Anti-Money Laundering Policy Statement
S.A.M. Trade is committed to the highest standards of Anti-Money laundering (AML) compliance and requires management and employees to adhere to these standards to prevent use of our products and services for money laundering purposes. S.A.M. Trade will examine its Anti Money Laundering strategies, goals and objectives on an ongoing basis and maintains an effective Anti-Money Laundering programme for the firm's business that reflects the best practices for a global financial brokerage. Adherence to the S.A.M. Trade’s Anti-Money Laundering Programme is the responsibility of all employees. The programme includes client screening and monitoring requirements, “know your customer” policies (including the requirement to establish the identity of beneficial owners), record keeping requirements, the reporting of suspicious circumstances in accordance with relevant laws, and AML training.
The standards set out in the S.A.M. Trade Global Anti-Money Laundering Programme (“AML Programme”) are minimum requirements based on applicable legal and regulatory requirements and apply for S.A.M. Trade. These requirements are intended to prevent S.A.M. Trade, our employees and clients from being misused for money laundering, terrorist financing or other financial crime. The AML Programme establishes the general framework for the fight against money laundering and financing of terrorism.
S.A.M. Trade must ensure that the legal duties resulting from regulations set out are fulfilled by our subordinated subsidiaries and affiliates globally. Wherever local regulations are stricter than the requirements set out in the AML Programme, the stricter standard has to be applied. If any applicable laws are in conflict with the AML Programme, S.A.M. Trade must consult with the local legal department to resolve the conflict. If the minimum requirements set out in the AML Programme cannot be applied in a certain country because application would be against local law or cannot be enforced due to other than legal reasons, S.A.M. Trade has to assure that it will not:
- enter into a business relationship;
- continue a business relationship or;
- carry out any transactions. If business relations already exist in that country, S.A.M. Trade has to assure that the business relationship is terminated regardless of other contractual or legal obligations.
Definition of the Term Money Laundering
Money Laundering is the introduction of assets derived from illegal and criminal activities (Predicate offences) into the legal financial and business cycle. Offences are for example forgery of money, extortionate robbery, drug crime as well as fraud, corruption, organized crime, or terrorism etc. Predicate offences for money laundering are defined by local law. Generally speaking, the money laundering process consists of three “stages”:
Placement: The introduction of illegally obtained monies or other valuables into financial or nonfinancial institutions.
Layering: Separating the proceeds of criminal activity from their source through the use of layers of complex financial transactions. These layers are designed to hamper the audit trail, disguise the origin of funds and provide anonymity.
Integration: Placing the laundered proceeds back into the economy in such a way that they re-enter the financial system as apparently legitimate funds. These “stages” are not static and overlap broadly. Financial institutions may be misused at any point in the money laundering process.
MANAGEMENT AND CONTROLS OF AML RISKS
S.A.M. Trade has developed a AML Programme that is based upon The Financial Action Task Force (FATF) Recommendations which set out a comprehensive and consistent framework of measures to be implemented in order to combat money laundering and terrorist financing, as well as the financing of proliferation of weapons of mass destruction. The AML Programme includes but not limited to:
- Customer Due Diligence Programme which includes client identification and verification, Know Your Client principles, and implementing various programmes that are appropriate to remediate customer due diligence of existing clients.
- Customer Due Diligence measures for non-face-to-face business relationships to address specific risks.
- Conduct of enhanced due diligence on customers assessed as higher risk, such as politically exposed persons, and close associates to politically exposed persons.
- Establishing systems and procedures designed to monitor client transactions designed to identify suspicious transactions.
- Ensuring that employees, member of the committee of management, and directors of S.A.M. Trade are regularly and appropriately trained on AML/CFT laws and regulations, customer due diligence measures, detecting and reporting of suspicious transactions.
- Establishing strong screening procedures to ensure high standards when hiring employees, member of the committee of management, and directors.
Prospective clients who are interested to establish a business relationship with S.A.M. Trade will have to subject to the following anti-money laundering controls and measures to ensure that funds or assets of customers are not proceeds from drug dealing, criminal conduct or terrorism financing.
Identification and Verification of Customer Identity: Prior to entering into a business relationship with a client, S.A.M. Trade will identify the client through obtaining mandatory information of the client and verifying the identity of the client using reliable, independent source of data, documents or information.
Identification and Verification of Beneficial Owner: S.A.M. Trade will inquire on the existence of any beneficial owner in relation to the client and will identify the beneficial owners and verify the identity of the beneficial owner using relevant information or data obtained from reliable, independent sources.
Ongoing Monitoring: All clients will be subject to ongoing monitoring which include observing the conduct of the client's account and scrutinising transactions undertaken throughout the course of business relations. Transactions undertaken by clients have to be consistent with the client's profile and source of funds.
Prohibited Activities: S.A.M. Trade will not keep anonymous account, accounts with fictitious names, accounts with tampered, and forged documents.
Suspicious Transactions Reporting: S.A.M. Trade shall submit reports on suspicious transactions (including attempted transactions) to the relevant local competent authorities. Group Anti-Money Laundering Department will be informed of all suspicious transactions.
All client related information and document, transactions, account files, business correspondence, and results of any analysis undertaken shall be retained for a minimum of 10 years.
PROHIBITED BUSINESS RELATIONSHIPS
S.A.M. Trade shall refuse to establish a business relationship or to terminate an existing relationship with a client if S.A.M. Trade cannot reasonably ascertain the true identity of the client and/or beneficial owners, or if the client is unwilling or reluctant to provide any information or document requested by S.A.M. Trade. In particular, the firm will not
- Accept monies that are known or suspected to be the proceeds of criminal activity
- Enter into/maintain business relationships with individuals or entities known or suspected to be a terrorist or a criminal organisation or member of such or listed on sanction lists
- Enter into relationships with clients from restricted or prohibited countries
- Enter into relationships with clients operating in sensitive/high risk/prohibited industries
S.A.M. Trade has implemented an ongoing AML Risk Analysis to assess the level of risk exposure considering the firm's customers, products, services, entities and geographic locations risk and to derive appropriate security measures from this analysis. AML safeguards are derived from the results of the AML Risk Analysis.
Adherence to the global-wide AML programme needs to be reviewed regularly to ensure that the firm's efforts are successful. The AML Officer in S.A.M. Trade is therefore obliged to conduct appropriate controls. The responsible AML Officer must ensure, by implementing adequate customer- and business related controls, that all applicable AML requirements are being adhered to and security measures are properly functioning.
S.A.M. Trade has implemented a strict KYC programme to ensure all kinds of customers (natural or legal persons or legal structures) are subject to adequate identification, risk rating and monitoring measures. This programme has been implemented globally. KYC includes not only knowing the clients and entities the firm deals with, or renders services to, but also the Ultimate Beneficial Owners (UBOs), Legal Representatives and Authorised Signatories as appropriate. The programme includes strict identification requirements, name screening procedures and the ongoing monitoring and regular review of all existing business relationships. Special safeguards are implemented for business relationships with politically exposed persons (PEPs) and clients from countries or industries deemed high risk.
S.A.M. Trade has implemented a comprehensive AML training programme to ensure that all staff, in particular individuals responsible for transaction processing and/or initiating and/or establishing business relationships, undergo AML awareness training. S.A.M. Trade's training is tailored to the business to ensure that staff are aware of different possible patterns and techniques of money laundering which may occur in their everyday business. Training also covers the general duties arising from applicable external (legal and regulatory), internal requirements and the resulting individual duties which must be adhered to in everyday business as well as typologies to recognize money laundering or financial crime activities.
Reliability of Staff
S.A.M. Trade has implemented processes to ensure that only reliable individuals are employed.
Adherence to the requirements of S.A.M. Trade's AML programme is subject to independent testing by S.A.M. Trade's Internal Audit function and the Semi - Annual External Auditor.