PayMate | Payments Simplified | B2B Payment Solutions | Anti-Money Laundering Policy and Procedures

Anti-Money Laundering Policy and Procedures


INTRODUCTION

PayMate is committed to full compliance with all applicable laws and regulations regarding anti money laundering procedures. PayMate has adopted and will enforce the provisions set forth in Anti-Money Rules & Regulations [“the regulations”] in order to prevent and detect money laundering, terrorist financing and other illegal activities. This policy is in addition to the Master Anti- Money Laundering Policy for the Group and all the clauses hereunder may be in addition to Group Policy to the extent applicable

Non-compliance of the regulation may expose PayMate to potentially serious civil and/or criminal penalties and fines and hence, it is imperative that every officer, director and employee each is familiar with and complies with the policies and procedures set forth in this policy without any exception

This Policy is designed to assist Customers/vendors/third parties in adhering to PayMate’s policy and procedures, which, if followed diligently, are designed to protect themselves, PayMate, its Employees, its facilities and its activities from money laundering or other illegal activities.

 

Definitions: -

“Money Laundering” is the process by which criminals attempt to conceal the true origin and ownership of the proceeds of criminal activities. If successful, the money may lose its criminal identity and appear legitimate. Criminals do this by disguising the sources, changing the form, or moving the funds to a place where they are less likely to attract attention. It includes any act mentioned in Article (2) of Federal Law No. (9) of 2014 [United Arab Emirates] regarding the amendment of some provisions of the Federal Law No. (4) of 2002 Regarding Combating Money Laundering [United Arab Emirates].

“Financing of Terrorism” is Offering, collecting, ensuring access to, or transporting funds by any direct or indirect means to any society, organization, establishment, center, group, gang or any other persons to whom the provisions of Federal Law No. (7) of 2014 regarding terrorist acts, apply.

 

A. CONTROLS TO PREVENT MONEY LAUNDERING

  1. To appoint a Money Laundering Reporting Officer (Compliance Officer)
  2. To put in place internal controls and policies to ensure continuing compliance with the Rules & Regulations to:-
    1. Ensure that any employee, officer, director who suspects money laundering knows how to report this information to the Compliance Officer
    2. Provide the Compliance Officer with the means by which the reasonableness of the suspicion can be judged, and thereby assess which suspicious matter should be reported to the Regulatory Authority i.e. FMU (Financial Monitoring Unit).
  3. To establish / enhance record keeping systems for verifying all transactions and verification of customer’s identity
  4. To establish internal suspicion reporting procedures
  5. To educate and train all staff with the main requirements of the Rules & Regulations

Note: The obligation to report does not depend on the amount involved or the seriousness of the offence. There are no de-minimis concessions.

 

B. COMPLIANCE OFFICER

To ensure that the PayMate’s policies and procedures are adhered to, PayMate shall designate an Anti-Money Laundering Compliance Officer (the “Compliance Officer”). The Compliance Officer is responsible for establishing and conducting Employee training programs to ensure that all appropriate Employees are aware of the applicable Anti - Money Laundering Laws and Regulations, PayMate’s Anti - Money Laundering Policies & Procedures and their responsibilities with respect to these policies.

Responsibilities of the Compliance Officer include the following:

  1. Coordination and monitoring of PayMate’s day-to-day compliance with applicable Anti- Money Laundering Laws and Regulations and PayMate’s own Anti-Money Laundering Policy and Procedures;
  2. Conducting Employee training programs for appropriate personnel related to the PayMate’s anti-money laundering policy and procedures and maintaining records evidencing such training;
  3. Receiving and reviewing any reports of suspicious activity from Employees;
  4. Determining whether any suspicious activity as reported by an Employee warrants reporting to senior management of PayMate;
  5. Coordination of enhanced due diligence procedures regarding Customers; and Responding to both internal and external inquiries regarding PayMate’s anti- money laundering policies and procedures
  6. The Compliance Officer shall retain copies of all documents reviewed or checklists completed in connection with its Customer Identification Procedures in accordance with PayMate’s Customer Records Retention policies

 

C. EMPLOYEE TRAINING

As part of the PayMate’s anti money laundering program, all Employees are expected to be fully aware of the PayMate’s anti-money laundering policies and procedures. All Employees are required;

  1. At a time specified by the Compliance officer, to undertake training programs on anti-money laundering policies and procedures.
  2. To get trained in how to recognize and deal with transactions which may be related to money laundering.
  3. To timely escalate and report the matter to the Compliance Officer.
  4. To get themselves acquainted with Anti Money Laundering Rules & Regulations and comply with the requirements of Rules & Regulations.
  5. Each Employee is required to read and comply with this Policy address concerns to the Compliance Officer and sign the acknowledgement form confirming that he/she has read and understands PayMate’s anti-money laundering policies and procedures.

Any Employee shall immediately notify the Compliance Officer if he/she suspects or has any reason to suspect that any potentially suspicious activity has occurred or will occur if a transaction is completed. Employees are encouraged to seek the assistance of the Compliance Officer with any questions or concerns they may have with respect to the PayMate’s Anti-Money Laundering Policies or Procedures.

 

D. KYC NORMS

PayMate’s anti-money laundering policies and procedures are intended to ensure that, prior to registering a customer all reasonable and practical measures are taken to confirm the customers identities and to verify that any third party upon whom the PayMate relies for Customer identification, such as a bank and other financial intermediary, or any other third party adheres to the same standards. The KYC norms shall also be applicable to the Vendors of the Customer and the same requirement as mentioned below shall also apply to the Vendor.

  1. These Customer Identification Procedures are based on the premise that the PayMate will register a customer only if:-
    1. PayMate has confirmed the Customer’s identity and that the Customer is acting as a principal and not for the benefit of any third party unless specific disclosure to that effect is made; or
    2. If the Customer is acting on behalf of others, PayMate has confirmed the identities of the underlying third parties.
    3. The Customer Identification Procedures should be reviewed in light of the specific characteristics presented by a Customer and in any instance the Compliance Officer may determine to apply Enhanced measures as required

    A fundamental part of the KYC process is the carrying out of prospective customer’s screening and background checking and risk assessment. Screening check is designed to ensure that a prospective customer is not listed on an international official sanction lists issued by government and departments and law enforcement agencies.

    Background checking is designed to identify any adverse information about the past conduct of an individual that may influence their suitability as a Customer. The risk assessment process classifies the applicants into three risk categories: low, medium and high, classified under high risk, including prospective customers defined as "Politically Exposed Persons" (PEP’s), shall be subject to enhanced Customer Identification procedures

  2. CUSTOMER IDENTIFICATION PROCEDURES FOR NATURAL PERSONS - PayMate shall take reasonable steps to ascertain satisfactory evidence of an individual Customer’s name, address, date and place of birth, including the office address and the source of the Customer’s funds. In order to confirm the identity of the Customer, copies of certain of the following documents will be obtained and retained for PayMate’s records:
    1. POC, Passport or other official government-issued identification; and
    2. Power of attorney, where applicable, along with contact details of the attorney.
    3. Declaration over Application Form / Simplified KYC which includes; Identity Details of the Applicant,
    4. Address Details of the Applicant
    5. Details concerning Annual Income
    6. Source of Income
    7. Bank Details

    Additional information which may be requested includes:

    1. Bank statement or utility bill; or other residential identifying information;
    2. Bank references

  3. CUSTOMER IDENTIFICATION PROCEDURES FOR CORPORATIONS, PARTNERSHIPS, TRUSTS AND OTHER LEGAL ENTITIES - PayMate shall take reasonable steps to ascertain satisfactory evidence of an entity Customer name and address. PayMate will obtain certain of the following, as appropriate under the circumstances:
    1. Trade License
    2. Copy of resolution granting the Directors/Principals authority to act;
    3. Attested copy of Articles of Memorandum and Articles of Association by government authority;
    4. Copy of establishment card;
    5. Certificate of Incorporation;
    6. List of Directors/Principals;
    7. Directors Passport copy, UAE Visa, Emirates ID
    8. List of ownership including beneficial ownership if any
    9. Authorized signatory list;
    10. Description of the Customer’s primary lines of business;
    11. Publicly available information from law enforcement agencies or regulatory authorities; and/or Customer’s annual report and/or, if appropriate,
    12. Customer’s bank references.
    13. Country of origin
    14. Previous business activities
    15. Sources of funds
    16. Audited financial statements for 3 years
    17. Audited tax returns
    18. Volume of settlements day wise/ monthwise/quarter wise
    19. List of vendors

  4. HIGH-RISK CUSTOMER - The Compliance Officer will provide and will continuously update a list of the types of Customer that PayMate considers to be of ‘high risk,’ such that enhanced due diligence procedures are warranted compared to the routine Customer Identification Procedures. Following are the examples of Customer who pose a high money laundering risk:
    1. A Senior Foreign Political Figure, any member of a Senior Foreign Political Figure’s Immediate Family, and any Close Associate of a Senior Foreign Political Figure;
    2. Any Customer resident in, or organized or chartered under the laws of, a Non-Cooperative Jurisdiction
    3. Note: Non-Cooperative Jurisdiction means any foreign country that has been designated as non-cooperative with international anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering (“FATF”)
    4. Any Customer who gives the Compliance Officer any reason to believe that its funds originate from, or are routed through, an account maintained at an “offshore bank”, or a bank organized or chartered under the laws of a Non-Cooperative Jurisdiction; and
    5. Any Customer who gives the Compliance Officer any reason to believe that the source of its funds may not be legitimate or may aid terrorist activities.

  5. ENHANCED CUSTOMER IDENTIFICATION PROCEDURES FOR ‘HIGH-RISK’ NATURAL PERSONS -

    Enhanced Customer Identification Procedures for ‘high risk’ natural persons as Customer include, but are not limited to, the following:

    1. Assessing the Customer’s business reputation through review of financial or professional references, generally available media reports or by other means;
    2. Considering the source of the Customer’s wealth, including the economic activities that generated the Customer’s wealth and the source of the particular funds intended to be used to make the investment;
    3. Reviewing generally available public information, such as media reports, to determine whether the Customer has been the subject of any criminal or civil enforcement action based on violations of anti-money laundering laws or regulations or any investigation, indictment, conviction or civil enforcement action relating to financing of terrorists;
    4. Conducting a face-to-face meeting with the Customer to discuss/confirm the application documents.
    5. The enhanced due diligence procedures undertaken with respect to ‘high risk’ Customers must be thoroughly documented in writing, and any questions or concerns with regard to a ‘high risk’ Customers should be directed to the Compliance Officer. Enhanced Customer Identification Procedures for ‘High-Risk’ Corporations, Partnerships, Trusts and Other Legal Entities

  6. ENHANCED CUSTOMER IDENTIFICATION PROCEDURES FOR ‘HIGH RISK’ CORPORATIONS, PARTNERSHIPS AND OTHER LEGAL ENTITIES INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING:
    1. Assessing the Customer’s business reputation through review of financial or professional references, generally available media reports or by other means;
    2. Reviewing recent changes in the ownership or senior management of the Customer;
    3. Conducting a visit to the Customer’s place of business and conducting a face- to-face meeting with the Customer to discuss/confirm the account application, the purpose of the account and the source of assets;
    4. Reviewing generally available public information to determine whether the Customer has been the subject of any criminal or civil enforcement action based on violations of anti-money laundering laws or regulations or any criminal investigation, indictment, conviction or civil enforcement action relating to financing of terrorists.

    The Company to provide facility on its platform to the customer/vendor to upload revised documents relating to KYC norms viz. trade license etc

 

E. GENERAL REPORTING PROCEDURES

  1. Anyone in the organization, to whom information comes in the course of the relevant business as a result of which he suspects that a person is engaged in money laundering, must disclose it to the Compliance Officer.
  2. Where a disclosure is made to the Compliance Officer, the officer must consider it in the light of any relevant information which is available to PayMate and determine whether it gives rise to suspicion, and;
  3. Where the Compliance Officer does so determine in consultation with the Senior Management, the information must be disclosed to the Regulatory Authority after obtaining an independent legal advice.

 

F. REPORTING OF SUSPICIOUS ACTIVITIES

An obligation is cast on all employees, officers and directors to report any suspicious activities or information which may point to transactions, instructions, or arrangements related to illegal or unauthorized activities of the customer in doing so, it is important that:

  1. The reason for the suspicion is fully explained;
  2. No mention of the suspicion is made to the Customer, its Affiliate or any third party of the subject of the suspicion (failure to observe this requirement may result in the divulging party being prosecuted for the offence of ‘tipping off’); and
  3. Any additional information as may be deemed necessary to conduct the investigation is furnished.

 

G. RETENTION OF RECORDS

  1. Copies of all documents related to PayMate’s Customer Identification Procedures will be retained for an appropriate period of time and, at a minimum, the period of time required by applicable law or regulation.
  2. The documents the Company retains are copies of documents reviewed in connection with Customer Identification Procedures or enhanced due diligence procedures, Customer identification checklists, if any, or similar due diligence documentation, and any other documents required to be retained by applicable anti-money laundering legislation.
  3. PayMate will retain documents for so long as a Customer is a Customer of PayMate and for a minimum of five years after this relationship ends.
  4. The Compliance Officer shall coordinate a periodic review of PayMate’s existing Customer list, and ensure the adequacy of due diligence performed on existing Customers.

 

H. REVIEW

A regular review of the program should be undertaken to ensure that it is functioning as designed. Such a review could be performed by external or internal resources, and should be accompanied by a formal assessment or written report.

 

I. AMENDMENT

If and when regulations are amended concerning reporting of suspicious activities or anti money laundering activities, PayMate will amend the policy as required


Last Updated on: 07th October 2019

PayMate Services are provided by PayMate Payment Services Provider LLC. Cardholders are requested to read terms and conditions carefully.


© 2019 PayMate Payment Services Provider LLC



 

 

The confidential and proprietary information contained herein is the property of PayMate Payment Services Provider LLC., and may not be used, distributed, modified, disclosed, or reproduced without the express prior written permission of PayMate Payment Services Provider LLC. ©   All rights reserved.