Seychelles_Guide Lines on anti - money laundering

Guidelines on Anti-Money

Laundering and Combating the Financing of

Terrorism Procedures for Reporting Entities

in Seychelles

Issued by The Financial Intelligence Unit

December, 2007

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1. Introduction These notes provide guidance as to how the provisions of the Anti-Money Laundering Act 2006 and the Prevention of Terrorism Act 2004 can be implemented in line with internationally recognized principles.1 1.1 What is Money Laundering and the Financing of Terrorism Money laundering is a process by which criminals attempt to conceal the true origin and ownership of the proceeds of their criminal activities. Money laundering enables criminals to maintain control over their illicit proceeds and ultimately to provide legitimate cover for the illegal source of the illicit proceeds. This means that proceeds from criminal activities is converted into assets that gives it an appearance of legitimate money. Money laundering is an international scourge and the failure by the authorities to prevent the laundering of the proceeds of crime will enable criminals to benefit from their illegal activities, thereby making crime a viable proposition. The Financing of Terrorism is defined as an offence established when a person “by means, directly or indirectly, unlawfully and willfully, provides or collects funds with the intention that they should be used or in the knowledge that they will be used in full or in part, in order to carry out a terrorist act or activity”. 1.2 The Need to Combat Money Laundering and Financing of

Terrorism It is recognized throughout the world that it is essential that criminals be prevented from making the proceeds of their criminal activities legitimate by converting funds from 'dirty' to 'clean' money. Criminals will seek to make use of the international financial system if they are to benefit from the proceeds of their crime. Like money launderers, terrorists misuse the financial system. In order to achieve their objectives, they have to obtain and channel money in an apparently legitimate way. However, while the money involved in the money laundering process always stems from a crime and is therefore always “dirty”, money channeled to terrorist groups or individuals may originate from crime or from legitimate sources. Regardless of the origin 1 However, it remains the responsibility of the Reporting Financial Institution to continuously adapt and keep internal procedures effective and up to date.

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of the money, terrorist organizations will use the financial system in a similar way as criminal organizations in order to obscure both the source and the destination of their money. The Seychelles' Anti-Money Laundering Act 2006 was enacted to prevent, detect and combat the use by criminals of financial and non-financial institutions for the purpose of the laundering of criminal proceeds or the financing of terrorist acts, activities or groups. The overriding principle is that reporting entities should follow and apply the provisions of the law which reflect the Financial Action Task Force’s (FATF) international standards to prevent detect and combat money laundering and terrorist financing. These notes are designed to provide guidance to reporting entities on how to comply with the provisions of the law. These notes will reassure the reporting entities that the application of the "Know Your Customer" principle does not call for major variations in their practice but would, nevertheless, reinforce the need for vigilance and reassure employees that they would be implementing the law. It is, therefore, imperative that all reporting entities understand the nature of money laundering and terrorism financing, and take the necessary measures to protect themselves from being implicated in a scandal which will put their reputation at risk. 1.3 Stages of Money Laundering Though money or other assets can be laundered by various methods, the money laundering process is normally but not necessarily, accomplished in three stages: 1.3.1 Placement Placement is the physical deposit of criminal proceeds derived from illegal activity. 1.3.2 Layering Layering is the separation of criminal proceeds from their source by creating complex layers of financial transactions designed to disguise the audit trail and provide anonymity.

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1.3.3 Integration Integration is the provision of apparent legitimacy to the proceeds of crime. If the layering process has succeeded, integration places the laundered proceeds back into the economy in such a way that they appear as normal (business) funds or other assets. 2. The Anti-Money Laundering Act 2006 & Prevention of

Terrorism Act 2004 The aim of the AML Act 2006 is to address the deficiencies that existed in the previous legislation and ensure that Seychelles is in line with international standards and best practice. It will better equip the regulators and law enforcement agencies in the fight against money laundering and terrorism financing. Similarly, the Prevention of Terrorism Act 2004 is aimed at preventing the raising of funds to finance acts of terrorism. The Act requires reporting entities to verify a customer’s identity, maintain records, monitor transactions, ensure that accounts are in true names, and ensure that money transmissions include originator information, report suspicious transactions and appoint a compliance officer.

These guidelines do not purport to be a comprehensive summary of the Anti-Money Laundering Act and the Prevention of Terrorism Act or a substitute thereof, and should be read in conjunction with both Acts which are the source of the law. 2.1 The Offence of Money Laundering The AML Act (Sec.3) extensively defines the offence of money laundering "3(1) A person who -

(a) converts or transfers property knowing or having reason to believe that the property is the proceeds of a crime with the aim of concealing or disguising the illicit origin of that property, or of aiding any person involved in the commission of the offence to evade the legal consequences thereof;

(b) conceals or disguises the true nature, origin, location, disposition, movement or ownership of the property knowing or

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having reason to believe that the property is the proceeds of a crime; (c) acquires, possesses or uses property knowing or having reason to believe that the property is the proceeds of a crime, commits the offence of money laundering.

(2) Every person who -

(a) organizes or directs others to commit;

(b) attempts to commit;

(c) conspires to commit; (d) participates as an accomplice to a person committing, or attempting to commit, an offender under subsection (1) commits the offence of money laundering.

(3) Knowledge, intent or purpose required as an element of any act

referred to in subsection (1) may be inferred from surrounding facts.

(4) Where it is necessary in the case of an offence of money laundering

alleged to have been committed by a body corporate to establish the state of mind of the body corporate, it shall be sufficient to show that a director, officer, employee or agent of the body corporate, acting in the course of employment or agency as the case may be, had that state of mind.

2.2 Proceeds of Crime The crime of money laundering is not restricted to operations connected with money obtained from drug trafficking but include many types of criminal activity that can yield proceeds. This includes among others terrorism, fraud, robbery or theft, forgery, smuggling, counterfeiting, and extortion. In the Seychelles, it includes all criminal activities that are punishable by imprisonment for life or for a period exceeding 12 months or by a fine exceeding R 6,500 (Sec. 2). The offence is also committed by a person who aids, abets, or in any way assists or prepares, the commission of money laundering.

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2.3. Knowledge under the Seychelles' AML Law The definition of money laundering covers those operations where a person knows, or should have reason to believe, that the money with which they are concerned is derived, obtained or realized, directly or indirectly, from an unlawful activity as described above.

It is only necessary that the person should have knowledge or reasonable grounds for knowledge of the unlawful source of the funds to be guilty of the offence. Positive knowledge is not the test; knowledge may be inferred from objective factual circumstances [Sec 3 (3)]. What knowledge entails in the case of corporate bodies is clearly stated in the law. It is sufficient that a director, officer, employee or agent of the body corporate acting in the course of his employment or agency had that state of mind. Guilty knowledge of any employee can result in an offence being committed by the employer (as well as by the employee). (Sec. 3(4)). 2.4 Crimes committed outside Seychelles The unlawful activity from which the "dirty money" is derived is any act or omission which was committed or done in Seychelles. Also, acts or omissions committed or done outside Seychelles constitute an offence in Seychelles if they are punishable in Seychelles (Sec. 2 “proceeds of a crime” (b)). 3.0 Role of the Financial Intelligence Unit The Anti-Money Laundering Act establishes a Financial Intelligence Unit (FIU) within the Central Bank of Seychelles [sec.16 (1)]. The FIU has many duties and powers as listed in Section 19 of the law. The Act establishes the Financial Intelligence Unit, provides for powers to restrain, seize and forfeit property, and designate money laundering as an extraditable offence. The Anti-Money Laundering Act establishes these obligations for reporting entities both for the purpose of combating money laundering and financing of terrorism. The financing of terrorism refers to the offences in Sections 5, 6, 7, 8, 9, 10, 12, 15, 16 and 19 of the Prevention of Terrorism Act, 2004.

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One of its main responsibilities is to receive reports from reporting entities on transactions suspected of being related to money laundering or the financing of terrorism. The FIU is also empowered under the law to request information from reporting entities, any supervisory agency and any law enforcement agency for the purposes of fulfilling its functions under the law. The FIU analyses and assesses all the reports and information it receives and collects, and where it has reasonable grounds to suspect that the reported transaction is unlawful, it must disclose that information to the appropriate law enforcement agency or supervisory authority. The FIU must issue guidelines and can provide training to reporting entities. It can also inform reporting entities on the outcome of the reports and information provided The Financial Intelligence Unit ensures that Reporting Entities comply with their obligations under the AML Act. For this, the FIU has the authority to instruct reporting entities to take any steps appropriate to enforce compliance. The FIU is also responsible under the Act to carry out examinations of reporting entities. The FIU may examine records and during business hours, enter any premises in which it believes, on reasonable grounds, that there are records relevant to ensuring compliance with the provisions of the Act. 4.0 Reporting Entities and their obligations The Anti-Money Laundering Act defines a reporting entity as those persons that carry out certain businesses and activities (Section 2) which can be either financial or non-financial in nature. Reporting entities include banks (including offshore banks), credit unions, bureaux de change (including hotels), insurance companies, money transfer companies, securities companies, trust and company service providers, dealers in precious metals and precious stones, casinos, real estate agents. The Act has been extended to cover Designated Non-Financial Businesses and Professions (DNFBP) which includes lawyers, accountants, notaries and other independent legal professions. The guidelines concentrate on those institutions which are most vulnerable to money laundering, but the wide definition of reporting entities in the Anti-Money Laundering Act 2006 covers more persons and institutions that can have reason to suspect an illegal source of money,

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whether or not that suspicion is gained through employment by a reporting entity. Sections 4, 6 and 10 of the Anti-Money Laundering Act list the obligations of the reporting entities which includes the following:

The need to identify and verify the identity of a customer when establishing a business relationship;

Take reasonable measures to ascertain the purpose of any transaction in excess of R 100,000 or of R 50,000 in the case of cash transactions and the origin and ultimate destination of the funds involved in the transaction;

In relation to its cross–border banking and other similar relationships adequately identify the identity of the person, gather sufficient information about the nature of the business, assess the AML/CFT controls and obtain senior management’s permission before entering into a new relationship;

To not proceed with a transaction if there is no satisfactory evidence of a customer’s identity;

To maintain records on a customer’s identity for a minimum period of 7 years from the date of any transaction or correspondence or on which the business relationship ceases;

Maintain accounts in their true name; Ensure that money transmission includes accurate originator

information on electronic funds transfers and that the information shall remain with the transfer;

To monitor complex, unusual or large transactions with no apparent economic or lawful purpose as well as ongoing monitoring of business relationships/transactions undertaken throughout the course of the relationship;

To report any transaction or attempted transaction that may be related to the commission of an offence of ML/FT to the FIU.

Reporting entities should therefore ensure that their staff are fully aware of their obligations and abide by them so as to ensure compliance. 5.0 Internal Controls, Policies and Procedures Every Reporting Entity must take appropriate measures to make sure that its employees engaged in dealing with customers or processing business transactions maintain the identification and record-keeping procedures laid down in the Act. (Sec. 4(1)) The Anti-Money Laundering Act requires the appointment of a senior officer (Sec. 15(1)) with the necessary qualifications and experience as

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the Compliance and Reporting Officer (CRO) who shall be responsible for the following: 1. establishing and maintaining a manual of compliance and

procedures in relation to its business; 2. ensuring that staff comply with the provisions of the Act and any

other law relating to money laundering or financing of terrorism and the provisions of any manual of compliance and procedures;

3. acting as a liaison between the reporting entity and the supervising

authority and the FIU in matters relating to compliance with the provisions of the Act or any law relating to money laundering or financing of terrorism;

4. introducing training procedures for staff likely to be concerned

with transactions which could constitute an offence. 5. establishing an audit function to test its anti-money laundering

and financing of terrorism procedures and systems. 6. screen persons before recruiting them as employees. As good practice, it is recommended that Reporting Entities review their arrangements on a regular basis, to verify compliance with policies, procedures, and controls relating to money laundering and the financing of terrorism so as to ensure that the requirements of the Act and such procedures are being discharged. There is a statutory obligation to establish and maintain procedures for the purpose of deterring and recognizing money laundering and the financing of terrorism but the procedures adopted are left to each institution to devise. It is the reporting entity’s task, by way of the Compliance Officer and/or the Money Laundering Reporting Officer, to ensure that staff is aware and kept up-to-date of their duties. Anti-money laundering measures, such as identifying customers and monitoring transactions for suspicious activities, should be a routine matter. However, not all transactions need be involved in the identification process. Seychelles law provides for exemptions in respect of certain transactions in accordance with section 4(7). 6.0 Identification Requirements Reporting Entities must identify prospective customers at the time of opening of an account or entering into a business relationship. The duty

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to identify a customer and to keep informed of the customer’s business continues after the relationship is established [Sec. 9 (4)]. Unless satisfactory evidence of identity is obtained "as soon as is reasonably practicable" the reporting entity must not proceed any further with the transaction unless directed to do so by the FIU. The reporting entity is also required to report the attempted transaction to the FIU (Sec.5) What constitutes an acceptable time to identify the customer must be determined in the light of all the circumstances including the nature of the business, the geographical location of the parties and whether it is practical to obtain the evidence before commitments are entered into or money changes hands. Thus, the Reporting Entity can open an account or begin the business relationship provided that it promptly takes appropriate steps to verify the customer's identity. The Act covers all types of transactions and business relationships, including deposit taking, mortgage and other lending based accounts and the issuing of credit and charge cards. Section 2 of the Act shows the full range of transactions and activities that can be undertaken by Reporting Entities. 6.1. When must Identity be verified? Whenever an account is to be opened or a continuing business relationship is entered into, the identity of the prospective customer must be verified. Reporting entities are required to obtain information on the purpose and nature of the business relationship. Thereafter as long as records are maintained, no further evidence of identity is needed unless the reporting entity has any reason for suspicions, for instance if there is a marked change in the nature or volume of business passing through the account. Reporting entities are advised to develop a customer profile based on the information obtained. A customer profile will assist the reporting entity in identifying suspicious transactions and facilitate the monitoring of accounts and transactions. Also, when a transaction is undertaken when there is no business relationship, or an electronic funds transfer is carried out, the reporting entity is required to take the identity of the customer. Furthermore, identity must be verified in all cases where money laundering or the financing of terrorism is suspected, or where there are doubts as to the veracity or adequacy of the identification information obtained.

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If a natural person conducts a transaction through a reporting entity and the latter has reasonable grounds to believe that the person is undertaking the transaction on behalf of another person, the reporting entity shall identify and verify the identity of the ultimate beneficial owner for whom the transaction is being conducted[sec. 4 (3)]. The obligation to obtain evidence of identity is general. Section 4(7) lists a few exceptions to the identification requirement. Identification is not required when it concerns an occasional cash transaction under R 50,000, unless there is a suspicion that the transaction is unlawful. 6.2. Enhanced Identification Requirements A reporting entity is under the obligation to take reasonable measures to ascertain the purpose of a transaction in excess of R 100,000 or of R 50,000 in the case of cash transactions, then this information must be acted upon (Sec. 4(4)). In these cases the origin and ultimate destination of the funds should be established. A reporting entity should have a risk management system to determine if a person is a Politically Exposed Person (PEP). If the customer is a Politically Exposed Person2, a reporting entity must adequately identify the person and verify his or her identity, take reasonable measures to establish the source of wealth and the source of property, and regularly monitor the account. (Sec. 4(2)(d)). Approval of senior management should be obtained before establishing a business relationship with the customer. Politically Exposed Persons are only persons holding prominent public positions in a foreign country. A Reporting Entity shall in its cross-border correspondent banking and other similar relationships undertake enhanced measures when identifying and verifying the identity of the person with whom it conducts such a business relationship (Sec. 4(5)(a)). These measures include gathering sufficient information about the nature of the business, use publicly available information to determine the reputation of the correspondent and the quality of supervision to which it is subject, assess the correspondent’s AML/CFT controls. Approval of senior management should be obtained before establishing a new correspondent relationship.

2 Section 4(8) defines politically exposed person as persons holding prominent public positions in a foreign country such as heads of state or government, senior politicians on the national level, senior government, judicial. Military or party officials on the national level, or senior executives of state owned enterprises of national importance or individuals or undertakings identified as having close ties or personal business connections to the aforementioned persons.

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Where the relationship is a payable-through account, a reporting entity shall ensure that the person with whom it has established the relationship has verified the identity of and performed on-going due diligence on the person’s customers and have direct access to the accounts. The reporting entity shall also ensure that he person is able to provide the relevant customer identification data upon request and that it has a physical presence in the Republic under the law which it was established unless it is part of a group that is subject to supervision as a whole [Sec. 4 (5) (b)]. Where a reporting entity relies on an intermediary or third party, it shall immediately obtain the identification data and ensure that copies are made available upon request without delay. Where the reporting entity is a financial institution, it shall satisfy itself that the third party or intermediary is regulated and supervised for and has measures to comply with the requirements of the Act [Sec. 4 (6)]. 7. Verification Procedures: Best Practices Section 4 of the Act specifies how the "Know Your Customer" concept is fulfilled. The following routine represents a good industry practice and what might reasonably be expected of Reporting Entities to comply with the law. 1. Records of the supporting evidence and methods used to verify identity

should be retained for a minimum of seven years from the date on which evidence of a party’s identity is obtained; of any transaction or correspondence; or on which the business relationship ceases.

2. A Reporting Entity should establish to its satisfaction that it is dealing

with a real person (natural, corporate or legal) and verify the identity of those persons who wish to open any bank or investment account or to conduct any other financial or business relationship.

3. Whenever possible, the prospective customer should be interviewed

personally. In the case of a person identified as a Politically Exposed Person, the approval of senior management should be obtained before establishing a business relationship with the customer.

4. The best possible identification documents should be obtained from

the prospective customer. However no single form of identification can be fully guaranteed as genuine or representing correct identity. The identification process will generally need to be cumulative. For practical purposes a person's address is an essential part of his or her

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identity and verification of the prospective customer's current permanent address is required.

5. Documents issued by reputable sources (e.g. identity cards, passports

or other applicable official identifying document) should be required. Where practical, file copies of the supporting evidence should be retained. Alternatively, the reference numbers and other relevant details should be recorded.

6. In respect of joint accounts where the surname and/or address of the

account holders differ, the name and address of all account holders, not only the first named, should normally be verified in accordance with the procedures set out below.

7. Where a customer is introduced by a branch or subsidiary of a

financial institution located outside Seychelles, provided the identity of the customer has been verified by the introducing branch or subsidiary in line with requirements equivalent to those of Seychelles and those identification records are freely available on request to the other parts of the group on request, it is not necessary for identity to be re-verified or for the records to be duplicated.

8. Reporting entities may develop their own procedures to comply with

the law. However, all additional checks for credit and risk management purposes adopted by reporting entities to facilitate implementation of the law, should not be in conflict with these guidelines or the provisions of the law.

8. Account Opening for Personal Customers Seychelles Resident Personal Customers (i) The following information should be obtained from prospective

customers, resident in Seychelles: - True name and/or names used; - Correct permanent Seychelles address, including post box

number;

- Date of birth.

- Occupation of the person

- Source of wealth and property of the person

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(ii) Ideally the true name or names used should be verified by reference to a document obtained from a reputable source which bears a photograph. A current valid full passport or national identity card, not older than 10 years, should be requested and the number registered.

(iii) In addition to the name verification, it is important that the

current permanent address should also be verified. Some of the best means of verifying addresses are:

- requesting a recent (not older than 3 months) copy of utility

bills for an individual and excerpt from the Chamber of Commerce for a legal entity.

- checking an official register such as a voters roll and Social

Security Register.

- making a credit reference agency search - requesting sight of a recent utility bill, local authority tax

bill, bank or other financial institution statement (to guard against forged or counterfeit documents care should be taken to check that the documents offered are originals)

- checking a local and current telephone directory.

(iv) An introduction from a respected customer personally known to

the manager, or from a trusted member of staff, may assist the verification procedure but does not replace the need for address verification set out in (iii) above.

Details of the introduction should be recorded on the customer's

file. (v) There will be exceptional circumstances when Seychelles residents,

particularly young persons and the elderly, may not be able to provide appropriate documentary evidence of their identity, and where independent address verification is not possible. In such cases, a manager in the branch could authorize the opening of an account if he is satisfied with the circumstances and should record these circumstances in the same manner and for the same period of time as other identification records.

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8.1 Opening Accounts for students and young people When opening accounts for students or other young people, the normal identification procedures should be followed as far as possible. Where such procedures would not be relevant, or do not provide satisfactory evidence of identity, verification could be obtained via the home address of the parent(s) or by enquiries to the educational institution. 8.2. Provision of Safe Custody and Safety Deposit Boxes Particular precautions need to be taken in relation to requests to hold boxes, parcels and sealed envelopes in safe custody. Where such facilities are made available to non-account holders, the identification procedures set out in these guidelines should be followed. Annex III lists some indicators of potential money laundering schemes involving the use of Safe Deposit Boxes 9. Opening Accounts in non-face-to-face situations Any non-face-to-face transactions or contact between Reporting Entities and customers inevitably poses difficulties for customer identification. Financial institutions particularly are increasingly asked to open accounts on behalf of customers who do not present themselves for personal interview. Clearly in such situations financial institutions should apply equally effective customer identification procedures and on-going monitoring standards for non-face-to-face customers as for those available for interview. Photographic evidence of identity is inappropriate as there is a greater difficulty in matching the customer with the documentation in the case of non-face-to-face customers which becomes more difficult with telephone and electronic banking. In accepting business from such customers, banks should apply equally effective customer identification procedures and apply specific and adequate measures to mitigate the higher risk. Examples of measures to mitigate such risks include:

Certification of documents presented; Requisition of additional documents to complement those which

are required for non-face-to-face customers; Independent contact with the customer by the bank; Third party introduction subject to the bank reaching an

agreement with the introducer that it will be permitted to verify the due diligence undertaken by the introducer at any stage;

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Requiring the first payment to be carried through an account in the customer’s name with another bank subject to similar customer due diligence standards.

Particular care should be taken when dealing with applications to open accounts in non-face-to-face situations to ensure as a minimum that personal verification has been followed in all respects. 9.1. Confirmation of Identity by other Financial Institutions The obligation to verify identity using the best evidence and means available rests with the Reporting Entity opening the account. In those cases where a Reporting Entity may not be satisfied with the documentary evidence acquired or with the results of the enquiries, a Reporting Entity may need to approach another institution, on a non-competitive basis, specifically for the purpose of verifying identity. A standard format could be used for making the enquiry and it may be necessary to obtain the potential client's consent for the other financial institution to reveal details of their client. Where a reporting entity relies on an intermediary or third party for identification, it shall ensure that copies of the identification data and other relevant documentation will be made available to it upon request without delay. To enable Reporting Entities to comply with the legislative requirements, it is important that all Reporting Entities respond to such requests to verify identity positively and without undue delay. 10. Account Opening Procedures for Non-Seychelles Resident

Personal Customers Prospective customers who are not resident in Seychelles but who wish to open Seychelles based bank accounts are subject to verification procedures similar to those for resident customers. Address verification can pose difficulties. However, passports or national identity cards will always be available and the relevant reference numbers should be recorded. It is impractical to set out detailed descriptions of the various identity cards and passports that might be offered as evidence of identity by foreign nationals. Reporting Entities may wish to verify identity with a reputable credit or financial institution in the applicant's country of residence, in accordance with the

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requirements of Section 4(6). Alternatively, a police character certificate from the applicant’s country of residence may be sought. For prospective non-resident customers who wish to open accounts by post, it will not be practical to seek sight of a passport or national identity card. Verification of identity should, therefore, be sought from a reputable credit or financial institution in the applicant's country of residence. Details should be requested to show the true name or names used, current permanent address and genuineness of the signature. 11. Account Opening for Corporate Customers and Legal Entities Because of the difficulties of identifying beneficial ownership, corporate accounts are one of the most likely vehicles for money laundering, particularly when fronted by a legitimate trading company. The Anti-Money Laundering Act 2006 imposes the same obligations on reporting entities to ensure identification and verification of identity of legal entities. It is especially relevant to obtain information on the purpose and nature of the business relationship. The additional obligations are centered upon knowledge of and about the beneficial owners, as well as those persons authorized to act on behalf of the legal entity (Sec. 4(2)(c)). Before a business relationship is established with a legal entity, measures could be taken by way of a company search and/or other commercial enquiries to ensure that the applicant company has not been, or is not in the process of being, dissolved, struck off, wound-up or terminated. In addition, if changes to the company structure or ownership occur subsequently, or suspicions are aroused by a change in the profile of payments through a company account, further checks should be made. 11.1 Account Opening for Clubs, Societies and Charities In the case of accounts for clubs, societies and charities, a Reporting Entity should satisfy itself as to the legitimate purpose of the organization by, for example, requesting sight of the constitution. Where there is more than one signatory to the account, the identity of all signatories should be verified and, when signatories change, care should be taken to ensure that the identity of the new signatories has been verified. Information on the address and principal owners/directors should be furnished.

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11.2. Unincorporated Businesses In the case of partnerships and other unincorporated businesses whose partners/directors are not known to the Reporting Entity, the identity of all persons that can act on behalf of the business should be verified in line with the requirements for personal customers namely the principal owners, beneficiaries, address, legal form and the control structure. . Where a formal partnership arrangement exists, a mandate from the partnership authorizing the opening of an account and conferring authority on those who will operate it should be obtained. 11.3. Trust, Nominee and Fiduciary Accounts An application to open an account or undertake a transaction on behalf of another without the applicants identifying their trust or nominee capacity might be regarded as suspicious and should lead to further enquiries as to the underlying principal and the nature of the business to be transacted. At a minimum, in accordance with Section 4(3), the reporting entity should not only identify the person undertaking the transactions, but also the person(s) for whom or for whose ultimate benefit the transaction is being conducted. Where an account is being opened or a transaction being undertaken on behalf of an undisclosed third party, measures should be taken to obtain information as to the identity of the person (whether individual or corporate) and if that is not possible as may be the case in respect of trusts where the settlor and beneficiaries cannot be disclosed by the trustees, the account activity should be monitored and the nature of the relationship noted in the records. Under normal circumstances, a minor will be introduced to the financial institution by a family member or guardian who has an existing relationship with the institution concerned. Where a nominee who opens an account on behalf of another is not already known to the financial institution then the identity of that nominee or any other person who will have control of the account should be verified. 11.4 Seychelles or Overseas Intermediaries acting as Trustees An application to open an account or to undertake a transaction by a professional adviser, business or company acting as trustee or nominee

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requires satisfactory evidence of the identity of the trustee, nominee or fiduciary and the nature of their trustee or nominee capacity or duties. Enquiries should be made as to the identity of all parties for whom the trustee or nominee is acting and confirmation sought that the source of funds or assets under the trustee's control can be vouched for (in accordance with Section 4(3)). If the applicant is unable to supply the information requested, enquiries should be made as to the identity of the person who has actual control or for whose ultimate benefit the transaction is undertaken. The results of the enquiries should be recorded in the account opening file. The financial institution must be satisfied as to the bona fides of the trustee. Reporting entities have to take reasonable measures to obtain the information concerning the ultimate beneficiary. Where money is received by a trust, it is important to ensure that the source of the receipt is properly identified, the nature of the transaction is understood, and where possible confirmation made that the payments are made only in accordance with the terms of the trust and are properly authorized in writing. 11.5 "Client Funds" held by Intermediaries Stockbrokers, fund managers, solicitors, accountants, estate agents and other intermediaries frequently hold funds on behalf of their clients in "client accounts" with financial institutions. Such accounts may be general omnibus accounts which hold the funds of many clients or they may be opened specifically for a single client, which is either undisclosed to the Reporting Entity or which is identified for reference purposes only. Those cases where it is the intermediary who is the bank's customer should be distinguished from those where an intermediary introduces a client who himself becomes a customer of the Reporting Entity or where the intermediary undertakes transactions on behalf of the client. In those cases where intermediaries undertake transactions on behalf of their client, the reporting entities are required, in accordance with Section 4(3), to also identify the person for whom the transaction is undertaken. 12. Registered Companies: (a) Seychelles Companies Section 4(2)(c) lists the information that should be verified. In order to do this, the following documents should be obtained:

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(i) The original or certified copy of the Certificate of Incorporation; (ii) Memorandum and articles of association; (iii) Resolution of the Board of Directors to open an account and confer

authority on those who will operate it; (iv) A search of the file at Companies Registration Office. The documents should give information on, among others, the legal form, control structure, beneficial owners, powers to bind the entity, address, etc. Where the company is an International Business Company, whether registered in Seychelles or elsewhere, some of this information may not be readily available. Nevertheless, the reporting entity should take all reasonable measures to obtain the required information, either by itself or through an intermediary. In the case of a company: - quoted on a recognized Stock Exchange; - or known to be the subsidiary of such a company; - or a private company whose Directors are already known to the

Reporting Entity. The procedures in the preceding paragraph are sufficient. Evidence that any individual representing the company has the necessary authority to do so should be sought and retained. In the case of a private company whose directors are not known to the Reporting Entity, the identity of all the directors and the persons authorized to operate the account should be verified in line with the requirements of Section 4(2) [c]. When signatories to the account change, care should be taken to ensure that the identity of the new signatories has been verified. In addition, to perform ongoing due diligence, it may be appropriate to make periodic enquiries to establish whether there have been any changes to directors or shareholders, or to the original nature of the business/activity. Such changes could be significant in relation to potential money laundering activity, even though authorized signatories have not changed.

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(b) Non-Seychelles Companies Where the company is not registered in Seychelles or is a quoted company or a subsidiary, as described above, the Reporting Entity should seek to identify the directors and influential shareholders of the company in accordance with the requirements for non-Seychelles personal customers. These steps should extend as far as practicable to identify those who ultimately own and control the company. Evidence that the individual representing the company has the necessary authority to do so should be sought and retained. Comparable documents to those listed above for Seychelles companies should be obtained as far as practicable when an account is to be opened and, within one month of the date of setting up the business relationship, the company must deliver a certified copy, in English, of its chartered statutes, memorandum and articles or other instrument defining its constitution, a list of directors, and also the name and address of a person resident in Seychelles authorized to accept service of any legal process. If the company is already in existence when the account in Seychelles is opened, the signatures on the mandate should be confirmed by the company's current overseas bankers who should also confirm that they can verify the identity of each signatory. However, standards of control vary between different countries and attention should be paid to the place of origin of the documents and the background against which they are produced. Reporting entities should therefore take into account the requirements of Section 4(6) when relying on intermediaries or third parties for identification purposes. 13. Record Keeping: Statutory Requirements Section 6 of the Act requires every Reporting Entity to retain records concerning customer identification and transactions for use as evidence in any investigation into money laundering or terrorist financing. This is an essential constituent of the identification procedures that the Act establishes. The nature of the records which must be retained follow from the identification procedures outlined above, and the transactions and other business carried out. It is essential that the records are kept in such a manner and form that reporting entities can promptly comply with request for information by the FIU.

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13.1. Documents Verifying Evidence of Identity Where evidence of a person's identity is required the records retained must: - indicate the nature of the evidence of identity obtained; and, - 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 re-obtained.

The nature of the evidence to be obtained is set out in preceding sections of these rules. The records containing evidence of identity must be kept for a period of at least seven years after the relationship with the customer has ended [Sec. 6 (2)]. This is either seven years after the date of the carrying out of a one-off transaction or the last in the series of transactions; or the ending of the business relationship i.e. the closing of the account or accounts; Where formalities to end a business relationship have not been undertaken, but a period of seven years has elapsed since the date when the last transaction was carried out, the retention period for the identification data continues regardless if transactions are carried out. 13.2 Transaction Records and Correspondence In the case of transactions undertaken on behalf of customers, the supporting evidence and records including the correspondence relating to the transactions, consisting of the original documents (or copies admissible in court proceedings), must be retained for a minimum period of seven years following the date on which the relevant transaction or series of transactions is completed. These will be records in support of entries in the accounts in whatever form they are used e.g. credit/debit slips or cheques, transaction records etc. With respect to transactions, the AML Act requires reporting entities to keep records that contain sufficient information on the nature and date of the transaction, the type and amount of currency, the account number and type. In case of negotiable instruments, information has to be kept on the name of the drawer, the payee, the institution on which it was drawn, the number of the instrument and any endorsement details.

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These transaction records should be sufficient so that the transaction can easily be reconstructed, and in such a manner and form so that they are available without undue delay. Reporting entities must keep for 7 years, in addition to records on identity and transactions, records of all reports made to the FIU and information on enquiries made to the reporting entity by the FIU. 13.3 Format of Records It is recognized that Reporting Entities will find it necessary to rationalize their hard copy filing requirements. Most will have standard procedures which seek to reduce the volume and density of records which have to be stored, whilst still complying with statutory requirements. Retention may therefore be by way of original documents, or in any machine-readable or electronic form, as long as a paper copy can be readily reproduced from it. When setting out their document retention policy, Reporting Entities must weigh the statutory requirements and the needs of the investigating authorities against normal commercial considerations. 13.4. Authentication of Computerized Records Records that are kept in an electronic form must be kept in such a way that they can be authenticated. For these records to be acceptable or admissible in a court of law, a certification confirming the computer's reliability is likely to be required. The nature of that certificate and information that it must contain should be in accordance with recognized standards. 14. Electronic Funds Transfers Reporting entities that provide electronic funds transfers for their customers are required to include accurate originator information on these transfers and ensure that the information remains with the transfer (Section 8). In an effort to ensure that the SWIFT system is not used by criminals as a means to break the audit trail, reporting entities are required, when sending SWIFT MT 100 messages (customer transfers), that the fields for the ordering and beneficiary customers are completed with their respective names and addresses.

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Reporting entities should ensure that they obtain from the ordering customers this information for all credit transfers made by electronic means, both domestic and international, regardless of the payment or message system used. In cases where this cannot be contained in the message, full records of the ordering customer and address should be retained by the originating bank or financial institution. Funds transfers where both ordering and beneficiary customers are financial institutions acting on their own behalf are exempted from this requirement. In addition, when the transfer is the result of a credit or debit card transaction, it is not necessary to keep the originator information as long as the credit or debit card number is included with the transfer. The records of electronic payments and messages must be treated in the same way as any other records in support of entries in the account and kept for a minimum of seven years. 15. Monitoring of Transactions Reporting entities should pay special attention to any complex, unusual or large transactions, unusual pattern of transactions, with no apparent economic or lawful purpose. They should also pay special attention to business relations and transactions with persons in jurisdictions that do not have adequate systems in place to prevent or deter money laundering or financing of terrorism. Extra care should also be paid to electronic funds transfers that do not contain complete originator information. Reporting entities should examine as far as possible the background and purpose of the transaction or business relations and record its findings in writing. A reporting entity shall monitor its business relationships and the transactions undertaken throughout the course of the relationship to ensure that its identification obligations are met and that the transactions conducted are consistent with the information that the reporting entity has of its customer and the profile of the customer’s business. [Sec. 9]. 16. Recognition and Reporting of Suspicious Transactions As the types of transactions which may be used by a money launderer are almost unlimited, it is difficult to define a suspicious transaction. However, a suspicious transaction will often be one which is inconsistent

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with a customer's known, legitimate business or personal activities or with the normal business for that type of account. Therefore, the first key to recognition is knowing enough about the customer's business to recognize that a transaction, or series of transactions is unusual. Developing a customer profile will assist reporting entities with identifying suspicious transactions. There is a statutory obligation on all Reporting Entities or their directors and other personnel to report suspicions of money laundering or the financing of terrorism to the Financial Intelligence Unit no later than two working days after forming that suspicion or receiving the information (Sec. 10(1) & (2)). The obligation is on the Reporting Entity to report when it has reasonable grounds to believe that any transaction or proposed transaction is likely to constitute an offence of money laundering or the financing of terrorism. The knowledge of any director or employee is taken to be knowledge of the financial institution. It is important therefore to realize that all Reporting Entities have a clear obligation to ensure: - that each relevant employee knows to which person he or she

should report suspicions within the institution; and - that there is a clear reporting chain under which those suspicions

will be passed without delay to the person in the Reporting Entity who is charged with the responsibility of fulfilling the reported request under the Act (the Compliance and Reporting Officer).

Where an employee or officer of a Reporting Entity has reasonable grounds to believe that a business relationship which has been formed or proposed or a transaction or attempted transaction is likely to constitute an offence of money laundering or the financing of terrorism, the employee or officer should consult the person in the organization appointed as the Compliance and Reporting Officer. This Compliance and Reporting Officer will consider the matter further and decide on what to do, and if it is thought to be likely to constitute an offence then the Reporting Officer will, on behalf of the Reporting Entity, notify the FIU in writing with full particulars. This obligation applies to any person designated as a Reporting Entity under Section 2 who in the course of business has reasonable grounds to believe that any activity carried out or proposed constitutes an offence of money laundering or the financing of terrorism.

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17. Indicators of Money Laundering and Financing of Terrorism There may be numerous reasons why a particular transaction or series of transactions, are considered suspicious, reasons which may be unrelated to the value of such transaction. A transaction may be considered as suspicious as the result of a combination of different factors, which individually are relatively insignificant, but when taken together raise an alert that the transaction may be related to money laundering or terrorism financing. The context in which the transaction occurs may also be significant, and this will vary depending on the type of business and the nature of the customer. The number of different activities, customer types and individual transaction circumstances, makes it impossible to produce an exhaustive list of indicators of suspicious transactions. The list in Annex I should be regarded only as representing some examples of indicators which may be helpful when assessing whether there are reasonable grounds for assessing a transaction as suspicious. In addition to general indicators, there may be other more specific indicators relating to particular industries, which can lead to the conclusion that a particular transaction is suspicious. The simplest form of money laundering is to deposit accumulated illegal cash in the banking system or to exchange it for value items and thereafter use the funds for legitimate activities. Also, electronic funds transfer systems between financial institutions enable cash to be switched rapidly between accounts in different names and different jurisdictions making the "know your customer" tests difficult to apply. Annex 1 contains several suspicious transaction indicators for various reporting entities sourced from the website of various FIU’s. Annex II on the other hand contains several examples of suspicious activities that local reporting entities might come across during the course of conducting business with their clients or prospective clients. 18. The Role of the Compliance & Reporting Officer The person appointed as the Compliance and Reporting Officer (CRO) should be sufficiently senior to command the necessary authority, for instance a senior member of the compliance, internal audit or fraud departments or, in small organizations it could be the Chief Executive.

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(Sec. 15(1)). When several subsidiaries operate closely together with a group, a single CRO at group level could be designated. The CRO has a significant degree of responsibility. He/she is required to determine whether the information or other matters contained in the transaction report received give rise to a knowledge or suspicion that a customer is engaged in money laundering or the financing of terrorism. In making this judgment, he/she should consider all other relevant information available within the financial institution concerning the person or business to which the initial report relates. This may include a review of other transaction patterns and volumes through the account or accounts in the same name, the length of the business relationship, and referral to identification records held. If after completing this review, the CRO decides then he/she must disclose this information to the Financial Intelligence Unit. 19. Reporting Procedures The national reception point for disclosure of Suspicious Transaction Reports is the Financial Intelligence Unit (FIU). All Suspicious Transaction Reports should be submitted on the prescribed reporting form (see Annex III). In submitting a report to the FIU, it is extremely important that all relevant fields are entered and that the reason why the transaction is reported as suspicious is provided. A report shall be in writing. Although Sec.10 [2] of the AML Act allows a report to be followed up in writing, fax or electronic mail, the FIU prescribes that reports be sent to the FIU preferably on a diskette or pen drive, hand carried by a dedicated person until a secure web is available or until further notice. The report which should be signed or otherwise authenticated by the reporting entity, shall contain a statement of the grounds on which the reporting entity holds the suspicion [Sec.10 (2)]. With regards to Sec. 10 [2] [d], the FIU prescribes that the report should be dated. In addition to the AML Act Section 10 (3), the FIU requires a reporting entity that has submitted a report to the FIU to automatically give the FIU or the law enforcement agency that is conducting an investigation arising from the information contained in the report, any further information that it has about the transaction or attempted transaction or parties to the transaction even if not (yet) requested to do so by the FIU or the law enforcement agency [Sec. 10 (3)].

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If the FIU, after consulting a reporting entity, has reasonable grounds to suspect that a transaction or proposed transaction may involve an offence of money laundering or of financing of terrorism, it may direct the reporting entity in writing or by telephone to be followed up in writing, not to proceed with the carrying out of that transaction or proposed transaction or any other transaction for a period not more than five days to allow it to make the necessary enquiries concerning the transaction and if deemed appropriate, inform and advise the Attorney-General. The period of five days shall exclude Saturdays, Sundays and public holidays [Sec. 10 (4)]. 20. Confidentiality and Protection from Liability The Act requires that employees of reporting entities should exercise the utmost confidentiality on issues related to money laundering and/or of the financing of terrorism. A supervisory authority, an auditor, officers, employees or agents of a reporting entity shall not disclose that a report or information related to the commission of an offence of money laundering or of financing of terrorism has been submitted to the FIU [Sec. 12]. A person shall not disclose any information that could identify any person who has handled a transaction, in respect of which a suspicious transaction report has been made, prepared or made a suspicious transaction report or any information contained in a suspicious transaction report [Section 13]. The provisions on confidentiality shall not apply to disclosures made to:

An officer or employee or agent of the reporting entity for any purposes connected with the performance of that person’s duties;

A legal practitioner, attorney or legal adviser for the purpose of obtaining legal advice or representation in relation to the matter;

The supervisory authority of the reporting entity for the purpose of carrying out the supervisory authority’s functions [Sec. 12 (2)].

No civil, criminal or disciplinary proceedings shall be taken against a reporting entity, an auditor or supervisory authority of a reporting entity, an officer, employee or agent acting in good faith or in compliance with directions given by the FIU pursuant to Section 24 of the Act [Sec. 14].

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21. Education and Training: Statutory Requirements Under Section 15(1)(d) of the Act, the Reporting Entity is responsible to train the officers, employees and agents to recognize suspicious transactions, trends and risks in money laundering and the financing of terrorism within its products, services and operations. Staff must be aware of their responsibilities (Sections 12 and 13) and that they could be personally liable for willfully making false or misleading statements or unauthorized disclosures (Sections 50 and 51). All staff should be encouraged to co-operate fully and to provide a prompt report of any suspicious transaction. Timing and content of training for various sectors of staff will need to be adapted by individual institutions for their own needs. These Notes do not specify the nature of the training to be given nor what steps Reporting Entities should take to fulfill this requirement. 22. FIU Supervisory Functions Apart from its main core functions of receiving, analyzing and disseminations reports of suspicious transactions related to the offence of money laundering or that of the financing of terrorism, the FIU has certain supervisory functions so as to ensure that reporting entities comply with the requirements of the Act. This is achieved by the carrying out of examinations of reporting entities during business hours to verify records relevant to ensuring compliance with the provisions of the Act. 23. Sanctions for Failing to Comply. Employees of reporting entities have a statutory obligation to comply with the various requirements of the AML Act failure of which will result in the following instances of non-compliance:

1. Failure to establish identity;

2. Failure to maintain records;

3. Failure to maintain accounts in true name;

4. Failure to report suspicious transactions;

5. Failure to implement internal rules;

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6. Failure to appoint Compliance Officer or provide training;

7. Opening accounts in fictitious, false or incorrect name;

8. Making false or misleading statements;

9. Unauthorized disclosure of reports and other information;

10. Obstruction of an officer or representative of the FIU;

11. Failure to comply with a restraining order. The penalty applicable for non-compliance to the above mentioned requirements are:

(a) in the case of an individual, to imprisonment for 5 years or to a fine of R 250,000;

(b) in the case of a body corporate to a fine of R 500,000.

A person convicted for the offence of money laundering is liable on conviction:

(a) in the case of an individual, to imprisonment for 15 years or to a fine or R 3.0 million or both;

(b) in the case of a body corporate to a fine of R 5.0 million or

revocation of business license or both.

Financial Intelligence Unit December 2007

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Annex I: List of Suspicious Indicators for Various Reporting Entities The following samples of Suspicious Indicators for Reporting Entities were adapted on the web site of various countries’ FIUs.

Insurance Companies 1. A person purchases an insurance policy and quickly cancels the

policy for refund in the form of cash or cheque; 2. A request is received to make a policy cancellation payment to a third

party; 3. Transactions in which policy holders want their policies and other

certificates to be sent to the address which is not theirs; 4. Transaction with clients wishing to enter into an insurance policy

with a vary large value premium, particularly when they choose to pay for the premium on an annual basis or in full;

5. Transactions in which policy holders suddenly ask for bigger

insurance policies with larger premiums; 6. Transaction in which policy holders suddenly change from paying

monthly for the premium to paying annually or in full; 7. Cases in which policy holders cancel their policy quickly; 8. The first (or the only) insurance premium is paid for in foreign

currency; 9. A client accepts insurance conditions unfavorable in relation to his

health or age; 10. Cases in which public officials or employees in a company perform

large transactions which do not correspond to their income; 11. Transactions for the benefit of persons known to be criminals, or

persons related to them; and 12. Transactions in which clients emphasize secrecy, or they seek to

force or bribe the insurance agent not to report such transactions to the authorities.

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Annex II: Examples of Suspicious Activity Below are some examples of suspicious activity that reporting entities in Seychelles may encounter in the course of conducting business. 1. Suspicious Customer Behavior

Customer has an unusual or excessive demeanor;

Customer discusses your record keeping or reporting requirements with the apparent intention of avoiding them;

Customer threatens an employee attempting to deter a record keeping or reporting duty;

Customer is reluctant to proceed with a transaction after being told it must be reported;

Customer suggests payment of a gratuity to an employee of the reporting entity;

Customer who is a public official opens account in the name of a family member who begins making large deposits not consistent with the known legitimate sources of income of the family.

2. Suspicious Customer Identification Circumstances

Customer furnishes unusual or suspicious identification documents and is unwilling to provide personal background data;

Customer is unwilling to provide personal background information references or a local address;

Customer’s home or business telephone is disconnected;

A business customer is reluctant to reveal details about the business activity or to provide financial statements or documents about a related business activity;

Customer provides no record of past or present employment on a loan application.

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3. Suspicious Commercial Account Activity

Business customer presents financial statements noticeably different from those of similar businesses;

Customer maintains an inordinately large number of accounts for the type of business purportedly being conducted.

4. Miscellaneous Suspicious Customer Activity

Agent, attorney of financial advisor acts for another person without proper documentation such as power of attorney.

5. Suspicious Employee Activity

Employee exaggerates the credentials, background or financial ability and resources of a customer in written reports required by the reporting entity;

Employee lives a lavish lifestyle that could not be supported by his/her salary;

Employee frequently overrides internal controls or established approval authority or circumvents policy;

Employee assists transactions where the identity of the ultimate beneficiary or counter party is disclosed;

Employee avoids taking holidays.

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Annex 2: Suspicious Transaction Report

FINANCIAL INTELLIGENCE UNIT

ANTI-MONEY LAUNDERING & TERRORIST FINANCING

REPORTING OF SUSPICIOUS TRANSACTIONS

Part 1 Disclosing Party 1. Name of Institution…………………………………………………………………….. 2. Address………………………………………………………………………………… 3. Tel. No…………………………………………………………………………………. 4. Report related to: (a) Money Laundering (b) Terrorist Financing Part 2 Information on Person/Entity Engaging in Suspicious Activity or

Transactions 1. Account Name(s)………………………………………………………………………. 2. Account Number……………………………………………………………………….. 2a. Date Opened- DD/MM/YYYY …………./……..../…………. 3. Address………………………………………………………………………………… ……………………………………………………………………………………………. 4. Identification Details of Account Holder(s) and Other Persons authorized on the account (name, date of birth, ID or passport No., etc) …………………………………………………………………………………………….. …………………………………………………………………………………………….. …………………………………………………………………………………………….. 4a. Nationality…………………………………………………………………………. 5. Identification Details of Person Executing the Transaction (name, date of birth, ID or passport No., etc), if different than account holder or authorized person ……………………………………………………………………………………………. ………………………………………………….………………………………………… …………………………………………………………………………………………….

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6. Date and Place of Incorporation (if a business entity)…………………………………. ……………………………………………………………………………………………. 7. Identification Details of Company Director(s) (name, date of birth, ID or passport No., etc) …………………………………………………………………………………………….. …………………………………………………………………………………………….. …………………………………………………………………………………………….. 8. Occupation or Business Activity……………………………………………………...... 9. Other Known Information ……………………………………………………………… (Directors, beneficial owners, associated persons/companies etc.) Part 3 Information about Suspicious Activity or Transaction 1. Date of Transaction:...………………………………………………………………… 2. Date of Detection of Suspicious Activity or Transaction (DD/MM/YYYY): …………./……..../…………. 3. Amount Involved:………………………………………………………………………. 4. Full Details and Description of Transaction …………………………………………………………………………………………….. ……………………………………………………………………………………………..…………………………………………………………………………………………….. …………………………………………………………………………………………….. …………………………………………………………………………………………….. …………………………………………………………………………………………….. 5. If the transaction is a transfer: Details of the Beneficiary of the Transfer (name and address of beneficiary, account number, beneficiary bank): ……………………………………………………………………………………………... …………………………………………….……………………………………………….. ……………………………………………………………………………………………… 6. Reasons why the transaction was reported as suspicious:...……………………………. …………………………………………………………………………………………….. ……………………………………………………………………………………………. …………………………………………………………………………………………….. …………………………………………………………………………………………….. ……………………………………………………………………………..

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7. General Description of Suspicious Activity/Transaction (please tick one or more if appropriate)

a. Large cash deposit- Source of cash unknown b. Frequent Large cash withdrawals c. Sudden substantial increase in volume of cash deposits/withdrawals d. Many third parties making deposits into a/c e. Sudden unexplained activity on a previously inactive/dormant a/c f. Unexplained transfers between accounts g. Customer reluctant to provide timely details/information to substantiate a large transaction h. Others:……………………..

8. Is the subject an employee of the disclosing party Yes No 9. Has the subject made any voluntary statement as to the origin or source of the proceeds, if yes kindly enclose a copy of the statement. Yes No When submitting this report, please append any additional material that you may consider suitable and which may be of assistance to the Financial Intelligence Unit, i.e. statement, correspondence, vouchers, transfers, account opening and identification documents, etc. ------------------------------- -------------------- ----------------------- Signature of Official Designation Institution’s Stamp Date: ------------------------