Anti-Money Laundering & Counter-Terrorism Financing
INTERNAL ANTI-MONEY LAUNDERING AND COMBATING THE FINANCING OF TERRORISM
(AML/CFT) POLICY AND PROCESS GUIDELINE
At Sparklers International DMCC, we take AML and KYC requirements very seriously and expect the same standards from our customers. We have a clear procedure for verifying details of our customers and identifying the ultimate beneficial owners of these companies to ensure that these companies follow international standards of AML legislation and practices. As such, we have an internal policy to perform the required checks for the relevant.
Customer Due Diligence (KYC) –
Sparklers International DMCC, identifies its customers by obtaining their valid documents (which are to be updated periodically as required).
A) Local Trading License
B) Managing Director/owner’s Passport copy, whose name is mentioned in the Trading License. This Passport copy must have a clear, name, photograph, confirming their identity, Date of birth and residential address.
C) Tax Registration Certificate
D) VAT Declaration to be obtained for each transaction for the compliance with local VAT laws at the time of that transaction.
E) Relevant contact details of key person
F) Bank details as relevant
2. Supplier’s due diligence (KYS)—
At Sparklers identifying and authenticating a legitimate supplier with appropriate documentary proof is equally important. To establish the authenticity of the concerned organisation (supplier), relevant documents are demanded.
A) License issued by the local authority certifying the organisation’s activity
B) Managing Director/owner’s Passport copy, whose name is mentioned in the Trading License. This Passport copy will be having a clear, name, photograph, confirming their identity, Date of birth and residential address.
C) Local Tax registration certificate
D) Relevant Trade body membership certificate
E) Bank details
F) Contact person’s name, number, email ID
G) Website link
H) Check on organisation’s BPP compliance, KP filing, etc. as relevant
3. REPORTING OF SUSPICIOUS ACTIVITIES AND RECPORD KEEPING –
If Sparklers happens to spot any suspicious business transaction, the policy is in place for the Suspicious Activity Report (SAR) for the Anti-Money Laundering and Suspicious Cases Unit of the UAE Central Bank must be informed. Sparklers may also take the guidance of DDE/WFDB, DMCC or even Dubai Gold & Jewellery Group to establish the appropriate and a timely action, being an associated member of same.
Under Article 15 of UAE Federal Law No. 4 of 2002 Regarding Criminalization of Money Laundering and Art 5.1 of the ESCA circular concerning procedures for AML, Sparklers has the policy to report any suspicious activities or information which may point to transactions, which may be related to illegal activities.
As money laundering and the financing of terrorism methods and techniques are always evolving, the Compliance and Inspection Department will regularly keep itself updated with the Government & DMCC circulars as what are to be considered as red flags for suspicious activities in both money laundering and financing of terrorism. These red flags will be the base on which the SARs should be filed, subject to this Policy. The red flags will also cover the attempted transactions.
While reporting the Suspicious activity to the authority, the compliance officer at Sparklers would take extreme care regards to:
a) fully explaining the reason for the suspicion,
b) not to mention the suspicion to the third party as this may result in divulging the party, subject to prosecution for the offence and to avoid being prosecuted (self) for “tipping off”
c) providing any additional information as may be requested by the relevant authority
d) providing customer information, past financial activities with Sparklers, and audit history for past 5 years (or as amended by the laws time to time)
4. Internal Controls –
Sparklers Int. DMCC has a nominated AML Compliance Officer who has knowledge of regulatory requirements and is responsible for the company’s adherence to AML best practices and the staff’s compliance to AML requirements & CFT regulations. The compliance Officer is also responsible to keep the systems updated and to keep a check that the systems and requirements are followed with no exceptions. The systems are backed up by Auditing and updating.
5. Risk Assessment & Management –
Identifying & evaluating the risk(s) involved in carrying out business transactions with various customers/suppliers. To also define and outline mitigating actions intended to minimize the risks. The Customer Due Diligence and KYC/KYS Process allows Sparklers to assess the clients and suppliers through the Government entities, Bourses, and the law-enforcement sanction-lists. In case the entity is sanctioned by above authorities or and the KYC Process is not substantiated, the business transaction cannot be conducted.
6. Monitoring and management –
Sparklers have the systems in place to implement the policies through the Check lists. As per the policy the transaction cannot take place unless the proper KYC/KYS is performed. Periodically the Internal audit is done to ensure the compliance of the requisite. AML business processes are reviewed and ensured for updating and continuous improvement.
7. Internal Communication and Training –
The Compliance officer of Sparklers is required to ensure that staff has the clear understanding of AML-CFT, Best Practice Principles and that they get regular updates and receive proper training to enhance the awareness for AML-CFT requirements. It is the duty of the officer to train the new staff as per requirement for AML-CFT regulations, at the time of induction.