ANTI-MONEY LAUNDERING POLICY & PROCEDURES

 
ANTI-MONEY LAUNDERING POLICY & PROCEDURES
Know Your Customer and Anti Fraud Policy

1. Introduction

Global policies on prevention of money laundering are regulated by International Monetary Fund (IMF). The aim of the organization is “protecting the integrity and stability of the international financial system, cutting off the resources available to terrorists, and making it more difficult for those engaged in crime to profit from their criminal activities”. The Prevention of Money Laundering Acts worldwide require all intermediaries associated with securities market to maintain a record of all transactions, the nature and value of which has been prescribed under the rules notified under the Prevention of Money Laundering Act.

DNFINDER (hereinafter referred to as ‘DSL’ or ‘the Company’), hereby adopts and bring into effect this Anti Money Laundering Policy & Procedures (AML Policy & Procedures) in accordance with the global provisions made to prevent money laundering, and the rules made under IMF including the Guidelines and Circulars issued from time to time on this subject. This policy applies not only to money laundering, but also to terrorist financing. All references to money-laundering in this policy, company policies and procedures and standards include terrorist financing as appropriate.

Financial Action Task Force (FATF) laid the international standard for the fight against money laundering and the financing of terrorism. FATF is a 33-member organization with primary responsibility for developing a world-wide standard for anti-money laundering and combating the financing of terrorism.

2. Due Diligence Policy

The global policies laid out in AML referendums worldwide shall be complied with by the The Company at all times in letter and spirit. The provisions of all relevant laws, rules, regulations, guidelines and circulars issued by regulatory authorities in relation to anti-money laundering are met by the Company’s policies & procedures.

In order, to ensure that DNFINDER’s services are not utilized by unwanted and illegal elements to further their illegal motives, DNFINDER intends to follow a holistic Due Diligence Policy which entails the following:

Identification of clients (and actual beneficial owners) and verification
Obtaining additional ‘know your client’ information as appropriate and necessary
Maintain appropriate records of customer identification and trail of transactions
Co-operate with the regulatory authorities to the extent required by the applicable laws and provide information as may be required, without breaching the customer confidentiality agreement
Give appropriate training to the relevant staff for effective implementation of the AML Policy & Procedures
The objectives of this Policy are to:
Prevent and deter the use of the Company/Company’s services by money launderers or those involved in criminal activities including financing of terrorism and to protect the reputation of the Company.
Protect the Company and its employees against unfounded allegations of facilitating money laundering and terrorist financing;
Protect the Company and its employees against any criminal, civil and regulatory actions which might result from inadvertent involvement in money laundering and/or terrorist financing or from failure in operational controls.
The Due Diligence Policy involves the following three specific parameters:
1. Customer Acceptance Policy
2. Customer Identification Procedure
3. Highlighting Suspicious Transactions.

2.1. Customer Acceptance Policy

One of the best methods of preventing and deterring money laundering is a sound knowledge of a customer’s business, Ultimate Beneficial Owner, and pattern of financial transactions
To achieve the object of total transparency and prevent illegal activities on our trading platforms, DNFINDER has a clear policy of the kind of customers that it shall accept:
Before admitting any person as a Customer, the Company shall obtain sufficient information, in order to identify the customer. The same will be done for all existing customers as well. This is done by obtaining ‘Know Your Customer’ (KYC) information. Passport details or Foreign Identification Numbers will be mandatory while making an account. Each client shall have only one account.
KYC shall not only be limited to knowing the clients, but also the Ultimate Beneficial Owners (UBOs), Legal Representatives and Authorised Signatories as appropriate. KYC information should be updated on a regular basis during the course of business relationship
The customer should be identified by the company using documents/information from reliable sources. Provisions will be made to identify politically exposed persons (PEPs) and clients from countries or industries deemed high risk and measures will be taken accordingly.
Any customers whose registration information does not match the documents provided or appears to be fictitious may not be registered, and if already registered, their registration shall be terminated.
No customers shall be allowed to register in fictitious names or if the customer appears to be an anti social element or is found to have a record of fraud, cheating or forgery.
Company may ask for additional information at any point of time and if the customer refuses or is unable to provide such additional information then such customer shall not be registered, and if already registered, their registration shall be terminated.
Ongoing due diligence and scrutiny – DNFINDER shall conduct periodic due diligence and scrutiny of client’s transaction and accounts to ensure that transactions are being conducted in knowledge, to find out the risk profile, source of funds, etc. At regular interval, ongoing due diligence and scrutiny needs to be conducted i.e. perform ongoing scrutiny of the transactions and account throughout the course of the business relationship to ensure that the transactions being conducted are consistent with the Organization’s knowledge of the client, its business and risk profile, taking into account, where necessary, the customer’s source of funds.

2.2. Customer Identification Procedure

Customer identification procedure is a means of verifying the identity of the customer by using reliable, independent source documents, data or information. DNFINDER needs to obtain sufficient information necessary to establish, to its satisfaction, the identity of each new customer, whether regular or occasional, and the purpose of the intended nature of relationship.
DNFINDER shall have in place a comprehensive Customer Identification Procedure which details the various documents that DNFINDER can take as Identity, Address proof. This document shall be updated with approvals from compliance and with subsequent ratification by the Board of Directors
DNFINDER may ask for periodical updating of customer identification and other data after the account is opened
For Individuals
  • National/International Drivers License
  • Passport (Front and Last page)
  • Local voters ID Card (Front and Back)
  • Bank Statement from all recognized banks
For Corporates
  • Certificate of incorporation and Memorandum & Articles of Association
  • Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account
  • Power of Attorney granted to its managers, officers or employees to transact business on its behalf

    • - PAN number

    - Copy of the telephone bill

 For Partnerships
  1. Registration certificate, if registered; 
  2. Partnership deed 
  3. Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf 
  4. Any officially valid document identifying the partners and the persons holding the Power of Attorney and their addresses
  5. Telephone bill in the name of firm/partners
For Trusts and Foundations
  1. Certificate of registration, if registered
  2. Power of Attorney granted to transact business on its behalf
  3. Any officially valid document to identify the trustees, settlers, beneficiaries and those holding Power of Attorney, founders/managers/ directors and their addresses
  4. Resolution of the managing body of the foundation/association
  5. Telephone bill
For Proprietorship Concerns
  1. Registration certificate (in the case of a registered concern)
  2. Certificate/licence issued by the Municipal authorities under Shop & Establishment Act
  3. Sales and income tax returns
  4. Goods and Services Tax certificate
  5. Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities
  6. Licenses issued by the local registering authority. For example: Certificate of Practice issued by Institute of Chartered Accountants of India.
Proof of Address: All customers shall have to provide scanned copies of at least one of the documents below as proof of address. DNFINDER shall accept the following documents as proof of address:
  1. Local/International Driver’s License
  2. International Passport
  3. Local voter’s Identity Card
  4. Utility Bills (Landline, Electricity, Gas) not older than 3 months.
  5. Lease Agreement or Leave and License Agreement shall be accepted only as a proof of temporary residence if provided along with any of the above documents in this sub-clause as proof of permanent address.
  1. Authenticity Check: Dnfinder has no mandatory policy of meeting the clients individually. However, Dnfinder will be enabling customers to submit their documents in person during meet-ups and/or workshops held across the globe which would allow for another level of direct KYC verification.
  2. One to One Interaction: Dnfinder may, and shall be under no obligation to, check that the documents provided by the customers as proof of identity and proof of address are authentic by cross checking them against freely available public databases.
General Conditions: While providing documents to fulfill the User Identification Policy, customers should keep in mind the following:
  1. Please upload clear scanned copies only. Scanned images should be in color and in high resolution (at least 300 dpi) however the file size should not be greater than 15 MB. Acceptable formats for the scanned copies are JPG, GIF, PNG, TIFF or PDF.
  2. All documents should be valid on the date of submission and should not have expired.
  3. In case address proof submitted is not in the name of applicant then an additional document supporting the relationship with the addressee should be submitted by email such as marriage certificate, gazette copy of name change or passport, visa etc. stating name of spouse/ guardian & their relationship.

2.3. Highlighting Suspicious Transactions

Prohibited Activities: DNFINDER may conduct manual checks to ensure that no customer is indulging in Prohibited Activities; these checks may in future become automated. The Prohibited Activities for the purposes of this policy shall include:
  1. Fraud: any act or omission, including a misrepresentation that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation.
  2. Corruption: offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the action of another party.
  3. Collusion: arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party.
  4. Terrorist financing: provision or collection of funds, by any means, directly or indirectly, with the intention that they should be used or in the knowledge that they are to be used, in full or in part, in order to carry out any of the offences within the meaning of
  5. Criminal conduct: conduct, which constitutes an offence in any part of the world or would constitute an offence in any part of the world if it occurred there.
  6. Money laundering: Money laundering is essentially the process of engaging in such financial transactions that are designed to conceal the true origin of criminally derived proceeds for the purpose of ensuring that such proceeds appear to have been received through legitimate sources/origins. What is considered money laundering?
    “Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money-laundering.”
Actions: In case, DNFINDER becomes suspicious that any customer is engaging in any Prohibited Activities DNFINDER reserves the right to terminate the account of the customer and prevent such customer from undertaking any further actions on any of DNFINDER’s services, existing or in future. DNFINDER shall further be fully entitled, if it so chooses, to report such suspicious activities to the appropriate authorities.