This Agreement (THE "AGREEMENT") is between You ("YOU", AND "YOUR"), the provider of goods or services, and «CYPIX» , (together with its employees, directors, successors, affiliates, and assignees, "CYPIX", "WE", "US", AND"OUR").
This Agreement forms a legal contract between You and CYPIX,governing the use of CYPIX`s service (THE "SERVICE"), and byregistering for or using the Service You must read, agree and accept all of the terms and conditions contained in this Agreement. You agree that Your use of any of CYPIX`s payment services constitutes Your acceptance of this Agreement, which will become effective from the date of initiation of the Service.
You may also receive notification about additional Terms and Conditions if You take additional services in due course from CYPIX.
CYPIX does not have control and assumes no liability for the products or services that are paid for with the Service and You agree thatCYPIX will not be held accountable for any act of default betweenYourself and a Consumer utilising the Service.
As part of the Service, You will be provided with an Account by CYPIX to facilitate the handling of funds in respect of consumer transactionsdue to You. A "CONSUMER" is someone who has access to the Service in order to make payment for goods or services provided by You. A "TRANSACTION" isa transfer of funds from the Sender to CYPIX, and then to the Recipient while using the Service. The "TRANSACTION AMOUNT" is the amountthat the Sender provides to CYPIX for the transfer to the Recipient. A "SENDER" is the consumer who pays the Recipient for goods or services. A "RECIPIENT" is someone to whom the Sender transfers funds for goods or services.
1.2. Payments and payment methods
CYPIX will integrate its processing platform into Your website to facilitate transactions by the Consumers. The available payment options will be decided upon and agreed between You and Us prior to integration.
We will notify You of a successful payment, to allow You to supply the goods or services to the Consumer. We will collect payments from the Consumer through their chosen method and We will settle all successful and received payments directly to Your pre-registered bank account on a weekly basis. Refunds inrespect of card payments will be executed to the card via the Acquirer, and other payment methods will be refunded by using bank transfer.
You must be at least 18 years old to use the Service and be able to enter into a legally binding agreement under applicable law. You or Your business must be the lawful and valid holder of a bank account You use in relation to the Service.
We may refuse Transactions from certain Senders and to certain Recipients if We are required to do so by law, or if the locations, goods or services fall outside of Our business preferences or risk appetite. You may not use the Service to accept funds on behalf of another person or entity or for any purpose related to prohibited or illegal industries/content.
The Service is only available in certain countries, which is subject to change.. Availability of particular countries may change from time to time and without notice due to regulatory requirements, conditions in the country, or circumstances otherwise beyond CYPIX`s control.
You may only open an Account if it is legal to do so in Your country of residence. By opening an account. You represent and warrant to Us that it does not violate any laws or regulations applicable to You. You shall indemnify us against any losses We incur if your breach this requirement.
In order to use the Service You must first open an Account by registering Your details on Our website Prior to Us integrating our Application Programme Interface (API) with Your website. We will carry out identity verification on Your business to adhere to Our legal and regulatory obligations. Once We are satisfiedthat the details provided are accurate, We will allow the Consumer to provide payment to You by using the Service. All information You provide during the registration process or any time thereafter must be accurate and truthful. As part of the registration process You will need to accept this Agreement.
You may only open one Account unless We explicitly approve the opening of additional accounts.
2.1. Transaction information
In order for Us to process a Transaction, We must receive as a minimum the following information: Transaction Amount, Merchant Details, Consumer Details, Method of Payment. Without this information, We will not be able to execute the Transaction.
Transaction settlement will be made to You by Us on a weekly basis for Transactions that have been settled with Us by the relevant payment method. We accept no liability for unsettled Transactions until such time as the funds are received by Us.
Charges and exchange rates
CYPIX charges an agreed flat fee (the "SERVICE FEE") for all Transactions, regardless of the Transaction Amount. You agree to pay Us the Service Fee for each transaction, which will be deducted from the Transaction amount by Us prior to settlement with You.
3.2. Exchange rates
You will receive settlement from Us in the agreed currency, which may or may not be the currency of Your bank account. Where the Transaction currency is different to Your settlement currency, We will utilise a currency exchange rate to convert the Transaction Amount into the settlement currency agreed between You and Us. We are not responsible for any exchange rates or fees applied by Your bank for further currency exchange in applicable circumstances.
4.1. Your Obligations
You are responsible for keeping Your password and Account details safe. You must not disclose Your password or Account details to anyone else. If You think that You have lost Your password or Account details, that they have been stolen, or that someone has been using Your Account without Your permission, You must notify Us immediately. You will be held responsible for any losses arising from the disclosure of Your details, in cases where You have not notified Us.
You must not allow any unauthorised third parties to use the Service without Our express written authorisation. Failure to comply with this condition will result in the closure of Your Account and will render You liable for any financial losses incurred by Us.
4.2. Our obligations
We will ensure that Your password and Account details are kept secure and that Your password is only available to You.
Settlement of Transactions will only be made to Your pre-registered bank account, and any changes to this information will only be accepted from designated contact points within Your organisation.
4.3. Account Suspension
Where You have notified Us of the circumstances described in section 4.1, or where We suspect unauthorised or fraudulent use of Your Account has taken place or have other concerns regarding the security of Your Account, We will suspend Your Account. In this case We will notify You by email of the suspension,giving Our reasons for it, unless this would reasonably compromise security measures or would otherwise be unlawful. Where We are able to do so, We will endeavour to notify You in advance of the suspension. If this is not possible We will notify You immediately afterwards. As soon as practicable after the reasons for suspending Your Account cease to exist, We will reactivate Your Account or issue You with a new password. Possible exceptions to this are if we consider You to have been a party to the unauthorised use or to have been grossly negligent with the security of Your Account.
5.1. Disputes between sender and recipient
We will process the Transaction on Your behalf and collect funds from the applicable payment method, for transfer to Your designated bank account. This represents our entire involvement in the Transaction process and WE ACCEPT NO LIABILITY FOR DISPUTES ARISING BETWEEN THE SENDER AND THE RECIPIENT IN RESPECT OF THE ACTUAL GOODS OR SERVICES PROVIDED.
5.2. Payment for goods or services
We have no control over and accept no liability for the quality, safety, legality, or delivery of goods or services that You provide the Consumer for which they use the Service to pay. You are wholly responsible for this and agree to indemnify Us against any action brought by the Consumer in this regard.
5.3. Incorrectly executed transactions
If You think there has been a mistake in the processing of a Transaction, You must inform Us immediately, or as soon as practicable. Once You have informed Us of an incorrectly executed Transaction, We will endeavour to find the reasons for this and inform You of the outcome as soon as possible. Where the reason for the incorrect execution is attributable to a mistake on Our part, We will adjust the amount to either You or the Consumer, whichever is applicable, as soon as is practicable. Where the incorrect execution is attributable to a mistake on Your part, We will adjust the Transaction Amount to the extent that it is possible to recover, and any further liability to the Consumer will be Your responsibility.
5.4. Your liabilities
We may request information from You or otherwise update inaccurate Information You have provided to us and You should provide Us with the requested information/documentation within the timeframe reflected in our request.
If there arise any risk of liability to Us that should not arise if You utilize Your rights in bona fide manner, You irretrievably authorize US and We have unilateral right
to hold Your funds to the extent and for so long as reasonably needed to protect against the risk of liability to Us.
You should be aware that We may take legal action against You. Unless otherwise directed by Us, You must not use or attempt to use Your Account while it is suspended or has been closed. You remain liable under this Agreement in respect of all charges and other amounts incurred through the use of Your Account at any time, irrespective of termination, suspension or closure.
5.5. Our Liabilities
We may, at any time and without liability, suspend, block, limit, close or cancel Your right to use a particular payment method or Your account entirely or for any particular transaction, which may in turn suspend, block, limit, close or cancel access to Your account. We will normally give You advance notice of any suspension or cancellation but We may, if it is reasonable to do so (for example, if You have breached this Agreement or We consider it advisable for security reasons), suspend or cancel Your right to use your payment method or Account without any prior notice to You.
We may refuse any particular payment Transaction at any time for any reason and will only be required to make available the fact of the refusal and the reasons for the refusal and how You may resolve the problem, where possible, upon request and provided it is not prohibited by law.
We may request information from You or otherwise update inaccurate information You provided to Us.
We may refuse to provide our Services to You in the future.
We may hold Your funds to the extent and for so long as reasonably needed to protect against the risk of liability.
You acknowledge Your access to the website(s) may be occasionally restricted to allow for repairs, maintenance or the introduction of new facilities or services.
We shall not be liable for any disruption or impairment of the service or for disruptions or impairments of intermediary services on which We rely for the performance of Our obligations, provided that such disruption or impairment is due to abnormal and unforeseeable circumstances beyond Our reasonable control or the control of the intermediary affected.
We shall not be liable for any indirect or consequential losses including but not limited to loss of profit, loss of business and loss of reputation. We shall not be liable for any losses arising from Our compliance with legal and regulatory requirements.
Nothing in this Agreement shall operate to exclude liability for death or personal injury due to negligence or for fraud or fraudulent misrepresentation or for any
statutory liability that cannot be excluded or amended by agreement between the parties.
Our obligation under this Agreement is limited to providing You with an Account and related payment services and does not make any statement in relation to or endorsement of the quality, safety or legality of any goods or services provided by You.
We shall not be liable for the assessment or payment of any taxes, duties or other charges that arise from the underlying commercial transaction between You and a Consumer.
In no event shall We, the other companies in Our corporate group, persons who act on Our behalf, and/or the persons We enter into contracts with be liable for any of the following types of loss or damage arising under or in relation to this Agreement (whether in contract, tort (including, without limitation, negligence) or otherwise:
any loss of profits, goodwill, business, contracts, revenue or anticipated savings even if We are advised of the possibility of such damages, loss of profits, goodwill, business, contracts, revenue or anticipated savings; or any loss or corruption of data; or
any loss or damage whatsoever which does not stem directly from Our breach of this Agreement; or
any loss or damage whatsoever which is in excess of that which was caused as a direct result of Our breach of this Agreement (whether or not you are able to prove such loss or damage).
Nothing in this Agreement shall limit Our liability resulting from Our gross negligence, wilful misconduct, for death or personal injury resulting from either Our, or any of Our third parties or subcontractor`s, that we have entered into contracts with to supply the Service, negligence or to the extent such limitationor exclusion is not permitted by applicable law.
6.1. Personal Information
If We collect any personal information from You, We will take all reasonable precautions to keep this information secure. Your personal information will only be used for the purposes of fulfilling Our obligations under this Agreement and will not be disclosed to third parties except to the extent necessary to provide the Service or if We are required to do so by law.
You must ensure that information recorded on Your Account is always accurate and up to date and We shall not be liable for any loss arising out of Your failure to do so. We may ask You at any time to validate the accuracy of Your information or to provide documents or other evidence to support this.
6.2. Privacy and intellectual property
We are required by law to tell You that the terms of this Agreement are in English and that We will communicate with You at all times in English. You may at any time, during the term of this Agreement, request a copy of this Agreement.
The term of this Agreement is for a period of time when You successfully register an Account until this Agreement is terminated.
This agreement is terminated simultaneously with the termination of the Merchant Processing Service agreement concluded between Us and You.
7.3. Entire agreement
You agree that this Agreement is the entire agreement between You and CYPIX and supersedes and terminates any prior agreement.
In the event any provision (or part provision) of this Agreement is held by any court or authority of competent jurisdiction to be invalid, illegal or unenforceable, that provision or part-provision will, to the extent required, be deemed not to form part of the Agreement, and the validity and enforceability of the other provisions of
the Agreement will not be affected.
7.5. Governing Law and Jurisdiction
This Agreement is governed by law of Russian Federation and You agree that any legal case concerning this Agreement will be heard by the courts of Russian Federation.
Our commitment to you
CYPIX is dedicated to providing you with the highest level of transparency and control over the use of your data. In order for us to provide you with our services we are required to collect and process certain personal information about you and your activity.
By entrusting us with your information, we would like to assure you of our commitment to keep such information private. We have taken measurable steps to protect the confidentiality, security and integrity of this Information. We encourage you to review the following information carefully.
Grounds for data collection
How do we receive data about you?
We receive your Personal Data from various sources:
1. Registration information – When you voluntarily provide us your personal details in order to create an account or register to our Service (for example, your name and email address);
2. When you communicate with us – For example when you send us an email or contact us through the "contact us" form on our Website, we collect the Personal Data you provided us with.
4. Third party information – We may receive your data from third party providers who help us with the provision and maintenance of our Services, such as analytics vendors and others.
What type of data we collect?
In the course of using the Service, we may ask you to provide us with certain Personal Data to provide and improve the Service, to contact or identify you, to enable you to access certain parts of the Website, or as otherwise indicated in this Policy. We collect the following Personal Data about you:
your name, your email address, your telephone number, bank account details and credit card number, date of birth, and your country.
When using our Service
our server will collect your IP-address, and information about your general location (such as city and country).
Information from third parties
in order to provide our Service, we may receive Personal Data from our business partners. This may include Personal Data such as your contact details (name, phone, email) as well as details pertaining to your credit history.
We also collect data about the use of our Service and the characteristics and activities of users, in order to operate it and improve it. We may collect the following non-Personal Data:
this category includes data such as website visits, the browser you are using and its display settings, your operating system, device type, session start/stop time, referral URL, time zone, network connection type, and cookie information.
If we combine Personal Data with non-Personal Data, the combined data will be treated as Personal Data.
How do we use the data we collect?
Provision of service – for the provision and improvement of our Services, including for support and to respond to your queries.
Service announcements – we will use your Personal Data to communicate with you and to keep you informed of our latest updates to our Services and offer you service offers.
Marketing purposes – we may use your Personal Data (such as your email address or phone number). For example, by subscribing to our newsletter you will receive tips and announcements straight to your email account.
Protecting our interests – we may use your Personal Data when we believe it's necessary in order to take precautions against liabilities, investigate and defend ourselves against any third party claims or allegations, investigate and protect ourselves from fraud and money laundering, protect the security or integrity of our services.
Enforcing of policies – we may use your Personal Data in order to enforce our policies, including but not limited to our AML Policy.
Compliance with legal and regulatory requirements – we may use your Personal Data to investigate violations, and as required by law, regulation or other governmental authority, or to comply with a subpoena or similar legal process.
With whom do we share your Personal Data?
Internal concerned parties – we share your information within our company, as well as our employees, in order to provide you with our services.
Compliance with laws and law enforcement entities – we cooperate with government and law enforcement officials and private parties to enforce and comply with the law. We will disclose any data about you to government or law enforcement officials or private parties as we, in our sole discretion, believe necessary or appropriate to respond to claims and legal process (including but not limited to subpoenas), to protect our or a third party's property and rights, to protect the safety of the public or any person, or to prevent or stop any activity we may consider to be, or to pose a risk of being illegal, unethical, inappropriate or legally actionable. We also may be required to disclose an individual's Personal Data in response to a lawful request by public authorities, including meeting national security or law enforcement requirements.
How we protect your information
We have implemented administrative, technical, and physical safeguards to help prevent unauthorized access, use, or disclosure of your Personal Data. Your data is stored on secure servers and isn't publicly available. We limit access of your information only to those employees or partners on a "need to know" basis, in order to enable the carrying out of the agreement between us.
While we seek to protect your information to ensure that it is kept confidential, we cannot absolutely guarantee its security. You need to help us prevent unauthorized access to your account by protecting your password appropriately and limiting access to your account. You will be solely responsible for keeping your password confidential and for all use of your password and your account, including any unauthorized use. You should also be aware that there is always some risk involved in transmitting information over the internet. While we strive to protect your Personal Data, we cannot ensure or warrant the security and privacy of your Personal Data or other content you transmit using the service, and you do so at your own risk.
We will retain your Personal Data for as long as necessary to provide our services, and as necessary to comply with our legal obligations, resolve disputes, and enforce our policies. Retention periods will be determined taking into account the type of information that is collected and the purpose for which it is collected, bearing in mind the requirements applicable to the situation and the need to destroy outdated, unused information at the earliest reasonable time. Under applicable regulations, we will keep records containing client personal data, trading information, account opening documents, communications and anything else as required by applicable laws and regulations.
1. Receive confirmation as to whether or not Personal Data concerning you is being processed, and access your stored Personal Data, together with supplementary information.
2. Receive a copy of Personal Data you directly volunteer to us in a structured, commonly used and machine-readable format.
3. Request rectification of your Personal Data that is in our control.
4. Request erasure of your Personal Data.
5. Object to the processing of Personal Data by us.
6. Request to restrict processing of your Personal Data by us.
7. Lodge a complaint with a supervisory authority.
How to contact us?
If you wish to exercise any of the aforementioned rights, ask us a question or receive more information, please contact us using the details provided below:
FINASTER TRANSFER LTD. June 8, 2020
This document sets out the principles and standards for compliance and management of risks associated with financial crime in FINASTER TRANSFER LTD. The purpose of this document is to prevent the FINASTER TRANSFER LTD from being used for financial crime to comply with all applicable legal requirements and to ensure that the most appropriate action is taken by the FINASTER TRANSFER LTD to mitigate the risks associated with financial crime.
This document outlines the applicable legal requirements related to financial crime to which the FINASTER TRANSFER LTD must adhere, as well as internal measures which are established by the FINASTER TRANSFER LTD to ensure it complies with these legal requirements. This document is referred to as the Anti-Money Laundering (AML), Counter- Terrorist Financing (CTF), Counter-Proliferation Financing (CPF) and Sanctions Policy (the Policy) and sets the parameters for the FINASTER TRANSFER LTD in relation to the AML, CTF, CPF and sanctions framework.
Scope and application
The Policy applies to all FINASTER TRANSFER LTD employees, all units in the FINASTER TRANSFER LTD, senior management, foreign correspondents, contractors and third parties with whom FINASTER TRANSFER LTD may contract with. The aim of the FINASTER TRANSFER LTD is not only to comply with relevant legal requirements, but also to mitigate and reduce the potential risk to the FINASTER TRANSFER LTD of our customers using our products, services and delivery channels to launder the proceeds of illegal activity, fund terrorist activity or conduct prohibited financial sanctions activity.
The Policy is updated at least once a year, or more frequently based on international requirements and legislative changes, particularly with the implementation of the Canadian Payments Act, Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) or Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTF Regulations) and associated Regulations or Financial Transactions and Reports Analysis Centre (FINTRAC) Guidance on the Risk-Based Approach and Compliance program requirements.
Money laundering is generally defined as engaging in acts designed to conceal or disguise the true origin of criminally derived proceeds so that the unlawful proceeds appear to have derived from legitimate origins or constitute legitimate assets. Generally, money laundering occurs in three stages: • Placement: Cash generated from criminal activities is converted into monetary instruments, such as money orders or traveller's checks, or deposited into accounts at financial institutions. • Layering: Funds are transferred or moved into other accounts or other financial institutions to further separate the money from its criminal origin. • Integration: Funds are reintroduced into the economy and used to purchase legitimate assets or to fund other criminal activities or legitimate businesses.
It also covers money, however acquired, which is used to fund terrorism. Terrorist financing may not involve the proceeds of criminal conduct, but rather an attempt to conceal the origin or intended use of the funds, which will later be used for criminal purposes.
Terrorist financing relates to the raising or holding of funds (directly or indirectly) with the intention that those funds should be used to carry out activities defined as acts of terrorism or with the intention to dispose those funds to a terrorist group or a separate terrorist.
Proliferation financing refers to the act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans- shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations.
Criminal property is the proceeds of criminal conduct. This includes any type of conduct, wherever it takes place, which would constitute a criminal offence if committed in FINASTER TRANSFER LTD. It includes drug trafficking, terrorist activity, tax evasion, corruption, fraud, forgery, theft, counterfeiting, black mail and extortion. It also includes any other offence that is committed for profit.
Sanctions are political and economic decisions that are part of diplomatic efforts by countries, multilateral or regional organizations against states or organizations either to protect national security interests, or to protect international law, and defend against threats to international peace and security. Sanctions can be: a) Specific, i.e. relate to specific lists of named individuals, legal entities, organizations, vessels etc. (for example the US Department of Treasury refers to some of these entities as Specially Designated Nationals), b) General, i.e. cover all transactions with certain countries or jurisdictions; certain transactions with countries or jurisdictions such as exports, imports or new investment, or all transactions within a certain area of activity/products (for example arms sales to a particular country). c) Sectoral, i.e. cover certain parties in specific sectors (for example OFAC designates parties on a Sectoral Sanctions Identification List or "SSI List") but only restrict certain transactions of these designated parties.
Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) must establish an AML/ATF compliance program. The PCMLTF Regulations set out specific requirements, including: • the appointment of a person responsible for the compliance program; • the development and application of compliance policies and procedures that are up to date and approved by a senior officer; • a program to assess the risk of a money laundering or terrorist financing offence being conducted through the firm, and implementation of measures to mitigate high-risk scenarios; • an ongoing written compliance training program for employees of the FINASTER TRANSFER LTD; • a review of policies and procedures to test their effectiveness to be conducted every two years by an internal or external auditor;
PCMLTFA and latest redaction of FATF recommendations set out the requirement for relevant businesses to establish and maintain appropriate and risk-sensitive policies and procedures relating to: • Customer due diligence • Reporting • Record keeping • Internal control • Risk assessment and management (Risk Based Approach) • The monitoring and management of compliance, and • The internal communication of such policies and procedures, in order to prevent activities related to money laundering and terrorist financing and proliferation financing. These policies and procedures must:
Identify and scrutinise
Complex or unusually large transactions
Unusual patterns of transactions which have no apparent economic or
visible lawful purpose
•Any other activity which could be considered to be related to money laundering or terrorist financing or proliferation financing • Specify the additional measures that will be taken to prevent the use of products and transactions that favour anonymity for money laundering or terrorist financing • Determine whether a customer is a politically exposed person (see Annex 5 for definition and further guidance) • Nominate an individual in the organisation to comply with, and receive disclosures under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations. • Ensure employees report suspicious activity to the Nominated Officer, and • Ensure the Nominated Officer considers such internal reports in the light of available information and determines whether they give rise to knowledge or suspicion or reasonable grounds for knowledge or suspicion of money laundering or terrorist financing.
The main principles encompassed by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations can be described as Risk Based Approach (RBA). RBA requires several steps to be taken to determine the most cost-effective and proportionate way to manage and mitigate the money laundering and terrorist financing and proliferation financing and sanctions violation risks faced by the business. The steps are to: • Identify the money laundering and terrorist financing and proliferation financing and sanctions violation risks that are relevant to the business • Assess the risks presented by the particular: • Customers – types and behavior; • Products and services; • Delivery channels, for example, cash over the counter, electronic, wire transfer or cheque; • Geographical areas of operation, for example, location of business premises, source or destination of customers' funds; • Complexity and volume of transactions; • Design and implement controls to manage and mitigate these assessed risks • Monitor and improve the effective operation of these controls and • Record appropriately what has been done, and why Please see Annex 1 for detailed explanation of Risk Based Approach.
FINASTER TRANSFER LTD is focused on providing the Merchant Services or Payment Card Processing services for various e-commerce Merchants incorporated in Worldwide and doing business Worldwide in compliance with Code of Conduct for the Credit and Debit Card Industry in FINASTER TRANSFER LTD and other legal requirements. To manage our risk effectively and fulfill compliance and sanction lists all customers and their business will be checked in UN sanctions, Canadian National Sanctions List, OFAC Sanctions List, Visa Inc. and MasterCard Worldwide lists and programs etc. Merchant Services Merchant Services or payment card processing is the handling of electronic payment transactions for merchants. Merchant processing activities involve obtaining sales information from the merchant, receiving authorization for the transaction, collecting funds from the bank which issued the payment card and sending payment to the merchant. The actual transfer of funds to the merchant or settlement will be performed in further way. At the end of each day, the merchant will generally review the days sales, credits and voids. After verifying this, the merchant will close his batch, or the batch will be closed automatically. This entails closing out the days sales and transmitting the information for deposit into FINASTER TRANSFER LTD platform, and then to the bank. The acquiring bank routes the transaction through the appropriate settlement system against the appropriate card-issuing bank. The card-issuing bank then sends the money back through settlement system (Visa, MasterCard etc) for the amount of the sales draft, less the appropriate "interchange fee," to the acquiring bank's account. The acquiring bank then deposits the amount, less the "discount fee" to the FINASTER TRANSFER LTD segregated client bank account. FINASTER TRANSFER LTD then deposit the amount less the "discount fee" to the Merchant account once per 2-7 business days. Generally, within 24-72 hours, the merchants will have their money. FINASTER TRANSFER LTD may offer some low risk Merchants "next day funding." The settlement procedure varies on the front end depending on the program the merchant is on. A hotel, travel or car rental agency may want to get a pre-approval before the customer checks in or uses the service. In FINASTER TRANSFER LTD, we have many pre-built programs that any merchant can request based upon their type of business. E-Vouchers An E-Voucher is an electronic stored value voucher that can be generated real-time from website. The voucher can then be redeemed by the user through merchant interfaces. Once redeemed, the value of the E-Voucher is transferred to the account with that merchant and funds are instantly available for use. E-Vouchers can be used by merchants in any scenario which requires their customers to load value to their account, effectively allowing cash in the form of a purchased voucher to be loaded to that account. It can be used for loading payment cards, transferring money to an e-wallet, loading a gaming account online or any other account type that is integrated with the platform. Internal Controls and Communication The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) requires businesses to have appropriate systems of internal control and communication in order to prevent activities related to money laundering and terrorist financing. In simple terms this means that businesses must ensure that management controls are put in place that will alert the relevant people in the business to the possibility that criminals may be attempting to use the business to launder money or fund terrorism or fund proliferation or violate sanctions, so as to enable them to take appropriate action to prevent or report it. Systems of internal control and communication must be capable of identifying unusual or suspicious transactions or customer activity, of identifying transactions and business relationships specified in a direction issued by FINTRAC. FINASTER TRANSFER LTD must report suspicious transactions under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations.
The nature and extent of systems and controls that the business needs to put in place will depend on a variety of factors, including the: • Degree of risk associated with each area of its operation • Nature, scale and complexity of the business • Type of products, customers, and activities involved • Diversity of operations, including geographical diversity • Volume and size of transactions • Distribution channels.
Therefore, the FINASTER TRANSFER LTD has established internal controls procedure. The basis of the internal control process is well-defined authorisations, a segregation of duties, identification of clients, on-going due diligence, reporting suspicions, etc. The FINASTER TRANSFER LTD doesn't have an internal audit unit, however FINASTER TRANSFER LTD plans to carry out an auditing not less than once in two years, forming a group of three employees which are working in unrelated departments, unless it is assessed by the FINASTER TRANSFER LTD that a longer rotation cycle is appropriate. The decision of the participants of the formed group and the audit is made by the board of the company. The FINASTER TRANSFER LTD regularly monitors changes in and compliance with relevant legislation and other legal requirements in order to mitigate money laundering and terrorism financing and proliferation financing and sanctions violation risks, as well as to make internal control procedures more efficient.
The Money Laundering Reporting Officer (Nominated Officer)
A Nominated Officer is the person within an organisation who is responsible for overseeing all activity related to anti-money laundering matters. Please familiarize yourself with the below personnel as you should be working closely with them. Company's Nominated Officer is Name Surname In the absence of the Nominated Officer, Supporting Nominated Officers will take his/her place. Company's Supporting Nominated Officer is Name Surname FINASTER TRANSFER LTD's Nominated Officers should remain up-to-date with AML/ATF rules and risks. If Nominated Officers deal with day-to-day regulatory issues, changes to AML/ATF requirements, they may not have enough time to maintain the knowledge needed to oversee an effective AML/ATF regime. If this is the case, the FINASTER TRANSFER LTD may want to consider designating a different qualified individual as the Nominated Officer. The Nominated Officer's responsibilities include: • Receiving disclosures from employees (also known as Suspicious Transaction Report - STR's). • Deciding if disclosures should be passed on to the Financial Transactions and Reports Analysis Centre or the Royal Canadian Mounted Police (RCMP) or the Canadian Security Intelligence Service (CSIS). • Reviewing all new laws and deciding how they impact on the operational process of the company • Preparing a written procedures manual and making it available to all staff and other stakeholders • Making sure appropriate due diligence is carried out on customers and business partners • Receiving internal Suspicious Transaction Report (STR) from staff • Deciding which internal STR's need to be reported on to FINTRAC or RCMP or CSIS. • Recording all decisions relating to STRs appropriately • Ensuring staff receive anti-financial crime training when they join and that they receive regular refresher training • Monitoring business relationships and recording reviews and decisions taken • Making decisions about continuing or terminating trading activity with particular customers • Making sure that all business records are kept for at least five years from the date of the last customer transaction as per FINTRAC regulations. The Nominated officer is a person who has sufficient authority and autonomy in order to make the decisions required above. The Supporting Nominated Officer shall replace the Nominated Officer when he/she is unavailable.
Staff Training and Reporting Training Policy
FINASTER TRANSFER LTD maintains an on-going employee training program so that the staff is adequately trained in KYC procedures and that the staff is aware of different possible patterns and techniques of money laundering which may occur in their everyday business. Training requirements should have a different focus for new staff, front-line staff, compliance staff or staff dealing with new customers/Merchants. New staff is educated in the importance of KYC policies and the basic requirements at the Company. Training is given to all staff members upon commencement of taking on the position in the FINASTER TRANSFER LTD and on regular occasions afterwards (at least once a year).
Staff members who deal directly with the customers are trained to verify the identity of new customers, to exercise due diligence in handling accounts of existing customers on an on-going basis and to detect patterns of suspicious activity. Training also covers the general duties arising from applicable external (legal and regulatory), internal requirements and the resulting individual duties which must be adhered to in everyday business as well as typologies to recognize money laundering or financial crime activities or sanctions violation typologies.
Regular refresher training is provided to ensure that employees are reminded of their responsibilities and are kept informed of new developments. It is crucial that all relevant staff fully understand the need for and implement KYC policies consistently. A culture within services that promotes such understanding is the key to a successful implementation.
Training covers the following issues: • The law relating to financial crime; • Risks associated with the financial crime threat to the company (see, for example, www.egmontgroup.org); • Identity and responsibilities of the Nominated Officer; • Internal policies and procedures put in place; • Customer Due Diligence/Enhanced due diligence monitoring measures; • Suspicious activity – what to look out for; • How to submit an internal Suspicious Transaction Report to the Nominated Officer; • Record-keeping requirements; • Possible sanctions violation – what to look out for; The Nominated Officer will keep a log of all training which is provided to staff members. All staff will be required to sign the training log where required to confirm that they have received training.
The Nominated Officer will circulate to all staff other material to heighten awareness of anti- financial crime issues. This must be placed on the company notice board which should be available in all company's locations.
The Nominated Officer shall be responsible to include information in respect of his/her education and training program(s) attended during the year in his/her Annual Report. FINASTER TRANSFER LTD will use the Canadian Anti-Money Laundering Institute training programs and offered training sessions for regular updates of internal training programs (https://www.camli.org ). Also FINASTER TRANSFER LTD will use others learning possibilities which are offered by well-known and reputable organisations (for example ACCP, ACAMS, ICA).
Role of the Employee
In the situation that an employee has suspicions about a customer and/or transaction, he must ensure that the company Nominated Officer is notified about his suspicions as soon as possible. Staff should use the internal 'Suspicious Transaction Report Form' (see appendix for example).
The STR should contain as a minimum the following information: • Date/time of transaction • Amount • Customer name/customer ID information (e.g. passport number, etc) • Transaction number • Reason for suspicion of transaction
If in doubt, the staff member should call the Nominated Officer to discuss the reasons for their suspicion– however, they should be careful not to do this whilst the customer is standing in front of them (they may 'tip off' the customer otherwise, see below).
The timing for submitting the internal STR is important. The law states that an individual working in the regulated sector (i.e. EMI or API) should make a report as soon as he or she becomes suspicious. This may mean either before the transaction takes place or immediately afterwards.
However, staff may decide that there would be a danger that if they were to seek consent for a particular transaction (i.e. in advance of the transaction taking place) that there might be a danger that the customer would be 'tipped off'. See below for more information on 'tipping off'.
All staff members will have fully discharged their duties, and will have the full protection of the law, once a report of their suspicions has been made to the company Nominated Officer. Once the Nominated Officer receives the internal STR from the staff member, the Nominated Officer has two options: • Report the STR on to FINTRAC or RCMP or CSIS. • File an internal note indicating why, on the basis of review of the circumstances around the transaction, it is judged not necessary to make a report to FINTRAC or RCMP or CSIS. The Nominated Officer should complete the Nominated Officer STR Resolution form in the event he decides not to make a report. Frequently Asked Questions (FAQ) Under what circumstances could I commit an Offence? In the situation that an employee has suspicions about a customer and/or transaction, he must ensure that the company Nominated Officer is notified about his suspicions as soon as possible.
An Offence may be committed: - if employee does not follow KYC procedures accepted by Nominated Officer - if flagrant violation of AML, KYC procedures are detected
What do you mean by 'Suspicion'?
Suspicion can occur in circumstances that suggest to a reasonable individual that a person might be laundering money or financing terrorism or financing proliferation or violate sanction regime. Suspicion must be more than a mere hunch. Any activity that does not fit with the normal course of business or is not normal for a particular client should be regarded as suspicious. What do you mean by a Transaction? A transaction is anything you carry out by way of business. Suspicion indicators for new customers can include: • Checking their identity is proving difficult; • The customer is reluctant to provide details of his/her identity; • There is no genuine reason for the customer to use the services of a merchant; • Where transactions involve international transfers or foreign currency, the explanation for the business and the amount involved is unreasonable; Suspicion indicators for regular and established customers include the: • Transaction is different from the normal business of the customer; • Size and frequency of the transaction is not consistent with the normal activities of the customer; • Pattern of transactions has changed since the business relationship was established;
How do I report my suspicion to the Nominated Officer?
You should report the grounds for your suspicion to your Nominated Officer in line with your employer's internal procedures. You should include full details of the identification you have and any other customer information you have. When should I report my knowledge or suspicion to the Nominated Officer? You must do this as soon as is practicable after you have reasonable grounds for suspicion. If you do not do this, you may be committing an offence. What does "as soon as is practicable" mean?
This means as soon as you reasonably can. Internal reporting lines to your Nominated Officer should be short in order to avoid delay. What if I become suspicious before I complete the transaction? You should make an internal report before the transaction is completed and wait for consent from your Nominated Officer before you complete the transaction. What should I say to delay the transaction without "tipping off" the customer? Give the customer an excuse that fits the circumstances. In difficult cases speak to your Nominated Officer or manager. If I think delaying the transaction would "tip-off" the customer, can I go ahead? Ask your Nominated Officer. They may let you proceed with the transaction, but this should not be done routinely. The reason why you think delaying the transaction would "tip off" the customer must be included in your report. What should I do if the customer asks for his money back before I get consent from the Nominated Officer? Seek advice from the Nominated Officer urgently. What if I become suspicious after the transaction has taken place? Make an internal report to your Nominated Officer as soon as you can. What if I refuse the business? If you refuse the business because you are suspicious, you must still make a disclosure to the Nominated Officer. You must obtain evidence and keep records of the customer's identification as soon as you become suspicious.
Business e-Account Merchant services
The Merchant services has been designed for businesses wishing to set up an account for corporate services. Before establishing business relationships, the potential customer must provide certain information details.
Details should include: • A completed Application Form with signed T&Cs, • Incorporation documents; certificate, Memorandum of Understanding and Articles of Association, company utility bill (proof of address); • Details of ownership (those persons or entities which hold 25% or more shares), directors and personnel who will be operating on behalf of the business, including copy of passport and utility bill, • Information regarding the nature of their business; including the amounts of money involved and the expected frequency of transactions. During this stage, the reason for using FINASTER TRANSFER LTD services, the nature and level of the activity to be undertaken and the origin and destination of the funds should be clarified and noted. • Any business related certification • Any other relevant information regarding the business operations relating to use of our services/interface/platform, • If necessary additional information may be requested by FINASTER TRANSFER LTD on the details regarding the nature of certain transactions. If it is deemed necessary, please ask for all or selected Business KYC information to be certified as a true copy of the original by a solicitor. This information should be emailed or sent to FINASTER TRANSFER LTD via post. Successful applicants will be notified via email by FINASTER TRANSFER LTD employee on the need to sign a cooperation agreement. All hard and soft copies of documentation from business clients will be retained for a minimum of five years. All verified documents should be reviewed annually to ensure that they are: a) still relevant to the activity being carried out by the business customer and b) are still valid (i.e. the company registered details and key company personnel details are still the same). Keeping client information current The PCMLTF Regulations require FINASTER TRANSFER LTD keep CDD and KYC information up to date. Regulations requires a FINASTER TRANSFER LTD to take reasonable steps to keep client identification information current. FINASTER TRANSFER LTD should update this information any time there is a material change in the client's circumstances. For this purposes FINASTER TRANSFER LTD provides on-going CDD for all clients with regularity depending on the clients level of risk. Frequently Asked Questions (FAQ) What is a business relationship?
A business relationship is one which: • Helps in the carrying out of transactions on a frequent, habitual or regular basis and • Where the total amount of any payment to be made is not known, or capable of being known, at the outset. Just because your customer is a business does not mean you have a business relationship with them. A business relationship is when you treat a customer in a different way than the way in which you treat your one-off customers.
How will I know if the customer wishes to establish a business relationship? You must ensure that you obtain sufficient information about the nature of any new business you deal with, including the amounts of money involved and the expected frequency of transactions. At the first transaction, you should establish the: • Reason for establishing the business with you, • Nature and level of the activity to be undertaken and • Origin and destination of the funds. You should also consider why the customer is using your services.
Why is evidence of identity important? In order to follow the trail of laundered money, law enforcement authorities need to know the names of people involved.
When is identification required? You must confirm and retain the ID of any customer who: • Wishes to establish a business relationship with you involving frequent or regular transactions and the total value of transactions is not known at the start, • As mentioned above CDD should be carried out not only on all new customers but also at appropriate times to existing customers on a risk sensitive basis, or when relevant customer change, or when the obliged entity has any legal duty. • Conducts any transaction that you know or suspect might involve either the proceeds of crime or is to be put to criminal or terrorist use.
Do I need to check ID for small value transactions? You are obliged to check ID for small value, or limited transactions unless it is within a business relationship - provided money laundering is not suspected.
From whom should I take evidence of identification? Normally, you must take this evidence from your customer. In instances where your customer is or appears to be acting on behalf of someone else, you must obtain ID evidence from everyone in the chain.
What should I do when a customer wants to carry out a transaction that requires identification? You should: • Check evidence of ID at the first transaction, • Where possible, retain a photocopy of the evidence or at the very least, record and retain information that would enable a copy to be obtained, • Check it on a regular basis and satisfy yourself that the customer is who they claim to be. What are the best forms of identification evidence? The law states that you must satisfy yourself that the person is who they say they are. The identity document must have been issued by a federal, provincial, territorial or state government authority and must be valid (not expired).To be considered acceptable, the valid identity document must include: • name • date of birth • photo • signature.
Some combinations of identification are: • passport (an international passport is acceptable if it includes the name, date of birth, photo and signature of the applicant and is accompanied by a professionally translated version if not in French or English) • driver's license • enhanced driver's license • Canadian military identification card • government-issued identification card • government-issued enhanced identification card • health card • Canadian citizenship card (issued before February 1, 2012) • Canadian permanent resident card • U.S. permanent resident card (green card) Please note, all identification evidence must include the individual photographs
Anti-money laundering processes require a team approach. Money laundering issues are complex. The Nominated Officer of FINASTER TRANSFER LTD should not attempt to shift through them alone and if the officer becomes aware of any suspicious circumstances, or have any questions, the officer should promptly consult with the Nominated Officer and Compliance Team of FINASTER TRANSFER LTD.
Suspicious Transaction reports – internal company process In the situation that an employee (for this purpose, collectively, staff members) has suspicions about a customer and/or transaction, he must ensure that the company Nominated Officer is notified about his suspicions as soon as possible. Staff should use the internal 'Suspicious Transaction Report Form'.
The STR should contain as a minimum the following information: • Details and identification data of all parties to the transaction • The owner of the monies in question • How the identity of the client was verified • A full description of the transaction • Reason for suspicion and supporting evidence • Details of any assets which are subject to international sanctions If in doubt, the staff member should call the Nominated Officer to discuss the reasons for their suspicion – however, they should be careful not to do this whilst the customer is standing in front of them or via any communication exchanged with the customer (they may 'tip off' the customer otherwise, see below).
The timing for submitting the internal STR is important. The law states that an individual working in the regulated sector should make a report as soon as he or she becomes suspicious. This may mean either before the transaction takes place or immediately afterwards.
Where a staff member becomes aware that a customer wants to carry out a transaction which is suspicious and the timing for the transaction allows it, the staff member must ensure that 'consent' is given before processing the transaction. 'Consent' means that the company has sought and obtained approval from the FINTRAC to process the transaction. Further information on 'seeking consent' is provided below.
However, staff may decide that there would be a danger that if they were to seek consent for a particular transaction (i.e. in advance of the transaction taking place) that there might be a danger that the customer would be 'tipped off'. See below for more information on 'tipping off'.
All staff members will have fully discharged their duties, and will have the full protection of the law, once a report of their suspicions has been made to the company Nominated Officer. Once the Nominated Officer receives the internal STR from the staff member, the Nominated Officer has two options: Report the STR on to FINTRAC or RCMP or CSIS. (see procedure below); File an internal note indicating why, on the basis of review of the circumstances around the transaction, it is judged not necessary to make a report to FINTRAC or RCMP or CSIS; The Nominated Officer should complete the Nominated Officer STR Resolution form (see appendix for sample) in the event he decides not to make a report to FINTRAC or RCMP or CSIS. Making a Suspicious Transaction Report
In the situation that an employee has suspicions about a customer and/or transaction, he must ensure that the company Nominated Officer is notified about his suspicions as soon as possible. Staff should use the internal 'Suspicious Transaction Report Form' (see appendix for example). The STR should contain as a minimum the following information: • Date/time of transaction • Amount • Customer name/customer ID information (e.g. passport number, etc) • Transaction number • Reason for suspicion of transaction If in doubt, the staff member should call the Nominated Officer to discuss the reasons for their suspicion– however, they should be careful not to do this whilst the customer is standing in front of them (they may 'tip off' the customer otherwise, see below).
The timing for submitting the internal STR is important. The law states that an individual working in the regulated sector (i.e. MSB) should make a report as soon as he or she becomes suspicious. This may mean either before the transaction takes place or immediately afterwards. However, staff may decide that there would be a danger that if they were to seek consent for a particular transaction (i.e. in advance of the transaction taking place) that there might be a danger that the customer would be 'tipped off'. See below for more information on 'tipping off'.
All staff members will have fully discharged their duties, and will have the full protection of the law, once a report of their suspicions has been made to the company Nominated Officer. Once the Nominated Officer receives the internal STR from the staff member, the Nominated Officer has two options: • Report the STR on to STR on to FINTRAC or RCMP or CSIS • File an internal note indicating why, on the basis of review of the circumstances around the transaction, it is judged not necessary to make a report to STR on to FINTRAC or RCMP or CSIS. The Nominated Officer should complete the Nominated Officer STR Resolution form in the event he decides not to make a report.
Any staff member needs to make a judgement as to whether any delay to the transaction ('consent request') would have the effect of 'tipping off' the customer.
It is a criminal offence under section 333 of the Proceeds of Crime Act 2002, to do or say anything that might either 'tip off' another person that a disclosure has been made or in any way prejudice an investigation. This means that businesses must not tell a customer: • that a transaction was/is being delayed because consent from FINTRAC or RCMP or CSIS has been requested; • that details of their transactions or activities will be/have been reported to FINTRAC or RCMP or CSIS; • that they are being investigated by law enforcement.
In situations where delaying a transaction may inadvertently lead to 'tipping off', it will make sense to process the transaction and then ensure that a STR is submitted to the Nominated Officer as soon as possible after. The staff member will have the protection of the law as soon as a STR has been submitted to the Nominated Officer. If in doubt about whether to proceed with a transaction, the staff member should immediately contact the Nominated Officer for advice.
Supporting documentation is a cornerstone of our anti-money laundering and counter terrorism financing procedures. Unrecorded steps are soon forgotten. Records assist in tracking relevant information and in demonstrating that the company/individual has conducted our business responsibly and with integrity. All interviews, searches and activities undertaken to verify integrity of transactions and persons must be documented and stored for reference by FINASTER TRANSFER LTD, OFSI and FINTRAC if and when required. All records must be kept for a minimum of five years after the business relationship with the customer ends.
Merchant On-Boarding Process of on-Boarding Merchants is conducted in conjunction with the Acquirer bank, which will provide services to FINASTER TRANSFER LTD.
1. Pre-check A specific Pre-Application form must be filled in the beginning of on-boarding process. Please find the Form in Annex 5. Initial Merchant check will take not more than 2 business days. The Merchant webpage, contacts against OFAC, MasterCard and VISA risk programs will be checked, as well as considering the business model and checking it according to Internal Prohibited and Restricted Industries.
2. Documents for due diligence After the pre-approval to process is given, an employee collects via e-mail and forward to the FINASTER TRANSFER LTD Compliance Team and Acquirer Bank the full documentation package: • Company registration documents issued in the country where the merchant is incorporated (e.g. Certificate of Registration, Articles and Memorandum, Certificate of Registered Address, Certificate of Directors, etc) • Documents stating the ownership rights of the ultimate beneficial owner (e.g. Shareholder Certificate, Share Transfer, eRegister, etc) • Identification documents with the holder's signature (e.g. ID Card, Passport, Driving License, etc.) • Documents stating the rights to represent a company (e.g. Power of Attorney, Articles, Minutes of Meeting etc.) • Agreements with partners and suppliers, if applicable; • License, if applicable; • Financial statements; • Processing history. FINASTER TRANSFER LTD in conjunction with Acquirer Bank's Lawyers will verify the validity of documents and will list documents which should be notarized.
3. Agreement signing Once the business is approved by FINASTER TRANSFER LTD and Acquirer Bank, FINASTER TRANSFER LTD employee prepares the agreement along with all terms and conditions. FINASTER TRANSFER LTD signs the agreement and sends to Merchant or meets Merchant for signing it. This agreement is sent to the Acquirer bank as well. All those documentation (i.e. agreement and application forms) merchant signs must be notarized or signed during onsite visit. Annex 1: Risk Based Assessment The object of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its Regulations is to detect and deter money laundering and terrorism financing. In 2008, the Government introduced amendments to the PCMLTFA and its Regulations to enhance the Canadian anti-money laundering and anti-terrorism financing (AML/ATF) regime. As part of these amendments, the Risk-Based Approach (RBA), which requires reporting entities to conduct assessments of their exposure to money laundering and terrorism financing risk using a number of prescribed criteria, was introduced. Risk may be established both on the basis of objective criteria and subjective criteria. A 'risk rating' is given to each criterion.
Risk Ranking Grading L Low-risk M Medium-risk H High-risk PR Prohibited
The Company, as part of its AML Program, has conducted a risk analysis to identify specific criteria of potential money laundering risks. This risk based approach includes the identification of the money laundering and terrorist financing risks (to the extent that such terrorist financing risk can be identified) of customers, categories of customers, and transactions that allow the Company to determine and implement proportionate measures and controls to mitigate these risks. While a risk assessment is routinely performed at the inception of a customer relationship, for some customers a comprehensive risk profile may only become evident once the customer has begun transacting through an account. Thus, the monitoring of customer transactions and ongoing reviews is a fundamental component of the Company's risk based approach. In addition, this type of risk assessment process may also be adjusted for a particular customer based upon information received from a competent authority. The Company measures money laundering and terrorist financing risks using the following categories. The application of risk categories provides a strategy for managing potential risks by enabling the Company to subject customers to proportionate controls and oversight. The weight given to these risk categories (individually or in combination) in assessing the overall risk of potential money laundering may vary depending on the Company's unique circumstances.
Determining the potential money laundering or terrorist financing risks (to the extent that such terrorist financing risk can be identified) posed by a customer or category of customers is a critical component. Based on its own criteria, the Company is able to determine whether a particular customer poses a higher risk and the potential impact of any mitigating factors on that assessment. The application of risk variables may mitigate or exacerbate the risk assessment. Categories of customers whose activities may indicate a higher risk include: Customers conducting their business relationship or transactions in unusual circumstances, such as: • Significant and unexplained geographic distance between the Company and the location of the customer; • Frequent and unexplained movement of accounts to different institutions; and • Frequent and unexplained movement of funds between institutions in various geographic locations. The structure or nature of the entity or relationship makes it difficult to identify the true owner or controlling interests of the customer. Cash (and cash equivalent) intensive businesses including: • Money services businesses (e.g. remittance houses, currency exchange houses, money transfer agents and bank note traders or other businesses offering money transfer facilities or services); • Casinos, betting and other gambling related activities; and • Businesses that while not normally cash intensive generate substantial amounts of cash for certain transactions.
Charities and other "not for profit" organizations which are not subject to monitoring or supervision (especially those operating on a "cross border" basis). "Gatekeepers" such as accountants, lawyers, or other professionals holding accounts at the Company, acting on behalf of their clients/cardholders, and when the Company places unreasonable reliance on the gatekeeper.
Use of intermediaries within the relationship who are not subject to adequate AML laws and measures and who are not adequately supervised. Customers that are Politically Exposed Persons (PEPs).
Product and Service Risk.
This category of risk includes the determination of potential risks presented products and services offered by the Company, such as risks associated with new or innovative products or services and the following factors: Services identified by competent authorities or other credible sources as being potentially higher risk, including, for example: • International correspondent banking services involving transactions such as commercial payments for non-customers (for example, acting as an intermediary bank) and pouch activities; and • International private banking services Services involving banknote and precious metal trading and delivery; or Services that inherently have provided more anonymity or can readily cross international borders, such as online banking, stored value cards, international wire transfers, private investment companies and trusts.
What constitutes a benefit under the Criminal Code
Domestic bribery offences under the Criminal Code capture more than cash payments. Sections 121 and 123 of the Criminal Code each prohibit the payment or receipt of a 'loan, commission, reward, advantage, or benefit of any kind.' In R v. Hinchey, the Supreme Court defined a 'benefit' under the Criminal Code as anything that amounts to a 'material or tangible gain'. The Supreme Court also set out factors to determine whether something is a 'material or tangible gain', including the: • relationship between the parties; • history of reciprocal arrangements between the parties; and • size or scope of the benefit. Other Canadian courts have expanded these factors to include, in part, the: • manner in which the gift was bestowed; • nature of the provider's dealings with government; and • state of mind of the provider and receiver. Canadian courts have not identified a specific value threshold for what constitutes a benefit, but have identified specific items that do, or do not, constitute 'material or tangible gains'. Canadian courts have found that hockey tickets,8 extravagant meals, gift cards over CAD 500, and payment for travel represent a material gain, but items such as infrequent and moderately priced meals, coffee, and low value promotional items do not.
Section 426 of the Criminal Code criminalises the provision or receipt of secret payments or benefits to or by an agent, including an employee, as consideration for actions related to the affairs or business of an agent's principal, including an employer. There are two separate offences contained in Section 426: (1) a donor offence, committed by a third party providing a benefit; and (2) an agent/recipient offence, committed by an agent receiving a benefit. These offences can be committed independently and do not require the donor and recipient to act in concert. Secrecy is a crucial element for this offence. There is no offence if an agent makes adequate and timely disclosure of the benefit to his or her principal. Organisational liability Pursuant to Section 22.2 of the Criminal Code, Canadian organisations can be party to offences committed by their 'senior officers' if the senior officer intended, in part, to benefit the organisation by committing the offence. An organisation can also be criminally liable if a senior officer: • commits an offence themselves; • directs other representatives of the organisation to commit an offence; or • fails to take all reasonable steps to prevent another representative of the organisation from committing an offence the senior officer knew would be committed. A 'senior officer' is defined broadly by the Criminal Code and includes any representative that plays an important role establishing an organisation's policies or manages an important aspect of the organisation's activities, including directors, chief executive officers, and chief financial officers. Canadian courts have found that even a general manager can be considered a 'senior officer' and create criminal liability for an organisation.
Liability of directors, officers, and employees
Under Section 21 of the Criminal Code, an organisation's directors, officers or employees may be charged as a party to an offence that the organisation itself has been charged with. A party to an offence under the Criminal Code includes anyone that commits an offence, or assists or encourages the commission of an offence. There is no strict or automatic liability for directors, officers or employees of organisations guilty of bribery. Instead, directors, officers or employees will only be guilty of a bribery offence committed by the organisation if they participated in or encouraged the commission of it. Annex 3: Politically Exposed Persons Check The definition of 'PEP' is set out below: • Is or has, at any time in the preceding year, been entrusted with prominent public functions • Is an immediate family member of such a person • Is a known associate of such a person • Is resident outside or within the • Is or has, at any time in the preceding year, been entrusted with a prominent public function by – • Any state; • The European Community; or • An international body; or • Please note: An immediate family member or a known close associate of a person referred to in the paragraph immediately above does not necessarily qualify as a PEP without the appropriate risk assessment. In cases where PEP is identified: • Senior management approval should always be sought before establishing a business relationship with a PEP • The source of funds should be established T he business relationship should be subject to enhanced and constant monitoring.
Establishing the source of funds
It is important that before a business relationship is entered into with a PEP their source of funds is established and Company is satisfied that there are no indications that funds that will be used for transactions to be carried out are derived from corruption (i.e. receipt of bribes), fraud or an attempt by the PEP to remove/hide assets from their home country. The source of the PEP's funds may be established by asking the individual concerned a series of questions to determine from where they receive their money. These questions could include confirmation of the main source income (i.e. salary), any business interest or investments from which funds are/will be received.
Making a decision to transact with the PEP
In order to satisfy itself, below are areas on which questions can be asked of the PEP to determine whether a business relationship should be established- information from this can be presented to Senior Management of FINASTER TRANSFER LTD for them to make an informed decision: • What is the position and the duties of the PEP- (please note that a less 'senior' PEP is less of a risk than heads of states, MP's, members of the Judiciary, Ambassadors) • Are there any family members/close associates that are PEP's also? • Identify the customer and the beneficial owner of the account. • Know the customer's country of residence. • Know the objective of opening the account and the volume and nature of the activity expected for the account. • Obtain information on the occupation and the other income sources. • Obtain information about the direct family members or associates who have the power to conduct transactions on the account.
Please note that currently FINASTER TRANSFER LTD is not transacting with any PEPs.