AML/CDD/CFT Policy

FOR PREVENTION OF MONEY LAUNDERING/ TERRORIST FINANCING

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Owner: Blockvila

Revision Date: 25th July 2017



AML/CFT POLICY

APPROVAL SHEET

POLICY OWNER: Blockvila
Implementation Responsibility: Compliance Officer
Custodian: Anti-Money Laundering Department ,Blockvila.
Operating Jurisdiction: All Domestic and International operations.
Review Frequency: 3years or earlier if required
Review Responsibility: Anti- money laundering Department , Blockvila.
Approval date: 26th July 2017
Effective date: 27th July 2017

Recommended by: Barr. Sussan Nnorom -Ibitoye
Compliance Officer
Approved by: Precious Kenneth Wogu
President & CEO

Slogan for Blockvila

”Your satisfaction is our priority”

ABBREVIATIONS USED IN AML/CDD/CFT POLICY.

CFT Combating Financing of Terrorism
TF Terrorist Financing
FATF Financial Action Task Force
CO Compliance Officer
MLRO Money Laundering Reporting Officer
ML Money Laundering
PEPs Politically Exposed Person/td>
BOD Board of Directors
OFAC Office of Foreign Assets Control
MSB Money Service Business
CDD Customer Due Diligence
EDD Enhanced Due Diligence
SDD Simplified Due Diligence

INTRODUCTION

Blockvila is a Subsidiary of NYXEL TECHNOLOGY LIMITED a company registered with CAC in Nigeria, Headquartered in Port Harcourt, Rivers state.

Blockvila is a leading and most trusted digital financial service provider; it is an independent ecurrency service provider in Nigeria with a well-known brand locally with a substantial international presence.

To protect itself from the increasing danger of organized criminal activity, Money Laundering and Terrorist Financing. It is essential for Blockvila to have a clearly laid down “ Anti- Money Laundering” (AML) / “Customer Due Diligence” (CDD)/ “ Combating the Financing of Terrorism (CFT) policy to ensure that e-e-currency exchangers remain protected from the menace of money laundering and is not used by existing and /or prospective customers for any criminal activity.


METHODOLOGY

1. METHODOLOGY

1.1 OBJECTIVES OF AML/CDD/CFT POLICY

The objective of this policy is to ensure that the products and services of Blockvila are not used to launder the proceeds of crime and that all of Blockvila staff is aware of their obligations and the need to remain vigilant in the fight against money laundering /terrorist financing. The document also provided a framework to comply with applicable laws. Regulatory guidelines specially related with detection and reporting of suspicious activities. In case of any clarification contact AML Department of Blockvila using [email protected]


1.2 SCOPE

The policy is applicable to all domestic and international operations including banks and financial institutions. Particular attention shall be paid to customers oversea located abroad who do not or insufficiently comply with FATF recommendation. Furthermore, AML/CFT policies shall be applied to all customers outside and in Nigeria to the extent that laws and regulations of Nigeria permit.


1.3 ADMENDMENT AND UPDATES

Amendment and updates to this policy shall be approved by the president on pre-facto basis on the recommendation of the Compliance Officer. All such amendment and updates shall be subsequently ratified by the Board.


1.4 DEFERRAL

Deferral against procedure requirement can only be allowed by CO under special circumstances. Respective relationship management and operational staff will be responsible for monitoring and regulation of the deficiency before expiry of deferrals.
Policy Coverage will include


1.5 MONEY LAUNDERING

Definition:
Money Laundering is the criminal practice of processing ill-gotten gains or “ dirty “ money, through a series of transactions ,so that they appear to be the proceed from legal activities , It is also the process of changing the identity of illegality obtained money by using banking channels so that it appears to have originated from a legitimate source.
The Global Definition of Money Laundering: It is a process of transforming the profits of crime and corruption into ostensibly “legitimate “assets …. Some countries define money laundering as obfuscating sources of money , either intentionally or by merely using financial systems or services that do not identify or track sources or destinations.
Also Money Laundering is the process of creating the appearance that large amount of money obtained from serious crimes, such as drug trafficking or terrorism activity, originated from a legitimate source.


1.6 STAGES OF MONEY LAUNDERING

Money Laundering can be a diverse and often complex process. The first step in the laundering process by the criminal is to attempt to get the proceeds of their crimes into a bank or other financial institution, sometimes using a false identity. The funds can further be transferred to other accounts, locally or internationally or used to buy goods or services. It eventually appears to be like legally earned money and become difficult to trace back to its criminal origin. The criminal can then invest or spend it or as is often the case, used in funding more crimes. The laundering process is often takes place in three(3) stages


1.7 SOURCES OF MONEY LAUNDERING

Money Laundering may not just involve wealth related to Drug Trafficking / Terrorism Financing. List of crimes identified by financing Action Task Force (FATF) as generators of criminal wealth also included:


1.8 THE NEED TO COMBAT MONEY LAUNDERING (ML) AND TERRORIST FINANCING (TF)

The prevention of ML and TF from the point of view of the Bank has three dimensions:

The need also arises due to the severe nature of consequences of ML and TF. The following are some examples:


1.9 REGULATORY OVERSIGHT & COMPLIANCE RISKS

Blockvila has used guidelines and International Regulatory guidelines/ standards as applicable to formulate its own AML/CDD/CFT policy. The consequences of contravening the Regulations or failing to comply can be significant and include disciplinary measures, imprisonment or fine or both under local laws as well as the loss of reputation for the bank. Notwithstanding the statutory and regulatory penalties, increased vigilance by management and staff will protect Blockvila from the following risks:


Reputational Risk: The reputation of a business is usually at the core of its success. The ability to attract good employees, customers, funders, funding and business is dependent on reputation. Even if the business is otherwise doing all the right things, if customers are permitted to undertake illegal transactions through that business, Its reputation could be irreparably damaged. A strong AML/CDD/CFT policy helps to prevent a business from being used as a vehicle for illegal activities.
Operational Risk: This is the risk of direct or indirect loss from faulty or failed internal processes, management and systems. In today’s competitive environment, operational excellence is critical for competitive advantage. If AML/CDD/CFT policy is faulty or poorly implemented, then operational resources are wasted, there is an increased chance of being used by criminal for illegal purposes, time and money is then spent on legal and investigative actions and the business can be viewed as operational unsound.
Legal Risk: If a vehicle is used as a vehicle for illegal activity by customers, its faces the risk of fines, penalties, injunctions and even forced discontinuance of operations.
Financial Risk: If a business does not adequately identify and verify customers, it may run the risk of unwittingly allowing a customer to pose as someone he/she is not. The consequences of this may be far reaching. If a business does not know the true identity of its customers, it will also be difficult to retrieve money that the customer owes.

LEGAL AND REGULATORY OBLIGATION

2. LEGAL/ REGULATORY OBLIGATIONS

2.1 LEGAL OBLIGATIONS

Blockvila is obligated to comply with the requirements of the AML law and with the relevant provisions of Financial service/ Banking Act as and when they are promulgated. In addition, Blockvila under the Anti-Terrorism Act 1997 and control of Narcotics Substance Act 1997 is obligated to take prompt and immediate notice of all unusual or large transactions in customer account, which apparently have no genuine economic or lawful purpose. Oversea customers should follow regulations of the host country under relevant legislations.


2.2 REGULATORY OBLIGATIONS

Under Financial Monitoring Unit (FMU) and International Regulations there are personal obligations on every member and staffs to report suspicious activities. If a person is aware or suspects that a transaction or instructions is related to any crime, he/she must report the transaction to Blockvila compliance even if he /she is not directly handling the transaction, instruction or funds in question.
Blockvila itself Has Similar Obligations.
It is a regulatory requirement for a financial service / institution to have in place policy and procedures to combat money laundering /terrorist financing. The policy/ procedures as a minimum must include:


Oversea customers and subsidiaries of Blockvila should follow the host country /state regulatory requirement. Moreover, if their host country requirement conflicts with the AML/CFT requirements of Blockvila, the subsidiaries branch of Blockvilas shall report to the Head office which will comply with such further directions as may be issued.

It is criminal offence if management or staff:


2.3 NOTES ABOUT MONEYLAUNDERING ACT 2011

The Nigerian Government has put massive focus on the anti- corruption fight , and the Money laundering ( prohibition )Act 2011 ( and the amendment to the act in 2012) is a big part of this fight .

CAP ON CASH TRANSACTIONS
The money laundering (Prohibition) Act 2011 makes it illegal for any individual to accept or make cash payment that exceeds N5M (Five Million Naira). This means that every cash transaction over N5m must be done via a financial institution/ service.

The penalties: Any person guilty of contravening is liable to imprisonment for the term of not less than 3years or a fine of N10m (Ten Million Naira) or to both.

DECLARATION WHEN TRANSPORTING CASH OVERSEAS
The Money Laundering (prohibition) Act 2011 states that any individual who is transporting cash or negotiable instrument in excess of US$10,000 or its equivalent must be declared to the Nigerian Custom Service.
The penalties: Non- declaration of funds or false declaration is an offence that is punishable upon conviction by the individual forfeiting the funds in question or to imprisonment of not less than 2years or to both.

DATA RETENTION BY FINANCIAL INSTITUTIONS AND DESIGNATED NON- FINANCIAL INSTITUTIONS
The Act provides that the above institutions shall keep record of a customer’s identification for a period of at least 5 years after the closure of the account or the severance of relations with the customer.
This therefore means irrespective of the fact that you have closed your account or dealings with the above institutions, they are still obliged by law to keep a record of your details.

Blockvila’S POLICY FOR AML/CDD/CFT

3. Blockvila’S POLICY FOR AML/CDD/CFT

Keeping in view the Global threat, Blockvila has taking various steps to counter the menace of money laundering and terrorist financing. Blockvila is stringently focusing on core compliance functions and has adopted a robust policy across the network to remain compliant with AML/CFT regimes in all jurisdictions.


3.1 AML/CFT

It is the policy of Blockvila that:


3.2 CUSTOMERS DUE DELIGENCE (CDD)

CDD is closely associated with the fight against money- laundering. Supervisors around the World are increasingly recognizing the importance of ensuring that their financial service have adequate controls and procedures in place so that they know the customers with whom they are dealing. Adequate due diligence on new and existing customers is a key part of these controls. Without this due diligence, financial service /banks can be exposed to reputational, operational, legal and financial risks.
It is a policy of Blockvila that:


3.3 AML/CDD/CFT ASSOCIATED POLICIES.

Following associated policies form an integral part of the AML/CDD/CFT policy and have been developed specifically to achieve the objectives outlined in Blockvila’s policy and the regulatory requirements of the Financial Monitoring Unit.


3.5.1 Internal Control Compliance and Audit.

It is a policy of Blockvila:



3.5.2 Recognition and Reporting of Suspicion

It is a policy of Blockvila :


3.6 AWARENESS ARISING FROM TRAINING

It is a policy of Blockvila:


3.6 RECORD KEEPING

It is the policy of Blockvila :


3.7 NON-COMPLIANCE OF Blockvila’S POLICY

Failure to abide by the policy set by Blockvila to prevent money laundering and terrorist financing will be treated as a disciplinary issue. Any deliberate breach will be regarded as Gross misconduct. Such case will be referred to HR which could lead to termination of employment and also result to criminal prosecution and imprisonment for the concerned staff.


3.8 ACCOUNTABILITY AND RESPONSIBILTY 3.8.1 The Board of Blockvila is Responsible for :


3.8.2 Blockvila’s Compliance/ MLRO are responsible for :


3.8.3 ALL Employees Are Responsible for:



Contact Information

If you have any questions or comments about these our policy as outlined above, you can contact us at:

[email protected]

20 Mbonu street, Dline, Port Harcourt, Rivers State, Nigeria.