AML/ KYC POLICY

Introduction

Octapay acknowledges the Proceeds Of Crime Act 2002 (POCA) consolidated, updated and reformed criminal law with regard to money laundering. We will take reasonable steps to minimize the likelihood of money laundering occurring by putting proper policies and procedures in place.

This policy has therefore been adopted in order to introduce safeguards to help identify and report instances where money laundering is suspected.

What Is Money Laundering?

Money laundering can be defined as the process to move illegally acquired cash through financial systems so that it appears to be from a legitimate source. Money laundering offences include:

  • Concealing, disguising, converting and transferring criminal property or removing it from the UK (section 327 of the act)
  • Entering into, or becoming concerned in an arrangement which you know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person (section 328 of the act)
  • Acquiring, using or possessing criminal property (section 329 of the act)

There are also two secondary offences. Firstly, failure to disclose any of the three primary offences above, and secondly, ‘tipping off’ whereby somebody informs a person or persons who are, or who are suspected of being involved in money laundering, in such a way as to reduce the likelihood of their being investigated or prejudicing an investigation.

Any member of staff could potentially be caught by the money laundering provisions, if they suspect money laundering and either become involved with it in some way and/or do nothing about it. This policy sets out how any concerns should be raised.

It is important that all employees are familiar with their responsibilities as serious criminal sanctions may be imposed for breaches of the legislation. The key requirement of employees is to promptly report any suspected money laundering activity to the money laundering reporting officer.

What Is AML

AML (Anti Money Laundering) refers to practices and ideologies which aid in the elimination of illegal financial exchange. The most conventional mechanisms to undermine this conduct are procedures, laws and regulations.

Although anti money laundering laws only apply to a modest amount of transactions, their implications are vast. Currently, to ensure institutions are not aiding in money laundering activities, AML regulations require that those who grant credit or allow clients to open merchant IDs must complete due-diligence procedures.

This responsibility falls on the banks, not the criminals or the government.

At Octapay, our policy is to ensure that our company, its senior management and all of our employees are committed to complying with all legislation and appropriate guidelines designed to combat money laundering activity, the funding of terrorist or criminal activity in the jurisdictions in which we operate.

We Will:

  • Take reasonable steps to establish the identity of any person for whom it is proposed to provide any services where applicable.
  • Retain identification and transactional documentation as defined in the legislation in the jurisdiction in which we operate
  • Provide initial and ongoing training to ensure all relevant staff are aware of their personal responsibilities and the anti money laundering procedures in respect of identifying clients, monitoring, record-keeping, remaining vigilant at all time and reporting suspicious transactions
  • Ensure our policy is developed and maintained in line with evolving statutory and regulatory obligations from enforcement agencies
  • Report to the relevant authority where there are reasonable grounds to suspect that a money laundering offence has been committed
  • We will, at all times, ensure the protection of our staff and safeguard our organization and reputation against the threat of money laundering and the funding of terrorist and criminal activities.

Risk Assessment

Our business activity is based on the following principles and markets:

No financial transactions or money handling will be undertaken by Octapay, other than the charges made for the services outlined above. Octapay does not offer any banking, accounting or secretarial services.

Key issues

Octapay is committed to the prevention, detection and reporting of money laundering. All employees must be vigilant for signs of money laundering. Any employee who suspects money laundering activity must report this promptly to the money laundering reporting officer or deputy money laundering officer.

Scope Of The Policy

This policy applies to all employees of Octapay and aims to maintain the high standards of conduct, by preventing criminal activity through money laundering. The policy sets out the procedures, which must be followed (for example, the reporting of suspicions of money laundering activity) to enable Octapay to comply with its legal obligations.

What Is KYC

KYC is a well-known word within credit card processing circles as it has become more usual than using its real name: Know Your Customers. This is associated with documents belonging to a company trying to apply for merchant accounts.

KYC – know your customer is the verification process that all companies go through with banks, whether it is personal or business, and requires you to prove that everything regarding you and your company is legal. Some banks might go to any extreme to do their due diligence.

The term KYC is also used in referral to anti-money laundering regulations known as AML and banking regulations which oversee activities in these categories. KYC processes are used through bank risk teams to deem if a business is worth the risk or if more information is needed. These processes can also end in a refusal if lack of information is submitted.

Know Your Customer Obligations

KYC obligations require Octapay to collect and maintain information on all account holders. These requirements come from our regulators and are intended to prevent abuse of the financial system.

The information Octapay is required to collect differs from country to country, and typically includes (but is not limited to):

  • The individual creating the Octapay account
  • The business associated with the Octapay account
  • Any individuals who ultimately own or control that business

The Octapay KYC Policy Requirements

  • Application form
  • Valid passport/photo id of beneficial owner(s) & signatory
  • Personal utility bill (no older than 3 months) of beneficial owner(s)
  • Personal & company bank statements (no older than 3 months)
  • Incorporation/registration certificate
  • Articles of association or memorandum of association
  • Register of shareholder(s) and director(s)
  • For businesses with monthly processing volume in excess of £100,000, all KYC documents must be notarised.
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