed by the UN) are applied within the EU and against all EU persons within or outside the EU. Thus, both financial institutions and their clients are legally responsible for complying with EU sanctions and are obliged to inform the competent authorities about cases known to them, or transactions that are suspicious to them with entities subject to the sanctions. Our company always informs the competent authorities in case of violation of EU sanctions and freezing of funds. Examples of when to report:
- The client determines that his partner or client is a person subject to EU sanctions;
- The client determines that the beneficial owner of the legal entity that purchases the goods / services is a person subject to EU sanctions;
Refusal of the client to provide information or submission of incorrect information by the client
In case of failure to submit, evasion from submission or refusal of the client to submit the information requested by the company or in case of insufficient information provided by the client, the company refuses to execute or suspends the execution of the client's operations or transactions, since the failure of the company to take these measures violates international legal acts in the field of combating legalization (laundering) of proceeds of crime and financing of terrorism. In addition, in such cases, the company has the right to terminate business relations with the client in accordance with the international requirements of the FATF "On combating the legalization (laundering) of proceeds from crime and the financing of terrorism.
If the company does not comply with the requirements of legal acts regulating countering the legalization (laundering) of proceeds from crime and the financing of terrorism, the company may be subject to sanctions, and foreign countries may recommend their credit institutions to terminate relations with such a company. p>
Please note that our company is guided by strict moral and ethical principles in its activities and works with those clients whose funds and assets are justified, their legality is beyond doubt, and the origin of the funds involved in their monetary transactions, is not associated with criminal (illegal) activities, or these operations are not aimed at concealing the origin of these funds. The company also carries out prevention of unintentional and indirect criminal activity.