Anti-Money Laundering (AML) and Know Your Customer (KYC) Policy

1. Introduction

Genuine Way Limited ("the Company") is committed to preventing money laundering and terrorist financing by complying with all relevant UK laws, regulations, and guidance. This Anti-Money Laundering (AML) and Know Your Customer (KYC) Policy outlines the measures the Company will take to prevent, detect, and report suspicious activities, ensuring adherence to the legal and regulatory framework in place in the UK.

The policy applies to all employees, directors, and officers of the Company.

2. Legal Framework

This policy is designed to ensure compliance with:

  • The Proceeds of Crime Act 2002 (POCA)
  • The Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017
  • The Terrorism Act 2000
  • The Financial Services and Markets Act 2000
  • Guidance issued by the Financial Conduct Authority (FCA), the National Crime Agency (NCA), and the Joint Money Laundering Steering Group (JMLSG)

3. Purpose of the Policy

The purpose of this policy is to:

  • Prevent the Company from being used for money laundering or terrorist financing.
  • Outline procedures to identify, assess, and manage risks associated with money laundering and terrorism financing.
  • Ensure compliance with legal and regulatory obligations for customer due diligence (CDD), record-keeping, and reporting suspicious activities.
  • Establish a KYC process to ensure the legitimacy of customers and transactions.

4. Anti-Money Laundering (AML) Procedures

4.1 Customer Due Diligence (CDD)

The Company will carry out appropriate Customer Due Diligence (CDD) before entering into a business relationship with any customer. The level of CDD applied will be determined based on a risk-based approach, considering the type of customer, the nature of the business, and the geographical location. This includes:

  • Basic Information: Name, address, date of birth (individuals) or registration details (businesses).
  • Verification of Identity: Government-issued ID documents, proof of address, and any additional documentation as required.

4.2 Enhanced Due Diligence (EDD)

For high-risk customers or transactions (e.g., politically exposed persons, clients from high-risk jurisdictions), the Company will apply Enhanced Due Diligence (EDD). This may include:

  • Additional identity verification measures.
  • Investigating the source of funds.
  • Ongoing monitoring of the relationship.

4.3 Ongoing Monitoring

The Company will monitor transactions continuously to ensure that they are consistent with the Company's knowledge of the customer, their business, and their risk profile. Any suspicious activity will be reported to the Legal Compliance Department.

4.4 Suspicious Activity Reporting (SAR)

The Company will report any Suspicious Activity to the National Crime Agency (NCA) by filing a Suspicious Activity Report (SAR) if there are reasonable grounds to suspect that a transaction may involve money laundering or terrorist financing.

The process for reporting suspicious activities is as follows:

  • Employees must report any suspicious activity to the Legal Compliance Department.
  • The Legal Compliance Department will assess the activity and, if appropriate, submit a SAR to the NCA.
  • No further action will be taken on the transaction until the NCA provides consent.

4.5 Record Keeping

The Company will maintain records of all CDD information, transactions, and reports for at least five years after the completion of the transaction or the termination of the business relationship. This will include:

  • The identity of customers and beneficial owners.
  • Copies of identification documents and any supporting evidence.
  • Details of the transaction and the associated risk assessments.

4.6 Training and Awareness

The Company will ensure that all employees receive regular training on:

  • Recognizing and understanding money laundering and terrorist financing risks.
  • The process for reporting suspicious activities.
  • Understanding the regulatory obligations and consequences of non-compliance.

Training will be updated annually, and refresher courses will be provided whenever necessary.

5. Know Your Customer (KYC) Procedures

5.1 Purpose of KYC

The purpose of the Know Your Customer (KYC) process is to establish and verify the identity of the customer before and during the course of a business relationship. KYC is an essential component of the Company’s broader AML efforts and helps mitigate the risk of being involved in money laundering or terrorism financing activities.

5.2 Customer Identification and Verification

Before entering into a business relationship, the Company will verify the identity of its customers using reliable and independent sources. This includes, but is not limited to:

  • For individuals: A government-issued passport, driving license, or national identity card, as well as proof of address (e.g., utility bill, bank statement).
  • For businesses: Company registration details, ownership structure, and beneficial ownership identification. Additional documentation may be requested for complex corporate structures.

5.3 Risk-Based KYC Approach

The KYC process will vary depending on the risk profile of the customer. The Company will assess each customer based on:

  • Risk Level: High, medium, or low-risk profiles based on jurisdiction, type of business, and transaction volume.
  • Ongoing KYC Monitoring: KYC information will be reviewed periodically and updated when necessary to ensure it remains accurate and consistent with the customer’s activities.

5.4 Politically Exposed Persons (PEPs)

The Company will identify and apply Enhanced Due Diligence (EDD) for Politically Exposed Persons (PEPs), their family members, and close associates. Additional checks will be conducted to assess the source of funds and to evaluate the risks associated with doing business with PEPs.

5.5 Beneficial Ownership

The Company will ensure that the identity of beneficial owners (i.e., the individuals who ultimately own or control the customer) is established, especially when dealing with corporate customers. If the beneficial owner cannot be identified, the Company will not proceed with the relationship.

6. Consequences of Non-Compliance

Failure to comply with the AML and KYC policies may result in:

  • Legal penalties for the Company and individuals involved.
  • Disciplinary action, including termination of employment.
  • Damage to the Company's reputation and business operations.

7. Review and Updates

This policy will be reviewed and updated regularly to ensure that it complies with the latest legal and regulatory requirements. The Company will ensure that all employees are informed of any updates or changes to the policy.

Last Updated: March 2025