KYC & AML Procedures
The Administrator is under various legal obligations designed to restrict the ability of criminals to launder the proceeds of their crimes through the financial system in general and in particular, The Winterbotham Trust Company Limited, its affiliates, associates and clients. In this regard Winterbotham seeks to protect its reputation as a prudent and responsible financial services provider and to ensure that all members of staff are fully aware of their obligations, and are meeting these through the introduction of various procedures and policies - a) Principles to be followed; b) Roles and Responsibilities - to promote and encourage adherence to the Suspicious Transaction Guidelines (Anti-Money Laundering Guidelines) issued by the Financial Intelligence Unit, January 2001.
PRINCIPLES TO BE FOLLOWED
Those parts of Winterbotham that operate within various domiciles are obliged to adhere to the requirements to prevent Money Laundering promulgated by the respective Regulators. Generally there are five key principles that must be followed:
- Internal controls, policies and procedures - financial institutions must ensure that policies, procedures and controls are introduced and enforced to deter criminals from using their products and services.
- Customer identification procedures - when opening an account or entering into a business relationship evidence of the identity of the prospective customer must be obtained.
- Reporting of suspicious transactions - members of staff employed by a financial institution must be aware of the need to report those transactions that their customers undertake which they consider suspicious. "Suspicious" can, for practical purposes, be defined as being out of line with the legitimate, normal or expected transactions that the customer undertakes.
- Record keeping procedures - financial institutions must retain records relating to customer identification and transactions for use as evidence in any investigation concerning money laundering.
- Staff education and training - all relevant staff must be aware of their money laundering responsibilities and should receive regular training to reinforce this awareness.
Whilst these principles are derived from Bahamian legislation they are applicable throughout the Winterbotham operations.
ROLES AND RESPONSIBILITES
Board of Directors
The Board of Directors has the ultimate responsibility for ensuring that Winterbotham meets its legal and regulatory obligations.
Compliance
Compliance is responsible for reporting significant money laundering issues to Board of Directors. Compliance Department has the responsibility for owning and co-coordinating the creation and maintenance of policies and procedures and for the steps Winterbotham should take to meet its legal obligations in respect of money laundering prevention.
Compliance also has specific responsibilities for ensuring that business units/operations introduce controls and procedures relating to customer identification, record keeping and staff education and training. Overseeing the introduction of controls and procedures by the business /operation unit relating to the reporting of suspicious transactions is the joint responsibility of Compliance and Senior Management
Senior Management
Senior Management is responsible for ensuring that the internal controls, policies, procedures, records and staff training programs necessary to ensure that the Group meets its statutory obligations are implemented. Management is also responsible for ensuring that the Group's money laundering policy is adhered to. Management must ensure that staff receives adequate training and guidance on the steps that they require to take to meet their legal obligations.
Employees
Employees (staff and management) should be aware that they might be personally liable for their failure to adhere to either the requirements of the Regulations or the Group's money laundering policy. This liability may extend to internal disciplinary action or, if found guilty or breaching the Regulations, a fine or imprisonment or both. Criminal liability may also be incurred should a member or staff assist, 'tip off' or fail to report those involved in money laundering.
Staff is asked to sign the Money laundering Acknowledgement Certificate on an annual basis.
Knowledge of Our Customers and Their Business
Although by no means exclusive, information about the following matters should prove useful in helping you identify suspicious or unusual activity on customers' accounts:
(a) The type of business the customer is in (e.g. it is a cash/retail/wholesale business?).
(b) The size of the business (e.g. the number of employees and annual turnover).
(c) Our customer's clients (who are they and where are they based?).
(d) Expected turnover.
The Need to Verify the Identity of all Prospective Customers
The identity of every prospective customer must be verified when a new account is to be opened. In all cases of doubt, members of staff responsible for accepting new customers for business should refer to the Account Documentation Procedures or contact the Compliance for guidance.
With joint accounts, you must identify all account holders.
Prospective customers should complete a standard application form (BAF - Business Acceptance Form), which incorporates the following requirements:
- Full name of account holders
- Permanent address (not merely an instruction to hold/retain correspondence, which should properly be the subject of a separate customer mandate/authority)
- Telephone numbers (home and business)
- Date of birth
- Occupation and name of employer (if self employed, the nature of the self employment)
- Signature(s)
- Name and address of existing Bankers
- Personal reference if existing customer of the Bank elsewhere
- Authority to obtain independent verification of any data provided
NOTE
Documents or records verifying evidence of identity must be kept for at least 5 years after the relationship with a customer has ended. The records must indicate the nature of the evidence of identity obtained and comprise either the original or a copy of the evidence or information, such as reference number, that enables details of identity to be re-obtained.
Reasonable measures should be taken for the purpose of establishing the identity of any person on whose behalf an applicant for business is acting. It is therefore important to identify the Directors, account signatories, the nature of the business and where possible the beneficial owner(s).
The following relevant documents should be obtained in respect of new accounts for companies incorporated in the Island:
(a) Certificate of Incorporation
(b) Memorandum and Articles of Association
(c) Bank Mandate to include full names of all Directors
(d) Bank mandate to include names and signatures of other officials authorized to sign for the said company together with a designation of the capacity in which they sign
