AML & KYC policy

  1. Purpose
  2. Obligations & controls
  3. Policy
    1. Money Laundering Reporting Officer (MLRO) Responsibility
    2. Client Identification and Due Diligence Procedures
    3. Client Due Diligence Procedure
    4. Enhanced Client Due Diligence
  4. Client account opening procedures
    1. KYC documentation for natural persons
    2. KYC documentation for legal persons
    3. Changing Circumstances of Clients
  5. Record keeping

1. Purpose

Moneta Trade UK Ltd (the ‘Company’ and/ or ‘Moneta’), a company registered with the UK Companies House with registration number 11133648 and the registered address at 11, Blackheath Village, London, SE3 9LA, United Kingdom enforces the present Policy as means of providing Anti-Money Laundering (AML) and Know Your Client (KYC) guidance in order to achieve full compliance with the relevant anti-money laundering legislation.

The procedures set out in the Policy are designed to ensure full compliance with the relevant legislations and international standards and will be reviewed and updated on a regular basis in order to reflect changes in regulations and changes in the Company’s business.

2. Obligations & controls

The Company acknowledges that it should adhere to the following controls in order to prevent money laundering activity:

  • assess the risk of business being used by criminals to launder money
  • check the identity of its customers
  • check the identity of ‘beneficial owners’ of corporate bodies and partnerships
  • monitor customers’ business activities
  • report anything suspicious to the relevant competent authorities
  • make sure that the necessary management control systems in place
  • ensure that employees are aware of the regulations and have had the necessary training

Following the aforementioned, the procedures and policies implemented by the Company for this purpose are set out below:

  • Due diligence procedures that include identification of clients.
  • Procedures that relate to record keeping of clients’ identity and their transactions.
  • Procedures that relate to internal reporting to a competent person.
  • Appropriate procedures of internal control, risk management, with the purpose of preventing money laundering activities.
  • Procedures that allow thorough examination on individual transactions that by nature are considered volatile towards money laundering activities. Such transactions in particular include complex, large amounts, and may take place without apparent financial or legal purpose.
  • Procedures that inform employees of the aforementioned procedures.
  • Procedures for frequent training of the employees in the recognition and handling of transactions that may relate to money laundering.

3. Policy

The Company adopts procedures and processes that actively prevent money laundering and any transaction that may potentially facilitates money laundering or financing of terrorist activity.

3.1. Money Laundering Reporting Officer (MLRO) Responsibility

The Company’s appointed Money Laundering Reporting Officer (“MLRO”) has the responsibility to monitor and ensure compliance with AML obligations.

The MLRO is committed to educate and train the employees so that they are aware of suspicious transactions, as well as communicate from time to time any changes in monitoring transactions. Consequently, trained employees shall be clear on their responsibility to report any suspicious activity to the MLRO.

Record keeping monitoring and supervision of any Suspicious Transaction Reports generated by the Company’s procedures will be reported accordingly to the relevant competent authorities.

The annual review of this Policy shall be conducted by the MLRO and all necessary changes and updates will be communicated accordingly.

3.2. Client Identification and Due Diligence Procedures

All legal and regulatory requirements that relate to client identification and due diligence procedures have been put in place. The Company will collect sufficient information from each customer who has opened an account. To enable accurate identification, the client identification and due diligence is divided into (i) low risk, (ii) normal risk and (iii) high risk.

The following conditions will render a Client to be classified as High Risk:

  • Limited or no personal conduct with the customer
  • Bearer shares found in the names of companies’ accounts
  • Trust Accounts
  • Accounts of "politically exposed persons"
  • Involvement with internet gambling or gaming
  • Clients related to third countries or involved in cross-frontier correspondent banking
  • Clients that their characteristics, class or type entail a higher risk of money laundering and terrorism financing
  • Carry out transactions worth more than €10,000 (or the equivalent in other currencies)

In the likelihood that the Client unreasonably fails or refuses to provide the necessary documentation requested by the Company in order to verify their identity and proceed with construing their economic profile, the Company may suspect involvement with money laundering or terrorism financing activities.

If such a suspicion is raised, the appointed MLCO is obliged to cease any business relationship with the Client and report the Client to the relevant authorities if necessary.

3.3. Client Due Diligence Procedure

The Client Due Diligence procedure, specified by the Law, entails a risk-based approach and comprises of the following:

  • A reliable and independent source should be used to verify identification of the client.
  • Identification of the beneficial owner and taking risk-based and adequate measures to verify his/ her identity on the basis of documents, data or information issued by or received from a reliable and independent source. As regards to legal persons, trusts and similar legal entities, taking risk-based and adequate measures to understand the ownership and control structure of the client.
  • Establish the purpose and indention of the business relationship.
  • Continuous monitoring of the business relationship and continuous scrutiny of transactions should take place in order to ensure that any conduct is consistent with the data and information held by the Company in relation to the client.

Prior to the establishment of a business relationship, the Client and beneficial owner identification must take place. Alternatively, such identification may be obtained after the establishment of a business relationship in order to avoid any interruption of the normal course of business and where there is little risk of money laundering or terrorist financing occurring. If this is the case, the procedures shall be finalized at the earliest convenience.

Existing records must be reviewed frequently in order to ensure that existing documents, data or information are kept up-to-date. Due diligence procedures shall apply to both new Clients and existing Clients on a risk related approach.

3.4. Enhanced Client Due Diligence

Enhanced Due Diligence should be carried out in situations where given the circumstances high risk of money laundering or terrorist financing is likely to occur. The Company has set additional identification measures in the following situations:

  • Face to face identification is difficult.
  • The Client is a ‘politically exposed person’ i.e. a non UK or domestic member of parliament, head of state or government, or government minister and their family members and known close associates.
  • The Client resides in a high risk third country identified by the EU
  • The Client carried out transactions worth more than €10,000 (or the equivalent in other currencies)
  • Any other situation where there’s a higher risk of money laundering

If any of the above is applicable, the following could be requested:

  • Request additional documents, data or information to ensure the Client’s identity.
  • Request certifications by credit or financial institutions to verify the documents supplied.
  • Confirm that the first payment of the transaction is made in the Client’s name with an EU credit institution, through the account opening procedure.

The Company should further adopt the following due diligence measures in order to determine whether the Client is a politically exposed person:

  • Obtain confirmation from a reliable and independent KYC service provider before establishing a business relationship with the client.
  • Take measures that will confirm the origin of the client’s assets and the source of funds that are related with the establishment of the business relationship or transaction.
  • Engage in continuous and enhanced monitoring of business relationships.
  • Ensure that the first payment is made from an account that was opened with a credit institution in the Client’s name.
  • Carry out manual and stricter ongoing monitoring of the business relationship established.

4. Client account opening procedures

4.1. KYC documentation for natural persons

Before allowing new clients to trade with the Company, the following KYC documents should be obtained in order to verify the Client’s identity:

  • Copy of Passport;
  • A recent certified proof of home address in the person’s name;
  • Bank account details for settlement purposes;
  • Filled out Front Office Questionnaire.

When corporate Clients are involved, the following identification procedure is followed during an account opening with the Company:

  • Certificate of incorporation and Certificate of Good Standing of the legal person.
  • Certificate of Registered Office.
  • Certificate of Directors and Secretary.
  • Certificate of Registered Shareholders in the case of private companies and public companies that are not listed in a regulated market of a European Economic Area country or a third country with equivalent disclosure and transparency requirements.
  • Memorandum and articles of association of the legal entity.
  • A resolution of the board of directors of the legal entity for the opening of the account and granting authority to those who will operate it.
  • In cases where the registered shareholders act as nominees of the beneficial owners, a copy of the trust deed/agreement concluded between the nominee shareholder and the beneficial owner, by virtue of which the registration of the shares on the nominee shareholder’s name on behalf of the beneficial owner has been agreed.
  • Documents and data for the verification of the identity of the persons, who are authorised by the legal entity to operate the account, as well as the registered shareholders.
  • Copies of its latest audited financial statements (if available), and/or copies of its latest management accounts.
  • Personal information regarding the Directors:
    • Copy of his/ her Passport (with photograph and signature specimen included).
    • A recent copy of confirmation of address in the person’s name.

All documentation provided must not be older than 6 months old.

It is essential for the Company to maintain clear record-keeping procedures and policies when it comes to Client identification and individual transactions. In this way the Company will be able to supervise individual relationships with Clients, acknowledge the Clients day-to-day business and, acquire evidence that can be used as proof in case any disputes or investigations arise. In addition, it is essential for the Company to assign responsibility to a Back Office employee who will approve and monitor new client accounts.

Furthermore, it is good practice for the Company to withhold customer identification documents for at least five (5) years after an account is terminated. The Company shall also retain all transaction records for at least five (5) years after an account is terminated.

4.3. Changing Circumstances of Clients

Moneta acknowledges that it will update information on existing Clients, in order to reflect any risk assessment and/or carry out further due diligence measures if necessary. Such changes may include for instance a change in the type or level of business activity, or a change in the ownership structure of a corporate Client.

5. Record keeping

In addition to the keeping of all customer due diligence measures carried out, the Company is committed to keep any policy controls and procedures as well as any training records carried out.

In order to be in compliance with Money Laundering Regulations, the Company will keep the following records for (5) five years, commencing from the end date of a business relationship:

  • daily records of transactions
  • receipts
  • cheques
  • paying-in books
  • customer correspondence

The above will be kept in the following formats:

  • photocopies
  • microfiche
  • scanned
  • computerised or electronic
  • originals