POLICY ACT LOM&FOT
POLICY ACT "GLOBAL FX" against the legalization (laundering) of money from crime and financing of terrorism
A Foreign entity – "GLOBAL FX", hereinafter referred to as – «Company», sets policy against the legalization (laundering) of money from crime and financing of terrorism (hereinafter referred to as – the «Policy Act»). The present Policy Act includes and is based on principles of «Policy Act of Due Diligence» and «Know Your Customer» Policies.
1. Legalization (laundering) of money from crime – making a legal ownership, use and disposal of funds or other property obtained as a result of the crime.
2. Opposition to the legalization (laundering) of money from crime – a complex of legal, informational, technical measures set out in the state of the location of individuals and organizations, aimed at identifying, establishing and suppression of their operations with money or other property that occur through their placement, separation, integration and other forms in order to making ownership, use or disposition of money or other property derived from the offense, and (or) terrorist financing.
3. Placement of cash or other assets («placement») – the physical placement of monetary funds or other assets in banks and non-bank credit institutions; the conversion of funds in other financial instruments, for example, money orders or checks; the use of cash to pay for expensive goods, which can then be resold. To launder the proceeds, usually used by foreign banks to the lack of effective legal regulations and internal regulations or the lack of legislation on countering the legalization (laundering) with a view to their subsequent placement in a controlled environment under the guise of «clean money», «net assets».
4. A layering of cash or other assets («layering») – actions aimed at the separation of income from their source through a number of financial transactions (numerous transfers of funds between financial institutions, registration of cash loans, the use of invoices, bills of lading and other documents with signs of forgery or committed in an unidentified form, as well as the imaginary and (or) sham transactions) aimed at concealing the true source of income.
5. Integration of cash or other assets («integration») – refund or other property into circulation under the guise of a legitimate source and use them for future acquisition of property for the commission of an offense and (or) terrorist financing.
6. Customers – physical persons, including individual entrepreneurs, legal entities, the beneficial owners of legal persons, or those that have the ability to control the actions of legal persons, natural persons who are beneficial owners of private individuals, except if there is reason to believe that the beneficial owner is a different individual.
7. Beneficial owners – individuals, which are generally carried out by means of the final control through ownership or otherwise, and/or original are the main source of funds in the account, and the source of well-being should be subjected to due diligence.
8. Beneficial ownership – ultimate control subjects referred to in paragraphs 6 and 7 of this Article over the funds in the account, through ownership or otherwise.
9. Account – sales, billing, rated and other accounts, including money market accounts opened in the name of the Customer and held by him in accordance with the procedure established by the law of the State of the resident, the rules and regulations of third parties.
OBLIGATIONS OF THE CUSTOMER
1. Comply with the legislation of a resident international rules to combat illegal trade, LOM&FOT.
2. Avoid direct or indirect participation in the activities referred to in paragraph 1 of this Article and any other illegal operations, including the use of information and communication technologies, audiovisual and other software and hardware.
3. Ensure and verify the legitimacy of the source of funds of the Customer placed on its accounts, other assets of the Customer confirm the ownership of money and property of the Customer, or the right to possession and use.
4. The Company provides on-demand documents (in paper and (or) electronic form), confirming the status of the Customer in order to identify it:
- For individuals: valid on the date of presentation of documents containing information that identify the Customer (identity document of the Customer, a document confirming the right to legally reside in the territory of a resident, a document containing the tax identification number, a document of no criminal record), samples handwritten signature.
- For legal entities: valid at the date of presentation of documents containing information that identify the governing of the sole executive body of the Customer, confirming his authority, founding documents, proof of legal status (the activities which are in the process of reorganization or liquidation, or information about, that in respect of the legal entity entered bankruptcy), lists of participants or the register of shareholders, or a different list that contains information about the beneficial owners of a legal entity, print samples of the Customer (if any).
5. To submit the documents referred to in paragraph 4 of this Article with properly certified translation into the language of the State of the resident, if the Customer to identify the documents drawn up and are presented in whole or in any part thereof in a foreign language.
6. Presenting documents legalized in the prescribed manner, if they originate from the public authorities of foreign states.
7. To provide documents at the request of the Company, referred to in paragraph 4 of this Article in the original or copies certified in the established order of the state resident.
8. Perform other duties to the Company in accordance with the laws of the state resident, international treaties and other international standards, the present Policy Act of the Company and other internal bylaws of the Company.
OBLIGATIONS OF THE COMPANY1. Comply with the legislation of a resident international rules to combat illegal trade, LOM&FOT.
2. Comply with the ban on informing the Customers and other persons on the measures taken LOM&FOT, as well as providing advice on the need to provide documents on the grounds provided by the legislation, as well as other actions that do not allow companies to take LOM&FOT.
3. To collaborate with the competent authorities of the residents in the stages of gathering information, the preliminary investigation, trial and execution of court decisions on the available evidence suggests (approve) abuse Customers of LOM&FOT.
4. Maintain confidentiality of internal local acts of the Company developed and implemented its LOM&FOT, unless otherwise provided by law.
5. To fulfill other requirements stipulated by the legislation of the resident international norms aimed at combating illegal trade, LOM&FOT.
Policy Act of «Know Your Customer»
The powers of the Company
- Customer surveys (referring questionnaires for Customers);
- Legal and economic analysis of the constituent documents of Customers-legal entities, including anti-corruption expertise of such documents;
- Verbal questioning of Customers with entering information in the form established by the Customer in the case provided for in the second paragraph of this section;
- Establishment of the facts, acts on behalf of another Customer, Customer-physical or Customer-legal entity, respectively, as a representative (agent, attorney faces);
- Use of external companies available legally sources of information;
- Other measures at the discretion of the Company.
Customers who declined to identify
If a potential Customer or existing Customers or refuses to provide information in accordance with the requirements of this Policy Act of the Company or deliberately provides false information, the Company refuses to provide services to the Customer and the conclusion of treaties and agreements and terminate all current contracts and agreements, as well as cease the provision of services. Such a potential or existing Customer of the Company assigns the status of the Customer with a high degree of risk.
Suspicious Activity of the Customer
The Company is authorized to monitor Customer’s activity and its compliance with the LOM&FOT. The Company has the authority to monitor information about the Customer's transactions, to identify how much of the committed (committed) their unusual transaction under comparable circumstances. The Company carries out professional supervision over the activity of the Customer and compliance with the requirements of the LOM&FOT in cases where the Customer or his representative:
- Exhibits an unusual concern the Company's compliance with reporting requirements LOM&FOT policies, or the Company disclaims any information related to their business, or provides false information, including those contained in paper and (or) electronic media;
- It provides information for the identification, containing the information and the facts and circumstances alleged misleading;
- Has the dubious reputation of financial and legal;
- Does not show under normal circumstances, comparable interest regarding investment and other financial risks;
- Has difficults in the detailed notation of alleged or existing principles of organization of their business and financial activities;
- Asks to give him preferential treatment in relation to other Customers on the execution of this Policy Act of the Company;
- It has accounts in the States residents who do not meet the recommendations of Financial Action Task Force on Money Laundering (FATF);
- involved in the excessive connections between unrelated accounts without any apparent business. The list of cases for the professional control of Customer’s activity and compliance with the requirements of the LOM&FOT is not exhaustive. When a Company sets up one or more of the above mentioned cases, it applies further measures aimed at the collection, processing and analysis of additional information within or from outside sources, with an appeal to the competent authorities of the residents, including the requirements on blocking Customer’s accounts.
Along with the identification of Customers, the Company offers expertise in financial and economic activity of the Customer, its competitiveness ranking among business entities engaged in the sale, implementation, provision of similar goods, works and services, respectively. The result of the examination is the conclusion of the Company on the presence or absence of legal risk, as well as the investment attractiveness and reliability of the Company.
The Policy Act of Due Diligence is also made in order to counter corruption of Customers who directly or indirectly could lead to a breach of the requirements of the LOM&FOT.
For the purposes of this corruption the Policy Act of Company may include:
- Abuse of power, bribery, bribe-taking, abuse of power, commercial bribery or other illegal use of the Customer-individual person, his representative and the beneficial owners of their official position contrary to the legitimate interests of society and the state resident in order to obtain benefits in the form of money, valuables, other property or property-related services, other property rights for themselves or for third parties or the illegal provision of such benefits by the said person by other individuals.
- The commission of acts referred to in paragraph «a» of the third paragraph of this article, on behalf of or for the benefit of the Client-legal entity.
When the Сustomer is contacting, the Company is entitled to:
- Check the accuracy of the financial and other internal information of the Customer;
- find confirmation of estimates / assumptions incorporated in the business plan of the Customer;
- To assess the feasibility of short-term and long-term strategy of the Customer;
- Ensure the correct registration of all documents in terms of the laws of the resident and internal local acts of the Customer;
- Ensure the correct and timely delivery of financial and other reporting the Customer;
- Check for licenses and accreditations of the Customer;
- Identify the presence and extent of internal and external debt of the Customer;
- Make sure that the Customer is competent enough to implement the directions of its business activities.
Other methods of carrying out of «Due Diligence
The Сompany is entitled to apply a set of different techniques and methods of carrying out the policy of «due diligence» with respect to its Customers, pursuing a professional system analysis of the following information of Customer:
- History and milestones of the Customer;
- the main objectives of the Customer, the way to achieve them;
- Customer’s positioning in the global market, development prospects;
- distinctive specifics of the Customer;
- the main strategic indicators and targets of the Customer;
- how satisfied the Customer's indicators SMART-principle (specific, measurable, agreed among themselves, achievable, defined in time);
- how the strategies adopted correspond to the current level of the Customer (organizational (staff) structure, financial position, potential etc.);
- any interested individuals and groups have an impact on the development strategy of the Customer; the main directions of investment policy of the Customer;
- the Сustomer’s management;
- compliance with the formal and the actual organizational structures of the Customer;
- ways of optimize the management structure of the Customer in order to reduce administrative costs, reduce response time to the control of the Customer;
- which groups within the Customer have a significant impact on the operational management of the Customer, how to strike a balance of interest within the general strategy of the Customer;
- the plant and processes of financial and economic activities of the Customer;
- the main processes of financial and economic activities of the Customer;
- what legal or bylaws regulate the process of financial and economic activity of the Customer;
- compliance with regard to financial and economic activities of the Customer's existing legal acts and the Customer’s local acts;
Advantages and disadvantages of the organization's financial and economic activity of the Customer. Typically, the following processes are analyzed financial and economic activities of the Customer:
- Supply and management of material and technical resources;
- Engineering and technical support;
- Software production and business activities;
- Financial management and economics, including planning, accounting, control and analysis of the performance plans, management of financial flows;
- Management of investment activities;
- Quality control. As a result of the analysis of the above information, the Company forms a conclusion:
- according to the actual practice of Customer’s management legal acts of the state resident or internal local acts of the Customer;
- according to the actual management practices similar to Customers under comparable circumstances (industry, similar to the scale of the financial and economic activity);
- containing a description of the key processes of financial and economic activities with their potentially problematic elements;
- containing recommendations and an enlarged plan of measures to improve the management of the Customer.
CUSTOMER’S DEPOSITS AND WITHDRAWALS
In case of cash from Customers, it is their sender, and its name must match the name of the Customer. Mediation of third parties in making cash is not allowed, that is citizen «А» can’t make money on their own behalf citizen «B».
Similarly, in the event of withdrawal of funds Customer's name, the recipient must match the name of the Customer-sender, which also serves the owner of the account from which the debited.
In the case of bank transfer, the account from which the deposit was made must match the account on which you are transferring funds. In the case of online transfers, bill input and output must also be the same.
1. The Company's Clients are informed and understand that the legal relations between them, can propagate the legal norms of the residents are members of international acts and international treaties of the LOM&FOT.
2. The Company shall verify, including any of its employees in labor relations or working on the basis of civil law contracts. Any information of employees, the Company deems questionable, will be submitted for discussion with the relevant bodies of the Company until a final decision in respect of the employment of such employees and the application of measures of legal liability.
If employees have an account, they are subject to legal provisions of this Policy of the Company of LOM&FOT, and its other local acts.
3. The Customer agrees to comply with the present Policy of the Company in its entirety and, in the case of non-compliance in full or in part, bear the legal responsibility under the legislation, including the unscrupulous actions of all other persons, provided policies.