This Policy must be read in combination with Company ' s AML Policy, ensuring full compliance with the applicable laws related to Money Laundering and Terrorism Financing activit ies. The purpose of this Policy is to provide guidance on Know your Client ("KYC") procedures which are followed by the Company in order to achieve full compliance with the relevant AML legislation. This Policy applies to all Company's officers, employees, introducing brokers, affiliated companies, products and services offered by the Company. 1. CLIENT CATEGORIZATION AND IDENTIFICATION PROCEDURES
The Company has adopted all requirements of the applicable laws in relation to client categorization and identification and due diligence procedures as explained below. Client Categorization
Clients are categorised based on their risk profile into three main categories as explained below:
Client Identification (Due Diligence)
- Low Risk Clients
The following types of clients are considered lower risk. It should be noted that the Company shall gather sufficient information to establish if the client qualifies to be classified as lower risk client:
- Credit or financial institutions situated in another country which imposes requirements higher or equivalent to those laid down by Company's regulators.
- Listed companies whose securities are admitted to trading on a regulated market of other countries which are subject to disclosure requirements consistent with Community legislation.
- Normal Risk Clients
All clients who do not fall under either High Risk or Low risk category will be considered as Normal Risk Clients.
- High Risk Clients
Clients with the following criteria are classified as High risk due to the following conditions:
- Non face to face customers
- Client accounts in the name of a third person
- Politically exposed persons ("PEP") accounts
- Electronic gambling /gaming through the internet
- Customers from countries which inadequately apply FATF's recommendations
- Clients that entail a higher risk of money laundering and terrorist financing
- Any other Client determined by the Company itself to be classified as such
2. CLIENT ACCOUNT OPENING AND KYC DOCUMENTATION PROCEDURES
- Due Diligence Conditions
The Client Identificatio n and Due diligence procedures are applied in the following conditions:
- Establishing a business relationship;
- There is a suspicion of money laundering or terrorist financing, irrespective of the transaction amount;
- There are doubts about the adequacy of previously obtained client identification data;
- Failure or refusal by a client to submit the requisite data and information for the verification of his/her identity and the creation of his/her economic profile, without adequate justification.
- Due Diligence Timing
- Client identification and due diligence must take place before the establishment of a business relationship or the carrying out of a transaction.
- The verification of the identity of the client may be completed during the establishment of a business relationship if this is necessary in order not to interrupt the normal conduct of business and where there is limited risk of money laundering or terrorist financing occurring. In such situation, these procedures need to be completed as soon as possible.
- Reviews of existing records must take place on a regular basis, thus ensuring that the documents, data or information held are up-to-date.
- Client due diligence procedures shall be applied not only to all new clients but also at appropriate times to existing clients on a risk sensitive basis.
- When a client's account is opened, it should be closely monitored.
- A review should be carried out at least twice a year, and a note prepared summarizing the results of the review, which must be kept in customer's file.
- At frequent intervals, the Company should compare the estimated against the actual turnover of the account.
- Any serious deviation should be investigated, not only for possible action by the Company in relation to the particular account concerned, but also to gauge the reliability of the person or entity who has introduced the customer.
- Due Diligence Procedures
The practice to which the Company adheres in order to comply with the requirements of the Law on the subject of the client identification is achieved on a risk-based approach and it is set out below:
- Normal Client Due Diligence Procedure applies for normal risk clients and shall comprise the following:
- Identification of the client and verification of the client's identity on the basis of information obtained from a reliable and independent source.
- For legal persons, taking risk-based and adequate measures to understand the ownership and control structure of the client.
- Obtaining information on the purpose and intended nature of the business relationship.
- Conducting ongoing monitoring of the business relationship including scrutiny of transactions undertaken throughout the course of the relationship to ensure that the transactions being conducted are consistent with the data and information held by the firm in connection with the client.
- Simplified Client Due Diligence Procedure may apply for low risk clients. These measures shall apply when there is no suspicion of money laundering, regardless of any derogation, exemption or threshold, and not whenever a business relationship is established.
- Enhanced Client Due Diligence Procedure should apply in situations which by nature can present high risk of money laundering or terrorist financing. The Company shall take specific and adequate measures to compensate for the high risk, by applying one or more of the following measures:
- Ensure that the client's identity is established by additional documents, data or information.
- Apply supplementary measures to verify or certify the documents supplied. Ensure that the first payment of the operations is carried out through an account opened in the client's name with a credit institution which operates in a country of which imposes requirements higher or equivalent to those laid down by Company's regulators.
- Verification Procedure
The following verification procedure will be followed by the Company in order to verify the identity of the client during the establishment of the business relationship:
- The Company will ensure that the construction of the economic profile, assessment of appropriateness and assessment of suitability shall be performed at all times prior the establishment of the business relationship.
- The clients are provided with a grace period of fifteen (15) days to provide the Company with their identification documents;
During the 15 days' period the Company is required to ensure for the following:
- The funds may come only from a bank account or through other means that are linked to a bank account in the name of the client.
- Notification / Reminder e-mails will be sent to the client s requesting to be provided with the client's identification documents.
- Closure of the account in cases where the verification procedure is not concluded following the completion of the period.
- The Company shall not wit hhold any clients' funds and no accounts shall be frozen unless there is a suspicion of money laundering.
- Other Due Diligence related matters
- Politically exposed persons
Politically Exposed Persons ("PEPs") are individuals who are or have been entrusted with prominent public functions in a foreign country and close associate is someone with a close relationship with the political exposed persons. The Company should adopt the following additional due diligence measures to determine whether a prospective client is a politically exposed person:
- Special Approval from Management prior to the establishment of a business relationship with the client.
- Take appropriate measures for the establishment of the origin of the client's assets and the source of funds that are related with the establishment of the business relationship or transaction.
- Conduct enhanced and continuous monitoring of the business relationship.
- Anonymous or Numbered Accounts
The Company is prohibited from keeping anonymous or numbered accounts. Additionally, the Company shall pay special attention to any money laundering or terrorist financing threat that may arise from products or transactions that might favour anonymity and take measures to prevent their use for money laundering or terrorist financing purposes.
- Due Diligence Performance by Third Parties
The Company is permitted to and may rely on third parties to meet the requirements for client due diligence. However, in the such cases, the ultimate responsibility for meeting those requirements shall remain with the Company which relies on the third party.
Prior to accepting new clients, the Company requires these clients to provide certain information and documentation for the purpose of client identifications and the verification of client identity. Account Opening
- Required Information for Account Opening
All clients interested in opening an account with the Company are requested to provide certain information including:
- The Client's personal details
- The Construction of Economic Profile for the Client
- The Client's Appropriateness/Suitability Assessment. It is obvious that the identification of the client including construction of economic profile and appropriateness/suitability assessment shall take place prior the establishment of the business relationship with the client.
- Account Opening Procedure
- The client completes the account opening forms indicating all required information.
- The responsible administrator collects all initial information of the client and forwards it directly to Management and to the AML Compliance Officer for examination, review and approval.
- Following the approval, the administrator records all necessary information into the Company's software systems and communicates it to the related departments.
Prior to accepting new clients and allowing them to trade with the Company, the following documents shall be obtained for the verification of clients' identity:
- Natural Persons
The identification documents required from natural persons (Individual clients) in order to efficiently implement the Company's KYC procedures are as follows:
- A Valid certified government-issued Proof of Identity - Passport, National ID Card, Driving License (...) which should include client's Full Name, client's Date of Birth, client's Photograph and Validity Status (Date of Expiry and/ or Date Issuance + Validity Period)
- A Recent certified proof of home address in the person's name - Bank Statement, Utility Bills, Phone Bills (...) which should include client's Full Name, client's Home Address and Date of Issuance (must not be more than 3 months old).
- Legal Persons
A different identification procedure is followed for Legal Persons (corporate clients) interested in opening an account with the Company. These documentation requirements are presented below:
- Incorporation Documents
The form and name of corporate documents may vary depending on country of incorporation and/or legal form of the company. However, the required government issued Corporate Documents should include Corporation name, Date and Place of Incorporation, Registered Office Address, Directors and authorised signatories, Ownership/shareholding structure (SharehoIders names and sharehoIding percentage), Corporate registered activities. These documents may include but not limited to Certificate of incorporation or Certificate of Registration, Certificate of Registered Office, Certificate of Directors and Secretary, Certificate of Registered Shareholders, Memorandum and articles of association.
- Directors and Beneficial Owners Documents
Personal KYC and identification documents are required from:
These identification documents include Proof of Identity and Proof of Residence.
- Legal Person's Directors
- Legal Person's Ultimate Beneficial Owners with 10% beneficial ownership or more.
- Board Resolution
A resolution of the board of directors of the legal person for the opening of the account and granting authority to those who will operate it.