ANTI-MONEY LAUNDERING (“AML”) POLICY
This policy (“Policy”) applies to all Green Ball Trading Ltd (“Company”) officers, employees, appointed producers and products and services offered by Green Ball Trading Ltd. All business units and locations within Green Ball Trading Ltd will cooperate to create a cohesive effort in the fight against money laundering. The policy of the Company is to not enter into business relationships with criminals or terrorists, process transactions which result from criminal or terrorist activity or facilitate any transactions involving criminal or terrorist activity including the financing of terrorism. The Company will endeavor to implement all policies and procedures necessary to prevent the laundering of money and to comply with all applicable legislation in those countries where the Company conducts its business.
The directors, officers and employees of the Company shall at all times make every effort to maintain the highest standards of ethics, integrity, and prudence in the Company’s operations and administration so as to ensure that the Company creates and maintains a good reputation and standing. The AML policies and procedures to be adhered to by the Company are contained in this document and any amendments thereto.
Money laundering is the process by which criminals attempt to conceal the true origin and ownership of the proceeds of their criminal activities. The laundering of money is achieved by the placement of the money launderer’s cash into the financial system, by creating complex layers of financial transactions to disguise the origin of the assets and by integration of the laundered proceeds into the economy as legitimately derived funds. Money laundering is often thought of or associated with drug activity (smuggling, distribution, sales). However, terrorism, tax offences, bribes and a broad range of criminal activities are equally relevant.
A wide range of methods is used to launder the proceeds of criminal activity, from purchase and resale of expensive assets to more complex schemes, which involve money passing through networks of companies, often offshore. However, three stages can generally be identified in a money-laundering scheme:
-Placement: This is the physical disposal of cash proceeds derived from criminal activity. For example, the dirty cash may be paid into a financial institution or be used to buy high value goods, property or business assets.
-Layering: Illegal proceeds are separated from their criminal source by creating layers of financial transactions to disguise the audit trail and provide anonymity. For example, goods or other assets may be resold or funds wire-transferred abroad.
-Integration: The laundered proceeds re-enter the financial system as normal business funds. For example, income from property appears “clean”, or a complex series of transfers makes tracing the source of illegal funds extremely difficult.
Specific money laundering provisions for conducting the regulated activities
The following apply to the Company so that suspicions of money laundering may be recognized and reported to the international authorities and so that the Company may produce its part of the audit trail to assist in official investigation. In particular, the Company:
-Must have procedures to verify the identity of new counterparties;
-Must have procedures for employees to report any suspicious transactions;
-Must have record keeping procedures relating to the identity of clients and transactions effected for them;
-Has responsibility to ensure that employees are suitably trained and made aware of the above procedures and in the recognition and handling of suspicious transactions;
-Must appoint a Compliance Officer to whom reports of suspicious transactions are to be made. This person must be free to act on his own authority and to make further investigations to determine whether a suspicion can be discounted or must be reported. The Compliance Officer will be able to delegate duties, but will be responsible for the activities of such delegates; and
-Should stress to its employees the potential for personal liability as well as that of the Company for failure to observe any aspect of the international Regulations.
The Compliance Officer
The Compliance Officer will have responsibility for oversight of its compliance with the International Regulator’s rules on systems and controls against money laundering. The Compliance Officer will have a level of authority and independence with access to resources and information sufficient to enable him to carry out that responsibility.
The Compliance Officer’s responsibilities are:
-Acting as the appropriate person to whom a report is to be made of any information or other matter concerning an employee’s relevant suspicions;
-To report suspicions to the international authorities as he/she considers appropriate;
-To liaise with and respond promptly to any reasonable request for information made by the international authorities;
-Oversight of the Company’s anti-money laundering policies and procedures including upgrading or amending such policies and procedures to conform with changes in the International Regulations;
-Ensuring that all relevant employees are made aware of the anti-money laundering policies and procedures of the Company;
-Ensuring that all relevant employees are made aware of regulations in respect of anti-money laundering;
-Ensuring that all relevant employees receive training in the recognition and handling of transactions carried out by or on behalf of any person who is or appears to be engaged in money laundering;
-Ensuring that all new relevant employees receive training as soon as practicable after their appointment;
-ensuring that the employees, management and directors of the Company adhere to the policies and procedures set out in this manual and
-to take reasonable steps to establish and maintain adequate arrangements for awareness and training.
Compliance with the Company’s anti-money laundering procedures is of the utmost importance. Not only is it important to maintain the Company’s integrity, but failure to comply may constitute a criminal offence and call into question whether or not the Company and the employee concerned is fit and proper to conduct the business for which the Company has been licensed.
The Company’s procedures and obligations
Each business unit and location has implemented risk-based procedures reasonably expected to prevent, detect and cause the reporting of transactions. All efforts exerted will be documented and retained. The AML Compliance Officer is responsible for initiating Suspicious Activity Reports (“SARs”) or other required reporting to the appropriate law enforcement or regulatory agencies. Any contacts by law enforcement or regulatory agencies related to the Policy shall be directed to the AML Compliance Officer.
It is the policy of Green Ball Trading Ltd to prohibit and actively pursue the prevention of money laundering and any activity that facilitates money laundering or the funding of terrorist or criminal activities. Green Ball Trading Ltd is committed to AML compliance in accordance with applicable law and requires its officers, employees and appointed producers to adhere to these standards in preventing the use of its products and services for money laundering purposes.
For the purposes of the Policy, money laundering is generally defined as engaging in acts designed to conceal or disguise the true origins of criminally derived proceeds so that the unlawful proceeds appear to have been derived from legitimate origins or constitute legitimate assets.
Green Ball Trading Ltd has adopted a Know Your Customer (KYC). Green Ball Trading Ltd will provide notice that they will seek identification information; collect certain minimum customer identification information from each customer, record such information and the verification methods and results. The following information will be collected for all new clients:
- Client must approve the Company’s Terms and Conditions
- Provide full name, email address and physical address with zip code
- Confirm that he/she is above eighteen (18) years old
- Provide a valid telephone number
- If a single deposit is One Hundred U.S Dollars (USD 100.00) or above or accumulated deposits are Two Hundred U.S. Dollars (USD 200.00) or above, client will be asked to provide a copy of the front of his/her credit card or other payment mean and a copy of his/her identification document. All the information on the credit card or other payment mean and identification document and other provided documents by client must match. If the credit card information does not match the information of the other provided documents, client must provide a notarized Power of Attorney allowing the use of a third party’s credit card.
- For accumulated deposits of One Thousand U.S Dollars (USD 1,000.00) or above, client must provide a copy of an utility bill which information must match that of the other provided documents.
Based on its assessment of the risk, Green Ball Trading Ltd will ensure that it has a reasonable belief of the true identity of its customers. Green Ball Trading Ltd shall not attempt to determine whether the documents that the customer has provided for identification has been validly issued. For verification purposes, Green Ball Trading Ltd shall rely on a government-issued identification to establish a customer’s identity. Green Ball Trading Ltd, however, will analyze the information provided to determine if there are any logical inconsistencies in the information obtained.
Green Ball Trading Ltd will document its verification, including all identifying information provided by the customer, the methods used and results of the verification, including but not limited to sign-off of matching photo identification with all other documents.
Transaction based monitoring will occur within the appropriate business units of Green Ball Trading Ltd. Monitoring of specific transactions will include, but is not limited to transactions aggregating $2,000.00 or more and those with respect to which Green Ball Trading Ltd has a reason to suspect suspicious activity. All reports will be documented.
Suspicious AML conducts
There are signs of suspicious activity that suggest money laundering. These are commonly referred to as “red flags.” If a red flag is detected, additional due diligence will be performed before proceeding with the transaction. If a reasonable explanation is not determined, the suspicious activity shall be reported to the AML Compliance Officer.
Examples of red flags are: The customer exhibits unusual concern regarding the firm’s compliance with government reporting requirements and the firm’s AML policies, particularly with respect to his or her identity, type of business and assets, or is reluctant or refuses to reveal any information concerning business activities, or furnishes unusual or suspect identification or business documents. The customer wishes to engage in transactions that lack business sense or apparent investment strategy, or are inconsistent with the customer’s stated strategy. The information provided by the customer that identifies a legitimate source for funds is false, misleading, or substantially incorrect. Upon request, the customer refuses to identify or fails to indicate any legitimate source for his or her funds and other assets. The customer (or a person publicly associated with the customer) has a questionable background or is the subject of news reports indicating possible criminal, civil, or regulatory violations. The customer exhibits a lack of concern regarding risks, commissions, or other transaction costs. The customer appears to be acting as an agent for an undisclosed principal, but declines or is reluctant, without legitimate commercial reasons, to provide information or is otherwise evasive regarding that person or entity. The customer has difficulty describing the nature of his or her business or lacks general knowledge of his or her industry. The customer attempts to make frequent or large deposits of currency, insists on dealing only in cash equivalents, or asks for exemptions from the firm’s policies relating to the deposit of cash and cash equivalents. The customer engages in transactions involving cash or cash equivalents or other monetary instruments that appear to be structured to avoid the government reporting requirements for certain amounts, especially if the cash or monetary instruments are in an amount just below reporting or recording thresholds. For no apparent reason, the customer has multiple accounts under a single name or multiple names, with a large number of inter-account or third-party transfers. The customer is from, or has accounts in, a country identified as a non-cooperative country or territory by the Financial Action Task Force. The customer’s account has unexplained or sudden extensive wire activity, especially in accounts that had little or no previous activity. The customer’s account shows numerous currency transactions aggregating to significant sums or client is attempting to use multiple credit cards or other payment means. The customer’s account has a large number of wire transfers to unrelated third parties inconsistent with the customer’s legitimate business purpose. The customer’s account has wire transfers that have no apparent business purpose to or from a country identified as money laundering risk or a bank secrecy haven. The customer’s account indicates large or frequent wire transfers, immediately withdrawn by wire, credit card or other means without any apparent business purpose. The customer makes a fund deposit followed by an immediate request that the money be wired out or transferred to a third party, or to another firm, without any apparent business purpose. The customer makes a fund deposit for the purpose of purchasing a long-term investment followed shortly thereafter by a request to liquidate the position and transfer the proceeds out of the account. The customer engages in excessive transactions between unrelated accounts without any apparent business purpose. The customer requests that a transaction be processed in such a manner to avoid the firm’s normal documentation requirements. The customer, for no apparent reason or in conjunction with other red flags, engages in transactions involving certain types of securities, such as penny stocks, and bearer bonds, which although legitimate, have been used in connection with fraudulent schemes and money laundering activity; such transactions may warrant further due diligence to ensure the legitimacy of the customer’s activity. The customer’s account shows an unexplained high level of account activity with very low levels of securities transactions. Customer exhibits a sudden change in lifestyle or requests client documentation to be delivered to the agent.
High risk countries
The Company will apply heightened scrutiny to clients who owns funds sourced from countries identified by credible sources as having inadequate anti-money laundering standards or representing high-risk for crime and corruption. The Company will apply more stringent standards to the transactions carried out by clients or beneficial owners domiciled in such countries.
Risks associated with entities organized in offshore jurisdictions are covered by due diligence procedures laid out in these guidelines. However, the Company will apply more stringent standards to the transactions carried out by clients or beneficial owners head-quartered in such jurisdictions. Clients and beneficial owners whose source of wealth is derived from activities known to be susceptible to money laundering will be subject to heightened scrutiny. Individuals who have or have had positions of public trust such as government officials, senior executives of government corporations, politicians, political party officials, etc. and their families and close associates will be subject to heightened scrutiny.
Due diligence must be done on all principal owners/beneficial owners identified in accordance with the following principles:
-Natural persons: where an applicant is an individual, the Company must clearly establish, based on information and documentation provided by the client, whether the client is acting on his/her own behalf.
-Legal entities: where the client is a company, such as a private investment company, the Company must understand the structure of the company, based on information and documentation provided by the client, sufficiently to determine the provider of funds, principal owner(s) of the shares and those who have control over the funds, e.g. the directors and those with the power to give direction to the directors of the company. With regard to other shareholders, the Company will make a reasonable judgment as to the need for further due diligence.
Duty to report
There is a statutory and regulatory obligation on all staff to report information which comes to their attention, which gives rise to knowledge of suspicion or reasonable grounds for knowledge or suspicion of money laundering. Thus, even if a member of staff does not actually know or suspect but reasonably should have known or suspected, and does not report, he would be committing an offence. To this end, continuous surveillance for suspicious transactions must be carried out. Knowing its customers is the Company’s most important line of defense in preventing or detecting money laundering activities. It is important that the Company verifies the identity of new counterparties and ensures that they are involved in bona fide business activities and that they share the Company’s high standards of integrity and business practice.
Knowledge in relation to money laundering has been in the past defined widely and includes: willfully ignoring the obvious, willfully and recklessly failing to make inquiries as a reasonable and honest person would make, knowledge of circumstances which would indicate facts to such honest and reasonable person or put them on inquiry. The Company will therefore ensure that staff takes all reasonable steps in the particular circumstances to know the customer and the rationale for the transaction or instruction.
Upon notification to the AML Compliance Officer, an investigation will be commenced to determine if a report should be made to the appropriate law enforcement or regulatory agencies. The investigation will include, but not necessarily be limited to, review of all available information, such as payment history, credit card or other payment mean and address. If the results of the investigation warrant, a recommendation will be made to the AML Compliance Officer to file a SAR with the appropriate law enforcement or regulatory agency. The AML Compliance Officer is responsible for any notice or filing with a law enforcement or regulatory agency.
Investigation results will not be disclosed or discussed with anyone other than those who have a legitimate need to know. Under no circumstances shall any officer, employee or appointed agent disclose or discuss any AML concern, investigation, notice or SAR filing with the person or persons subject of such, or any other person, including executives of the Company, employee’s or appointed agent’s family.
Employees must report any relevant money laundering suspicions to the Compliance Officer. The suspicion should be fully documented, including the name and location of the reporting employee, full details of the client, and an account of the information giving rise to the suspicion. All internal enquiries made in relation to the report, and the reason behind whether or not to submit the report should also be documented. The Compliance Officer should remind the reporting employee to avoid “tipping off” the subject of the reported suspicion, and that information concerning a report should not be disclosed to any third parties. The requirement to report also includes those situations where the business or transaction has not proceeded because the circumstances surrounding the application or proposal give rise to a suspicion of money laundering.
When the suspicion remains after investigation, the Compliance Officer will report to the International Regulator. Any report made by the Compliance Officer or his delegate will not be subject to the consent or approval of any other person. In order to make this assessment, the Compliance Officer will have access to any information in the Company’s possession that could be relevant.