Anti Money Laundering and Counter Terrorism Financing Policy
Anti-Money Laundering & Counter Terrorism Financing Policy
Contents
Version Control
2. About this policy
3. Details
1. Version Control
Date Version Updates Name
January 2020 V2.0 Update for implementation of 2019 MLRs/5 MLD
September 2020 V2.0 Redated September 2020
January 2024 V2.1 Redated January 2024 and new MLRO added
Annual review
Next Review Date: January 2025
Director: Abdulaziz Alnaim,
MLRO: Stefan Dawidowski
1. Introduction
This policy outlines Mayar Capital Ltd’s approach to preventing and detecting Money Laundering and Terrorist Financing. In developing this policy, Mayar Capital Ltd has considered all current Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF) obligations required in the United Kingdom (UK) law, as well as best practice guidance issued for the Asset Management sector. The policy has been created utilising guidance issued by the Financial Conduct Authority (FCA), Her Majesty’s Revenue & Customs (HMRC), and the Joint Anti-Money Laundering Steering Group (JMLSG).
Mayar Capital Ltd fully acknowledges that its products and services are at risk from individuals or groups seeking to launder criminal proceeds or facilitate funds designated for the financing of terrorism. As such, Mayar Capital Ltd is committed to fostering and promoting a compliance culture throughout the firm which underpins the importance of preventing Money Laundering and Terrorist Financing.
Mayar Capital Ltd recognises it has a statutory duty under UK law to prevent the facilitation of its services for Money Laundering and Terrorist Financing purposes. Subsequently, Mayar Capital Ltd pledges to allocate sufficient resources to the firm’s internal controls, monitoring system, human resources and staff training to prevent financial crime.
1.1 Scope
All employees, directors, officers and associated agents are required to comply with these policies. Failure to do so may result in disciplinary action.
1.2 Objective
The objectives of the policy are to:
• Emphasise our stringent commitment to preventing Mayar Capital Ltd being used as a conduit to deposit, conceal and transfer criminal proceeds or funds intended for orchestrating terrorism.
• Summarise the main procedures, systems, and controls Mayar Capital Ltd has implemented to prevent and detect Money Laundering and Terrorist Financing.
• Clearly outline the responsibilities of the Mayar Capital Ltd’s senior management, Money Laundering Reporting Officer (MLRO) and other key individuals in relation to the firm’s AML/CTF strategy.
• Explain the most up-to-date Money Laundering and Terrorist Financing risks that Mayar Capital Ltd is vulnerable to and how the firm intends to counteract these risks.
• Confirm that Mayar Capital Ltd will take steps to monitor compliance with this policy throughout the firm.
2. What is Money Laundering?
Mayar Capital Ltd views Money Laundering to be: ‘the process by which illegally gained proceeds or funds are cleaned and sanitised to disguise their illicit origins’.
Criminal property may take any form, including money or money’s worth, securities, tangible property and intangible property. It also includes money, however come by, which is used to fund terrorism.
Money Laundering activity can include:
• Acquiring, using or possessing criminal property.
• Handling the proceeds of crimes such as theft, fraud and tax evasion.
• Being knowingly involved in any way with criminal property.
• Entering into arrangements to facilitate laundering criminal property.
2.1 Three Stages of Money Laundering
The Money Laundering process traditionally follows three stages:
Placement
The placement stage represents the initial entry of proceeds derived from an illegal activity into the financial system. It is during the placement stage when criminal transactions are most vulnerable to detection.
Layering
Layering is the most complex stage of the process, where criminals aim to separate the illegal proceeds from their illicit origin. This is traditionally done via several complex transactions within the international financial systems. It is common for criminals at this stage to transfer funds electronically between jurisdictions and invest them into advanced financial products or overseas markets. This is done repeatedly to obscure the audit trail and decreases the probability of law enforcement authorities tracing the proceeds to their original crime.
Integration
It is at this final stage where the money is returned to the criminal as “clean” funds as they appear to come from a legitimate source. Having been “placed” as cash and “layered” through several complex financial transactions, the criminal proceeds are now “integrated” into the financial system and can now be used for any purpose.
3. What is Terrorist Financing?
Mayar Capital Ltd views Terrorist Financing to be: ‘The use of funds, or the making available of funds, for the purposes of terrorism.’ This constitutes the funds that both individuals and organisations contribute towards financing terrorist activities or terrorist organisations.
The source of terrorist financing can take many forms, including:
• Self-financing from individuals, including but not limited to income from employment, savings, borrowed money from families or friends and bank loans.
• Funds raised by legitimate charities affiliated to or sympathetic to terrorist ideology.
• States directly or indirectly sponsoring terrorist groups.
Mayar Capital Ltd is committed to ensuring that:
• Our clients are not terrorist organisations themselves.
• We are not providing the means through which terrorist organisations can be funded (i.e. by providing loans and other services to individuals who intend to finance terrorism).
4. Responsibilities of MLRO & Senior Management
Mayar Capital Ltd clearly defines the roles and responsibilities of all individuals with oversight of the firm’s AML/CTF strategy and responsibility for the firm’s compliance with all AML/CTF requirements.
4.1 MLRO
Mayar Capital Ltd has appointed Daniel Benton as the firm’s Money Laundering Reporting Officer (MLRO). Daniel Benton was appointed on 31/01/2024, occupies the appropriate Senior Manager Function and is judged to be fit and proper to hold the role by the firm’s senior management. The MLRO will assume responsibility for the firm’s AML/CTF strategy.
It is the MLRO’s responsibility to oversee the firm’s compliance with the Money Laundering regulations. The MLRO is responsible for:
• Receiving and investigating reports relating to (suspicions of) Money Laundering and Terrorist Financing.
• Making reports of relevant suspicious activity to the National Crime Agency (NCA);
• Ensuring the suitability of the content of the AML & CTF training and the subsequent roll-out of the training to all staff and advisers across the firm.
• Reporting at least annually to the board on the operation and effectiveness of the firm’s AML systems and controls.
• Responding promptly to any reasonable requests for information made by a regulator of the firm.
• The approval and risk assessment of new or amended products/jurisdictions/sales channels.
• Approving business relationships which the firm wishes to enter or continue where the consumer is a Politically Exposed Person (PEP).
• Approving business relationships which the firm wishes to enter or continue where the consumer resides in or trades with a jurisdiction which is considered by Financial Action Task Force (FATF) as non-cooperative or has a high risk of terrorism.
• Establishing and maintaining policies, controls, and procedures to mitigate and manage effectively the risks of money laundering and terrorist financing identified in any risk assessment.
• Communicating the policies, controls, and procedures which the firm establishes and maintains in accordance with this regulation to its branches and subsidiary undertakings, including those located outside the UK.
4.2 Senior Management
Mayar Capital Ltd has appointed Abdulaziz Alnaim as the member of its board with responsibility for the firm’s compliance with the Money Laundering Regulations 2017 and their 2019 amendment.
Overall, Mayar Capital Ltd’s senior management is responsible for:
• Ensuring that the firm’s AML/CTF policies, procedures, and controls are appropriately designed and implemented to reduce the firm’s vulnerability to Money Laundering and Terrorist Financing.
• Being fully engaged in the decision-making process regarding the firm’s AML/CTF strategy and take ownership of their risk-based approach.
• Being involved in the design of the firm’s policies, procedures and controls and approving them.
• Being aware of the level of Money Laundering and Terrorist Financing risk the firm is subject to.
• Ensuring that the firm fulfills its obligations under Proceeds of Crime Act 2002, the Terrorism Act 2000 and the Money Laundering Regulations 2017 as amended in 2019.
4.3 Employees
All Mayar Capital Ltd employees are trained to identify and report suspicious activity. They are also given regular training on the law relating to Money Laundering and Terrorist Financing.
5. Regulatory Responsibility
Mayar Capital Ltd. is registered with the FCA (926424)
6. UK Legislation & Regulation
Mayar Capital Ltd is fully aware of the UK’s regulatory framework relating to AML and CTF. Mayar Capital Ltd also provides regular training to our employees, agents, and subsidiaries to ensure they have sufficient knowledge of the UK’s regulatory framework.
Mayar Capital Ltd is required to adhere to the following legislation and regulations:
• The Proceeds of Crime Act 2002 (as amended by the Crime and Courts Act 2013 and the Serious Crime Act 2015)
• The Money Laundering Regulations 2007 (SI 2007 No. 2157) and the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, as amended 2019
• The Terrorism Act 2000 (as amended by the Anti-Terrorism, Crime and Security Act 2001, the Terrorism Act 2006 and the Terrorism Act 2000 and Proceeds of Crime Act 2002 (Amendment) Regulations 2007).
• The Counter-Terrorism Act 2008.
6.1 Offences
The above legislation and regulations outline multiple Money Laundering and Terrorist Financing offences, which Mayar Capital Ltd is committed to avoiding. The key offences under the applicable legislation and regulation are as follows:
• Concealing (Subject to a maximum 14-year jail term and/or a fine)
o It is an offence to help conceal, disguise, convert, transfer or remove funds from the UK if you know, should have known, suspect or should have suspected that the funds were the proceeds of criminal conduct.
• Arrangements (Subject to a maximum 14-year jail term and/or a fine)
o It is an offence to enter into or become concerned with an arrangement if you know, should have known, suspect or should have suspected that the arrangement facilitates the acquisition, retention, use or control of criminal property.
• Acquisition, use, and possession of funds (Subject to a maximum 14-year jail term and/or a fine)
o Regardless of any attempt to conceal or disguise the criminal origin of property, it is an offence to acquire, use or possess criminal property. This offence does not require the laundering process to be actively undertaken.
• Tipping Off (Subject to a maximum 5-year jail term and/or a fine)
o It is an offence for anyone to take any action likely to prejudice an investigation by informing the person who is the subject of a suspicious activity report, or anybody else, that a disclosure has been made, or that the police or customs authorities are carrying out or intending to carry out a Money Laundering investigation.
• Failure to Report (Subject to a maximum 5-year jail term and/or a fine)
o It is an offence to turn a ‘blind eye’ to money laundering. It is a criminal offence for persons working in the regulated sector to fail to report where they have knowledge, suspicion or reasonable grounds for knowledge or suspicion that another person is engaged in Money Laundering.
• Laundering Terrorist Property (Subject to a maximum 14-year jail term and/or a fine)
o It is an offence to enter into or become concerned in an arrangement which facilitates the retention or control of terrorist property by concealing, removing it from the jurisdiction, transferring it to nominees or in any other way.
6.2 Directions from HM Treasury
Concerning the Money Laundering and Terrorist Financing threat that certain designated countries pose to the UK, Mayar Capital Ltd will comply with all applicable directions issued by HM Treasury under Schedule 7 of the Counter-Terrorism Act 2008.
7. Risk-Based Approach
Mayar Capital Ltd applies a risk-based approach with regards to its AML/CTF strategy and routinely identifies and assesses the Money Laundering and Terrorist Financing risk the business is exposed to.
As required under the Money Laundering Regulations, Mayar Capital Ltd will conduct a regular risk assessment to examine all risks of Money Laundering and Terrorist Financing to which to business is subject. In assessing and identifying such risks, the firm will take into consideration the following factors:
• Risks posed by the firm’s customers;
• Products and services offered by the firm;
• The geographical areas where the firm operates;
• Delivery channels the firm uses;
• The volume and complexity of the firm’s transactions.
Once the risks have been identified and assessed, Mayar Capital Ltd pledges to amend its policies, procedures, and controls in accordance with the underlying risks.
7.1 Risks Identified
Mayar Capital Ltd has conducted a risk assessment to identify the most potent Money Laundering and Terrorist Financing risks for the which the firm is vulnerable. A full list of risks identified by the firm in its most recent risk assessment can be found in section 2.2 of the firm’s Due Diligence procedures.
7.2 How will the Firm Mitigate Risks?
Mayar Capital Ltd has implemented numerous measures to counteract the risk of Money Laundering and Terrorist Financing through the firm. A full list of these measures can be found in section 2.3 of the firm’s Due Diligence Procedures.
8. Due Diligence
Mayar Capital Ltd is required to undertake appropriate due diligence measures across its customer base to ensure the firm has undertaken a comprehensive appraisal of all potential customers. To do this, the firm will establish and verify their identity, assets, nature and intended purpose of the relationship and liabilities. Mayar Capital Ltd adopt a risk-based approach to determine the level of due diligence required for each type of customer and the potential Money Laundering and Terrorist Financing risk they pose to the business.
In evaluating the risk level of each customer, Mayar Capital Ltd will consider risk factors surrounding the customer, the product/service they are acquiring, the anticipated frequency and volume of transactions and their geographical location.
8.1 Three Levels of Due Diligence
Mayar Capital Ltd will conduct one of three levels of due diligence depending on the outcome of each customer’s risk assessment:
Simplified Due Diligence (SDD)
SDD is the lowest level of due diligence that can be completed on a customer. Before conducting SDD on a customer, a risk assessment is required to demonstrate that the customer presents a lower degree of risk and requires suitable ongoing monitoring. As such, SDD is reserved for customers who present a low risk of money laundering or terrorist financing and where this low risk can be evidenced.
Following the Fourth Money Laundering Directive’s implementation in June 2017, SDD is no longer automatically available to customers such as FCA-regulated firms, UK public authorities and UK pension schemes. Such customers must now pass through the risk assessment process.
Customer Due Diligence
Customer Due Diligence (CDD) is required to verify customer’s identity and comprise the risk profile of the customer. To complete CDD, ID must be sought. This could include Mayar Capital Ltd requesting a physical copy of the customer’s government issued ID and/or by performing electronic Know Your Customer (KYC) checks and requesting information about the customer’s source of wealth/funds.
Should there be any doubt about the validation of the customer’s identity, Enhanced Due Diligence measures should be undertaken.
Since the passing of 4MLD, standard CDD must be obtained in relation to regulated firms taken on as clients. This is likely to take the form of a check against the FCA Financial Services Register (or another regulatory record, as required), combined with the obtaining of client legal documents such as memoranda and articles and documentary evidence of the identity of the individuals representing the client firm.
Amendments to regulation 38 of the 2019 MLRs regarding electronic money mean that e-money firms can only forego customer due diligence measures in situations where:
• the maximum amount which can be stored electronically is €150 (previously €250)
• the payment instrument used in connection with the electronic money (the relevant payment instrument) is:
- not reloadable, or
- is subject to a maximum limit on monthly payment transactions of €150, which can only be used in the UK (previously €250)
• the relevant payment instrument is used exclusively to purchase goods or services
• anonymous electronic money cannot be used to fund the relevant payment instrument
Enhanced Due Diligence
Enhanced Due Diligence (EDD) will be required when the risk assessment has ascertained that the customer poses a high risk of Money Laundering to mitigate the increased risk to the business. This includes, but is not limited to, customers that are or may be Politically Exposed Persons and/or Sanctioned individuals.
In addition, customers found to be residing in/transferring to high-risk countries and customers performing large or complex transactions that cannot be explained when considering the client’s transaction history will also be subject to EDD by Mayar Capital Ltd.
What EDD entails will be dependent on the nature and severity of the identified heightened risk. This could include, but is not limited to, obtaining additional ID evidence, ID verification, a full description of the source of wealth and funds. All EDD customers must be signed off by the Mayar Capital Ltd’s MLRO before the relationship is finalised and before any transactions take place.
Amendments to regulation 33 of the 2019 MLRs require firms to include additional high-risk factors when assessing the need for enhanced due diligence and seek additional information and monitoring in certain cases. These may occur where:
• there are relevant transactions between parties based in high-risk third countries,
• the customer is the beneficiary of a life insurance policy,
• the customer is a third-country national seeking residence rights or citizenship in exchange for transfers of capital, purchase of a property, governments bonds or investment in corporate entities,
• there are non-face to face business relationships or transactions without certain safeguards, for example, as set out in regulation 28 (19) concerning electronic identification processes.
• there are transactions related to oil, arms, precious metals, tobacco products, cultural artefacts, ivory or other items related to protected species, or archaeological, historical, cultural and religious significance, or of rare scientific value
8.2 Politically Exposed Persons (PEPs)
When a valid PEP, or family member or close associate of a PEP, has been identified, Mayar Capital Ltd’s MLRO is required to approve the initiation of the bespoke business relationship. This includes the continuation of a relationship with an existing client who may be identified as a PEP following the initial client on-boarding process. In the event that Mayar Capital Ltd identifies a PEP, the firm will conduct EDD measures determined on a risk-sensitive basis.
Mayar Capital Ltd agrees with the definition of PEP given by the Financial Action Task Force (FATF), which is: ‘an individual who is or has been entrusted with a prominent public function’.
Mayar Capital Ltd will initially be made aware of a potential PEP status as a result of the AML checks which is completed across the firm’s entire customer base and during the initial onboarding process. Mayar Capital Ltd will then conduct a full media search on the potential PEP before assessing whether it is a ‘true match’. The results of this search are to be submitted to the MLRO for consideration.
8.3 Beneficial Ownership
The Money Laundering Regulations 2017 provide clarity on the definition of the term “beneficial owner”. In the regulations, it generally means the individual who ultimately owns or controls the entity or arrangement or on whose behalf a transaction is being conducted. The regulations place an obligation on financial institutions to identify and verify the identity of any beneficial owner of any entity on whose behalf a transaction is being conducted.
Central Register of Beneficial Ownership
4MLD requires that member states should ensure that corporate and other legal entities incorporated within their territory are required to obtain and hold adequate, accurate and current information on their beneficial ownership, including the details of the beneficial interests held.
Such information should be held on a central register accessible to competent authorities. The scope of the Directive is broad in that the requirements apply to trusts and other legal entities rather than just companies.
The central register is required to show the names, dates of birth, nationality, country of residence and the nature and extent of the beneficial owners’ interests in the transaction. Within the UK this register will be maintained and controlled by Companies House.
See UK details here https://companieshouse.blog.gov.uk/2016/04/13/the-new-people-with-significant-control-register/.
Regulation 30A of the 2019 MLRs is a requirement for firms to report to Companies House discrepancies between the information the firm holds on customers compared with the information held in the Companies House Register.
Amendments to regulation 28 of the 2019 MLRs require firms to update their records relating to the beneficial ownership of corporate clients. Firms also need to understand the ownership and control structure of their corporate customers, and to record any difficulties encountered in identifying beneficial ownership.
9. Suspicious Activity Reports
Mayar Capital Ltd’s MLRO must report to the NCA any transaction or activity that, after their evaluation, they know or suspect, or have reasonable grounds to know or suspect, may be linked to Money Laundering and Terrorist Financing. This is done by means of a Suspicious Activity Report (SAR). Such reports should be made as soon as is reasonably practicable upon receiving the notification of suspicion. Mayar Capital Ltd’s MLRO must consider each report of suspicious activity from within the firm and determine whether it gives rise to knowledge or suspicion, or reasonable grounds for the knowledge or suspicion of Money Laundering or Terrorist Financing. Any approach to the customer or to the intermediary should be made sensitively by someone other than the MLRO, to minimise the risk of alerting the customer or an intermediary that a disclosure to the NCA is being considered. Under no circumstance, is the individual under suspicion to be informed of a pending investigation.
Mayar Capital Ltd fully understands that it is an offence to “tip-off” (i.e. inform) a person suspected of Money Laundering that an AML investigation in their business relationship or transactions is taking place. All relevant staff have been made aware of the penalties for tipping-off and potentially jeopardising an AML investigation. For further clarity regarding tipping-off, please contact Mayar Capital Ltd’s MLRO.
When considering an internal suspicion report, the MLRO should make every endeavour to collect as much information as possible regarding the customer/transaction but in the interest of timely reporting, may need to consider making an initial report prior to the full review of linked/connected relationships and transactions.
Internal reports to the MLRO must be made regardless of whether the transaction has taken place. In some instances, it may be necessary for the MLRO to obtain consent from the NCA prior to Mayar Capital Ltd continuing with the transaction.
A templated internal SAR report has been included as Appendix A.
Duty to respond to requests for information about accounts and safe-deposit boxes
Part 5A of the 2019 MLRs imposes duties on credit institutions and the providers of safe custody services to respond to requests for information, via a central automated mechanism. A law enforcement authority or the Gambling Commission may request details related to accounts and safe-deposit boxes including, but not limited to, name, date of birth and address of the holder(s) or beneficial owner(s).
10. Sanctions Screening
Mayar Capital Ltd is required to comply with the UK’s financial sanctions regime and recognises its responsibility to deny services and products to individuals who pose a significant Money Laundering and Terrorist Financing risk to the UK and the international financial system.
To comply with the regime, Mayar Capital Ltd screens all persons being on-boarded by the firm against the most up-to-date consolidated list of sanctions targets issued by the Office of Financial Sanctions Implementation (OFSI). Mayar Capital Ltd also allocates adequate resources on areas of the business that carries a greater likelihood of involvement with targets or their agents. As part of the firm’s controls, Mayar Capital Ltd monitors payment instructions to ensure that proposed payments to targets or their agents are not made.
If Mayar Capital Ltd freezes a client’s funds under the financial sanctions regime, the firm must make a report to OFSI and/or NCA.
Mayar Capital Ltd pays close attention to jurisdictions which have been earmarked by international organisations, such as FATF, as having AML/CTF regimes considered to be strategically deficient. FATF frequently publishes documentation available on its websites which identifies and evaluates such jurisdictions.
FATF uses these publications to signal to its members (such as the UK) and other jurisdictions to apply counter-measures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing risks emanating from these countries.
FATF publishes a list of jurisdictions which have strategic AML/CFT deficiencies for which they have developed an action plan with FATF. This list can be found at: http://www.fatf-gafi.org/publications/high-riskandnon-cooperativejurisdictions/?hf=10&b=0&s=desc(fatf_releasedate)
10.1 Terrorist Lists
The acts of terrorism committed against the USA in September 2001 increased the international efforts to locate and cut off funding for terrorists and their organisations. Terrorists often control funds from a variety of sources around the world and employ increasingly sophisticated techniques to move those funds between jurisdictions. In doing so, they require the services of skilled professionals such as bankers, accountants, and lawyers.
The sites below confirm lists of international terrorists:
http://www.statewatch.org/terrorlists/thelists.html
https://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx
https://www.fbi.gov/wanted/wanted_terrorists
Mayar Capital Ltd understands it is an offence to provide financial services to any suspected or known terrorists and implements measures to prevent this eventuality.
11. Monitoring, Management Information & Reporting
Mayar Capital Ltd’s MLRO must ensure that all systems, controls, policies, and procedures are up-to-date and compliant with all applicable legislation and regulation.
At least once in each calendar year, the firm’s MLRO will provide a report to the governing body and senior management. The report must include the following:
• Review of the effectiveness of the firms AML systems and controls, with appropriate recommendations for improvement in the management of risks and priorities, including resources.
• Detail those within the firm responsible for AML systems and controls.
• Concluding actions and the remedial progress in response to these.
• It must indicate the way in which new findings on countries with AML inadequacies have been used during the year.
• The number of internal reports made by staff.
Mayar Capital Ltd’s senior management will give these reports due consideration and take necessary actions to remedy any deficiencies identified by the report.
Certain firms have an obligation to regularly update the FCA with information regarding the firm’s systems and controls for preventing financial crime. Firms are required to do this through an annual financial crime report. As per section SUP 16.23 of the FCA Handbook, this requirement applies to all firms subject to the Money Laundering Regulations 2017, except for firms that meet the exclusions:
• A firm that is a credit union.
• A firm that is a P2P platform operator.
• A firm is an authorised professional firm.
• A firm with limited permissions only.
• A firm excluded under SUP 16.23.2R.
As per section SUP 16.23 of the FCA Handbook, the firm’s MLRO is not required to submit an annual financial crime report to the FCA.
The policies, procedures, and controls that Mayar Capital Ltd have in place are regularly amended and enhanced in accordance with updates to legislation, regulation, and industry best practice. Our systems and controls also change to counteract the risks identified by the firm in its regular risk assessments. Subsequently, Mayar Capital Ltd has systems in place to monitor staff compliance with the firm’s policies, procedures, and controls.
12. Monitoring Customer Activity
Mayar Capital Ltd is required to conduct ongoing monitoring of the business relationship with all of its customers. As per the JMLSG guidance, this ongoing monitoring entails:
• Scrutiny of transactions undertaken throughout the course of the relationship (including a source of funds) to ensure the transactions are consistent with the firm’s knowledge of the customer.
• Ensuring that the documentation obtained for the purpose of applying CDD remains up to date.
It is essential for the firm’s monitoring system to have the following features:
• Flags up transactions for further examination.
• These transactions are reported to and reviewed promptly by the authorised person(s).
• Appropriate action is taken on the findings of any further review.
Mayar Capital Ltd’s monitoring system for customer activity is based on the following risk factors:
• The unusual nature of the transaction. E.g. an abnormally large transaction not consistent with the firm’s knowledge of the customer.
• The number of a series of transactions. E.g. many small transactions initiated in quick succession.
• The geographical destination or origin of a payment. E.g. a payment to a high-risk jurisdiction.
• The parties concerned. E.g. a request to make payment to or from a person on a sanctions list.
A full list of Mayar Capital Ltd ongoing monitoring systems and methods can be observed in section 3.5 of the firm’s Due Diligence procedures.
13. Training
All staff and contractors of Mayar Capital Ltd should be made aware of the laws and regulations surrounding Money Laundering and Terrorist Financing, how to identify suspicious activity, and the obligations placed on the firm. They should also be aware of who has been appointed as the firm’s MLRO.
All staff requires training covering the firm’s procedures and how to recognise and deal with suspected Money Laundering or Terrorist Financing concerns.
Staff training records are to be retained and evidenced on each individual employee’s Continual Professional Development (CPD) Log alongside the firm’s central training log. Records are required to be retained for five years.
14. Record-Keeping
In line with UK AML regulations, Mayar Capital Ltd will retain the required customer records for five years following the termination of a business relationship or occasional transfer, except for situations where legal obligations placed upon Mayar Capital Ltd require otherwise. The required customer records, as specified in regulation 40(2) of the 2017 Money Laundering Regulations, include:
• A copy of any documents or information obtained by the firm to satisfy due diligence requirements (including recorded information provided over the phone).
• Sufficient supporting record in respect to transactions which are subject to due diligence measures.
To access our Suspicious Activity Report Form please access the DocSend link here