IP VDX (ESCROW) LTD ANTI-MONEY LAUNDERING MANUAL February 2014
Transcription
IP VDX (ESCROW) LTD ANTI-MONEY LAUNDERING MANUAL February 2014
IP VDX (ESCROW) LTD ANTI-MONEY LAUNDERING MANUAL February 2014 1 I. PURPOSE The present document forms the anti-money laundering manual of IPVDX (ESCROW) LTD, a limited liability company registered under the laws of Cyprus with Reg. No. HE280383 having its registered address at 6 Demostheni Severi Avenue, Office 22, Nicosia, Cyprus. The Prevention and Suppression of Money Laundering Activities Law of 2007 has set up a framework for the prevention of money laundering and terrorist financing activities. IPVDX (ESCROW) LTD acknowledges the importance of following both the letter and spirit of such law and all relevant directions, recommendations and instructions and wishes not to be used by any of its Clients for the purpose of carrying out money laundering or terrorist financing activities. The manual is intended to provide guidance to the Members of the Company and its MLCO, as both defined below, of the procedures to be followed so as to prevent and fight potential anti-money laundering or terrorist financing activities. This manual contains comprehensive due diligence procedures in accordance with the Law that shall be followed by the Company, its’ Members and the MLCO, in relation to the identification of clients, record-keeping and recognition and reporting of suspicious transactions. II. SCOPE OF APPLICATION This manual applies to IPVDX (ESCROW) LTD and all of its Members, as well as the MLCO. Compliance with the provisions of the manual and effective implementation of the procedures contained therein is the responsibility of all Members of the Company as well as the MLCO. III. INTRODUCTION What is money laundering? Based on the definition of the Directive issued by the Cyprus Bar Association, Money laundering is the process by which criminals attempt to conceal the true origin and ownership of the proceeds of their criminal activities. If undertaken successfully, it also allows them to maintain control over those proceeds and to 2 ultimately provide a legitimate cover for their source of funds. In other words, their “dirty” funds come to appear “clean”. Why is the Company regulated for money-laundering activities? The services provided by the Company have been identified under the Law as services that can and may become the target of criminals wishing to legitimize their profits. Services that are normally brought within the scope of money laundering preventive measures include inter alia: (i) The exercise of professional activities by independent professionals, with the exception of privileged information, when they participate, either: a. By assisting in the planning or execution of transactions for their clients concerning the buying and selling of real property or business entities; b. Managing of client money, securities or other assets; c. Opening or management of bank, savings or securities accounts; d. Organization or contributions necessary for the creation, operation or management of companies; creation, operation or management of trusts, companies and similar structures; or e. By acting on behalf and for the account of their clients in any financial or real estate transaction. (ii) Consultancy services to enterprises concerning their capital structure, industrial and related issues and consultancy services as well as services in the areas of mergers and acquisitions of businesses. What is the legislative and regulatory framework for money-laundering activities? The Prevention and Suppression of Anti-Money Laundering and Terrorist Financing Activities Law of 2007, as amended; The Directive to the Members of the Cyprus Bar Association in relation to the Prevention of Money Laundering and Terrorist Financing, as may be amended from time to time. The Fourth Directive to the Members of the Cyprus Bar Association. The Directive to the Members of the Cyprus Bar Association issued on January 2014 in relation to the procedure for the regulatory control and the procedure for the imposition of sanctions/fines. What are the offences which the Law seeks to prevent? 3 The Law is applicable in respect of offences which are referred to as “prescribed offences” and which comprise of (a) laundering offences and (b) predicate offences. What are money-laundering offences? Under the Law, every person who knows or ought to have known that any kind of property is proceeds from a predicate offence is guilty of an offence if he carries out any of the following: (i) Converts or transfers or removes such property, for the purpose of concealing or disguising its illicit origin or of assisting any person who is involved in the commission of a predicate offence to evade the legal consequences of his actions; (ii) Conceals or disguises the true nature, source, location, disposition, movement, rights with respect to property or ownership of this property (iii) Acquires, possesses or uses such property (iv) Participates in, associates or conspires to commit, or attempts to commit and aids and abets and provides counselling or advice for the commission of any of the offences referred to above; or (v) Provides information with respect to investigations performed in relation to laundering offences, for the purpose of enabling the person who has gained profit from the commission of a predicate offence to retain the proceeds or the control of the proceeds from the commission of the said offence. What are predicate offences or terrorist financing? Predicate offences are: (a) The criminal offences as a result of which proceeds or assets were derived which may constitute offences of money laundering and which are punishable with imprisonment exceeding one year; (b) Terrorist financing offences, including collection of money for financing of persons or organizations connected with terrorism; and (c) Offences of drug trafficking as described in Section 2 of the Law; (d) All offences, including tax crimes related to direct taxes and indirect taxes, which are punishable by deprivation of liberty or a detention order for a maximum penalty of more than one year. 4 What are the obligations of the Company and its Members in relation to the Law? The Company is strictly bound by all measures provided for under the Directive in relation to the due diligence requirements for new and existing clients and the recognition and reporting procedures for suspicious activities. Members of the Company are equally responsible for compliance with the above for and on behalf of the Company. To this effect, the Company has prepared the present manual so as to inform the Members of their obligations and assist them with their implementation. The following section of this manual outlines all the said procedures in detail. Which is the Regulatory Authority under the supervision of which the Company and its Members are included? By virtue of s.59 of the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007, the Cyprus Bar Association is rendered the regulatory authority under which lawyers and law firms as well as any direct or indirect subsidiaries of same are included. How is regulation by the Cyprus Bar Association conducted? In addition to the Directives which have been and/or may be issued by the Cyprus Bar Association in the future and which are binding on the persons regulated by the Cyprus Bar Association, the Cyprus Bar Association may further appoint a number of Regulatory Officers who may, following a relevant notification to the lawyer and/or law firm and/or partnership and/or any direct or indirect subsidiary and/or the beneficial owner of a relevant Client, conduct an on-site control of the files of the Client so as to ensure that all requirements have been complied with. What are the implications of non-compliance with the procedures prescribed under the Law and the Directive? Pursuant to the Directive to the Members of the Cyprus Bar Association issued on January 2014 in relation to the procedure for the regulatory control and the procedure for the imposition of sanctions/fines issued in January, 2014, the Council of the Cyprus Bar Association may, in case where a Regulatory Officer identifies non-compliance with the Law and/or the Directives of the CBA, all of which are specifically defined below, and/or any other relevant directive that may be issued by the Cyprus Bar Association from time to time, impose a fine not exceeding €200. Where non-compliance persists a fine of no more than €1000 per day may be further imposed. What do the anti-money laundering procedures specifically deal with? The anti-money laundering procedures outline the measures that should be taken in relation to the following: Client Identification 5 Record-Keeping Recognition of Suspicious Transactions Reporting of Suspicious Transactions Where may the Members obtain further guidance or consultation? The Company, in accordance with the provisions of the Directive, appoints the money laundering compliance officer (MLCO), who is the person responsible for the education, training and assistance of all Members as regards their antimoney laundering obligations. Details on the relevant duties of the MLCO may be found in the final section of this manual. IV. CLIENT DUE DILIGENCE PROCEDURES 1. DEFINITIONS Application Form: The Form completed by each new client seeking to obtain the services of the Company. Authority: The Unit for Combating Money Laundering at the Attorney General’s Office (‘MOKAS’) Beneficial Owner: Any natural person(s) who ultimately owns or controls the client and/or the natural person on whose behalf a one-off transaction is being conducted: (a) In the case of corporate entities: the natural person(s) who ultimately owns or controls a corporate entity through direct or indirect ownership or control over any percentage of the shares or voting rights in that corporate entity, including through bearer share holding, other than a company listed on a regulated market that is subject to disclosure requirements consistent with Community legislation or subject to equivalent international standards; The natural person(s) who otherwise exercises control over the management of a corporate entity. (b) In the case of legal entities, such as foundations, and legal arrangement, such as trusts, which administer and distribute funds: Where the future beneficiaries have already been determined, the natural person(s) who is beneficiary of the property or any part thereof of a legal arrangement or entity; 6 Where the individuals that benefit from the legal arrangement or entity have yet to be determined, the class of persons in whose main interest the legal arrangement or entity is set up or operates; The natural person(s) who exercises control over the property or any part thereof of a legal arrangement or entity. Box File: A file opened for each client to which the Company offers its services and which includes all data and documents received by the Company in relation to the Client. The Box File must bear at least the name of the company and its reference number which is taken from the Company’s index. Business Relationship: A business, professional or commercial relationship which is connected with the professional activities of the Company and which is expected, at the time when the contact is established, to have an element of duration. Business Transaction: Includes all business relationships and one-off transactions between the Company and its Clients and which are the subjects of scrutiny under this manual. CBA: the Cyprus Bar Association Client: Any natural or legal person seeking to form a business relationship or carry out a one off transaction. Company: IPVDX (ESCROW) LTD, a limited liability company registered under the laws of Cyprus with Reg. No. HE280383 having its registered address at 6 Demostheni Severi Avenue, Office 22, Nicosia, Cyprus. Ending of Business Relationship: The business relationships is ended on the date of a) the completion of a one-off transaction, b) the termination of the business relationship and c) if the business relationship has not formally ended, the date on which the last transaction was carried out and the client has settled all fees due and/or any other liability owed to the company. Member: An employee of the Company (or a person otherwise at its services and/or acting under its brand and/or name) that attends to any matter involving the commencement of a business relationship and/or carries out any act in the course of providing a Prescribed Activity and/or Service. MLCO: The Money Laundering Compliance Officer of the Company. Any reference thereto herein shall include his deputy. NCCTs: Non Co-operative Countries and Territories (NCCTs) are the countries pronounced by the Financial Action Task Force of the G7 as high risk and 7 requiring special attention to business relationships and transactions with any person or body originating from them. One-Off Transaction: Any transaction other than a transaction carried out in the course of an established business relationship formed by a person acting in the course of the activities listed in s.60 of the Law and any other activity defined by the Council of Ministers as such by an order amending section 60 of the Law published in the Official Gazette of the Republic. Politically Exposed Persons (PEPs): Any natural person who is or has been entrusted with a prominent public function and immediate family members, or persons known to be close associates, of such person. Privileged Information: According to s.44 of the Law privileged information means: Communication between an advocate and a client for the purposes of obtaining legal advice or professional legal services in relation to legal proceedings whether there have started or not, which would in any legal proceedings be protected from disclosure by virtue of the privilege of confidentiality under the law in force at the relevant time; Any other information which is not admissible in court for the protection of public interest under the law in force at the relevant time. The legal advice shall remain subject to the obligation of professional secrecy unless the legal counsellor is taking part in money laundering or terrorist financing, the legal advice is provided for money laundering or terrorist financing purposes or the Member knows that the Client is seeking legal advice for money laundering or terrorist financing purposes. Regulatory Officer: the person appointed by the CBA so as to conduct on-site regulatory controls in accordance with the January 2014 Directive. The Directive: the Directive to the Members of the Cyprus Bar Association pursuant to s.59(4) of the Prevention and Suppression of Money Laundering Activities Law of 2007. The January 2014 Directive: the Directive to the Members of the Cyprus Bar Association issued on January 2014 in relation to the procedure for the regulatory control and the procedure for the imposition of sanctions/fines. The 4th Directive: The Fourth Directive to the Members of the Cyprus Bar Association. The CBA Directives: the Directive, the January 2014 Directive and the 4th Directive issued by the Cyprus Bar Association. 8 The Law: the Prevention and Suppression of Money Laundering Activities Law of 2007. 2. CLIENT IDENTIFICATION 2.1 General The Member is required to follow the present identification procedures strictly and for all clients without exception. The Member is required to obtain and retain copies of adequate and satisfactory documentary evidence in relation to the Client himself and the intended business relationship or one-off transaction with the Company, prior to establishing the business relationship with the client or at the earliest stages of the business relationship. Such evidence should be sufficiently reflective of the following: (a) The client’s identity; (b) In the case of legal person, the identity of the beneficial owner and the ownership chain and control structure of the client; (c) The purpose of the intended business relationship or one-off transaction; (d) The source of wealth of the client as well as the source of the funds involved in the intended business transaction. Further to the initial verification of the client’s identity, the Member is required to conduct an on-going supervision of the business relationship, and most importantly to inspect and keep a relevant record of the transactions carried out by the client in the course of the business relationship and to ensure that they are consistent with the information provided by the client. In the case of a client refusing to provide the requested documentation in order to verify his identity, the Member shall terminate the realisation of the business transaction and shall immediately inform the Company and the MLCO. All of the above apply equally to new as well as existing clients. This means that if during the course of an existing business relationship the Member becomes aware of any deficiency in the documentation regarding the identity, business or financial background of that particular Client, the Member is obliged to request the missing documentation as soon as practically possible. If the Client refuses to provide the requested documentation, the Member is similarly obliged to terminate the business relationship and immediately inform the Company and the MLCO. 9 2.2 Identification of natural persons (a) Required Client Information In order to obtain all necessary information, the Member shall ensure that the Client properly completes and executes Section 2 of the Application Form, in accordance with the instructions included therin. The required client information is as follows: Full Name, including the first name, surname and all other names used; Date of Birth; Current address at which the person may be located and/or contacted whether residential or business address or both; Nationality; Profession or Occupation; Contact details. (b) Supportive Documentation Passport or ID; (c) Proof of current residential address, such as an original utility bill or an original credit card statement not more than six months old; Two original references, one from a professional (e.g. Attorney or Accountant) and one from a Bank; Curriculum Vitae. Verification of required client documentation All documents submitted must either be: in original form, or copies certified as true copies of the original by a Notary Public and apostilled under the Hague Convention on the Apostille of Documents, or 10 2.3 copies certified as true copies of the original by a Cyprus Consular Office. Identification of legal persons (companies, trusts, partnerships) In the case of corporate or other entities, the objective of the identification procedure is to identify the ownership and control structure of the client which ultimately leads to the beneficial owner, or if the person in controlling ownership of the client is not the beneficial owner, then the person exercising control of the legal person. If neither the beneficial owner nor the person exercising control of the legal person is a natural person, the Member should identify the person who holds the position of senior manager. In identifying the beneficial owner, the Member is required to conduct all necessary identification procedures, described in paragraphs 2.2 and 2.3 of the present manual, in respect of all persons, whether natural or legal, forming part of the ownership chain or control structure of the client. Similarly, the identification procedure for trusts or similar legal arrangements requires the identification of all parties involved in the trust or similar legal arrangement. For the purpose of identification of the said persons, the Member shall conduct all necessary identification procedures described above, for both legal and natural persons involved in the arrangement. Due to the high popularity of the use of trust arrangements from criminals, it is further significant for the Member to verify the following: The source of the money put on trust;, The nature of the transaction made; That all payments are made in accordance with the terms of the trust; and That all payments are properly authorized in writing by the trustee. (a) Required Client Information: In order to obtain all necessary information, the Member shall ensure that the Client properly completes and executes Section 1 of the Application Form, in accordance with the instructions included therein. The required client information is as follows: Incorporation/Registration Number; Name and legal form,; 11 Proof of existence including the verifying the fact that the client is not the subject of a dissolution, strike off, or wind up process; Main business activities; The rules governing the client’s administration and regulation; Source of income; Address of registered office and/or principle place of business; Contact details; The Identity of the beneficial owners and/or persons involved in the trust or other similar legal arrangement as described above. (b) Additional Documentation: (i) In the case of a publicly quoted company: Evidence of listing; Evidence as to who is authorized to bind the company. (ii) In the case of a limited liability company: Certificate of Incorporation; Certificate of Good Standing; Certificate of Incumbency; Memorandum and Articles of Association. (iii) In the case of a trust The Trust Deed; Certificate of Registration. (iv) In the case of a partnership The Partnership Agreement; Evidence of the person who can bind the Partnership. 12 (c) Verification of required client documentation All documents submitted must either be: in original form, or copies certified as true copies of the original by a Notary Public and apostilled under the Hague Convention on the Apostille of Documents, or copies certified as true copies of the original by a Cyprus Consular Office. 2.4 Politically Exposed Persons (PEPs) The Member is required to investigate whether a person, whether a customer or beneficial owner, is a politically exposed person. Once a person is determined as such, the Member should initially obtain the approval of the Company before establishing a business relationship with same and should follow the above mentioned identification procedure strictly and with additional care. 2.5 Clients from NCCTs Additional care and prudent supervision must also be carried out with regard to clients from countries whose anti-money laundering legislation is considered to be ineffective. The Member is required to consult the Financial Action Task Force country evaluations (http:/www.fatf-gafi.org) for guidance on such countries. 3. RECORD KEEPING The Member is required to keep a record of all data retrieved during the Client Identification process and to review and ensure that they are updated on a regular basis. The Member is required to retain the said record for a period of up to ten (10) years as of the termination of the business relationship or one-off transaction, or where the business relationship or one-off transaction is not formally terminated, as of the completion of the last transaction made in the course of the relationship. 13 The records kept in relation to each client shall be in both hardcopy form, filed in the due diligence subfolder of each client’s box file and in electronic form, saved in the due diligence subfolder of each client’s electronic folder. With regard to the latter form, the Member shall further conduct regular back-ups. More particularly, the Member is required to retain a record of the following: (a) Client identification data: this includes all data collected in the process of client identification and all additional and/or updated data collected thereafter. (b) Client transaction data: this includes, where possible, apart from the client identification data, the following transaction-related data: 4. data on the name, address, and/or other identification data of the counter party to the transaction; the form of instruction or authority given for the realisation of the transaction; the account details from which any funds were paid; the form and destination of payments made to the client; and Any business correspondence in relation to the transaction. RECOGNISING SUSPICIOUS TRANSACTIONS The Member is required to review on a regular basis the records of client identification data and client transaction data for the purposes of recognising transactions that may be the subject of anti-money laundering or terrorist financing activities. When considering a specific transaction, as guidance the Member is advised to always bear the following in mind: The size of the transaction as compared to the normal activities of the client; The plausibility of the transaction in the context of the client’s usual business or personal activities; The pattern of transactions usually conducted and the consistency of the transaction under consideration with the said pattern; Whether the transaction is unusually complex compared to the nature and pattern of the client’s earlier transaction; 14 In the case of an international transaction, the expectedness of an international transaction by the client and the reasonableness of transacting with the other country involved. The Member must be additionally prudent in relation transactions connected to NCCTs. Further guidance and training will be regularly provided by the MLCO, based amongst others on a record of all documented reports already made in the context of the anti-money laundering reporting procedures described below. 5. REPORTING SUSPICIOUS TRANSACTIONS Once the Member becomes aware or suspects that a Client is involved in moneylaundering or terrorist activities, in the performance of his duties as a Member of the Company, he is obliged to immediately disclose all information, out of which his knowledge or suspicions arise, directly or as soon as reasonably practical to the Company’s MLCO. The obligation to report to the MLCO extends to any knowledge or suspicion that may arise after the transaction is completed or the business relationship is terminated. Any report made and all information in connection therewith must be submitted to the MLCO in documented form. In urgent cases an initial telephone report should be made, but shall immediately be followed by a written report. The report shall comprise of all details of the client in possession of the Company and as accurate a statement as possible of all the information that gave rise to the knowledge or suspicion. Following the report, the Member shall be in constant communication with the MLCO and shall provide such assistance as the MLCO may require including any further documentation needed. The Member is strictly prohibited from communicating any information in relation to the knowledge or suspicion of anti-money laundering or terrorist financing activities to any other person other than the MLCO. Most importantly, the Member must not make the client aware of his suspicions and must not give any indication to the client that a report may be submitted to the authorities or that an investigation is currently being carried out by the authorities. 15 6. RESPONDING TO THE CYPRUS BAR ASSOCIATION’S REGULATORY CONTROLS The Member shall promptly respond to any notification by the Regulatory Officer in relation to the conducting of an on-site regulatory control. The Member shall not prevent or obstruct in any manner the duties of the Regulatory Officer during the on-site control and shall give access to such files as may be requested by the Regulatory Officer in the course of the on-site control. The Member shall not disclose to the Regulatory Officer any privileged information or any other correspondence between the Company and any of its Clients. Where the Regulatory Officer identifies and addresses to the Member elements of noncompliance with the provisions of the Law and/or the CBA Directives, in relation to the records of any of the Clients, the Member shall immediately take all necessary actions to rectify the incidences of non-compliance and shall notify the Regulatory Officer accordingly. The Member shall keep a record of all on-site controls taking place in the Company and shall at all times provide the MLCO and the Company of an updated copy of the said record. The Member shall in particular record a summary of the on-site control, including the notification by the CBA regarding the on-site control, the name of the Regulatory Officer, the date of the on-site control, the box files and/or electronic files that have been reviewed and a copy of the Regulatory Officer’s report, and where recommendations have been made the Member shall provide details of all errors located and all actions taken to rectify same. The Member shall not allow the conducting of an on-site control by the CBA and/or a Regulatory Officer unless a notification has been given to the Company in advance, informing of the date and time of the onsite-control, its purpose and the provision of the Law and/or the CBA Directives by virtue of which the on-site control will be conducted. 7. EDUCATION AND TRAINING The Company wishes to ensure that all of its Members are properly educated and updated with the national regulatory anti-money laundering framework. The person responsible for training the Members is the MLCO who shall conduct relevant training sessions or seminars and prepare reports on a regular basis, in accordance with the duties imposed on him by the present manual. The Members are advised to invariably attend all seminars and to examine thoroughly any new instructions issued by the MLCO. 16 Further to any training sessions, all Members are encouraged to contact the MLCO at any time in relation to any enquiries regarding the due diligence procedures contained herein. In addition to that, the Members shall not hesitate to consult the MLCO in relation to any suspicious transaction they become aware of regardless of any doubts they may have as to the grounds of their suspicions. III. THE MONEY LAUNDERING COMPLIANCE OFFICER 1. THE ROLE OF THE MLCO The Law requires that the Company appoints an MLCO and the Company appoints at least one person to be MLCO. The MLCO is the primary responsible towards the implementation of the Directive, any other subsequent Directives issued under the Law and all other relevant instructions and recommendations. The MLCO is a person with good knowledge of the Law and the requirements of the Directive and is competent to receive by the Member and consider information that gives rise to knowledge or suspicion of engagement in money laundering activities and to perform the duties set out in this manual. The Company may appoint a person to be the Deputy MLCO who shall perform the duties and obligations set out by this manual for the MLCO in his/her absence and generally assist the MLCO when needed. 2. THE DUTIES OF THE MLCO 2.1 General Duties The MLCO shall act honestly and reasonably. The MLCO must report to the Company any instances of non-compliance on behalf of any Member with the provisions of the Law and/or the Directive and/or this manual and/or any other instructions given to him/her and the Company by MOKAS or the CBA. The MLCO is empowered to obtain from all partners and employees of the Company all relevant information in connection with any suspicion of money laundering or terrorist financing. The MLCO is liable for any errors and/or omissions regarding his/her duties as MLCO, including validation of reports he/she receives on suspicions of money laundering and reporting them to MOKAS. He/she will not be liable if he/she acts in good faith. 17 All reports to MOKAS upon commencement of and during investigation should be made by the MLCO. All requests from MOKAS for information or documents must be passed to the MLCO, who shall provide assistance to and fully cooperate with MOKAS. The MLCO should acquire the knowledge and skills required and continually monitor and improve the company’s Procedures for recognising and reporting money laundering suspicions. The Company acknowledges that on-going monitoring is an essential aspect of effective money laundering preventive procedures. The MLCO is required to prepare an Annual Report within two months from the end of each calendar year and submit it to the Company. The Annual Report should deal with money laundering preventive issues pertaining to the year under review and include at least the following information: 2.2 Information on changes in the Law, the Directive or any other relevant legislation, guidelines or regulation that affect the Due Diligence Procedures which took place during the year and measures taken and/or introduced for securing compliance with such changes; Information regarding the application of this manual and on the ways by which the effectiveness of the clients’ identification and due diligence procedures have been managed; Details of all on-site controls conducted by the CBA and all recommendations given thereafter, as well as all actions taken in accordance with the said recommendations; Details of all suspicious cases reported to MLCO and their evaluation; Details of all suspicious cases reported to MOKAS and all communications with MOKAS; Details of seminars and training courses arranged for the employees of the company, including attendance list; Information regarding seminars and training courses attended by the MLCO and any other education material received; Recommendations for additional human and technical resources which might be required. Duties in relation to suspicious transactions Immediately upon being informed of knowledge or suspicion of money laundering the MLCO must gather and validate or the relevant facts and consider all the relevant issues. The MLCO should consult the reporting person, and, if appropriate, the reporting person’s superior(s). The evaluation of the 18 information reported to the MLCO must be recorded by the MLCO and retained on a special file opened for this purpose. If, after considering all evidence and circumstances, the MLCO concludes that the initial suspicions were justified he/she must submit a written report to MOKAS without delay. A specimen of such a report is attached as Appendix A. The report shall be accompanied by copies of all client identification documents in possession of the Company as well as all documentation related to the suspicious transaction(s) and/or activity(ies). The MLCO is responsible for the preparation of any set of documents/information/report that would be submitted to MOKAS. In particular, sufficient information should be disclosed in order to be understandable by MOKAS and if a particular offence is suspected this should be specified. Where additional relevant evidence could be made available, the nature of the evidence should be indicated in the report. If, on the other hand, after considering all evidence and circumstances, the MLCO concludes that the initial suspicions were unfounded he/she must fully document and justify in writing the reason(s) for coming to that conclusion. The legislation protects those reporting suspicions of money laundering from claims in respect of any alleged breach of client confidentiality. However, the protection extends only to disclosure of the suspicion or belief that funds derive from money laundering, and to matters on which that suspicion or belief is based. If in doubt, both Members and the MLCO should insist in the law enforcement agencies obtaining a court order before disclosing information beyond that contained in their initial report. Privileged information as prescribed above is protected. The MLCO acts as the first point of contact with MOKAS upon commencement of and during an investigation as a result of filing a report to MOKAS. The contact details for delivery of reports to MOKAS are as follows: Unit for Combating Money Laundering (MOKAS) Law Office of the Republic 27 Katsoni Street CY-1082 NICOSIA Tel: 22446 004 Fax: 22 317063 E-mail: [email protected] 2.3 Duties in relation to the training of Members The MLCO is responsible for the education and training of Members and for ensuring that they are always updated with any changes in the Law, the Directive or any other relevant legislation, recommendation or instruction 19 In particular, the MLCO is required to: To carry out regular training sessions so as to ensure that all Members are well informed and up-to-date with the requirement of the Law, the Directive or any other relevant legislation, recommendation or instruction; To provide advice, answering any questions, giving directions and supervising the Members in any matter relating to the due diligence procedures To individually inform each new Member of the provisions of the Law and the Directive and the procedures adopted by the present manual as well as the duties imposed on them as a result thereof; To individually inform each new Member of the implications of noncompliance with the Law and the Directive as well as the regulatory procedures prescribed under the January 2014 Directive and all implications of non-compliance; Be informed at all times of all changes or updates in the Law, the Directive or any other relevant legislation, guidelines or regulation that affect the Due Diligence Procedures, and to inform and educate all Members accordingly; To review the nature of the activities of the clients and assess potential suspicious transactions and to communicate same to the Members so as to assist them in the implementation of the recognition of suspicious transactions procedure described above; To keep a record of all recommendations provided by the Regulatory Officer and to use same so as to provide further assistance in the form of examples in relation to the client identification procedures; To keep a record of all suspicious cases reported to MLCO and their evaluation, as well as of all suspicious cases reported to MOKAS, and to use same so as to provide further assistance in the form of examples in the recognition of suspicious transactions; 20 APPENDIX A Money Laundering Compliance Officer’s Report to the Unit for Combating Money Laundering (MOKAS) I. GENERAL INFORMATION Name of reporting firm: Contact details: Address: Telephone number(s): Fax number(s): E-mail address: Date when a business relationship started or a one-off transaction was carried out: Types of services offered to client: II. DETAILS OF NATURAL PERSON(S) AND/OR LEGAL ENTITY(IES) INVOLVED IN THE SUSPICIOUS TRANSACTION(S)/ACTIVITY(IES) (A) Natural persons Name: Residential address: 21 Business address: Occupation: Date and place of birth: Nationality and passport number: (B) Legal persons Company’s name: Jurisdiction: Registration number: Business address: Main activities: Registered Shareholder(s) (please provide (if known) the following: name, surname, nationality and passport number, date of birth, residential address, occupation and employer): 1. 2. 3. Beneficial owner(s) (please provide (if known) the following: name, surname, nationality and passport number, date of birth, residential address, occupation and employer): 1. 22 2. 3. Director(s) (please provide (if known) the following: name, surname, nationality and passport number, date of birth, residential address, occupation and employer): 1. 2. 3. III. FULL DESCRIPTIONS AND DETAILS OF TRANSACTIONS/ACTIVITIES AROUSING SUSPICTION: IV. REASONS FOR SUSPICION: 23 V. OTHER INFORMATION: Client’s accounts with domestic, international or foreign banks (if known) Other information the MLCO wishes to bring to the attention of MOKAS (if any) ___________________________________________ MONEY LAUNDERING COMPLIANCE OFFICER’S SIGNATURE Date: 24