Anti-Money Laundering and Know Your Customer Policy
Anti-Money Laundering (AML) refers to the legal controls put in place to prevent, detect and report money laundering activities, where illegally obtained funds are disguised as legitimate income. Countering the Financing of Terrorism (CFT) refers to the legal controls put in place to prevent, detect, and report the solicitation, collection or provision of funds with the intention that they may be used to support terrorist acts or organizations. For convenience, this document refers below to AML/CFT collectively as “anti-money laundering.” As a financial institution, TransRole has an obligation and a legal responsibility to prevent and detect money laundering. To achieve this, TransRole has implemented a risk-based AML program to comply with laws and regulations where the firm is active. The firm has also established Sanctions Program in accordance with the Office of Foreign Assets Control (OFAC) and does not provide services to individuals and companies subject to certain sanctions regimes from around the world. It is our policy to deal only with customers that share our commitment.
TransRole needs to prevent money laundering, terrorist financing, and financial crimes as a provider of financial derivatives. In order to strongly recognize the nature and comply with the measures of related laws and regulations, TransRole will establish the following policy and thoroughly implement customer confirmation (KYC). TransRole will monitor changes to laws, sanctions lists, and international financial regulators related to this policy and will update this content as necessary.
The TransRole appoints a general manager in charge of anti-money laundering and prevention of financial support to terrorist organizations, as well as to organize money laundering related information. Under the supervision of this person, anti-money laundering measures are implemented in an organized and accurate manner.
The management team has a proper understanding of risk and actively participates in the preparation, development and implementation of policies that can effectively reduce risk.
The TransRole may use the resources of the TransRole affiliates or third parties to implement the Policy. If necessary to ensure the proper implementation of the Policy, the TransRole may enter into contracts with its affiliates or third parties.
The TransRole will continue to provide training to our employees to improve their knowledge and awareness of anti-money laundering and the prevention of financial support for terrorism.
To ensure that the training provided to our employees is of an appropriate quality, the manager will develop the training content (including themes, implementation methods and schedules) annually and keep training records of each employee.
The staffs will learn the examples of different forms of money laundering /terrorist financing and learn the way for recognizing these illegal behaviours and stopping these activities and reporting to their authorities.
In addition, the TransRole will examine the TransRole’s operations on an annual basis to determine if additional training is required for specific employees.
TransRole will keep education and training the new AML/CFT related laws or changes to existing AML/CFT related policies or practices to relevant employees.
Customer Due Diligence (CDD) shall be conducted on each prospective Customer before providing a Service to such prospective Customer. TransRole shall not share any anomalies of a CDD review with Customers (other than a statement notifying the prospective Customer that he/she has not satisfied TransRole’s requirements). In the event business relations are established prior to completion of TransRole ‘s due diligence procedures, the reasons and process for managing money laundering and terrorist financing risks shall be documented and approved by the Risk Committee.
In general, CDD comprises the following activities:
*Identifying the prospective Customer by obtaining certain information;
*Verifying the identification information obtained; and
*Reviewing the earlier Customer transactions in the case of refresher CDD.
*TransRole takes the following measures to conduct CDD (parentheticals identifying parties responsible):
Gather CDD data from prospective Customers, including such additional information deemed appropriate after TransRole’s has reviewed.
Collect internet protocol addresses from each Customer. TransRole’s retains a record of each Customer’s internet protocol address (Operations Manager);
Review the CDD data collected (Compliance Manager);
Conduct politically exposed persons (“PEP”) and sanctions screening checks, plus any additional detailed due diligence considered necessary.
*PEPS is not able to use the service of TransRole.
Based on the foregoing, approve or reject the prospective Customer’s application to use Services, including documenting such approval/rejection. (General Manager)
TransRole acknowledges that, while TransRole may delegate certain tasks to third parties, ultimate responsibility for any Customer or the CDD measures taken shall remain the responsibility of TransRole.
CDD records shall be maintained for a minimum of seven years after the later of
(i) a Customer’s onboarding or
(ii) a rejection of a prospective Customer or Customer’s application to use Services.
TransRole shall comply with applicable law regarding the storage and safe-keeping of CDD records.
It is a basic legal requirement that CDD information be kept up to date. Pursuant to TransRole’s terms of business with Customers, Customers are required to notify TransRole in writing of certain changes (if any) to their information. Upon such notification, TransRole will conduct a new Review on the Customer prior to any new transfers of funds by the Customer to a stored value facility.
In addition, TransRole’s will require Customers to undergo mandatory refresher CDD on a periodic basis. At a minimum:
*Customers who were approved on the basis of Simplified Due Diligence will undergo refresher CDD every three years.
*Customers who were approved on the basis of Regular Due Diligence will undergo refresher CDD every two years.
*Customers who were approved on the basis of Enhanced Due Diligence will undergo refresher CDD every year.
In accordance with the Notice, TransRole conducts CDD utilizing a risk-based approach. TransRole ‘s approach varies depending on the risk assessment of a prospective Customer provided, however, that the application of an initial risk assessment constitutes a refutable presumption which may be overridden by the Risk Committee.
An initial risk assessment of a prospective Customer is conducted based on the nationality and jurisdiction of residence of the prospective Customer. The Customer’s transaction activities shall determine the ongoing statistical risk which will go along with the initial risk assessment to complete an overview of the Customer’s risk assessment.
In all cases, TransRole will obtain the information. In addition, TransRole may collect such other information as it may deem appropriate.
Prospective Customers shall submit the information to TransRole via its website. The information will first be reviewed by the Marketing Manager (the ” TransRole’s Review”). TransRole uses World-Check by Refinitiv for its sanctions list screening.
In cases which require Enhanced Due Diligence, certified documents must be certified by a qualified third party such as a notary public or practicing CPA. It must sign and date the copy document (printing his/her name clearly in capitals underneath) and clearly indicate his/her position or capacity on it and provide his/her contact details. It must also state that it is a true copy of the original document. The completion of this exercise will be documented by TransRole.
In addition, TransRole will establish, by appropriate and reasonable means, the source of wealth and source of funds of the prospective Customer by requesting proof. Proof of sources of wealth/funds may be achieved by any collection of documents that explains where the funds transferred to a stored value facility originated.
In the event the TransRole Review finds any anomalies, (i) the application of the prospective Customer to use Services will be provisionally declined (subject to a further review by the Risk Committee, which may include additional procedures being undertaken).
All documents, information and details obtained shall be further verified through independent 3rd party sources to ensure authenticity. Further clarification should be sought from the applicant for any discrepancy and/or inconsistency. 3rd party sources would include screening identities through services such as Refinitiv WorldCheck or public sources for adverse news.
TransRole shall record the disposition of all prospective Customer applications.
Companies operating under the AML obligation have to implement the Know Your Customer procedures. According to KYC procedures, customer information must be collected during customer account opening, and the accuracy of customer information must be checked.
KYC policies have essential functions in the fight against financial crimes. The client onboarding process plays a key role in detecting suspicious activities involving money laundering and terrorist financing risk. The importance of KYC is also stated in the European Union Directives and Financial Action Task Force proposals.
Companies have to apply risk assessment to customers according to the risk-based approach. One of the methods used in risk assessment is a sanction, PEP, and adverse media scanning.
Controls to be applied in customer account opening processes according to regulatory requirements:
*Collection of customer information and checking accuracy.
*Determination of customer risk level by applying Customer Due Diligence and, if necessary, Enhanced Due Diligence procedures.
*Development of a control program suitable for the customer’s risk level.
One of the controls to determine the customer’s risk level is sanctions, PEP, and Adverse Media checks. Financial institutions check whether a sanction decision is applied to the customer to open an account not to violate the sanction decisions. Apart from that, Politically Exposed Persons are high-risk customers for financial institutions. According to Financial Action Task Force (FATF), a PEP is: a person who is or has been in the executive, legislative, military, administrative or judicial branch of the government. A variety of crucial risk data, such as PEP status, adverse media stories, and relevant international sanctions or watch lists are analyzed and monitored all the time.
PEPs are forbidden to open accounts in TransRole. TransRole also checks frequently by Anti-Money Laundering officers’ information in case the status of customers are changed.
CDD (Customer Due Diligence) verification is not only used in the registration of new users, but also continuously reviewed by our employees.
Customers are required to submit the following documents in order to comply with this standard policy:
*Identification
A clear copy of the front and back of a government-issued photo ID (passport, driver’s license, national ID,
etc.)
*The customers also have to hold their ID, show today’s date and take the selfie for verification.
*Residence certificate
Official certificates issued within 3 months (water, electricity, landline invoices or bank balance certificates,
etc.). The following information is clearly stated
*Customer’s name
*Customer’s address (including building name and street address)
*Official logo or stamp of the issuing agency
If the applicant is a company or organization, they will be required to submit a list of officers and shareholders and other necessary due diligence documents. In addition, in some countries and regions with different regulatory requirements, we may request additional documentation.
Deposits and withdrawals may not be accepted after the ID card and residence permit have expired. Therefore, clients should submit a copy of the latest ID card and residence permit within the validity period.
Withdrawals cannot be made until customer confirmation has been received and approved. Additionally, for transactions made prior to receipt and verification of customer verification, losses or profits may be cancelled and, in some cases, accounts may be deleted.
※The following countries and regions are not eligible for TransRole’s service.
United States of America, Canada,
Antarctica, Albania, Afghanistan, Aland Islands, American Samoa, Angola, Anguilla, Antigua
Barbuda, Barbados, Belize, Benin, Bhutan, Bonaire (including Sint Eustatius and Saba), Bouvet Island, British Indian Ocean Territory, Burkina Faso, Burundi,
Cambodia, Cape Verde, Cayman Islands, Central African Republic, Chad, Cocos (Keeling) Islands, Comoros, Congo, Democratic Republic of, Congo, Republic of, Cook Islands, Crimea, Cuba, Curacao,
Djibouti,
Equatorial Guinea, Eritrea,
Faroe Islands, Fiji, French Guyana, French Polynesia, French Southern Territories,
Gabon, Gambia, Greenland, Grenada, Guadeloupe, Guinea, Guinea-Bissau, Guyana,
Haiti, Heard Island and McDonald Islands, Holy See (Vatican City State),
Iran, Iraq, Ivory Coast (Côte d’Ivoire),
Kiribati, Kosovo, Kyrgyzstan,
Lao People’s Democratic Republic, Lebanon, Liberia, Libya,
Macao, Mali, Malta, Marshall Islands, Martinique, Mauritania, Mayotte, Micronesia, Federated States of, Montserrat, Morocco, Myanmar,
Nauru, New Caledonia, Nicaragua, Niger, Niue, Norfolk Island, North Korea, Northern Mariana Islands,
Palau, Palestinian Territory, Papua New Guinea, Reunion, Philippines, Pitcairn, Rwanda,
Jamaica, Jordan,
Saint Barthelemy, Saint Helena, Saint Kitts and Nevis, Saint Lucia, Saint Martin, Saint Pierre and Miquelon, Saint Vincent and the Grenadines, Sao Tome e Principe, Seychelles, Sierra Leone, Sint Maarten, Solomon Islands, Somalia, South Georgia and the South Sandwich Islands, Sudan (North and South), Suriname, Svalbard and Jan Mayen, Syria, Republic of Kosovo,
Tajikistan, Timor-Leste, Togo, Tokelau, Tonga, Turkey, Turkmenistan, Turks and Caicos Islands, Tuvalu
Vanuatu, Venezuela, Wallis and Futuna, Western Sahara, Western Samoa
Uganda, Yemen
Zambia, Zimbabwe
It is strictly forbidden to send or receive payments as consideration for the sale or supply of: tobacco products, prescription drugs, drugs and drug paraphernalia, weapons (including without limitation, knives, guns, firearms or ammunition), satellite and cable TV descramblers, pornography, adult material, material which incites violence, hatred, racism or which is considered obscene, government IDs and licences including replicas and novelty items and any counterfeit products, unlicensed or illegal lotteries or unlicensed or illegal gambling services (including without limitation the use of or participation in illegal gambling houses), unregistered charity services, items which encourage or facilitate illegal activities, prepaid debit cards or other stored value cards that are not associated with a particular merchant and are not limited to purchases of particular products or services, third party processing or payment aggregation products or services, multi-level marketing, pyramid selling or ponzi schemes, matrix programmes or other “get rich quick” schemes or high yield investment programmes, goods or services that infringe the intellectual property rights of a third party, un-coded/miscoded gaming, timeshares or property reservation payments (On and Off Plan). TransRole reserves the right, in our sole discretion, to add categories of prohibited transactions by adding such categories either to these Terms of Use or an acceptable use policy published.
It is strictly forbidden to use your Account for any illegal purposes including but not limited to fraud and money laundering. TransRole will investigate and report any suspicious activity to the relevant law enforcement agency.
As part of the TransRole pre-requisite review, TransRole uses World-Check by Refinitiv and US Specially Designated Nationals List (SDN) to screen each prospective Customer against certain sanction watch list databases. In the event of a screening hit, TransRole will exercise its discretion and judgment to determine whether the prospective Customer should be treated as a PEP, having regard to the risks and circumstances of each case. TransRole may decide to conduct Enhanced Due Diligence on the prospective Customer, conduct additional procedures or escalate the case to the Compliance Manager for a decision as to whether TransRole will onboard the prospective Customer.
The rationale for approving a prospective TransRole with such a screening hit shall be documented.
In addition to PEP status, factors such as the age and nature of a screening hit may be considered to present a greater or lesser risk of money laundering and terrorist financing. Attention will be paid to TransRole applications and transactions with TransRole from or residing in countries that have inadequate anti-money laundering/countering the financing of terrorism measures.
All AML-related procedures and documents, including the format of identity verification and its results. TransRole will keep these documents for 5 years (according to the relevant regulatory requirements). Under Bank Secrecy Act (BSA) and AML it is 5 years.
*Under BSA regulations, financial institutions must file and store customer currency transactions. These files must be presented to supervisory agencies during the audits. Transactions worth more than $ 10,000 must be reported to FinCEN.
There are 4 criteria to assist TransRole’s employee to monitor our customers’ transaction activities.
1. Transactional behavior: Abnormal transaction activities: high frequencies of transaction in a short period of time or the rapid deposit and withdrawal of funds into a recently opened account, etc.
2. Geographical risks: transaction to high-risk countries or jurisdictions, or the receiver is a resident.
3. Structured transactions: Several transactions in amounts which would not trigger warning value.
4. Anonymous transactions: Anonymous transactions are forbidden in TransRole. All of our users are required to use a real-name.
TransRole will monitor the personal information and transaction status which are provided by our customers. Personal information includes contact information of job titles, companies and organizations. We will continue to scrutinize whether all transactions or transaction patterns performed by our customers are in line with this policy and pay particular attention to all transactions that have no economic or legal purpose.
TransRole builds a system in which our employees should always pay attention to the signs of financial crime. TransRole will pay special attention to all complex, unusually large or unusual patterns of transactions undertaken by the Customer, particularly any transactions that have no apparent or visible economic or lawful purpose. Our employees will immediately report suspicious customers, transactions, etc. to the general manager and apply enhanced due diligence information, such as customer information and transaction status, that is collected by TransRole through monitoring and recording. TransRole manages and stores the records safely.
TransRole’s staff must report suspicions concerning any Customer, the source of funds or a transaction immediately to the Compliance Officer, who shall be responsible for determining next steps, documenting the disposition of the case and reporting suspicious activities to the appropriate authorities (as necessary). The report must be made to the Suspicious Transaction Reporting Office, under the Commercial Affairs Department of the Local police Force, as soon as it is reasonably practicable after the matter comes to the Compliance Officer’s attention.
By raising such suspicions with the Compliance Manager, TransRole’s staff will discharge his/her legal duty to make a report and the Compliance Manager will then take on responsibility for escalating the issue as appropriate.
It is critical that TransRole’s staff member do not:
a. Express their suspicion within earshot of others;
b. Discuss the matter with any of their colleagues, including their manager, either before or after notification;
c. Discuss the matter with the Customer or any of his/her affiliates or professional advisors.
Any of the above could cause a TransRole’s staff member to commit the offence of “tipping off” which carries a prison sentence or a fine in many jurisdictions.
Overall, it’s important for TransRole to carry out the AML policy and to promptly respond to the detection of suspicious activity and correctly form a compliant declaration—Suspicious Activity Report (SAR). A Company must specify the necessary information that needs to be mentioned in the report alongside the deadlines. As an example, BSA gives 30 days to file a report before issuing a fine.
All deposits shall be made in Customer’s own name. If the name of the sender does not match the name of the personal information submitted by the customer, TransRole will consider this as a deposit from a third party and will not accept payment.
All withdrawals of funds will be made in the same way as deposits. This means that if a withdrawal request is made for funds deposited by bank transfer, they will be returned to the same source. Similarly, if a withdrawal request is made for funds deposited with a credit card, it will be returned to the same credit card.
We will not accept cash deposits under any circumstances and will not make cash payments when a withdrawal request is made.
Customer’s account is subject to withdrawal limits. These limits are adjusted dynamically depending on the type of identification documentation TransRole holds on our customer. Customers can view their withdrawal limits at any time in their Account profile.
If Customers’ withdrawal request exceeds the current limit, TransRole may decline customers’ request and instead require Customer to send us documents verifying Customers’ identity and address prior to allowing a withdrawal of funds or to otherwise cooperate with us to verify your identity.
Deposits and withdrawals may not be accepted after the ID card and residence permit have expired. Therefore, clients should submit a copy of the latest ID card and residence permit within the validity period.
Developed Date: 2022,03,23
Revised Date: 2022,08,23