Privacy policy

POLICY AND PROCEDURES

FOR PREVENTION OF MONEY LAUNDERING AND TERRORIST FINANCING

  1. General provisions

    1. This Anti Money Laundering and Counter Terrorism Finance Policy ("AML Policy") lays down requirements for screening the Clients and Transactions in order to prevent Senno Holdings Ltd, incorporated in the Cayman Islands (the "Company") from entering into deals involving suspected Money Laundering and Terrorist Financing, and to ensure identification and reporting of such.

    2. The Rules are primarily based on the Cayman Islands' Anti Money Laundering Guidance, 2017 (hereinafter the Guidance), which is based on the following Cayman Islands rules and regulations:

      1. Anti-Corruption Law (2014 Revision)

      2. Penal Code (2017 Revision)

      3. Proceeds of Crime Law (2017 Revision) (the “Law”)

      4. Terrorism Law (2017 Revision)

      5. Misuse of Drugs Law (2017 Revision)

      6. Proliferation Financing (Prohibition) (Amendment) Law (2016 Revision)

      7. Anti-Money Laundering Regulations (2017 Revision)

      8. International Targeted Financial Sanctions and Orders

    3. This AML policy is supervised by any and all of the following Cayman Islands authorities (the "Regulators"):

      1. the Anti-Money Laundering Steering Group (AMLSG)

      2. the Anti-Money Laundering Unit (AMLU)

      3. the Ministry of Financial Services and Home Affairs (MFSHA)

      4. the Cayman Islands Monetary Authority (CIMA)

      5. the Office of the Director of Public Prosecutions (ODPP)

      6. the Inter-Agency Coordination Committee (IACC)

      7. the Department of Commerce and Investment (DCI)

      8. the Financial Reporting Authority (FRA)

      9. the Cayman Islands Customs Department (Customs)

      10. the Financial Crimes Unit (FCU) of the RCIPS

 

  1. Definitions

    1. Money Laundering - the process by which the direct or indirect benefit of crime is channelled through the economy/financial system to conceal the true origin and ownership of the proceeds of criminal activities. Generally, to launder criminal proceeds, a money launderer places the funds/proceeds in the financial system without arousing any suspicion, moves it in a series of complex transactions to disguise its original (criminal) source and finally, if successful, integrates it into the economy to make the funds appear to be derived legitimately.

    2. Terrorist Financingas defined in the Cayman Islands Terrorism Law (2017 Revision).

    3. Compliance - adherence to Know-your-client ("KYC") and due diligence requirements, mainly for the purpose of the prevention of money laundering and terrorist financing.

    4. AMLCO- Anti Money Laundering Compliance Officer, a person at the management of the Company responsible for ensuring and monitoring the compliance program is being implemented, and functioning as the point of contact for the Regulators.

    5. Business Relationship – a relationship of the Company established in its economic and professional activities with the Client.

    6. Transaction – cash flow or payment order or cryptocurrency wiring form a Client to the Company.

    7. Client – a natural or legal person, who uses the services of the Company.

    8. Beneficial Owneris a natural person, who:

  1. Utilizing his influence, exercises control over a transaction, operation or another person and in whose interests or favour or on whose account a transaction or operation is performed utilizing his influence, makes a transaction, act, action, operation or step or otherwise exercises control over a transaction, act, action, operation or step or over another person and in whose interests or favour or on whose account a transaction or act, action, operation or step is made.

  2. Ultimately owns or controls a legal person through direct or indirect ownership of a sufficient percentage of the shares or voting rights or ownership interest in that person, including through bearer shareholdings, or through control via other means. Direct ownership is a manner of exercising control whereby a natural person holds a shareholding of 25 percent plus one share or an ownership interest of more than 25 percent in a company. Indirect ownership is a manner of exercising control whereby a company which is under the control of a natural person holds or multiple companies which are under the control of the same natural person hold a shareholding of 25 percent plus one share or an ownership interest of more than 25 percent in a company.

  3. Holds the position of a senior managing official, if, after all possible means of identification have been exhausted, the person specified in clause ii cannot be identified and there is no doubt that such person exists or where there are doubts as to whether the identified person is a beneficial owner.

  4. In the case of a trust, civil law partnership, community or legal arrangement, the beneficial owner is the natural person who ultimately controls the association via direct or indirect ownership or otherwise and is such associations’: settlor or person who has handed over property to the asset pool, trustee or manager or possessor of the property, person ensuring and controlling the preservation of property, where such person has been appointed, or the beneficiary, or where the beneficiary or beneficiaries have yet to be determined, the class of persons in whose main interest such association is set up or operates.

    1. Politically Exposed Person or PEP- is a natural person who is or who has been entrusted with prominent public functions including a head of state, head of government, minister and deputy or assistant minister; a member of parliament or of a similar legislative body, a member of a governing body of a political party, a member of a supreme court, a member of a court of auditors or of the board of a central bank; an ambassador, a chargé d'affaires and a high-ranking officer in the armed forces; a member of an administrative, management or supervisory body of a state-owned enterprise; a director, deputy director and member of the board or equivalent function of an international organisation, except middle-ranking or more junior officials.

      1. A family member of a person performing prominent public functions is the spouse, or a person considered to be equivalent to a spouse, of a politically exposed person; a child and their spouse, or a person considered to be equivalent to a spouse, of a politically exposed person; a parent of a politically exposed person.

      2. A close associate of a person performing prominent public functions is a natural person who is known to be the beneficial owner or to have joint beneficial ownership of a legal person or a legal arrangement, or any other close business relations, with a politically exposed person; and a natural person who has sole beneficial ownership of a legal entity or legal arrangement which is known to have been set up for the de facto benefit of a politically exposed person.

    2. Local Politically Exposed Person or local PEP – a natural person, provided in section 2.10, who performs or has performed prominent public functions, a contracting state of the European Economic Area or in an institution of European Union.

    3. Management Board or MB – management board of the Company. Member of the MB, as appointed by relevant MB decision, is responsible for implementation of the Rules.

 

  1. Compliance Officer

    1. The MB shall appoint an AMLCO whose principal tasks are to:

      1. Develop and maintain systems and controls (including documented policies and procedures) in line with evolving requirements

      2. Maintain various logs, as necessary, which should include logs with respect to declined business, PEPs, and requests from competent authorities particularly in relation to investigations

      3. Advise the Board of AML/CFT compliance issues that need to be brought to its attention

      4. Report periodically to the MB, as appropriate

      5. Responds promptly to relevant regulator or MB member

 

 

  1. Application of due diligence measures

    1. The Company shall determine and take due diligence (hereinafter DD) measures using results of conducted risk assessment.

    2. The company shall monitor its clients and transaction on an ongoing basis and report any suspicious activity to the Regulators.

    3. The Company shall pay special attention to the activities of Clients participating in a Transaction and to circumstances that refer to Money Laundering or Terrorist Financing, including to complex, high-value or unusual Transactions which do not have any reasonable economic purpose.

    4. Depending on the level of the risk of the Client and/or Transaction and depending on the fact whether the Business Relationship is an existing one a new one, the Company shall apply either normal DD measures, simplified DD measures or enhanced DD measures.

    5. The Company shall apply DD measures when:

      1. Establishing a business relationship

      2. Carrying out a one-off transaction valued in excess of 15,000$, which comprises a single transaction or several transactions of smaller values that are linked

      3. Carrying out one-off transactions that are wire transfers

      4. There is a suspicion of money laudnering or terrorist financing

      5. There are doubts as to the veracity or adequacy of the previously obtained customer identification information.

    6. DD measures shall include the following procedures:

      1. Identifying the applicant or customer and verifying that identity using reliable, independent source documents, data or information

      2. Identifying the beneficial owner(s) (of the applicant/customer and beneficiaries, where appropriate), and taking reasonable measures to verify the identity of the beneficial owner, such that it is satisfied that it knows who is the beneficial owner. Where the applicant/customer is a legal person or arrangement, the Company shall take steps to understand the ownership and control structure of the applicant/customer

      3. Understanding and, as appropriate, obtaining information on the purpose and intended nature of the business relationship

      4. Conducting ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions being conducted are consistent with the Company's knowledge of the customer, its business and risk profile, including, where necessary, the source of funds. The Company retains the right to establish the source of wealth of the Client, where appropriate.

    7. To comply with the DD obligation, the Company shall have the right and obligation to:

  1. request appropriate identity documents to identify the Client and its representatives;

  2. request documents and information regarding the activities of the Client and legal origin of funds;

  3. request information about Beneficial Owners of a legal person;

  4. screen the risk profile of the Client/Transaction, select the appropriate DD measures, assess the risk whether the Client or another person linked with the Transaction is or may become involved in Money Laundering or Terrorist Financing;

  5. re-identify the Client or the representative of the Client, if there are any doubts regarding the correctness of the information received in the course of initial identification;

  6. refuse to participate in or carry out the Transaction if there is any suspicion that the Transaction is linked with Money Laundering or Terrorist Financing, or that the Client or another person linked with the Transaction is or could be involved in Money Laundering or Terrorist Financing.

 

    1. No new Business Relationship can be formed or Transaction executed, if the Client, in spite of the respective request, has failed to present documents and appropriate information required to conduct DD, or if based on the presented documents, the Representative suspects Money Laundering or Terrorist Financing.

    2. If in spite of the respective request an existing Client has failed to present during the contract period documents and appropriate information required to conduct DD, such behaviour constitutes material breach of contract that shall be reported by the Representative to the AMLCO, and in such case the contract(s) concluded with the Client shall be cancelled and the Business Relationship shall be terminated as soon as feasible1.

    3. The Company shall not enter into Business Relationships with anonymous Clients.

 

  1. Identification of a person

    1. Upon implementing DD measures the following person shall be identified:

  1. Client – a natural or legal person;

  2. Representative of the Client – an individual who is authorized to act on behalf of the Client;

  3. Beneficial Owner of the Client;

  4. PEP – if the PEP is the Client or a person connected with the Client.

    1. For identification of a Client and verification of the identity of a Client, the Company shall use:

      1. a government issued document with a photograph (passport, driver's license);

      2. the address of the client

    2. Identification of a Client being a legal person

      1. To identify a Client who is a legal person, the Representative shall take the following actions:

  1. Check the information concerning a legal person by accessing the relevant electronic databases;

  2. If it is not possible to obtain an original extract from the register or the respective data, request documents (extract from the relevant registry, certificate of registration or equivalent document), or use data obtained from other reliable and independent sources (including electronical identification) on condition that information is obtained from at least two different sources;

  3. Ask the representative of a foreign legal person to present an identity documents and a document evidencing of his/her power of attorney

      1. The document presented for identification of a legal person shall set out at least the following:

  1. business name, registry code (number), date of registration, seat and address;

  2. names and authorisations of members of the Management Board or the head of branch or the other relevant body.

      1. A legal representative of a new Client (subsequently as required) shall confirm the correctness of the submitted information and data by signing the Client data registration sheet (see Form 1).

    1. Identification of the Beneficial Owner of the Client

      1. Registration and assessment of the Beneficial Owner(s) of a legal person is mandatory.

      2. In order to establish the Beneficial Owner, the Representative shall take the following actions:

  1. Gather information about the ownership and control structure of the Client on the basis of information provided in pre-contractual negotiations or obtained from another reliable and independent source;

  2. In situations, where no single person holds the interest or ascertained level of control to the extent of no less than 25 percent, apply the principle of proportionality to establishing the circle of beneficiaries, which means asking information about persons, who control the operations of the legal person, or otherwise exercise dominant influence over the same;

  3. If the documents used to identify a legal person, or other submitted documents do not clearly identify the Beneficial Owners, record the respective information (i.e. whether the legal person is a part of a group, and the identifiable ownership and management structure of the group) on the basis of the statements made by the representative of the legal person, or a written document under the hand of the representative;

  4. To verify the presented information, make enquiries to the respective registers, and request an annual report or another appropriate document to be presented.

  5. If no natural person is identifiable who ultimately owns or exerts control over a Client and all other means of identification are exhausted, the senior managing official(s) might be considered to be the Beneficial Owner(s).

    1. Identification of Politically Exposed Person

      1. The Representative shall implement the following measures to establish whether or not a person is a PEP:

  1. asking the Client to provide necessary information;

  2. making an enquiry or checking the data on websites of the respective supervisory authorities or institutions of the country of location of the Client.

      1. The matter of whether to establish a Business Relationships with a PEP, or a person associated with him or her, and the DD measures applied to such person shall be decided by the MB.

      2. If a Business Relationship has been established with a Client, and the Client or its Beneficial Owner subsequently turns out to be or becomes a PEP, AMLCO and MB shall be notified of that.

      3. In order to establish a Business Relationship with a PEP or a company connected with that person, it is necessary to:

  1. take enhanced DD measures

  2. establish the source of wealth of this person and the origin of the money or other property used in the Transaction;

  3. monitor the Business Relationship on a continual basis, and carry out enhanced control over the Transaction.

      1. DD measures might be not applicable regarding local PEPs, if there are no relevant circumstances, leading to the higher risks.

 

  1. Establishing the purpose of a Transaction

    1. For the purpose of preventing movement of illegally obtained funds through the Company it is essential upon entering into a Business Relationship, in addition to identification of the Client, to establish the business profile of the Client, which consists of mapping the main areas of operation and possible payment practices. Notice is to be taken on persons that the Client has transactional relationships with, and their location.

    2. It is necessary to bear in mind that certain circumstances, which are suspicious or unusual for one Client, could constitute a part of normal economic activities of another. Establishing the area of activity, work or profession of a Client allows assessing whether or not the Business Relationship or the Transactions are in conformity with the Client’s normal participation in commerce, and whether the Business Relationship or the Transaction has an understandable economic reason for the Client.

    3. In order to screen out suspicious or unusual Transactions and the purpose and actual substance of a Transaction, the Representative shall take the following actions:

  1. if necessary, ask the Client to provide (additional) information about the professional or economic activities;

  2. if necessary, ask the Client explanations about the reasons for the Transaction and, if necessary, documents evidencing of the origin of the assets and/or source of wealth;

  3. being particularly attentive to Transactions, which are linked with natural or legal persons, whose country of origin is a state, wherefrom it is particularly difficult to receive information about the Client and/or transactions with persons, who originate from such states, which do not contribute sufficiently into prevention of Money Laundering.

    1. Upon identifying and screening of such Clients, the following circumstances, if present concurrently, shall be considered criteria pointing to low level of risk:

  1. the Client can be identified on the basis of publicly available information;

  2. the ownership and control structure of the Client is transparent and constant;

  3. the operations of the Client and their accounting or payment policies are transparent;

    1. Simplified DD measures may be taken regarding a Transaction, if all of the following conditions have been fulfilled:

  1. a contract in written (or in format which can be reproduced in written) or electronic format has been entered into with a Client for an indefinite or a long-time period;

  2. the annual total value of performance of financial obligations arising from Transactions does not exceed 15,000$;

  3. the benefits derived from the Transaction are not realized as benefits of third person, excluding the event of the Client’s death.

 

    1. Suspicious and unusual Transactions

      1. The Representative shall decide whether a Transaction is unusual, having regard to the entire information known about the Client and the Transaction. Upon assessing a Transaction, it is necessary to establish whether the unusual circumstance or change is understandable, considering the hitherto behaviour of the Client, or whether the Transaction has characteristics pointing to Money Laundering or Terrorist Financing. If any unusual Transaction, activity or circumstance is observed, the Representative shall analyse and compare the circumstances of the Transaction against the indications of the Transaction pointing to Money Laundering or Terrorist Financing.

      2. Any Transactions and activities of Clients, which have no clear economic or legal reason, and which cannot be considered normal economic activity of a Client shall be regarded as suspicious. Among other aspects, particular attention must be paid to the following Transactions/circumstances:

  1. Client makes single and/or consecutive large Transactions outside the schedule, if the amount of the single and/or consecutive Transaction 15,000$ (in case of both natural and legal persons) or higher;

  2. A third person makes payments on behalf of the Client;

  3. Exists any of characteristics of suspicious transactions.

      1. In all the cases referred to above, the Client shall be asked for explanation and necessary documents evidencing of the legal origin of the funds.

      2. The Representative must investigate the background of each and every suspicious or unusual case, to the extent it is reasonably necessary, while recording all known details of the Transactions.

      3. The key aspects, which should be addressed while analysing any suspicious and unusual Transactions, are:

  1. Have all procedures set out by the Rules been applied to identify a Client or his/her/its representative?

  2. Was all required information presented in the course of such process, or was it necessary to ask for additional information or other clarification?

    1. Prohibited Transactions

If any of the characteristics listed here have been observed, the Transaction may be carried out only with the consent of the MB:

  1. The Client does not have sufficient authorisations to carry out the Transaction, or the authorisations are unclear;

  2. The Client’s need to carry out the Transaction has not been reasonably justified;

  3. The management, ownership and control structure of the Client being a legal person is unclear and/or it is structured in an unreasonably complicated way from the economic point of view, or it has changed frequently without justification;

  4. Economic activities of a legal person or its accounting or payment practices are not transparent;

  5. The Client may be a fictitious company or a fictitious person;

  6. The Beneficial Owner of the Client being legal person cannot be established;

  7. The Client being a legal person uses an agent or another legal person as its representative without clear authorisations (i.e. during pre-contract negotiations);

  8. The Client or the representative of the Client refuses to provide information for the purposes of establishing the substance of the Transactions and assessment of the risks;

  9. The Client has not presented sufficient data or documents to prove legal origin of the assets and funds, after having been asked to do so;

  10. Based on the information received from recognised and reliable sources (e.g. state authorities, international organisations, the media) the Client, the Beneficial Owner of a Client being a legal person, or another person associated with the Client is or has been linked with organised crime, Money Laundering or Terrorist Financing;

  11. The Client, the Beneficial Owner of a Client being a legal person, or another person associated with the Client is or has been linked with traditional sources of income of organised crime, i.e. illicit traffic of excise goods or narcotic substances, illegal trafficking of arms or human trafficking, mediation of prostitution, unlicensed international transfers of e-money;

  12. International Sanctions are being applied against the Client, the Beneficial Owner of a Client being a legal person, or another person associated with the Client;

  13. The Client has nominee shareholders or shares in bearer form.

 

 

  1. Registration and storage of data

    1. The Representative shall ensure that Client and Transaction data are registered in the Company’s Client database within the required scope.

    2. Registration of data of a Client who is natural person

      1. The following obtained data shall be recorded in the Company’s information system:

  1. Name, personal ID code or, in the absence of the latter, date of birth and the address of the person’s permanent place of residence and other places of residence;

  2. the name and number of the document used for identification and verification of the identity of the person, its date of issue and the name of the issuing authority;

  3. occupation, profession or area of activity – establish the area of activity (occupation) and the status of the person (trader, employee, student, pensioner);

  4. If the Client is a natural person, the Representative shall record information about whether the person is performing or has performed prominent public functions, or is a close associate or family member of the person performing prominent public functions;

  5. Citizenship and the country of tax residency;

  6. the origin of assets.

      1. In case of a representative, the following info shall be recorded:

  1. the name of the document used for establishing and verification of the right of representation, the date of issue and the name or name of the issuing party.

      1. If the Business Relationship is established by the Client or the representative with the use of the ID card or other e-identification system, the data of the document used for identification is saved automatically in the digital signature. If identification takes place at a face-to-face meeting with the Client, the data of the document used for identification is recorded on the copy of the identification document.

    1. Registration of data of a Client who is a legal person

      1. The following information on the Client being a legal person shall be recorded:

  1. Name, legal form, registry code, address, date of registration and activity locations;

  2. information concerning means of communication and contact person(s);

  3. names of the members of the management board or an equivalent governing body, and their powers to represent the Client, and whether any of them is a PEP;

  4. information about the Beneficial Owners;

  5. Field(s) of activity;

  6. name and number of the document used for identification and verification of the identity, its date of issue and the name of the issuing authority;

  7. country of tax residency of the legal person (VAT number);

  8. date of registration of the legal person in the Company’s database;

  9. purpose of the Business Relationship;

  10. origin of assets (normal business operations/other);

  11. Expected Transactions with the Client, the amount(s) and geographical region (EU, EEA/other).

      1. The following information about the Beneficial Owner shall be recorded:

  1. Name, personal ID code or, in the absence of the latter, date of birth and place of residence;

  2. type of control over the enterprise (e.g. shareholder);

  3. is the person a PEP;

  4. information about the representative.

      1. If the Business Relationship is established by the representative of the Client with the use of the ID card or other e-identification system, the data of the document used for identification is saved automatically in the digital signature. If identification takes place at a face-to-face meeting with the representative of the Client, the data of the document used for identification is recorded on the copy of the identification document.

      2. Information from the B-card, i.e. the legal representatives of the Client being a legal person stated on the B-card, shall be recorded on the Client data registration sheet or the contract concluded with the Client.

      3. The following information about the Transaction shall be recorded:

  1. the date of the Transaction and a description of the substance of the Transaction;

  2. upon payment relating to shares, bonds or other securities, the type of the securities, the monetary value of the Transaction, the currency and the account number;

  3. other relevant information having significance in the matter.

    1. The Representative shall record all the data regarding

      1. Company’s decision to refuse establishment Business Relationship or carry out a Transaction. The Representative shall record all the data, if, as a result of taking DD measures, a person refuses to establish the Business Relationship or to make a Transaction.

      2. Impossibility to take DD measures due to information technology means;

      3. Termination of the business relationship, as a result of impossibility to take DD measures;

 

    1. Storage of Data

      1. The respective data is stored in a written format and/or in a format reproducible in writing and, if required, it shall be accessible by all appropriate staff of the Company (MB, Representatives, marketing, AMLCO etc).

      2. Information regarding suspicious transactions shall be stored by the AMLCO and shall be accessible only to the MB.

      3. The originals or copies of the documents, which serve as the basis for identification a person, and of the documents serving as the basis for establishing a Business Relationship, shall be stored for at least five (5) years following the termination of the Business Relationship.

      4. The documents prepared on the Transaction on any data carrier shall be stored for at least five (5) years following the Transaction or fulfilling the reporting obligation.

      5. The data of the document prescribed for the digital identification of a Client, information on making an electronic query to the identity documents database, and the audio and video recording of the procedure of identifying the person and verifying the person’s identity shall be stored at least five (5) years following the termination of the Business Relationship.

      6. Also to be stored:

  1. manner, time and place of submitting or updating of data and documents;

  2. name and position of Representative who has established the identity, checked or updated the data.

 

 

  1. Training

    1. The Company shall ensure that all of its representatives who have contacts with Clients or matters involving Money Laundering are provided with regular training and information about the nature of the Money Laundering and Terrorist Financing risks, as well as any new trends within the field. The AMLCO shall arrange regular training concerning prevention of Money Laundering and Terrorist Financing to explain the respective requirements and obligations.