crypto farmingANTI-MONEY LAUNDERING/FINANCIAL CRIME POLICY STATEMENT

Table of Contents

1. Introduction

2. Purpose and Scope

3. Anti-Money Laundering Principles
3.1 Overview
3.2 Prohibited Relationships

4. Anti-Money Laundering(AML) Standards
4.1 Identify and Verify the Identity of New Clients
4.2 Obtain Know Your Client (“KYC”) Information
4.3 Monitor Client Activity and Transactions
4.4 Investigate and Report Unusual or Suspicious Activity
4.4.1 Warning Signs for Unusual or Suspicious Activity
4.4.2 Investigating Suspicious Activity
4.4.3 Reporting Suspicious Activity
4.5 Record-keeping
4.6 AML Training
4.7 AML Testing

5. Terrorist Financing

6. Management Controls

1. Introduction

Money laundering is a crime in which illegally derived funds or assets, such as cash, securities or precious metals, are moved through one or several accounts, institutions or countries to disguise their origin and/or ownership.

There are typically three stages of money laundering:

  • illegally derived funds or assets are deposited into the legitimate financial system;
  • the illegally derived funds or assets are moved through a bank, a securities account, a series of accounts, or to a third party to disguise their origin and ownership; and
  • the laundered funds or assets are then spent or are used to invest in legitimate business or to further ongoing illegal activity.

    Money laundering may be committed through knowingly engaging in a financial transaction with the proceeds of fraud, corruption, financial crime (e.g., insider trading or securities fraud), or any other crime.

    Money laundering also may be committed either by deliberately or negligently ignoring indications of unusual or suspicious activity in respect of a client or transaction.

    Violations of applicable anti-money laundering (“AML”) laws or regulations may result in severe criminal, civil or regulatory penalties, including fines against both BM construction Ltd (“Bellamy Mews” or the “Company”) and the offending employee and/or imprisonment of the offending employee. In fact, even the appearance of being connected, directly or indirectly, to money laundering raises unacceptable levels of regulatory and reputational risk to the Company.

  1. Purpose and Scope

    Bellamy Mews and its employees are required to comply with all applicable AML laws and regulations.

    This Program establishes global minimum standards for the prevention, detection and reporting of money laundering and other suspicious activity. The Program is designed to help the Company identify, mitigate and monitor the regulatory and reputational risks associated with money laundering and other suspicious activity on a global basis. Adherence to this Program will help to ensure that Bellamy Mews and its employees are in compliance with applicable AML laws and regulations.

    The Company AML Program applies to employees of Bellamy Mews.  All employees are required to comply with this Program and the detailed implementation of this Program in their respective divisions, regions and locations.  Failure to comply with the Company AML Program may result in criminal, civil and regulatory penalties, as well as internal disciplinary action (including fines and/or termination of employment), and exposure of the Company and/or the offending employee to reputational harm.  This Program is to be distributed to all employees of the Company at least annually.  A written acknowledgement of receipt is to be maintained in each employee file.

    To ensure compliance with this Program, Bellamy Mews has established an AML compliance monitoring program.

    To the extent compliance with the Company’s AML Program may result in a violation of local law or regulations, those local laws or regulations supersede the Company’s AML Program.  The Company’s Compliance Officer must be consulted immediately if and/or when such circumstances arise.  The Company’s Compliance Officer is responsible for overseeing the Company’s AML Program, for overseeing the day-to-day operations of the Company’s AML Procedures and for receiving and reviewing reports of suspicious activity. The Compliance Officer shall be the Company’s central point of contact for communications with regulatory agencies regarding the Company’s AML program.

    3. Company AML Principles

    3.1 Overview

    Bellamy Mews and its employees are prohibited from engaging in or facilitating in, in any manner, money laundering or other suspicious activity. Bellamy Mews and its employees are also required to exercise a level of care and diligence when dealing with clients to avoid being wilfully blind to money laundering or other suspicious activity.

    Consistent with this, Bellamy Mews and its employees must adhere to the following AML principles:
    ■ Bellamy Mews will conduct business only with clients and beneficial owners whose identity and source of income have been established, as appropriate, in accordance with local laws and regulations;

    ■ Bellamy Mews will subject client relationships and transactions that it deems as having increased money laundering risk to higher scrutiny through enhanced due diligence and increased monitoring;

    ■ Bellamy Mews will monitor and, where appropriate, investigate client transactions to prevent and detect unusual or suspicious activity, and Bellamy Mews will implement automated or other surveillance systems, as appropriate, in its locations; and

    ■ Bellamy Mews will report unusual or suspicious activity in accordance with local laws and regulations.

    3.2 Prohibited Relationships
    Pursuant to these principles and Bellamy Mews’s legal and regulatory obligations, Bellamy Mews will not:
    ■ Accept assets that are known or suspected to be the proceeds of criminal activity;

    ■ Conduct business relationships, directly or indirectly, with terrorists, criminals, or their financiers;

    ■ Open correspondent accounts (an account established for a foreign financial institution to receive deposits from, or to make payments or other disbursements on behalf of, the foreign financial institution, or to handle other financial transactions related to such foreign financial institution);
    ■ Open private banking accounts; or
    Conduct business relationships with shell banks or U.K. correspondent accounts with a non-U.K. bank that does not have a physical presence in any country, unless they are part of a financial group subject to effective consolidated supervision.

    4. Bank AML Standards

    This section outlines the global minimum AML standards to be applied across the Company.  Adherence to these standards, and their detailed implementation, will facilitate the Company’s ability to prevent and detect money laundering, helping the Company to identify, mitigate and monitor the legal and reputational risks associated with money laundering and terrorist financing.

    4.1 Identify and Verify the Identity of New Clients

    Consistent with the Company’s commitment to conduct business with clients only involved in legitimate activities and whose funds/assets are derived from legitimate sources, the Company will, in accordance with local laws and regulations:
    ■ Identify and verify the identity of new clients and keep records of same;

    ■ Establish the identity of beneficial owners, as appropriate, and keep records of same;

    ■ Assign risk ratings, pursuant to the Company’s obligations under relevant AML statutes, to client relationships and, as appropriate, transactions. This may include an assessment of one or more of the following, as appropriate:

    ■ Country risk;

    ■ Client type;

    ■ Client’s status as, or close familial ties or business association with, a Politically Exposed Person (“PEP”);

    ■ Industry type;

    ■ Products or services requested;
    ■ Accounts requested or maintained by or on behalf of “senior foreign political figures” (including their family members and close associates);
    ■ Offshore trust accounts;

    ■ Conduct enhanced due diligence on new client relationships or transactions identified as higher risk – this may include one or more of the following, as appropriate:

    ■ Obtaining additional documentation about a particular client, beneficial owner or transaction;

    ■ Visiting a client’s place of business;

    ■ Conducting searches for information using public, proprietary and subscription databases;

    ■ Requiring, as appropriate, approval by a supervisor or senior management;

    ■ Using, where appropriate, a third party agent or vendor to conduct detailed research and analysis of the prospective client.

    In order to identify and verify the identity of new clients and establish the identity of beneficial owners, the Company has established a Verification Process as part of its AML Program.  The process includes but is not limited to:
    ■ verifying the identity of any person seeking to use our services, to the extent reasonable and practicable;
    ■ Maintaining records of the information used to verify the person’s identity, including name, address, and other identifying information; and
    ■ Determining whether the person appears on any lists of known or suspected terrorists or terrorist organizations provided to the financial institution by any government agency.
    At a minimum, the following information must be obtained:
    • Name;
    • Date of birth, for an individual;
    • Address, which will be:
    • For an individual, a residential or business street address;
    • For an individual who does not have a residential or business street address, an Army Post Office (APO) or Fleet Post Office (FPO) box number, or the residential or business street address of a next of kin or another contact individual; or
    • For a person other than an individual (such as a corporation, partnership or trust), a principal place of business, local office or other physical location; and
    • An identification number, which will be:
    • For a U.S. person, a taxpayer identification number; or
    • For a non-U.S. person, one or more of the following: a taxpayer identification number, a passport number and country of issuance, an alien identification card number, or the number and country of issuance of any other government-issued identification number or government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard or certifying the existence of the business or enterprise. For a person other than an individual, personal identification information will be needed for the account controller.
    The Company will verify identity through the review of documentary evidence, non-documentary evidence, or both.
    Examples of documents that the Company may use for verification include:
    • For an individual, an unexpired government-issued identification evidencing nationality or residence and bearing a photograph or similar safeguard, such as a driver’s license or passport; and
    • For a person other than an individual (such as a corporation, partnership, or trust), documents showing the existence of the entity, such as certified articles of incorporation, a government-issued business license, a partnership agreement, or a trust instrument.
    The Company may implement non-documentary methods of verification under one or more of the following circumstances:
    • When an individual is unable to present an unexpired government-issued identification document that bears a photograph or other similar safeguard;
    • When the Company is not familiar with the documents currently present;
    • When the account is opened without obtaining documents as specified under documentary methods;
    • When the client employs our services without appearing in person at the Company;
    • When the Company is otherwise presented with circumstances that increase the risk that the Company will be unable to verify the true identity of a client through documents; or
    • When the Company is presented with identification documents that may appear questionable, suspicious or otherwise invalid.
    In the event that a client has applied for, but has not received, a taxpayer identification number, the Company will request a copy of any corresponding documentation to confirm that the application was filed and to obtain the taxpayer identification number within a reasonable period of time.  When opening an account for a non-U.K. business or enterprise that does not have an identification number, the Company shall request alternative government-issued documentation certifying the existence of the business or enterprise.
    Examples of non-documentary methods may include:
    • Contacting the client;
    • Independently verifying the client’s identity through the comparison of information provided by the client with information obtained from a reporting agency, public database, or other relevant source;
    • Checking references with other financial institutions; or
    • Obtaining a financial statement.
    The Company shall provide proper notification of its ‘Palmprint’ identification and verification requirements to clients or potential clients. The Company may post such a notification through written disclosures.  The notification may read as follows:
    “IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: “To help the government fight the funding of terrorism and money laundering activities, UK Anti-Money Laundering Regulations require all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.”
    The Company shall initially and periodically screen its clients to determine whether a client appears on any list of known or suspected terrorists or terrorist organizations issued by any UK government agency.
    The Company shall review GOV.UK’s list of sanctioned countries.  If a client is from a country on the list, the Company shall review the sanctioning document or contact GOV.UK to determine the extent of the sanctions.  The Company will also review GOV.UK’s Consolidated List (“CL”) of Designated Persons.  If a customer’s name appears on the Consolidated List, the Company will immediately (within 10 days) notify GOV.UK of a potential match.  When either list is updated, the Company will review its existing client base to determine if any current clients from a country on the sanctioned countries list or if any client’s name appears on the Consolidated List.
    The Company may reasonably rely on the performance of another financial institution’s Verification Process, provided that:
    ■ Such reliance is reasonable under the circumstances;
    ■ The other financial institution is also subject to the AML rules and regulated by a “UK government functional regulator”; and
    ■ The other financial institution enters into a contract requiring it to certify annually to the Company Firm that it has implemented its AML program, and that it will perform specified requirements of the Company’s Verification Process.
    The identity verification process should be completed within five business days.
    At a minimum, the Company will maintain records and other pertinent documentation relating to its anti-money laundering program for a period of at least three years.  The Company will maintain all relevant identifying information obtained from each client for a period of at least three years after the date the account is closed.  A description or copy of any document that was used to verify a client’s identity will be maintained for a period of at least three years from the date the record is made.  A description must note the type of documents and any identification number contained on the document, the place of issuance and the expiration date.  A description of the non-documentary verification methods or additional methods used to verify and the results will be maintained for at least three years after the record is made.  A description of how the firm resolved all substantive discrepancies noted when verifying the identifying information will be maintained for at least three years after the record is made.
    The Company shall not open an account until it has verified the identity of the client.  A suspicious activity report (“SAR”) will be filed if the Company reasonably believes that criminal activity, including money laundering, may be taking place.  The Company will review the totality of circumstances surrounding the opening of an account in reaching a determination as to whether a SAR should be filed.  Instances which may rise to the level of triggering a SAR filing would be:
    ■ The individual/person establishing the account is on the Consolidated List; or
    ■ The individual seeking to open the account is asking questions about the Company’s SAR reporting obligations.
    Information Requests

    4.2 Obtain Know Your Client (“KYC”) Information

    In addition to the information gathered for identification and verification purposes, Bellamy Mews must obtain KYC information concerning its clients and, where appropriate, beneficial owners. The level of KYC information that should be obtained, and the frequency or appropriateness of updating this information, may vary substantially depending on the client and type of products and services requested by the client.

    Categories of KYC information that may be collected include, as appropriate and with regard to the type of client and the products and services requested:

    ■ The purpose of the relationship, including the anticipated business activities, investment objectives of the client and, where appropriate, the beneficial owner;

    ■ The client’s and, where appropriate, the beneficial owner’s professional background/business activity;

    ■ The client’s financial resources (including origin of funds).

    The type of information collected, as well as the frequency with which it will be reviewed and updated, will be determined on a risk-based basis by the Company’s Compliance Officer in accordance with applicable laws and regulations.

    4.3 Monitor Client Activity and Transactions

    Bellamy Mews employees are required to understand client transactions to prevent and detect unusual or suspicious activities. All staff are required to monitor their clients’ transactions, as appropriate, to ensure they are consistent with each client’s stated objectives and that the transactions have a legitimate economic or business purpose.  The Company will monitor for suspicious activity and transactions by manually reviewing activity.  Parameters indicating risk include:
    ■ If the address provided is a Mail Drop;
    ■ If the phone number provided is not consistent with the address on the application; or
    ■ If the record matches against the Consolidated List.

    The Compliance Officer, in consultation with senior management, will be responsible for setting appropriate parameters for relevant AML surveillance systems and tools. Client transactions or activity that has been identified as unusual or suspicious, whether through an employee, the Company’s surveillance programs, or by other means, must be investigated in order to determine whether it is necessary to file a report with the appropriate law enforcement or regulatory authorities and/or take other appropriate measures (see Section 4.4, infra).

    Certain higher risk relationships or transactions may require more comprehensive and frequent monitoring or surveillance (e.g., clients from higher risk jurisdictions or transactions involving higher risk jurisdictions). Likewise, certain relationships may require review and monitoring at higher levels of management (e.g., PEP relationships must be reviewed by designated senior management at least annually). Which relationships will be subject to a higher level of monitoring or approval will be a determination made by the Compliance Officer, in accordance with applicable local laws and regulations.
    High risk accounts will be identified in the account opening process if they involve the following:
    ■ Any foreign account opened in a country deemed to be of money laundering concern by the Financial Action Task Force (“FATF”);
    ■ Any foreign financial institution account;
    ■ Shell accounts opened by individuals, private corporations or other entities; and
    ■ Accounts with no permanent street address.

    4.4 Investigate and Report Unusual or Suspicious Activity

    In addition to monitoring client activity and transactions, Bellamy Mews employees are required to investigate and report unusual or suspicious activity to the Compliance Officer, in accordance with their local laws and regulations.

    4.4.1 Warning Signs for Unusual or Suspicious Activity
    Unusual or suspicious activity may occur before or at the initiation of a client relationship or the opening of a client account. Bellamy Mews employees must be alert to warning signs that indicate a client seeks to establish a relationship with the Company for illegal or inappropriate purposes. Potential “red flags” to look for include, but are not limited to:

    ■ A reluctance to provide information concerning client identity or KYC information such as address, business activities or source of funds;

    ■ The account opening documentation provided is unusual, appears to be altered or forged, or is otherwise suspicious;

    ■ The establishment of numerous accounts that serve no apparent purpose. Likewise, unusual or suspicious activity may arise after the establishment of the client relationship or opening of a client account. Bellamy Mews employees must be alert to warning signs indicating that a client’s activity or transactions are unusual or suspicious.

    Potential “red flags” to look for related to existing account activity include, but are not limited to:
    ■ Asset transfers from or to accounts in countries that are a higher risk for money laundering, or transfers from or to countries that have no apparent connection to the client or the client’s legitimate business;

    ■ Disregard of commissions or other transaction costs, account profitability, or investment return;

    ■ Rapid, unexplained movements of funds into and out of an account.

    4.4.2 Investigating Suspicious Activity

    Suspicious activity must be investigated once it has been identified, regardless of the means by which it was identified. Questions concerning whether activity is suspicious should be escalated to the Compliance Officer or Senior Management, in accordance with local laws and regulations.

    An ultimate determination must be made of whether a relationship or transaction indicates money laundering or other suspicious activity.

    Mere reliance on a client’s justification for potentially suspicious activity, without further elimination of identified suspicions, is not acceptable. All investigations must be documented.

    4.4.3 Reporting Suspicious Activity

    The Compliance Officer or Senior Management is responsible for filing reports concerning unusual or suspicious activity with the appropriate regulatory authorities in accordance with applicable local laws and regulations.
    The Company will file an SAR under the following circumstances:
    ■ The Company knows, suspects or has reason to suspect that the transaction or pattern of transactions:
    ■ Involves funds that come from illegal activity or are a part of a transaction designed to conceal that the funds are from illegal activity;
    ■ Do not appear to serve any business or apparent lawful purpose; or
    ■ Use the Company to facilitate a criminal transaction.
    The Company will file an SAR with the relevant authorities within 30 days after the Company becomes aware of a suspicious transaction or, if identity is unknown, an additional 30 days.
    The Company will maintain the SAR and any supporting documentation (including all documents and records that assisted in the decision to file a SAR) for at least three years after the report is filed.
    The Company is prohibited from notifying any person involved in the transaction that the transaction has been reported.
    Access to SARs will only be granted on a “need-to-know” basis.  SARs can only be reviewed in the presence of the Compliance Officer.  Before a person may access information on SARs, the Compliance Officer will emphasize the need to keep the information confidential.  The Compliance Officer will maintain a log of access to SARs.
    The Compliance Officer will verify that any requests for SAR supporting documentation come from a representative of an appropriate law enforcement or supervisory agency.  The Company will complete this verification of a representative’s credentials by independently looking up the representative’s supervisor’s name and phone number and calling him or her.
    The Company will maintain SAR supporting documentation by segregating the documentation by SAR in files that are scanned.  The files will be maintained electronically and stored off site.
    The Company shall obtain a written request from any law enforcement agency requesting that the Company keep a particular account open.  A copy of the request shall be maintained for at least three years after the request has expired.
    The Company shall monitor GOV.UK’s, FCA and HMRC’s respective websites for information on foreign jurisdictions, institutions, classes of transactions, or types of accounts that have been designated as a primary money laundering concern and any special measures that have been imposed.  The Company shall follow any special measures that have been imposed.
    It is critical that employees contact the Compliance Officer or Senior Management as soon as a concern about money laundering, terrorist financing or other suspicious activity arises.

    Bellamy Mews employees are prohibited from disclosing the filing of a report to a client
    or third party. Such disclosure could be a violation of data protection requirements and may be a criminal violation.

    4.5 Record-keeping

    Records concerning client identification or KYC information as well as records concerning the investigation of unusual or suspicious activity and the reporting of same shall be kept in accordance with applicable rules and regulations.

    4.6 AML Training

    Money laundering prevention training and education (“AML training”) consistent with this Program and applicable AML laws and regulations will be developed and provided to relevant
    staff at least every 12 months.  All employees must receive annual AML training.  AML training will be a component of the Company’s new hire training and annual regulatory training on a global basis.

    Records of completion of AML training shall be kept to ensure that all relevant staff have attended mandatory training sessions.  The Company shall maintain a record that identifies the employees who were trained, date of training and material covered. The Compliance Officer is responsible for ensuring that any material changes to this Program have been communicated to all staff.

    4.7 AML Testing
    Bellamy Mews shall arrange for independent testing of this Program to be conducted at least every 12 months by Bellamy Mews personnel or by a qualified outside party.

    5. Terrorist Financing

    Terrorist financing is the financial support of terrorism or those who support or engage in terrorism. Terrorism can be financed through illegal activity such as credit card fraud, illegal arms dealing and drug dealing, among other things. Terrorist financing may also involve the use of legitimately-derived funds. In both instances, however, terrorist financiers often seek to transfer funds in a way that conceals their source and ultimate use, i.e., the support of terrorism.

    As with money laundering, even the appearance of being connected, directly or indirectly, to terrorist financing raises unacceptable levels of regulatory and reputational risk to the Company. Consistent with this, Bellamy Mews and its employees are prohibited from engaging in, or in any way facilitating, the financing of terrorism or terrorist-related activities.

    The Company and employees’ responsibilities with regard to identifying and verifying the identity of potential clients, client screening and, where appropriate, conducting enhanced due diligence on potential and existing clients are essential to the Company’s ability to prevent and detect terrorist financing. Furthermore, the Company’s and employees’ responsibilities with regard to monitoring client activity for unusual or suspicious activity are also essential to prevent and detect terrorist financing. To the extent Bellamy Mews or an employee identifies any individual, entity or transaction believed to be involved in terrorist financing, it will be reported in accordance with this Program.

    6. Management Controls

    Senior Management are responsible for ensuring that the employees under their supervision are complying with the Company AML Policy, in accordance with applicable supervisory requirements.