Anti money laundering policy
“Money laundering is principally a means to disguise the source of criminal funds”.
Its secondary objectives include providing a safe haven for those funds, and providing a financial return on them by using legitimate business. The essence of the activity is concealment.
As a financial services company, Ellipsys has a special duty to ensure that it cooperates with the law and the enforcement authorities to enforce the FATF recommendations and the various laws that are in place in Mauritius at the present time and any time in the future.
Money laundering has been legally defined as the use of money derived from illegal activity by concealing the identity of the individuals who obtained the money converted it to assets that appear to have come from a legitimate source. A simple definition is the washing of dirty money to make it appear to legitimate.
This policy has been designed to ensure that Ellipsys complies with all the relevant laws and regulations which include the following amongst others:
- Financial Services Act 2007;
- Code On The Prevention Of Money Laundering & Terrorist Financing 2012;
- Financial Intelligence and Anti-Money Laundering Act 2002;
- Securities Act 2005; and
- The relevant acts, guidelines, rules and regulations under the laws of Mauritius.
Ellipsys as a Financial Institution handling futures and CFD transactions globally may be seen as a legitimate target by the money launderer.
In most countries and territories worldwide, the following acts are offences under standard money laundering deterrence legislation:
- (a) assisting another to retain the benefits of crime
- (b) acquisition, possession or use of criminal proceeds
- (c) concealing or transferring proceeds to avoid prosecution or a confiscation order
- (d) failure to disclose knowledge or suspicion of money laundering; and
- (e) tipping off suspected money launderers
The crimes covered are all serious crimes, and not just crimes related to drug trafficking or terrorism. Compliance with these procedures will help avoid commission of the above offences.
Ellipsys’s Anti Money Laundering policy has systems to guard against money laundering including:
- internal control systems;
- identification and verification procedures;
- suspicion recognition procedures;
- record keeping procedures;
- reporting procedures; and
- education and training.
Ellipsys's money laundering deterrence policy is designed to achieve four aims:
- to protect the financial and operational integrity of Ellipsys by taking all reasonable steps and exercising all due diligence to prevent use of Ellipsys by money launderers;
- to protect Ellipsys and its employees from unfounded allegations of money laundering;
- to avoid criminal sanctions, negative publicity or restriction of business which might otherwise follow from involvement of Ellipsys in money laundering; and
- to increase Ellipsys's protection against fraud, by institution of these procedures.
Internal controls, compliance procedures and money laundering deterrance policies.
Ellipsys has appointed a Money Laundering Reporting Officer (MLRO).
- Institution and maintenance of these procedures;
- Liaison between Ellipsys and the law enforcement authorities;
- Acting as the central point within Ellipsys for receiving Money Laundering Suspicion Reports; and
The role of MLRO and / or Compliance Officer is essentially that of co-ordination and guidance. The primary responsibility for deterrence still rests with the front line officers who are handling the business transactions personally.
Following are the detailed recommendations pertaining to employees of Ellipsys:
- Introduce procedures to verify and obtain identify for clients whether establishing business relationship’s or conducting transactions;
- Introduce records retention procedures for transaction; customer identification etc;
- Introduce internal reporting procedures such that suspicious of criminal activity are reported promptly to the competent authorities( and the legislation allows such reporting); and
- Provide training to staff so that they understand their legal obligations and recognize warning signs of suspicious activity.
Know your customer:
The only way that an Institution or an officer can implement the above is by first knowing the customer. This is one of the key factors to a successful money laundering deterrent policy.
The broad parameters of “know your customer” involve the following:
- Make an effort to understand a customer’s business when first entering into the relationship. Be prepared to turn business away.
- Build a profile of the type of account activity that is expected based on that activity.
- Record in note from the information supplied for the future benefit;
- Review the account activity periodically to check whether it is consistent with the earlier understanding
- Report if there is any suspicion in the transaction
- Keeps records that may prove significant for subsequent criminal investigations and prosecutions.
Inward wire remittance transactions:
- All incoming funds must require the client to provide an indemnity/undertaking that the client is the beneficial owner and that he is not acting as an intermediary for other and that the source of the funds is made available through legal sources.
- Proceeds of inward remittance should be credited to none other than the beneficiary’s account.
- In the case of any large inward remittances to any of accounts against which the proceeds are to be settled in the beneficiary’s account by way of currency transfer or direct credit, who is:
( I ) Individual:
- Indemnity/Undertaking from the remitter as per prescribed format to be on file.
- Details of the remitter and beneficiary including identity, passport number, name etc to be on file.
- Purpose of such remittance of funds are to be on file. The necessary reporting forms provided by laws or Enforcement authority must be duly filled and kept on record.
- Suspicious transactions are reported to the Head Office where the MLRO or Compliance office will investigate and decide whether the transactions would be reported to the Monetary/Enforcement Authority.
( II ) Company:
- Indemnity / undertaking from the remitter as per the prescribed format to be on file.
- Details of remitter including company registration and other relevant documentation to be on file.
- Purpose of such remittance of funds should be on file.
- Under no circumstance, are inward remittances of funds to company account be accepted by persons or companies not known to us and without exercising compliance and Due Diligence requirements as per the above procedures.
- The necessary reporting forms provided by the Monetary or Enforcement authority must be duly filled and kept on record. Suspicious transactions should be reported to the Head Office where the MLRO or Compliance officer will investigate and decide whether the transactions should be reported to the Monetary/Enforcement Authority.
Outward wire transfer transactions:
- For any fund transfers related transaction, full details of the customer are kept on record with copies of the documents.
- Proceeds of outward wire remittances should be paid by the remitting party and not a third party.
- While formatting payments via telex or SWIFT full details are to be provided with no information suppressed.
- The necessary reporting forms provided by the Monetary or Enforcement authority must be duly filled and kept on record.
- Suspicious transactions are be reported to the Head Office where the MLRO or Compliance office will investigate and decide whether the transactions should be reported to the Monetary/Enforcement Authority.
- The documents to be taken for outward remittances are :
In case the Remitter is a company:
- Local registrations like Memorandum of Association, Certificate of Incorporation, Local Trade Licenses other relevant documents to be kept on file.
- Instructions to remit funds must always be on the Company letterhead with proper details.
- Details of the nature of settlement of the proceeds to be kept on file. i.e. Check Number, Cash, bank draft, etc.
In case the remitter is an individual:
- Copies of passport, identity card, or driving license to be kept on file.
- Remittance application to be completely filled and signed by the remitter.
- Details of the nature of settlement of the proceeds to be kept on file. I.e. Cheque Number, Cash, Bank Draft, etc.
- Each remitter to be asked for the purpose of remittance and in case the proceeds have been settled in cash, the source of the funds to be inquired and all information put on record.
Recognition of suspicious transactions
Most money laundering schemes uncovered so far have comprised suspicious transactions. Recognition of suspicious transactions, we are particularly aware of two key principles:
(a) the usual nature of the counterparty's business (Know Your Counterparty - KYC"); and
(b) the usual nature of the business carried on in your business area (Know Your Business KYB").
Where these two principles (KYC and KYB) do not coincide in relation to a particular transaction, the matter will certainly be unusual, and may be suspicious.
Pur officers report all counterparties and transactions which we know or suspect to be involved in criminal activity (which may include fraud as well as money laundering).
Problems with obtaining identification, verification, delays, etc. may be suspicious. Knowledge or suspicion will be reported to the MLRO or his deputy.
Having become aware of suspicious of criminal activity, our officersvcomplete a Money Laundering Suspicion Report. The golden rule is "if in doubt, report". Good faith reporting of suspicions usually carries protection from any civil legal action for breach of confidentiality laws and strict restrictions are placed on revealing the identity of those making disclosures.
Suspension or refusal to carry out transactions
In most cases, reports will be acknowledged by the authorities and written consent given to continue with the transaction. In exceptional circumstances, however, consent may not be given, and matters may need to be suspended or other action taken.
In the case of prospective counterparties, which are suspicious, the MLRO and / or Compliance Officer may instruct to refuse to continue with a matter and turn the prospective counterparty away.
Our officers are required to give the MLRO and / or Compliance Officer full co-operation in relation to all investigations, providing such access to files and records as requested.
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