ANTI-MONEY LAUNDERING POLICY & PROCEDURE MANUAL
AMOURTRUST COOPERATIVE CREDIT UNION
MARCH 2024
PRODUCED BY: MANAGEMENT, AMOURTRUST COOPERATIVE CREDIT UNION
REVIEWED BY: AUDIT COMMITTEE
APPROVED BY: THE BOARD OF DIRECTORS
THE ANTI-MONEY LAUNDERING POLICY AND PROCEDURE MANUAL
MARCH 2024
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PAPER |
THE ANTI-MONEY LAUNDERING POLICY AND PROCEDURE MANUAL FOR AMOURTRUST COOPERATIVE CREDIT UNION |
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DATE |
MARCH 2024 |
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PAPER DESCRIPTION |
Anti-Money laundering (AML) is a set of policies, procedures and technologies that prevents money laundering. There are three major steps in money laundering (placement, layering and integration) and various controls are put in place to monitor suspicious activity that could be involved in money laundering. The Anti-money laundering Policy and procedure manual must be referred to for a complete and current description of fight against Money Laundering processes and practices relating to the institution. |
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TARGET AUDIENCE |
THIS IS AN INTEGRAL PART OF POLICIES, MANUALS, RULES & REGULATIONS ISSUED FROM TIME TO TIME TO GUIDE THE CONDUCT AND OPERATIONS OF STAFF OF AMOURTRUST COOPERATIVE CREDIT UNION.
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REVIEWING DATE |
MARCH 2024 |
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REVIEWED BY |
GENERAL MANAGER SIGNATURE DATE |
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VALIDATED BY |
CHAIR BOD AUDIT COMMITTE SIGNATURE DATE |
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APPROVED BY |
BOD CHAIRMAN SIGNATURE DATE |
LIST OF CONTENTS
The Anti-Money Laundering Policy
1. The Policy
2. What is Money Laundering
3. Money Laundering and Terrorism
4. What is Terrorism
5. Why are investment companies at Risk?
6. Non-compliance
The Anti-Money Laundering Procedures
Section A – The Procedure
1. Introduction
2. Key individuals and responsibilities
3. Risk assessment and management
4. Client due diligence measures and ongoing monitoring
5. Enhanced CDD (PEPs)
6. Simplified CDD
7. Monitoring Client/Matter Activity and Transactions
8. Reporting
9. Monitoring and Management of Compliance
10. Vetting and Training
11. Record Keeping Procedures
12. Openness
Section B – Laws and Offences
1. COBAC REGULATIONS No 01/CEMAC/UMAC/CM of 11 APRIL 2016
Section C – Glossary
Definitions
THE ANTI-MONEY LAUNDERING POLICY
1. THE POLICY
1.1 AMOURTRUST COOPERATIVE CREDIT UNION IS:
- To maintain risk sensitive procedures of internal control and communication as may be appropriate for the purposes of forestalling, preventing and detecting the firm being used in any matters which might concern money laundering. This will include the application of client due diligence measures and ongoing monitoring in respect of its clients and record keeping procedures.
- To comply with the requirements of the relevant anti-money laundering and countering terrorist finance legislation, CEMAC – Regulation No 01/03- CEMAC - UMAC of 4 April 2003 on the prevention and repression of money laundering and capital flight and financing of terrorism in Central Africa, Regulation: COBAC R-200501 on diligence on anti-money laundering and the financing of terrorism, Regulation No 01/CEMAC/UMAC/CM of 11 April 2016 on the prevention and repression of money laundering and the financing of terrorism in the CEMAC region.
- To follow best practice guidance produced by any relevant bodies or organizations on money laundering and terrorist financing including Regulation No. 02/02/CEMAC/UMAC of 14 April 2002 on the functioning of GABAC.
- To monitor and manage these systems and procedures by keeping them under review on an appropriate basis, including ongoing evaluation of AMOURTRUST COOPERATIVE CREDIT UNION risk profile.
1.2 The AMOURTRUST COOPERATIVE CREDIT UNION has conducted a risk assessment of its work and client base. Having done so, and adapting a risk sensitive approach it has been determined that the AMOURTRUST Policy and these procedures will apply to all work undertaken by AMOURTRUST. This will be the subject of ongoing review and assessment.
2. WHAT IS MONEY LAUNDERING?
2.1 Money laundering is generally defined as the process by which the proceeds of crime, and the true ownership of those proceeds, are changed so that the proceeds appear to come from a legitimate source.
2.2 The relevant money laundering offences can be found in the regulations sited above.
3. MONEY LAUNDERING AND TERRORIST FINANCE
3.1 In some jurisdictions, including the CEMAC Region, the anti-money laundering legislation also covers issues of terrorist financing. All the regulations require that our money laundering systems and procedures include the risk of AMOURTRUST COOPERATIVE CREDIT UNION being used in a matter which may concern terrorist financing. This is sometimes referred to as CTF or countering terrorist financing.
3.2 Although the AMOURTRUST COOPERATIVE CREDIT UNION policy and procedures are entitled ‘Anti-Money Laundering Policy and Procedures’ they equally apply to any suspicions relating to terrorist financing. Any suspicion of this should be reported without delay to AMOURTRUST COOPERATIVE CREDIT UNION Money Laundering Reporting Officer.
4. WHAT IS TERRORISM?
4.1 Terrorism is defined as the use or threat of action which involves serious violence against a person, serious damage to property, the endangering of life or the disruption of an electronic system, in circumstances where the use or threat is designed to influence a government or intimidate a section of the public for the purpose of advancing a political, religious or ideological cause.
4.2 The relevant terrorism offences can be found in the above-mentioned regulations.
5. WHY ARE MICROFINANCE INSTITUTIONS/CREDIT UNIONS LIKE AMOURTRUST COOPERATIVE CREDIT UNION AT RISK?
5.1 It is difficult to be precise about methods of money laundering or, indeed, its true scale. International specialist bodies, including the Financial Action Task Force, have suggested that Fund Transfer, investments or savings in Microfinance Institutions/Credit Unions, property and business purchases are particularly common methods, where methods can be identified, but money launderers are particularly inventive and always looking for new ways in which to ply their trade. These methods will usually involve the use of professionals and hence investment companies can be targeted where these funds could easily be transferred out of the country.
5.2
Money
launderers do not discriminate; they will target small, medium
and large institutions, but will go more to small institutions whose staff are
not well equipped with knowledge on Anti-Money Laundering and so Microfinance
Institutions of all shapes and sizes need to remain alert to the possibilities
and take care to recognize anything suspicious.
6. NON-COMPLIANCE
6.1 The consequences of non-compliance with the AMOURTRUST COOPERATIVE CREDIT UNION Policy and procedures and/or any of the anti-money laundering provisions could lead to the implementation of a formal investigation by ANIF (Agence Nationale d’investigation Financiere) and the possible imposition of regulatory sanctions upon, and criminal prosecution of AMOURTRUST COOPERATIVE CREDIT UNION and its partners and relevant employees (which could result in an unlimited fine and imprisonment). AMOURTRUST COOPERATIVE CREDIT UNION reputation would be severely harmed in the process.
6.2 The failure by a member of staff of AMOURTRUST COOPERATIVE CREDIT UNION to comply with this policy and procedures is also a disciplinary offence under AMOURTRUST COOPERATIVE CREDIT UNION disciplinary procedures.
THE ANTI-MONEY LAUNDERING PROCEDURES
SECTION A – THE PROCEDURES
1. INTRODUCTION
1.1 Overview
In accordance with our policy and the requirements of the various Anti-Money Laundering Regulations, AMOURTRUST COOPERATIVE CREDIT UNION has the following procedures:
. Appointment of Money Laundering Compliance and Reporting Officer.
. Risk assessment and management.
. Client due diligence measures and ongoing monitoring.
. Monitoring client/matter activity and transactions.
. Reporting money laundering and terrorist financing activity and transactions.
. Monitoring and management of compliance.
. Vetting and training.
. Record Keeping.
1.2 Scope of Policies
Although the regulations cited above requires policies and procedures to be put in place in respect of financial services to third parties when participating in financial or movable property transactions, adopting a risk sensitive approach and having regard to risk assessment, the AMOURTRUST COOPERATIVE CREDIT UNION policy (at paragraph 1.2 of the policy) states that the AMOURTRUST COOPERATIVE CREDIT UNION will apply the policies across all areas of work, regardless of whether or not it falls within the legal regulations.
1.3 The relevant law and standards
The relevant legislation and standards are:
. CEMAC – Regulation No. 01/03-CEMAC-UMAC of 4 April 2003 on the prevention and repression on money laundering and capital flight and financing of terrorism in Central Africa.
. Regulation No. 02/02/CEMAC/UMAC of 14 April 2002 on the functioning of GABAC.
. Regulation: COBAC R-2005/01 relative to diligence on anti-money laundering and the financing of terrorism in Central Africa.
. Regulation No 01/CEMAC/UMAC/CM of 11 April 2016 on the prevention and repression on money laundering and the financing of terrorism in the CEMAC region.
Copies of the relevant sections of the legislation appear in Section C of these procedures.
2. KEY INDIVIDUALS AND RESPONSIBILITIES
2.1 The AMOURTRUST COOPERATIVE CREDIT UNION partners are responsible for complying with the requirements of anti-money laundering and for the AMOURTRUST Policy and procedures. This includes:
. Identifying AMOURTRUST money laundering and terrorist financing risks.
. Ensuring that its systems and controls are appropriately designed and implemented to manage those risks.
. Ensuring that sufficient resources are devoted to achieving these objectives.
2.2 The AMOURTRUST has an obligation to appoint and maintain key individuals in designated roles as part of its system of internal control to forestall, prevent and detect money laundering. The roles are:
. The Money Laundering Reporting Officer (MLRO)
. The Money Laundering Compliance Officer (MLCO)
2.3 Although the partners are responsible for AMOURTRUST money laundering compliance, the MLCO monitors AMOURTRUST compliance with the policy and procedures to help ensure their effectiveness. The MLCO also manages the procedure in relation to client due diligence measures (CDD) set out in paragraph 4 below and queries regarding CDD issues should be addressed to the MLCO.
2.4 The role of the MLRO is to receive reports from any members of staff of AMOURTRUST regarding suspicious activities or other matters which may concern money laundering or terrorist financing. The legislation includes all partners and staff and any one with concerns who is unsure about money laundering issues should seek assistance from the MLRO without delay.
3. RISK ASSESSMENT AND MANAGEMENT
3.1 AMOURTRUST RISK ASSESSMENT
In order to arrive at policies and procedures which are appropriate and risk sensitive, AMOURTRUST has undertaken an overall risk assessment review of its clients and practice areas and has followed relevant guidance adopting policies and procedures addressing the conclusions of the assessment. Risk will continue to be assessed in this way and the appropriateness reviewed.
3.2 RISK ASSESSMENT ON CLIENT/INVESTOR ENGAGEMENT
In addition to client/investor engagement, this requires those involved in the client/investor engagement process to undertake a risk assessment when taking on a new client/investor or matter. Risk categories are divided into Higher Risk, Standard Risk and Lower Risk. Guidance on each of these categories is provided in these procedures and will be reviewed on a regular basis.
3.3 HIGHER RISK CATEGORY
Each CDD form requires clients to input the appropriate level of CDD information for each client. As part of the process, Client/Investors need to highlight any matter which falls within the Higher Risk Category. The table below provides pointers on what might constitute Higher Risk matters. It is not exhaustive. If a Client/Investor considers that there are other factors not listed which elevates the risk, mark the matter as Higher Risk and provide the additional Higher Risk indicators to the MLCO who may then add them to the list.
The following Client/Investors are classified as Higher Risk category and/or should give cause for concern:
. Inexplicably complicated transaction.
. Transactions that are unusually large for a particular Client/Investor.
. Unusual instructions where there is little or no rational or logical reason.
. Loss-making transactions where the loss is avoidable.
. Unusual patterns of transactions which have no obvious economic or other legitimate purpose.
. Dealing with money or property when there are suspicions that it is being transferred to avoid the attention of a revenue authority, a Law Enforcement Agency or a Liquidator/trustee-in-bankruptcy/the viscount/creditors.
. Politically exposed persons (PEP) (see paragraph 5 below).
. Significant cash payments are involved.
. Excessively obstructive or secretive or evasive Client/Investor.
. Reluctance on a Client/Investor part to provide the requested CDD information.
. Client/Investor has significant business dealings in Higher Risk jurisdictions.
. Unregulated cash businesses habitually dealing in substantial amounts of cash.
And Corporate Client/Investors:
. Where a company is listed or registered in a Higher Risk jurisdiction.
. Where there is a High-Risk business (which includes energy and construction), particularly where coupled with a Higher Risk jurisdiction, be alert to the possibility of corruption. Are there links with PEPs?
. Where there is a business with no obvious or legitimate source of profits.
. Where there is a company involved which has bearer shares or an inexplicably complex ownership structure.
And individual Client/Investors:
. Individuals for whom the firm does not handle all their legal affairs. Consider whether this is logical or could they be spreading their affairs between firms to avoid one professional having a picture of all of their dealings.
3.4 LOWER RISK CATEGORY
Without limitation, the following Client/Investors may be considered to be lower risk, but always take account of any concerns you have on a matter-by-matter basis:
. A client/investor’s entity that is regulated by the CMF (Commission des marches financiers du Cameroun or another financial control body) or is an equivalent financial service business in an equivalent jurisdiction.
. A corporate body whose securities have been admitted to trading on a regulated market, or is a subsidiary of a body company whose securities have been admitted to trading on a regulated market.
3.5 STANDARD RISK CATEGORY
All client/investors and matters not constituting Higher Risk or Lower Risk.
3.6 ONGOING ASSESSMENT
It is imperative that the risk assessment is constantly reviewed during the retainer and it may be appropriate to amend the risk profile as matters progress. The following matters will lead to a Higher Risk category and/or should give cause for concern:
. A(n) Client/Investor deposits funds into his/her account but then ends the transaction for no apparent reason.
. A(n) Client/Investor advises that funds are coming from one source and at the last minute the source changes.
. A(n) Client/Investor unexpectedly requests that money received into AMOURTRUST account be sent back to its source, the Client/Investor or a third party.
4. CLIENT DUE DILIGENCE MEASURES AND ONGOING MONITORING
4.1 CDD measures will be carried out in respect of all Client/Investors when taking on a new Client/Investor. Ongoing monitoring of all Client/Investor business relationships will also be carried out.
4.2 The CDD procedures must be undertaken before AMOURTRUST provides her services to the prospect.
4.3 There is an exception: where urgent advice/assistance is required and there is little risk of money laundering such advice/assistance may be given prior to compelling the CDD requirements so long as the CDD is received as soon as reasonably practicable.
4.4 The general requirements of CDD and guidance on the type of CDD information required for each clint/investor are incorporated into AMOURTRUST CDD Forms. There are two types of CDD Form which shall be used by AMOURTRUST:
. CDD Form CL for client/investor that are companies or other entities: Lower Risk.
. CDD Form I for client/investors that are individuals; or for use with CDD Form CS: Standard Risk and Higher Risk).
4.5 By completing the appropriate CDD Form/s, it s AMOURTRUST intention that it should assist the staff in addressing CDD requirements on a risk sensitive basis and help him/her remain aware of the information which needs to be obtained. The staff should always remain aware of additional risks which suggest themselves during the process or throughout the client/investor relationship. Any queries on any aspect of compliance should be referred to the MLCO.
4.6 In summary, CDD consists of: Identifying the client/investor and verifying the Client/Investor’s identity on the basis of documents, data or information obtained from a reliable and independent source.
. Identifying, where there is a beneficial owner who is not the client/investor, the beneficial owner and taking adequate measures, on a risk-sensitive basis to verify his identity.
. Obtaining information on the purpose and intended nature of the business relationship.
4.7 Detailed information and guidance on completing CDD for particular client entities is contained in the CDD form for client/investors.
4.8 AMOURTRUST may accept certified copies of CDD paperwork so long as:
. The certifier is a suitable certifier
. The paperwork has been certified by a competent/authorized entity.
4.9 In addition to undertaking CDD, AMOURTRUST is also required to monitor client/investor relationships on an ongoing basis. Ongoing monitoring includes:
. the scrutiny of activities undertaken throughout the course of the relationship (including, where necessary, the source of funds) to ensure that the client/investor, his business and risk profile.
. Keeping the documents, data or information obtained for the purpose of applying CDD measures up to date.
4.10 All members of staff have a role to play in achieving effective ongoing monitoring of client business relationships. This is because ongoing monitoring must be conducted by staff whilst handling the retainer, the role of members of staff does not end once the relevant CDD material has been attained and verified at the outset of instructions. Members of staff must stay alert to suspicious circumstances which may suggest money laundering or terrorist financing.
4.11 To ensure that CDD material is kept up-to-date, it should be reviewed:
. When taking new instructions from a client/investor, particularly if there has been a gap of over two years between instructions or transactions.
. When information is received of a change in the client/investor’s details.
5. ENHANCED CDD (PEPs)
5.1 One particular client/investor category, PEPs require additional consideration and enhanced CDD measures; it also requires prior MLCO and partner approval.
Without prejudice to the obligations stipulated in Article 23 to 25 and 32 of the Regulation No 01/CEMAC/UMAC/CM of 11 April 2016, financial institutions shall take specific means for recognizing natural persons who occupy or have occupied an important public function within the meaning of point 42 of Article 1 of this Regulation when the said institutions initiate business relations or perform transactions with or on behalf of politically exposed persons.
The specific measures referred to in the paragraph above include the following obligations to:
1. Implement appropriate risk-based procedures that can determine whether the customer or a beneficial owner of the customer is a politically exposed person;
2. Notify senior management prior to the payment of capital, perform enhanced scrutiny on all business relations with the contract holder and consider issuing a suspicious activity report, in the case of life assurance;
Politically exposed persons are individuals who are (or have been) entrusted with prominent public functions in a jurisdiction, their immediate family and close associates as defined below:
Prominent public functions include senior positions within:
. The executive, legislative, administrative, military or judicial branches of a government (elected or non-elected)
. A major political party;
. A ruling royal family;
. International or supranational organizations; or a government owned corporation.
A relationship with PEP includes any corporate entity, partnership or trust relationship that has been established by or for the benefit of such individuals.
Immediate family typically includes the person’s parents, siblings, spouse, children, in-laws, grandparents and grandchildren.
Close associates typically include a person who is widely and publicly known to maintain a close relationship with the PEP, and includes a person who is in a position to conduct substantial domestic and international financial transactions on his or her behalf.
A client who is an individual may be a PEP but remember that directors or partners can also be PEPs. When the client is a PEP, the MLCO should be contacted as the Branch Manager of AMOURTRUST is required to:
. Obtain approval from senior management for establishing the business relationship;
. Take adequate measures to establish source of wealth and funds involved.
6. SIMPLIFIED CDD
6.1 Cleared Funds
Where the funds involved in a relationship:
. Have been received up front (i.e payment of account) from a bank which is a regulated person (or is an equivalent business in an equivalent jurisdiction); and
. Have come from an account in the sole or joint name of the Client/Investor; then the receipt of funds from such an account will be considered to provide a satisfactory means of verifying the identity of a Client/Investor provided that:
. The service requested by the Client/Investor is considered to present a very low risk;
. The Client/Investor is not considered to present Higher Risk;
. All future payments must e received from an account at a bank which is a regulated person (or is an equivalent business in an equivalent jurisdiction) where the account can be confirmed as belonging to the client/investor; and
. No future payments may be received from third parties.
In the event that the above conditions are breached, the identity of the Client/Investor must be verified at that time in accordance with full CDD measures.
You must obtain and retain evidence confirming that deposits have been received from an account at a bank which is a regulated person (or is an equivalent business in an equivalent jurisdiction) and, where a request for a withdrawal or transfer to another bank account is received, confirmation that this account is also in the Client/Investor’s name and held at a bank which is a regulated person (or is an equivalent business in an equivalent jurisdiction).
If you have reason to suspect that the business is being structured to avoid standard identification procedures you must not use this concession.
6.2 Lower value one-off transactions
Where a relationship between a Client/Investor and AMOURTRUST is determined to be a ‘lower value one-off transaction’, verification of identification procedures is not required unless:
. You suspect money laundering or consider the transaction of Higher Risk; or
. You have doubts about the veracity or adequacy of any documents, data or information previously obtained under the Client/Investor due diligence procedures.
A ‘Lower value one-off transaction’ is a transaction the value of which either in a single or linked transactions amounts to less than FCFA 5,000,000 (Five million Francs).
However, where the transaction is considered to present a Higher Risk of money laundering full CDD procedures must be applied.
Where subsequently and for whatever reason, the one-off transaction looks likely to increase in value beyond FCFA 5,000,000 (Five million Francs), or develop into a business relationship, you should without delay undertake verification of identity measures.
7. MONITORING CLIENT/INVESTOR/MATTER ACTIVITY AND TRANSACTION
7.1 AMOURTRUST procedure on CDD should ensure that sufficient information about a client/investor is obtained to allow development of a risk assessment and profile of expected activity. This will provide a basis for recognizing unusual and Higher Risk activity or transactions which may indicate money laundering or terrorist financing.
7.2 Where client/investor have been designated as carrying a Higher Risk of money laundering or terrorist financing, additional or more frequent monitoring is required.
7.3 AMOURTRUST has to monitor client/investor relationships and these procedures are designed to identify and scrutinize Higher Risk activity or transactions that may indicate money laundering or terrorist financing activity.
7.4 In order to maintain an effective monitoring system, AMOURTRUST needs to maintain up to date CDD information and to ask pertinent questions to determine whether there is a rational explanation for the activity or transactions identified. The scrutiny of activity and transactions may involve requesting additional CDD information.
7.5 AMOURTRUST will monitor and review instances where any exemptions are granted to policies and procedures or where controls are overridden.
7.6 A register will be maintained to record any monitoring and instances where any exemptions are granted to policies and procedures or where controls are overridden.
7.7 AMOURTRUST system of monitoring will be reviewed annually.
8. REPORTING
8.1 AMOURTRUST is required to maintain a system for reporting any suspicions relating to money laundering or terrorist financing. Any suspicions or concerns must be reported to the MLRO without delay by completing a SAR (Suspicious Activity Reports). No one other than the MLRO may take a report to ANIF or other relevant authorities.
8.2 Remember:
. An offence is committed if a person fails to report any knowledge or suspicion of money laundering which comes to him/her in the course of business as soon as practicable to the MLRO.
. This requirement relates not only to information concerning the AMOURTRUST Client/Investor, but anybody at all where the information comes to AMOURTRUST in the course of business.
. Authorized consent to carry an acting in a transaction may be required to avoid committing an offence.
. The MLRO will determine whether a SAR (Suspicious Activity Reports) will be made to the relevant authorities, and will liaise with the particular member of staff or other members of staff where appropriate about any necessary consent to proceed. All communications with the relevant authorities will be made by the MLRO.
. Once a SAR (Suspicious Activity Report) has been provided to the MLRO and the MLRO has been assisted fully in his enquiries by the discloser the duties under the money laundering reporting offences will have been discharged but the discloser must take care not to tip off anyone that a report has been made. Tipping off is itself an offence that could lead to a fine and/or imprisonment.
. The MLRO will acknowledge in writing to the submitter safe receipt of the SAR (Suspicious Activity Report). The acknowledgment shall include a reminder in relation to the offence of tipping off.
8.3 Senior management will notify ANIF immediately in writing of any material failures to comply with the requirements of the law.
9. MONITORING AND MANAGEMENT OF COMPLIANCE
9.1 The policy and procedures have been implemented using a risk sensitive approach.
This has included:
. A detailed review of the legislation.
. Risk assessment of Client/Investor.
. Country risk issues.
. Consideration of other relevant jurisdictions including the Cameroonian and the requirements of CEMAC Region Directive on money laundering.
. Other available information on money laundering and terrorist financing cases, articles, e.g. information from ANIF, and GABAC.
9.2 The MLRO and MLCO will keep up to date with changes to the legislation and relevant guidance and best practices. Relevant changes will lead to a review of the policy and procedures as appropriate. In any event, the policy and procedures will be reviewed annually.
9.3 The MLCO will conduct a review of CDD material and ongoing monitoring twice a year to gauge the standard of CDD measures. Any non-compliant areas or policy or procedural changes required will be addressed. In addition, the time taken to complete CDD measures will be monitored to ensure compliance. The MLCO will retain a list of issues or queries raised in addition to details of all reports.
9.4 The partners will take all necessary steps to remedy any deficiencies identified in any review under clauses 9.2 and 9.3.
10. VETTING AND TRAINING
10.1 One of the most important controls over the prevention, Forestalling and detection of money laundering and terrorist financing is to have appropriately vetted staff who are:
. Alert to money laundering and terrorist financing risk.
. Well trained in the identification of Higher Risk activities or transactions, which may indicate money laundering or terrorist financing activity.
10.2 All members of staff will receive AML induction training within 10 working days of commencing employment and further training, as required, should the role of the member of staff change during the course of their employment. All members of staff will be provided with a copy of this document to give them a basic understanding of money laundering and terrorist financing and an awareness of AMOURTRUST anti-money laundering policy and procedures. In addition, all members of staff and their support team members will receive the additional training as detailed in paragraph 10.3 below.
10.3 All members of staff and relevant support team members will receive regular training (and, in any event, at least once every 2 years) to ensure that they:
. Are made aware of the law relating to money laundering and terrorist financing.
. Given training in how to recognize and deal with transactions and other activities which may be related to money laundering or terrorist financing.
10.4 AMOURTRUST recruitment and induction procedures will include appropriate vetting and training elements in relation to money laundering and terrorist financing.
11. RECORD KEEPING PROCEDURES
11.1 AMOURTRUST will retain records in accordance with the requirements for financial service institutions. Records relating to transactions will be retained for a period of at least 10 years from the date when all activities relating to the transaction was completed.
11.2 A hard copy of the CDD material that is received will be maintained at the Head Office of AMOURTRUST and will be accessible at any time upon request to the MLCO.
12. OPENESS
12.1 The money laundering legislation and AMOURTRUST Policy and procedures apply to everyone in GIT Investment: Members of staff and support team members alike. All members of staff are encouraged to discuss concerns about possible money laundering or terrorist financing with the MLRO. Members of staff should never feel that they are troubling the MLRO unnecessarily. The legislation is new and there is a learning process involved. It is better to have a brief discussion with the MLRO and have a concern allayed than for something to be missed.
SECTION B – LAWS AND OFFENCES
1. MONEY LAUNDERING REGULATIONS No. 01/CEMAC/UMAC/CM of 11 April 2016
Financial services businesses are required, in order to forestall and prevent money laundering, to maintain appropriate policies for the application of:
- CDD procedures at the outset of instructions.
- Careful monitoring of clients during the retainer.
- Record-keeping procedures.
- Internal reporting procedures to the MLRO.
- Such other procedures as is deemed appropriate.
The regulation also deals with the appointing of a MLRO and a MLCO.
2. REPRESSION OF MONEY LAUNDERING, FINANCING OF TERRORISM AND PROLIFERATION No. 01/CEMAC/UMAC/CM OF 11 APRIL 2016
2.1 General prevention provisions in relation to cash and bearer negotiable instruments:
Article 15 of the regulation sets obligations to declare and disclose the physical cross-border transportation of cash and bearer negotiable instruments. It stipulates that any person entering a member state of the CEMAC from a third party state or departing such a member state with destination for a third-party state must declare amounts of cash equal to or greater than FCFA 5,000,000 (Five Million Francs CFA) or its equivalent in foreign currencies to the competent Authority of the Member State at the point of entry or departure of the country. Any person who provides false declaration or disclosure shall be liable to penalt that may be the confiscation of the non-declared cash in accordance to Articles 130 and 130 of this Regulation.
2.2 Prohibition on paying certain debts in cash or by bearer negotiable instruments:
Article 16 of this Regulation stipulates that, without prejudice to the provisions of Article 17, a debt equal to or greater than five million CFA Francs may not be paid by means of cash or bearer of negotiable instruments.
The payments, stated hereafter must be made by means of a Bank transfer, postal order or cheque, when they relate to a sum equal to or greater than the reference amount set by a directive of the BEAC or by an Order of the National Monetary Authority of each state.
1) Remunerations, compensations and other monetary payments owed by the state or its Divisions to working or non-working civil servants, Agents, other staff or their families as well as to service providers;
2) Taxes, levies and other monetary payments owed to the State or to its Divisions. The provisions of the first and second paragraphs above do not apply:
i. To payments made by persons who are incapable of being bound by a cheque or other means of payment as well as by those persons who do not hold a deposit account.
ii. To payments made between natural persons who are not acting on the basis of professional necessity.
2.3 Prohibition on paying real property transactions in cash Article 17 of this Regulation stipulates that, all sale price of real property whose amount is greater than three million Fcfa may be settled only by means of a transfer or cheque.
2.4 Failure to report knowledge or suspicion of money laundering to the MLRO
Every person or institutions subject to this regulation must report to the competent Authority (NAFI or ANIF) those cash transactions equal to or greater than five million (5,000,000) CFA francs, whether by means of a single transaction or several seemingly connected transactions.
The provisions stipulated in the first paragraph above shall not apply to cash deposits made by a person or a company whose nature of activity requires the usage of such a procedure, notably transport companies, supermarkets and petrol stations.
Notwithstanding the exemption provided in paragraph 2 above, the financial institutions shall perform enhanced due diligence on cash deposits. They shall report to the NAFI (National Agency for Financial Investigations) any deposit whose amount, whether in a single transaction or in several seemingly connected transactions, is unusual or is not related to the activity in question.
2.5 Provisional measures and execution
In its Article 105, the law preview freezing of funds and other financial resources and even other assets if it is justified that it is a case of money laundering or the financing of terrorism. The institutions directly or indirectly connected with the issue are strictly prohibited from:
1) Directly or indirectly making the frozen funds available to the natural or legal persons, entities or bodies designated by the decisions stipulated in paragraph 1 above or using them for their own benefit;
2) Providing or continuing to provide service to the natural or legal persons, entities of bodies designated by the decision stipulated in paragraph 1 above or using them for their own benefit.
Participation in operations, knowingly and intentionally, with the aim or effect of directly or indirectly circumventing the provisions of this article is prohibited.
2.6 Applicable penalties for natural persons
Natural persons guilty of money laundering shall be punished by a prison sentence of between five (05) and ten (10) years and a fine of between five and ten times the value of the property or funds involved in the money laundering operations, with a minimum amount of 10,000,000 FCFA.
Attempted money laundering is punishable by the same penalties. Accomplices and co-perpetrators of money laundering are punished by the penalties stipulated in paragraph 1 above.
2.7 penalties applicable to certain acts related to money laundering
The persons involved under this regulation shall be punished by a prison sentence of between six months and two years and a fine of between one million and five million francs CFA or one of these two punishments, when they have intentionally:
1) Revealed information to the owner of the amount or the perpetrator of the operations stipulated in Article 8 of the CEMAC Regulation concerning the declaration they are bound to make or action taken based on the said declaration,
2) Destroyed or remove items or documents relating to obligations of identification stipulated in Article 30 to 34, the safeguarding of which is stipulated by Article 38 of the CEMAC Regulation,
3) Perform or attempted to perform one of the operations stipulated in Articles 36, 37 and 44 to 58 of the CEMAC Regulation under false identity,
4) Provide information by any means to the person(s) under investigation for money laundering, which they may have gained knowledge on account of their profession or position,
5) Communicated to the judicial authorities or officials authorized to establish predicate and subsequent offences, deeds and documents stipulated in Article 39 of the CEMAC Regulation that they know to e falsified or erroneous.
6) Communicated documents or information to persons other than those specified in Article 41 of the CEMAC Regulation,
7) Omitted to file the suspicious activity report specified in Article 83 of the CEMAC Regulation, even though circumstances led to the conclusion that monies could proceed from a money laundering offence, as defined in Article 8 of the CEMAC Regulation.
2.8 Additional penalties applicable to natural persons
Persons guilty of the offences set out in Article 8 of the CEMAC Regulation may incur the following supplementary penalties:
1) A permanent or 5 year ban on entering the state of the jurisdiction imposing the sentence, if the person guilty of money laundering is a foreigner,
2) A one (01) to five (05) year ban on entering one or more administrative districts in which the jurisdiction imposed the sentence,
3) A ban on leaving the national territory and withdrawal of passport for a period of between six (06) months and three (03) years,
4) A ban on exercising civil and political rights for a period of between six (06) months and three (03) years.
5) A permanent ban or a ban of between SIX (06) months and three (03) years on exercising the profession or activity under which the offence was committed and a ban on exercising any public function,
6) A ban on issuing cheque other than those for withdrawing funds by the drawer from the drawee or certified cheque, and a ban on using payment cards for a period of between six (06) months and three (03) years,
7) A ban on holding or carrying a weapon requiring authorization for a period of between six (06) and three (03) years.
8) Confiscation of all or part of the assets of licit origin of the convicted person.
2.9 Incrimination and criminal sanctions for offences related to terrorism financing
The persons and Directors or agents of natural or legal persons that this CEMAC Regulation covers shall be punished by a prison sentence of between one (01) and four (04) years and a fine of between two hundred thousand (200000Fcfa) and three million (3000000Fcfa) or one of these two punishments.
2.10 Training and Information for staff
Article 26 stipulates that institutions under this Regulation must ensure that their staff is trained and regularly informed with respect to complying with the obligations stipulated in Chapter II and III of title II of the Regulation.
2.11 Products not subject to due diligence
According to article 53 of the Regulation, and pursuant to paragraph two of Article 52, the parties in Article 42 of this regulations shall not be subject to the due diligence obligations stipulated in Article 21 to 25 insofar as there are no suspicions of money laundering or terrorism financing, where the transaction relates to the following products;
1) Life Insurance contacts whose annual premiums do not exceed six hundred thousand (600,000)CFA francs or whose single premium does not exceed one million, five hundred thousand (1,500,000) CFA Francs.
2) Pension insurance contracts without a surrender clause which cannot be used as collateral and whose maturity provides annuities upon retirement.
3) Electronic money with the purpose of being used only for the purchase of goods or services. Nevertheless, once the refund demand relates to a unit amount or a total amount of five hundred thousand (500,000) CFA Francs during the same calendar year, the parties referred to in Article 6 and 7 of the Regulation must comply with the obligations stipulated in Article 21 to 25.
4) Tangible asset financing where ownership is not transferred to the customer or only upon termination of the contractual relationship, provided that the lease payment does not exceed one hundred million (100,000,000) CFA Francs per year.
5) Customer credit operations, in so far as they do not exceed two million five hundred (2,500,000) CFA Francs, subject to repayment of the credit being made only through an account opened in the name of the customer at a financial institution established in a member state.
2.12 Grounds for exemption from penalties
Any person participating in an association or conspiracy with a view to committing one of the offences stipulated in Article 8,9 and 10 of the CEMAC Regulation and, by assisting, inciting or advising a natural or legal person with a view to performing such offences or facilitating their performance, shall be exempted from penalties if, having disclosed the existence of this conspiracy, association, assistance or advice to the judicial authority, they thus enable it to identify the other persons involved and prevent the money laundering and terrorism financing offences from being committed.
SECTION C – GLOSSARY
For ease of reference the following comprises a comprehensive list of the definitions used in the institution’s policy and procedures and accompanying forms:
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CDD
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Client Due Diligence
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CDD Form CL
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The CDD form for clients that are companies or other entities, lower risk
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CDD Form I
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The CDD form for individuals
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Financial Services business
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Fund services business, general insurance mediation business, investment business, money services business or trust company business
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MLCO
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The money laundering compliance officer
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ANIF
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Agence Nationale d’investigation Financiere
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MLRO
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The money laundering reporting officer
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PEPs
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Politically Exposed Persons
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Regulated Person
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Fund services business, general insurance mediation business, investment business, or money services business.
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SAR
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Suspicious Activity Reports
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Source of Funds
Source of Wealth
NAFI
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The activity which generates the funds for the particular activity in which AMOURTRUST is assisting.
National Agency for Financial Investigation
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Authorised By;
NKENG KINGSLY, BOARD DIRECTOR
KUNYONGA LARISSA, GENERAL MANAGER
DONAYI THESLING, AUDIT
DATE: 04/03/2024