AML – GUIDELINES (2009 -2019)
Guidelines sets out the standards and procedures expected of Corporate Capital (Asia) Group in the undertaking of customer identification, record-keeping and reporting procedures so as to prevent the use of Corporate Capital (Asia) Group’s professional service platform for the purposes of money laundering.
Basic policies and procedures to combat money-laundering:
Corporate Capital (Asia) Group fully subscribes to the basic policies and principles to combat-money laundering as embodied in the Statement of Principles issued by the Basle Committee in December 1988.
The Guidelines seek to deny use of Corporate Capital (Asia) Group’s banking relationships to those involved in money- laundering by application of the following principles –
- Know Your Client (‘KYC’): it is compulsory that officers and directors to make reasonable efforts to determine the client’s true identity or ‘CTI’, and have effective procedures for verifying the bona fides of new clients.
- Obtain satisfactory evidence of the identity and legal existence of persons seeking to do business with Corporate Capital (Asia) Group on the basis of reliable documents or other resources, including obtaining information about name, permanent address, date of birth and occupation and record that identity and other relevant information regarding the applicant in their files. They should establish that any applicant claiming to act on behalf of another person is authorized to do so.
- Positive identification shall be obtained from documents issued by official or other reputable sources e.g. passports or identity cards. File copies of identity documents should be kept.
- Compliance with laws: officers and directors should ensure that business is conducted in conformity with high ethical standards, that laws and regulations are adhered to and that a service is not provided where there is good reason to suppose that transactions are associated with laundering activities.
- Co-operation with law enforcement agencies: within any constraints imposed by rules relating to customer confidentiality, Corporate Capital (Asia) Group should co-operate fully with national law enforcement agencies including, where there are reasonable grounds for suspected money-laundering, taking appropriate measures which are consistent with the law.
- Policies, procedures and training: Corporate Capital (Asia) Group should formally adopt policies consistent with the principles set out in the Guidelines, and should ensure that all staff concerned, wherever located, are informed of Corporate Capital (Asia) Group’s policy.
Attention should be given to staff training in matters covered by the Guidelines.
To promote adherence to these principles, from-time-to-time Corporate Capital (Asia) Group shall implement procedures pertinent for client identification and for retaining internal records of transactions. Training sources may include any one or more of the following –
- American Bar Association
- Canadian Bar Association
- Hong Kong Monetary Authority
- American Chamber of Commerce
- Anti-Money Laundering Forum (International Bar Association)
- Record Keeping: to satisfy code-of-practice certain basic requirements in terms of the following information should to every reasonable extent possible be sought –
- the origin of the funds (if known);
- the form the funds were offered or withdrawn i.e. cash, cheques, transfers;
- the identity of the person undertaking the transaction;
- the destination of the funds;
- the form of instruction and authority.
- Recognition of Suspicious Transactions: As the types of transactions which may be used by a money-launderer are almost unlimited, it is difficult to define a ‘suspicious transaction’.
However, a suspicious transaction will often be one which is inconsistent with a client’s known, legitimate business or personal activities or with the normal business for that type of account.
Therefore, the first key to recognition is knowing enough about the client’s business to recognize that a transaction, or series of transactions, is unusual. (See: Appendix-1 attached hereto and forming part of the Guidelines)
- Recognition of Suspicious Transactions: The reception point for disclosures is the Joint Financial Intelligence Unit, which is operated by the Police and Customs and Excise Department.
In addition, the JIFU also serves to act as domestic and international advisors on money-laundering generally and offers practical guidance and assistance to the financial sector on the subject of money-laundering.