Anti-money Laundering measures by gyvwpsjkko

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									                                                                   Annexure A

QUESTIONNAIRE ON - ANTI-MONEY-LAUNDERING MEASURES

Contents

This checklist covers:

A     Internal controls, policies and procedures.
B     Identification procedures.
C     Record keeping.
D     Recognition of suspicious transactions and reporting procedures.
E     Education and training of relevant employees.


Guidance on completion

Answers to specific points in the checklist will generally need to be supported
by appropriate evidence if called for.


                                               Yes No Comments
A     Internal controls, policies and
      procedures
1.    Has the bank set up clear policies,
      procedures and controls to deter
      money laundering? In particular there
      should be:
(a)   Written procedures covering the
      prevention of money laundering.
(b)   Designated officer(s) responsible for
      developing,       maintaining     and
      promulgating anti-money-laundering
      procedures.
(c)   Clear reporting lines for dealing with
      any suspected money-laundering
      activities.
2.    Has the bank designated an officer as
      the central point of contact for
      communicating with law-enforcement
      agencies regarding any suspected
      money       laundering    (“a  money-
      laundering control officer”)?
3.    Do the bank’s written procedures
      cover the following requirements:
(a)   To be aware of the potential risk of
      money laundering?
(b)   To report all suspicious transactions
      internally?



                                                                              1
                                                Yes No Comments
(c)   To investigate all reported suspicious
      transactions?
(d)   To report all transactions ultimately
      considered suspicious to the Financial
      Intelligence Centre?
4.    Has the bank provided the money-
      laundering control officer with the
      necessary access to systems and
      records to fulfil the responsibilities
      outlined in 2 and 3?
5.    Has the bank made arrangements to
      verify, on a regular basis, compliance
      with policies, procedures, and controls
      relating to money-laundering activities
      (for example, as part of internal audit
      inspection visits)?

B   Identification procedures
6.  In June 2003, know-your-customer
    requirements will have to be
    implemented. What is the current
    status of the identification procedures
    followed by the bank?
7. Does the bank seek satisfactory
    evidence of the identity of a
    prospective customer at the time of
    opening an account or entering into a
    business relationship?
8. Does the bank not proceed with the
    business if satisfactory evidence of
    identity is not obtained as soon as is
    reasonably practicable?
9. Do the banks’ procedures recognise
    the possibility of linked one-off
    transactions?
10. When a prospective customer who is
    effecting a one-off transaction is
    introduced by another financial
    institution, does the bank:
(a) Obtain, from the introducer, the name
    of the customer and a written
    assurance that evidence of identity
    has been taken and recorded?
(b) Alternatively, verify the identity of the
    customer?




                                                                  2
                                               Yes No Comments
Verification procedures – General
11. Does the bank interview prospective
     customers         personally whenever
     possible?
12. Does the bank obtain the best
     identification documents possible, that
     is, those that are most difficult to
     obtain illicitly?
13. Is there separate verification of the
     current permanent address of the
     prospective customer?
14. Is the evidence of identity required
     issued by reputable sources?
15. Are file copies of the supporting
     evidence retained?
16. Are reference numbers of identity
     documents and other relevant details
     recorded?
17. In respect of joint accounts, when the
     surnames and/or addresses of the
     account holders differ, does the bank
     verify the name and address of all
     account holders?

Account      opening     for      personal
customers
18. Does the bank obtain the following
    information from prospective RSA
    customers:
(a) True name and/or names used?
(b) Correct permanent RSA address
    including postal code?
(c) Date of birth?
19. Does the bank verify surname or
    names by reference to a document
    obtained from a reputable source that
    ideally bears a photograph (whenever
    possible, a current valid full passport
    or national identity card should be
    requested and the number should be
    registered)?
20. Does the bank verify the current
    permanent address? Note: some of
    the best means of verifying addresses
    are the following:
    - Checking the voters roll.
    - Making a credit-reference agency
      search.


                                                                 3
                                                 Yes No Comments
    - Requesting sight of a recent bank
      statement or utility bill.
    - Checking       a    local   telephone
      directory.
21. When a personal customer is
    introduced by a respected customer
    personally known to the manager or
    by a trusted member of staff, are
    address verification procedures still
    carried out?
22. Only in exceptional cases should an
    account be opened when the
    customer is unable to provide
    satisfactory documentary proof of
    identity (for example a child). Are such
    cases authorised at an appropriately
    senior level and are the circumstances
    recorded?

Opening account for students and
young people
23. When opening accounts for students
    or other young people, does the bank
    follow normal identification procedures
    as far as possible?
24. When such procedures are not
    relevant or do not provide satisfactory
    evidence of identity, does the bank
    obtain verification via the home
    address of the parent(s) or by
    enquiries of the relevant college or
    university?

Trust accounts
25. When it is known or suspected that an
    account is being opened, or a
    transaction is being undertaken, on
    behalf of a third party, without that fact
    being disclosed, does the bank take
    measures to obtain information on the
    identity of the person on whose behalf
    the customer is acting?
26. When the bank has no current
    relationship with a proposed trustee,
    does the bank verify the identity of the
    trustee in the same way as for
    personal customers?




                                                                   4
                                                 Yes No Comments
Confirmation of identity by other
banking institutions
27. When the bank is approached by
    another institution for the purpose of
    verifying identity, does the bank
    respond to such requests positively
    and without undue delay?

Account opening procedures for non-
RSA-resident personal customers
28. For prospective customers who are
    not normally resident in the RSA, but
    who wish to open RSA-based bank
    accounts, does the bank, as far as
    possible,         follow      verification
    procedures similar to those for RSA
    resident customers?
29. For prospective non-RSA resident
    customers, does the bank verify
    identity by reference to passports or
    national identity cards?
30. For prospective non-RSA resident
    customers who wish to open accounts
    by post, does the bank seek
    verification of identity from a reputable
    credit or financial institution in the
    prospective customer’s country of
    residence?
31. Do the verification details requested in
    step 30 include the true name or
    names used, the current permanent
    address and verification of signature?

Unincorporated businesses, clubs and
societies
32. For partnerships, other unincorporated
     businesses, clubs and societies, does
     the bank verify the identity of at least
     two partners/signatories (unless there
     is to be only one signatory) in line with
     the     requirements    for    personal
     customers?

Account   opening    for    corporate
customers
33. Does the bank obtain the following
    documents:


                                                                   5
                                               Yes No Comments
(a) The original or certified copy of the
    Certificate of Incorporation or the
    Certificate to Trade?
(b) Resolution of the board of directors to
    open an account and confer authority
    on those who will operate it?
(c) A search of the file at the Registrar of
    Companies?
34. Does the bank obtain evidence that
    any individual representing the
    company has the necessary authority
    to do so and is this evidence retained?
35. When the customer is an RSA private
    company whose directors are not
    known to the bank, has the bank
    verified the identity of at least one
    director and all persons authorised to
    operate the account in line with the
    requirements for personal customers?

Non-RSA-registered companies
36. Does the bank seek to identify the
    directors and shareholders of the
    company?.
37. Have the steps in 36 above been
    extended as far as is practicable to
    identify those who ultimately own and
    control the company?
38. Does the bank obtain evidence that
    the     individual   representing    the
    company has the necessary authority
    to do so and is this evidence retained?
39. Does the bank obtain comparable
    documents to those required for RSA
    corporate customers as far as is
    practicable, in particular copies of any
    documents lodged at the Registrar of
    Companies?
40. If the company is already in existence
    when the account in this country is
    opened, does the bank confirm the
    signatures on the mandate with the
    company’s current overseas bankers
    and confirm that they can verify the
    identity of each signatory?




                                                                 6
                                                Yes No Comments
C   Record keeping
41. In June 2003, it will become a
    statutory requirement for banks to
    retain      records     of    customer
    identification and transactions, for use
    as evidence in any investigation into
    money laundering.         What is the
    current status of record keeping of the
    bank in this regard?

Documents         verifying   evidence    of
identity
42. When evidence of a customer’s
     identity is required do the records:
(a) Indicate the nature of the evidence of
     identity obtained?
(b) Comprise either a copy of the
     evidence or provide such information
     as would enable a copy of it to be
     obtained or sufficient to enable details
     of identity to be reobtained?
43. Are records retained as evidence of
     identity kept for a period of at least
     five years after the relationship with
     the customer has ended?

Transaction records
44. Does the bank retain records of
      transactions undertaken on behalf of
      customers consisting of the original
      documents for a period of at least five
      years following the date on which the
      relevant transaction or series of
      transactions was completed?
45. In relation to step 48 above, does the
      bank     retain records containing
      evidence of the following:
(a) The beneficial owner of the account?
(b) The volume of funds flowing through
      the account?
(c) For selected transactions:
(i) The origin of the funds?
(ii) The form in which the funds were
      offered or withdrawn?
(iii) The identity of the person undertaking
      the transaction?
(iv) The destination of the funds?
(v) The form of instruction and authority?


                                                                  7
                                                 Yes No Comments
46. When it is not practicable to retain
    copies of all materials, do the bank’s
    procedures ensure that it is able to
    retrieve relevant information to the
    extent that it is available without
    undue delay?
47. Do the bank’s procedures ensure that,
    when records relate to on-going
    investigations, they are retained until it
    is confirmed by the relevant law-
    enforcement agency that the case has
    been closed?
48. When original vouchers are used for
    account entry and are not returned to
    the customer or the customer’s agent,
    does the bank keep such original
    documents for at least one year to
    assist forensic analysis?

Authentication of computerised records
49. When retention is by way of
    computerised records, is the bank in a
    position to obtain a certification
    confirming the computer’s reliability?

Wire-transfer transactions
50. When sending SWIFT messages, are
    the fields for the ordering and
    beneficiary customers completed with
    their    respective    names       and
    addresses?
51. Does the bank encourage all its
    ordering customers to include this
    information for all credit transfers
    made by electronic means, both
    domestically     and    internationally
    regardless of the payment or message
    system used? If the answer is no, see
    step 52 below.
52. In cases when this information is not
    contained in the message, does the
    bank keep full records of the ordering
    customer and address?




                                                                   8
                                                Yes No Comments
D    Recognition and reporting            of
     suspicious transactions

Reporting of suspicious transactions
53. Do the bank’s procedures ensure that
    there is a general awareness among
    relevant staff (cashiers, account
    officers) of the types of transaction
    that may indicate money laundering?
54. Do the bank’s procedures ensure that
    identification of any suspicious
    transactions       prompt      further
    investigation?
55. Has the bank taken steps to ensure
    that:
(a) Each relevant employee knows to
    which person suspicions should be
    reported?
(b) There is a clear reporting chain
    through which those suspicions will be
    passed without delay to the money-
    laundering reporting officer?

Role of the money laundering control
officer
56. Is the person appointed as money-
     laundering control officer considered
     to be sufficiently senior to command
     the necessary authority?
57. Has the money-laundering control
     officer established contact with the
     relevant authorities and is the money-
     laundering control officer familiar with
     reporting procedures?
58. Do the bank’s procedures ensure that
     any suspicions reported to the money-
     laundering control officer are properly
     investigated?




                                                                  9
                                             Yes No Comments
E   Education and training

General
59. Has the bank taken appropriate
    measures to make employees aware
    of:
(a) Policies and procedures put in place
    to    prevent     money    laundering,
    including those for identification,
    record keeping and internal reporting?
(b) The legal requirements and, in
    particular,       employees        own
    responsibilities?
60. Has the bank provided relevant
    employees with training in the
    recognition and handling of suspicious
    transactions?

Education and training programmes
61. Do the bank’s education and training
    programmes take account of the
    recommended practice below?
(a) New employees
    All new employees should be provided
    with a general appreciation of the
    background to money laundering, the
    legal requirements and the need to
    report any suspicious transactions to
    the money-laundering control officer.
(b) Cashier/foreign-exchange
    operators/advisory staff
    Training should be provided on factors
    that may give rise to suspicions and
    on the procedures to be adopted
    when a transaction is deemed to be
    suspicious.
(c) Account opening/new customer staff
    As in (b) above. The staff should also
    be trained in identity-verification
    procedures.
(d) Administration/operations supervisors
    and managers
    A higher level of instruction covering
    all aspects of money laundering
    procedures and legislation should be
    provided.




                                                               10
                                               Yes No Comments
(e) Money-laundering control officers
    Training should be provided on all
    aspects of the legislation, regulations
    and internal policies.           Money-
    laundering control officers also require
    training in investigation and validation
    procedures and on reporting and
    communication arrangements with the
    Financial Intelligence Centre.
62. Does the bank provide refresher
    training at appropriate intervals?


DECLARATION BY CHIEF EXECUTIVE OFFICER AND COMPLIANCE
OFFICER


We, the undersigned, hereby declare that the information contained in this
document is to the best of our knowledge and belief correct.



Signed at ………………….., this …………………. day of ………………... 20….




CHIEF EXECUTIVE OFFICER




COMPLIANCE OFFICER                              NAME OF INSTITUTION




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