Introduction.

1. Legislative Framework.
2. Scope of policy.
3. General Principle of the Client Acceptance Policy.
4. Criteria for accepting new clients (Based on risk).
5. Low Risk Clients.
6. Medium Risk Clients.
7. High Risk Clients.
8. Unacceptable Clients.
9. Transactions by Politically Exposed Persons (PEPs).
10. Client Application due diligence and identification procedures.
11. Customer identification procedure (CIP).

FACE-TO-FACE APPLICATIONS.

NON FACE TO FACE VERIFICATION.

DOMESTIC COMPANY.

LISTED COMPANY.

PARTNERSHIPS /UNINCORPORATED BUSINESSES/ SOCIÉTÉS.

GLOBAL BUSINESS LICENSE CATEGORY I OR AUTHORISED COMPANY.

OFFSHORE MAURITIAN FUND.

FOREIGN COMPANIES.

TRUSTS.

CLUBS AND CHARITIES.

‘CLIENT ACCOUNTS’ OPENED BY PROFESSIONAL INTERMEDIARIES.

FOUNDATIONS.

INDEPENDENT INTRODUCERS.

POLITICALLY EXPOSED PERSONS.

12. Monitoring of transactions.

WIRE TRANSFER TRANSACTIONS.

13.Reporting of suspicious transactions.

13.1. Recognition And Reporting Of Unusual And/Or Suspicious Transactions:

IDENTIFYING A SUSPICIOUS TRANSACTION.

Indicators of suspicious transactions.

Characteristics to watch for.

Examples of Potentially Suspicious Transactions.

Red Flags related to Due Diligence.

Red Flags related to Account Profiling.

Red Flags related to Excessive Secrecy.

Red Flags related to Introducers.

Red Flags related to Corporate Structures.

Red Flags related to Investment vehicles, including Companies, Trusts, Investment products.

Red Flags related to Off-Shore Activity.

Red Flags related to Public Officials.

Red Flags Involving Financial Institution Employees and Agents.

Transactions which do not make economic sense.

Reporting of Suspicions to MLRO.

Processing Official Requests for Information or Court Orders.

 Introduction

RMD Trader (“the company”) is committed to follow best practices and market standards in areas of accountability, transparency and business ethics in order to promote sustainability. Good governance and corporate social responsibility (“CSR”) form an integral part of market standards. At the core of these efforts are integrity issues and the reputation risk the company faces in its activities. To manage these issues the company has established an independent compliance function.

The Mauritius Financial Services Commission outlines the requirements, as appropriate, of:

• The Financial Intelligence and Anti-Money Laundering Act 2002 as amended by the Finance (Miscellaneous Provisions) Act 2018;
• the Financial Intelligence and Anti-Money Laundering Regulations 2018 as amended by the Financial Intelligence and Anti-Money Laundering (Amendment) Regulations 2018;
• the Prevention of Corruption Act 2002;
• the Prevention of Terrorism Act 2002;
• the Convention for the Suppression of the Financing of Terrorism Act 2003; and
• The Prevention of Terrorism (Special Measures) Regulations  2003 and the Prevention of Terrorism (Special Measures) (Amendment) Regulations 20
• The Financial Services Act 2007
• The Securities Act 2005
• Code on Prevention of Money Laundering and Terrorist Financing 2012

Therefore, wherever applicable in this manual, reference to Regulatory Authorities may refer to both the Financial Services Commission and/ or the Bank of Mauritius depending on the context and situation.

The Compliance Manual sets out the rules, regulations and guidance to financial institutions such as RMD Trader to ensure compliance with the law.

The policies and procedures outlined in this Anti-Money Laundering and Combatting Terrorist Financing Manual (the “Compliance Manual”) are therefore designed to ensure that the Company meets its obligations under the Compliance Manual.

This Compliance Manual contains the procedures to be followed by all staff of the Company. It should be read in conjunction with our relevant Practices and Procedures.

The Company provides the Services and in providing such Services, it is subject to various risks. Differences in customer base, geography, products and services contribute to the risks the Company manages on a regular basis. As a result, there are different procedures to be followed based on one or more of these factors and staff should be confident in their ability to determine, under given situations, the most appropriate procedures to follow. The Company’s effectiveness in managing compliance risk contributes to the overall success of the organisation.

As evidence of their understanding of the information contained in this Compliance Manual and their agreement to adhere to its contents and the anti-money laundering framework within the jurisdiction of the State of Mauritius, Management and  staff are required  to complete an  Undertaking(see Appendix A) within one month of receiving a copy of this Manual. The Compliance Officer will hold an original of each completed undertaking in his/her files.

This Compliance Manual will be reviewed regularly and updated as appropriate.

1. Legislative Framework

The principal Mauritius anti-money laundering and anti-terrorism legislation, regulations and Codes are:

• The Financial Intelligence and Anti-Money Laundering Act 2002;
• Financial Intelligence and Anti-Money Laundering (Amendment) Regulations 2018;
• Financial Intelligence and Anti-Money Laundering Regulations 2018 ;
• Guidance Notes on Anti-Money Laundering and Combatting the Financing of Terrorism for Financial Institutions
• The Prevention of Terrorism Act 2002; and
• The Prevention of Corruption Act 2002.

A fundamental statutory limitation provided in the Financial Intelligence and Anti-Money Laundering Act 2002 with regards to money laundering or financing terrorism is the “Limitation on payment in cash and exempt transactions”.

With a view to secure an audit trail and as a preventive measure against the laundering of the proceeds of crime, Section 5 imposes a limit on cash payments, whereby transactions in cash in excess of 500,000 Mauritian Rupees or an equivalent amount in foreign currency, are prohibited altogether.

It should be noted that this limitation is not applicable in case of Exempt transactions, defined in the FIAMLA.

“transactions between (i) the Bank of Mauritius and any other person, (ii) a bank and another bank, (iii) a bank and a financial institution, (iv) a bank or a financial institution and a customer, where (a) the transaction does not exceed an amount that is commensurate with the lawful activities of the customer, and 1) the customer is, at the time the transaction takes place, an established customer of the bank or financial institution; and 2) the transaction consists of a deposit into, or withdrawal from, an account of a customer with the bank or financial institution; or b) the chief executive officer or chief operating officer of the bank or financial institution, as the case may be, personally approves the transaction in accordance with any guidelines, instructions or rules issued by a supervisory authority in relation to exempt transactions; or (v) between such other persons as may be prescribed.”

However, the Company does not expect staff to understand all the particulars of relevant legislation, regulation and guidance, but staff should be aware of what is relevant, the penalties and offences associated with money laundering or financing terrorism and staff’s own responsibilities to efficiently assist in prevention.

The Regulations include requirements relating to:

• Risk assessment and mitigation;
• Undertaking customer due diligence (CDD);
• Monitoring customer activity and ongoing CDD;
• Reporting suspected money laundering and terrorist funding activity;
• Staff screening and training;
• Record keeping; and

Ensuring compliance and corporate responsibility

2. Scope of policy

This Compliance Manual is designed to outline the criteria for accepting new clients and stipulates the Client categorization criteria which shall be adhered to by the Company and especially by the employees who are involved in the Client Account Opening process.

3. General Principle of the Client Acceptance Policy

• The General Principle of the client acceptance policy are the following:
  • The Company shall not conduct transactions in anonymous or fictitious names
  • The Company shall classify clients into various risk categories and based on the risk perception decide on the acceptance criteria for each category of Client;
  • Where the Client is a new Client, an account can be activating only after the relevant due diligence and identification measures and procedures have been conducted, according to the principles and procedures set forth in the AML (Anti Money Laundering) Guideline;
  • All documents and data required to be obtained pursuant to the Company’s Client Acceptance Policy must be collected before accepting a new Client;
  • No Client shall be accepted in anonymous or fictitious names.

4. Criteria for accepting new clients (Based on risk)
   • This section describes the criteria for accepting new clients based on their risk categorization.

Low Risk Clients	Normal Risk Clients	High Risk Clients
The Company shall accept Client who are categorized as low risk Clients if the general principles set forth in this Compliance Manual are implemented.	The Company shall accept Client who are categorized as normal risk Client if the general principles set forth hereinafter are implemented.	The Company shall accept Client who are categorized as high-risk Clients if the general principles set forth hereinafter are implemented. Moreover, the Company shall apply the Enhanced Client Identification and due diligence measures for high risk Clients as applicable.

5. Low Risk Clients
   • The following types of Clients can be classified as low risk clients with respect to the money laundering and terrorist financing risk, which the Company may face:
     • Non – PEP clients
     • Clients not on any sanctions lists

6. Medium Risk Clients
   • The following types of Clients can be classified as normal risk Clients with respect to the money laundering and terrorist financing risk, which the Company may face:
     • Any client who does not fall under the “low risk clients” or “High risk clients” categories set forth herein.

7. High Risk Clients
   • The following types of Clients can be classified as high- risk Clients with respect to the money laundering and terrorist financing risk, which the Company may face:
     • Politically exposed persons (PEPs) accounts;
     • Clients from countries that is considered by the FATF inadequately to apply the FATF 40+9 recommendations;
     • Any other Client that their nature entails a higher risk of money laundering or terrorist financing;
     • Any other Client determined by the Company itself to be classified as such.

8. Unacceptable Clients
   • The following list predetermines the types of Clients who are not acceptable for establishing a business relationship with the Company.
     • Clients who fail or refuse to submit, the requisite data and information for the verification of their identity and the creation of their economic profile, without adequate justification;
     • The Company shall not conduct transactions in cases where the identity of the client matches with any person with known criminal background or with banned entities such as individual terrorist organization’s etc. Whose name appear in the list/s published from time to time.

9. Transactions by Politically Exposed Persons (PEPs)
   • PEPs are individuals who are or have been entrusted with prominent public functions in a foreign country e.g. Heads of States or of Governments, Senior Politicians/ Government/ Judicial/ Military Officers, Senior Executives of State-owned corporation, important political officials etc.
   • Before accepting a PEP as a customer, the Company will identify him/her and confirm the sources of funds.
   • The decision to continue business relations with PEPs would be taken at Board level.

10. Client Application due diligence and identification procedures

10.1 The Company shall duly apply Client identification procedures and client due diligence measures in the following instances:

10.1.1 When establishing a business relationship;

10.1.2 When there is a suspicion of money laundering or terrorist financing, regardless of the amount of the transaction;

10.1.3 When there are doubts about the veracity or adequacy of previous client identification data.

11. Customer identification procedure (CIP)

RMD Trader must establish to its satisfaction that it is dealing with a real person or organisation, and verify the identity of the person or organisation accordingly. Apart from signing the RMD Trader’s Customer Agreement and Power of Attorney (wherever applicable), the clients are required to provide the below information depending on which category of client, it falls upon. In cases where clients come from Eligible Introducers, RMD Trader will rely on an Eligible Introducer Certificate from the introducer.

The Company’s customer needs to be verified in line with Customer identification means identifying the customer and verifying his/her identity by using reliable, independent source documents, data or information. Sufficient information needs to be obtained to the satisfaction, which is necessary to establish, the identity of each new customer, whether regular of occasional, and the purpose of the intended nature of relationship.

While opening the account of the customer or during periodic updating, the Company shall seek ‘Mandatory’ information required for KYC purpose, which the customer is obliged to give.

FACE-TO-FACE APPLICATIONS

Residents of Mauritius (Individual)

• A certified true copy of the National Identity Card;
• A certified true copy of a proof of address (Electricity/ Telephone/ Water – utility bill to be less

than 3 months’ old);

• A certified true copy of the marriage certificate (in case proof of address in the name of spouse);
• A certified true copy of the birth certificate (in case of minor); and,
• Completed Account Opening fo

Additional verification of identity can be done by:

• checking a local telephone directory
• checking a current register of electors
• visiting the applicant for business at his/her permanent residential add

Foreign Residents (Individual)

• A certified true copy of a valid Passport (date of expiry not to be within the coming 6 months);
• A certified true copy of a proof of address (Electricity/ Telephone/ Water – utility bill to be less

than 3 months’ old);

• A certified true copy of the marriage certificate (in case proof of address in the name of spouse);
• A certified true copy of the birth certificate (in case of minor);
• A certified copy of the work/residence/occupation permit; and
• Completed Account Opening form

NON FACE TO FACE VERIFICATION

• A certified true copy of a valid Passport (date of expiry not to be within the coming 6 months);
• A certified true copy of a proof of address (Electricity/ Telephone/ Water – utility bill to be less

than 3 months’ old) addressed to the applicant at the address from which he, she or they are applying;

• an original or certified copy of a bank statement addressed to the applicant at the address from which he, she or they are applying;
• A certified true copy of the marriage certificate (in case proof of address in the name of spouse);
• Occupation and name of employer (if self-employed, the nature of the self-employment);
• A certified true copy of the birth certificate (in case of minor);
• Original of a bank reference letter; and
• Completed Account Opening fo

The following additional steps may be taken:

• developing independent contact with the customer,
• confirmation from directory enquiries or from a recognised telephone directory for the locality from which the applicant is applying, containing an entry for the applicant and showing the address from which he, she or they are applying.

DOMESTIC COMPANY

• A certified true copy of the Certificate of Incorporation of the Company;
• A certified true copy of the Application for incorporation pack (certified by the Registrar of

Companies);

• A certified true copy of the Memorandum & Articles of Association/Constitution and any amending resolutions of the Company;
• A certified true copy of the Board Minutes/Shareholders Resolution, authorising the opening

of a trading account with RMD Trader and designating the person(s) authorised to make the application for the opening of trading account;

• A certified true copy of the Business Registration Card of the Company;
• A certified true copy of the National Identity Card (For Mauritian resident) or valid Passport (date of expiry not to be within the coming 6 months) for:
  1. All authorised signatories
  2. Directors of the Company
  3. Shareholders holding above 20% of shares / Beneficial Owners / Ultimate Beneficial Owners
• A certified true copy of a proof of address (Electricity/ Telephone/ Water – utility bill to be less

than 3 months’ old) and a bank reference letter (applicable only for Foreign non-resident):

1. All authorised signatories
2. Directors of the Company
3. Shareholders holding above 20% of shares / Beneficial Owners / Ultimate Beneficial Owners

• Latest Audited Financial Statements (where applicable);
• Last Annual return to Registrar of Companies (if applicable);
• Completed and signed Declaration of Beneficial Ownership;
• Completed Account Opening form, signed as per authorised signatory instructions; and
• Fax & Email Indemnity Lett

Enquiries should be made to confirm:

• by verifying with the Registrar of Companies, that the company continues to exist and has not been, or is not in the process of being, dissolved, struck off, wound up or terminated;
• by conducting, in cases of doubt, a visit to the place of business of the company,

to verify that the company exists for a legitimate trading or economic purpose.

As with personal accounts, ‘know your customer’ is an ongoing process. If changes to the company structure or ownership occur subsequently, or if suspicions are aroused by a change in the nature of the business transacted or the profile of payments through a company account, further checks should be made to ascertain the reason for the changes.

LISTED COMPANY

• A certified true copy of the Certificate of Incorporation of the Company;
• A certified true copy of the Application for incorporation pack (certified by the Registrar of Companies);
• A certified true copy of the Memorandum & Articles of Association/Constitution and any amending resolutions of the Company;
• A certified true copy of the Board Resolution, authorising the opening of a trading account with RMD Trader and designating the person(s) authorised to make the application for the opening of trading account, on behalf of the Company, the list of authorised signatories (with Specimen Signature);
• A certified true copy of the Business Registration Card (as applicable);
• A certified true copy of the National Identity Card (For Mauritian resident) or valid Passport (date of expiry not to be within the coming 6 months) for:
  1. All authorised signatories
  2. Directors of the Company
• A certified true copy of a proof of address (Electricity/ Telephone/ Water – utility bill to be less

than 3 months’ old) and a bank reference letter (applicable only for Foreign non-resident):

1. All authorised signatories
2. Directors of the Company

• A certified true copy of the listing documents, evidencing that the Company is a listed company;
• Latest Audited Financial Statements (where applicable);
• Last Annual Return to Registrar of Companies (if applicable);
• Completed Account Opening form, signed as per authorised signatory instructions; and
• Fax & Email Indemnity Lett

PARTNERSHIPS /UNINCORPORATED BUSINESSES/ SOCIÉTÉS

• A certified true copy of the Certificate of Registration;
• A certified true copy of the Partnership agreement / Deed of creation;
• A certified true copy of the Minutes of proceedings, authorising the opening of a trading account with RMD Trader and designating the person(s) authorised to make the application for the opening of trading account;
• A certified true copy of the Business Registration Card (if applicable);
• A certified true copy of the register of partners;
• A certified true copy of the National Identity Card (For Mauritian resident) or valid Passport (date of expiry not to be within the coming 6 months) for:
  1. Managers
  2. All authorised signatories
  3. Partners owning or controlling at least 10% of the partnership

• A certified true copy of a proof of address (Electricity/ Telephone/ Water – utility bill to be less than 3 months’ old) and a bank reference letter (applicable only for Foreign non-resident):
  1. Managers
  2. All authorised signatories
  3. Partners owning or controlling at least 10% of the partnership
• Latest Audited Financial Statements (where applicable);
• Completed and signed Declaration of Beneficial Ownership;
• Completed Account Opening form, signed as per authorised signatory instructions; and
• Fax & Email Indemnity Letter

The Company should also in cases of doubt make enquiries to confirm the true nature of the business activities to ascertain whether those business activities have a legitimate purpose.

For Mauritian sociétés, the Company should ensure, by verifying with the Registrar of Companies, that the société continues to exist. As regards foreign sociétés, the company should obtain a certificate of good standing from them.

The Company should also, in accordance with the procedures set out for personal customers, verify the identity of those in control of the partnership/unincorporated businesses/société, e.g. its administrators and gérants etc and retain the same relevant documents as are required for personal customers accordingly.

GLOBAL BUSINESS LICENSE CATEGORY I OR AUTHORISED COMPANY

1. A certified true copy Certificate of Incorporation;
2. A certified true copy of GBL 1/ Authorised certificate (Front & Back copy);
3. A certified true copy of Constitution/Memorandum and Articles of Association;
4. A certified true copy of the Board Minutes/Shareholders Resolution, authorising the opening of a trading account with the Company and designating the person(s) authorised to make the application for the opening of trading account and provide the list of authorised signatories (with Specimen Signature);
5. Authentication of Authorised Signatories by the Offshore Management Company/Group Offices/Reputed Banks;
6. A certified true copy of the National Identity Card (For Mauritian resident) or valid Passport (date of expiry not to be within the coming 6 months) of all owners, beneficial owners, authorised signatories and director

To be certified “True Copy” by an employee of the Bank or a Reputed Bank or Offshore Management

Company as per list of authorised signatories.

7. Original copy of a Bank reference letter (dated less than 6 months) to be addressed to the Bank from a Reputable Bank on all owners/beneficial owners, authorised signatories and directors;
8. Original of a proof of address (Electricity/ Telephone/ Water – utility bill to be less than 3 months’ old) of all owners/beneficial owners, authorised signatories and directors;
9. Duly signed Business Plan of the Company including nature and estimated annual volume of

transactions and likely amounts of individual transactions passing through the account. The nature of commercial/business links, and the origin of the funds flowing through the account should also be provided.

In case a copy is being submitted, it must be certified “True Copy” by the Offshore Management

Company;

10. Eligible Introducer’s Certificate;
11. Prospectus of the Company;
12. Latest Audited Financial Statements (where applicable);
13. Last Annual return to Registrar of Companies (if applicable);
14. If shareholder is a company:
    1. A certified true copy of the Certificate of Incorporation;
    2. A certified true copy of the Constitution/Memorandum and Articles of Association;
    3. A certified true copy of the last audited Financial Statements;

15. For a Company incorporated for a period of more than of 1 year, original of the certificate of Current Standing issued by the Registrar of Companies;
16. Completed and signed Declaration of Beneficial Ownership;
17. Completed Account Opening form, signed as per authorised signatory instructions; and,
18. Fax & Email Indemnity Lett

N.B: Unless stated otherwise, copies to the certified “True Copy” by the Offshore Management

Company

OFFSHORE MAURITIAN FUND

Requirement as per Global Business Company (as above) in addition to the following:

1. A certified true copy of Placement Memorandum/Constitution;
2. A certified true copy Certificate of Registration;
3. A certified true copy of the register of Promoters;
4. Undertaking from Administrator/Promoter/Investment Manager that due diligence has been

carried out in all the investors; and

5. Cash Custody agreement as applicab

• Documents to the certified “True Copy” by the Offshore Management Company

FOREIGN COMPANIES

1. A certified true copy of the Certificate of Incorporation;
2. A certified true copy of the Constitution/Memorandum and Articles of Association;
3. A certified true copy of the Board Minutes/Shareholders Resolution, authorising the opening of a trading account with RMD Trader and designating the person(s) authorised to make the application for the opening of trading account and provide the list of authorised signatories (with Specimen Signature);
4. Authentication of Authorised Signatories by the Group Offices/Reputed Banks;
5. A certified true copy of the Passport (date of expiry not to be within the coming 6 months) of

all owners, beneficial owners, authorised signatories and directors.

To be certified “True Copy” by an employee of the Bank or a Reputed Bank as per list of

authorised signatories.

6. Original copy of a Bank reference letter (dated less than 6 months) to be addressed to the Bank from a Reputable Bank on all owners/beneficial owners, authorised signatories and directors;
7. Original of a proof of address (Electricity/ Telephone/ Water – utility bill to be less than 3

months’ old) of all owners/beneficial owners, authorised signatories and directors;

8. Duly signed Business Plan of the company including nature and estimated annual volume of transactions and likely amounts of individual transactions passing through the accoun
9. Eligible Introducer’s Certificate;
10. Latest Audited Financial Statements (where applicable);
11. If shareholder is a Company:
    1. A certified true copy of the Certificate of Incorporation;
    2. A certified true copy of the Constitution/Memorandum and Articles of Association;
    3. A certified true copy of the last audited Financial Statements;
12. A certified true copy of the Local Certificate of Registration as Foreign Company in the case of registered Mauritian branches of Foreign Companies;
13. Completed and signed Declaration of Beneficial Ownership;
14. Completed Account Opening form, signed as per authorised signatory instructions;
15. Fax & Email Indemnity Letter; and
16. Certification of documents must be by a Group office of the Bank or a reputed Bank/Notary with a Hague Apostille or Company Administrator known and acceptable to the company.

In addition, the company should check the veracity of the information provided with a credit or financial institution of good standing in the permanent place of business of the company.

The company may also rely on other regulated institutions to verify identity of foreign companies.

TRUSTS

1. A certified true copy of the Constitution of the Trust;
2. A certified true copy of the decision of the Trust, authorising the opening of a trading account with RMD Trader and designating the person(s) authorised to make the application for the opening of trading account;
3. Authentication of the authorised signatories by the Trust/Reputed Banks;
4. A certified true copy of the National Identity Card (For Mauritian resident) or valid Passport (date of expiry not to be within the coming 6 months) on the Settlor, Protector (where applicable), beneficiaries and authorised signatories;

To be certified “True Copy” by an employee of the Bank or a Reputable Bank or Offshore

Management Company as per list of authorised signatories;

5. Original copy of a Bank reference letter (dated less than 6 months) to be addressed to the Bank from a Reputable Bank on the Settlor, Protector (where applicable), beneficiaries and authorised signatories;
6. Original of a proof of address (Electricity/ Telephone/ Water – utility bill to be less than 3 months’ old) on the Settlor, Protector (where applicable), beneficiaries and authorised signatories;
7. A copy of the Business Plan;
8. A certified written confirmation from the trustees that they are aware of the true identity of underlying principals, i. settlors/named beneficiaries and that there are no anonymous principals;
9. Duly signed Personal Information form of protector, settlor, beneficiaries and authorised signato (Format enclosed);
10. Eligible Introducer’s Certificate;
11. Certification of documents must be by a reputed Bank/Notary with a Hague Apostille or known and acceptable Corporate trustees including Mauritius based trustees as per a list of signatories;
12. Latest Audited Financial Statements (where applicable);
13. Completed and signed Declaration of Beneficial Ownership;
14. Completed Account Opening form, signed as per authorised signatory instructions; and
15. Fax & Email Indemnity Lett

The company should exercise particular caution with respect to trusts, given the common perception that trusts are often misused for laundering the proceeds of crime and hiding terrorist funds.

RMD Trader should also gather the maximum information on the trust’s operations prior to opening of the account and should also monitor on a regular basis the inflows and outflows in line with the given business plan.

CLUBS AND CHARITIES

1. A certified true copy of the Certificate of Registration;
2. A certified true copy of the Constitution/Rules and regulations of the Club/Association;
3. A certified true copy of the Minutes of proceedings of the Managing Committee, authorising the opening of a trading with RMD Trader and designating the person(s) authorized to make the application for the opening of trading account, on behalf of the Company;
4. A certified copy of the duly registered Security Bond;
5. A certified copy of the list of elected members of the Managing Committee;
6. A certified true copy of the National Identity Card (For Mauritian resident) or valid Passport (date of expiry not to be within the coming 6 months) of authorized signatories;
7. Completed Account Opening form, signed as per authorised signatory instructions; and
8. Fax & Email Indemnity Lett

It is increasingly being recognised that terrorists and terrorist groups are having recourse to clubs and charities for the financing of terrorism.

Accordingly, in the case of accounts to be opened for clubs or charities, the Company should at the very beginning satisfy themselves as to the legitimate purpose of the organisation by requesting a certified copy of the constitution of the club or charity and also in case of doubt by paying a visit to its premises, where practicable, to satisfy themselves as to the true nature of its activities. They may also satisfy themselves by independent confirmation of the purpose of the club or charity.

The identity of the persons in control of the club or charity should be ascertained, in accordance with the procedures required for personal customers.

Control of clubs and charities are most likely to change from time to time and the identity of those new controllers of the clubs or charities should be verified as and when RMD Trader are advised of any change.

‘CLIENT ACCOUNTS’ OPENED BY PROFESSIONAL INTERMEDIARIES

Stockbrokers, fund managers, law practitioners, accountants, estate agents and other intermediaries frequently hold funds on behalf of their clients in ‘client accounts’ opened with financial institutions. Such accounts may be opened on behalf of either a single client or for many clients. In each case it is the intermediary who is the company’s customer.

In such cases, RMD Trader is required to verify the identity of the professional intermediary itself and also to obtain from the intermediary (i) an undertaking that it has verified the identity of its clients and (ii) particulars of the identity of those clients.

FOUNDATIONS

A foundation may be established in Mauritius or elsewhere and registered in Mauritius in accordance with the Foundations Act 2012. A foundation will not have legal personality unless it is registered and has been issued with a certificate of registration by the Registrar of Companies who also cumulates the function of Registrar of Foundations.

When verifying the identity of a foundation, the company must, in line with guidance provided for individuals and legal bodies, verify:

With respect to the foundation:

1. its name;
2. its date of registration with the Registrar of Foundations;
3. its date and country of incorporation;
4. its official identification number;
5. its business address;
6. its principal place of business and operations (if different),

by using the following verification methods, namely, the Charter (or equivalent) of the foundation, search at the Registrar of Foundations, the latest audited financial statements and independent data sources.

With respect to the persons who are concerned with the foundation:

7. the identity of, inter alia, (i) the council members, especially those who have authority to operate a business relationship or to give instructions concerning the use or transfer of funds or assets, (ii) the founder, (iii) the executor, (iv) the protector, (v) the beneficiary, and (vi) the administrato

INDEPENDENT INTRODUCERS

Although the ultimate responsibility for verifying the identity and address of customers always lies with RMD Trader, it is recognised that to avoid duplication, the company may rely on other eligible or group introducers to verify the identity of applicants for business.

An eligible introducer is any person who introduces an applicant for business to the Company and:

1. is regulated under:
   1. the Financial Intelligence and Anti-Money Laundering Act 2002; or
   2. any similar legislation in an equivalent jurisdiction; or

• is subject to rules of professional conduct relating to the prevention of money laundering and terrorist financing; and

1. is based either in Mauritius or in an equivalent jurisdiction.

An equivalent jurisdiction is a jurisdiction which has a legislation equivalent to Mauritius as specified in FSC Code 2012.

The Company may rely on an eligible introducer to verify the identity of an applicant for business where:

1. The Company obtains and maintains documentary evidence that the eligible introducer is regulated for the purposes of preventing money laundering and terrorist financing; and the Company is satisfied that the procedures laid down by the eligible introducer or group introducer is effectively regulated and supervised and has measures in place to meet the requirements specified in the FIAML, regulations made thereunder and these Guidance No

In this case, the Company should immediately obtain from the eligible introducer the necessary information concerning, inter alia, the following elements of the CDD process:

1. identity of customer and beneficial owner and verify that customer’s identity using reliable,

independent source documents, data or information;

1. verify whether the customer is acting on behalf of a third party; and

• obtain information on the purpose and intended nature of the business relationship.

Where the Company relies on customer identification documentation in the possession of an eligible introducer, the company is not required to retain copies of the customer identification documentation in its own records where it is satisfied that it may obtain that customer identification documentation from the eligible introducer upon request without delay.

In addition, the Company should conduct periodic reviews to ensure that an introducer which it relies on continues to conform to the criteria set out above.

The Company must request the eligible introducers to provide them with a duly completed Group Introducers Certificate or Eligible Introducers Certificate as the case may be.

POLITICALLY EXPOSED PERSONS

Business relationships with individuals holding important public positions and with persons or entities clearly related to them may expose the company to significant reputational and/or legal risks. Such politically exposed persons (“PEPs”) be it local or foreign:

• are individuals who are or have been entrusted with prominent public functions, including:
  • heads of state or of government;
  • senior politicians;
  • senior government;
  • judicial or military officials;
  • senior executives of publicly owned corporations; and
  • important political party officials, their family members and their close associates.

In the case of entities relating to local PEPs, these would comprise entities that are 20 per cent or more, owned or controlled by those local PEPs. The possibility exists that such persons may abuse their public powers for their own illicit enrichment through the receipt of bribes, embezzlement, etc.

Please refer to the AMLCFT Code of the FSC for various factors when determining if an individual is a PEP

Family members of PEPs shall comprise:

• their spouses; and
• any partner considered by national law as being equivalent to a spouse and their child

The Company is, however, encouraged to apply the provisions relating to PEPs in these Compliance Manual also to (i) spouses or partners of children of PEPs and (ii) parents of PEPs.

The Company should gather sufficient information from a new customer, including:

• information on the beneficial owner;
• check publicly available information; or
• access commercial electronic databases (World Check), in order to establish whether or not the customer or the beneficial owner is a PEP.

The Company should assess which countries with which it has financial relationships, are most vulnerable to corruption. Sources of information can be:

• Transparency International Corruption Perceptions Index at wwtransparency.org;
• World-Check at https://signon.thomsonreutercom;
• FATF Website at http://wwfatf-gafi.org/countries/
• Google Search (Name of person/company; name of person/company and fraud; name of person/company and trafficking; name of person/company and smuggling)

In particular detailed due diligence should include:

• Close scrutiny of any complex structures (for example, involving companies, trusts and multiple jurisdictions) so as to establish that there is a clear and legitimate reason for using such structures bearing in mind that most legitimate political figures would expect their personal affairs to be undertaken in a more than usually open manner rather than the rev

• Every effort to establish the source of wealth (including the economic activity that created the wealth) as well as the source of funds involved in the relationship – again establishing that these are legitimate, both at the outset of the relationship and on an ongoing b

• The development of a profile of expected activity on the business relationship so as to provide a basis for future monitoring. The profile should be regularly reviewed and updated.

• An approval at senior management or board level of the decision to commence the business relationship and to continue the business relationship where the customer has been accepted and the customer or beneficial owner is subsequently found to be or subsequently becomes a PE

• Regular review by senior management using a risk-based approach, at least yearly, with the results of the review duly docum Over the course of a business relationship with a PEP, ongoing monitoring procedures may reveal changes to the profile and activity. The PEP may have been promoted or elected to a more senior position, engaged in litigation, or made transactions deviated from the norm. Considered separately, the activities, transactions or profile changes may not be sufficient to raise “red flags.” Implementing a periodic review of PEP customers on a risk-based approach, and at least yearly, would help to overcome the approach in which decisions are made transaction-by-transaction, activity-by-activity which would enhance the oversight of the PEPs customer relationships by senior management.
• Close scrutiny of any unusual features, such as very large transactions, particular demands for secrecy, the use of cash or bearer bonds or other instruments which break an audit trail, the use of small and unknown financial institutions in secrecy jurisdictions and regular transactions involving sums just below a typical reporting amount

The Company shall ensure that the following steps are complied with:

• the customer shall be identified and his identity verified using identification data;

• any person purporting to act on behalf of the customer shall be identified and his identity and his authority to so act shall be verified;

• beneficial owner and underlying principal shall be identified and reasonable measures shall be taken to verify such identity using identification data and such measures shall include, in the case of a legal person or legal arrangement, measures to understand the ownership and control structure of the customer;

• a determination shall be made as to whether the customer is acting on behalf of another person and, if the customer is so acting, reasonable measures shall be taken to obtain sufficient identification data to identify and verify the identity of that other person;

• information shall be obtained on the purpose and intended nature of each business relationship; and,

• a determination shall be made as to whether the customer, beneficial owner and any underlying principal is a politically exposed person.

The Company is required to carry out customer due diligence, it must also carry out enhanced customer due diligence in relation to the following business relationships or occasional transactions:

• a business relationship or occasional transaction in which the customer or any beneficial owner or underlying principal is a PEP;

• a business relationship which is:

• White label partners, international brokers or fund hou

• similar to such a relationship in that it involves the provision of services, which themselves amount to financial services business or facilitate the carrying on of such business, by one financial services business to another;

• usiness relationship or an occasional transaction:

• where the customer is established or situated in a country or territory that does not apply or insufficiently applies the FATF Recommendations; or

• which the Company considers to be a high-risk relationship, taking into account any notices or warnings issued from time to time by the Mauritius Financial Services Commission; and
• a business relationship or an occasional transaction which has been assessed as a high- risk relationship.

The enhanced customer due diligence techniques shall include:

• obtaining senior management approval for establishing a business relationship or undertaking an occasional transaction;

• obtaining senior management approval for, in the case of an existing business relationship with a PEP, continuing that relationship;

• taking reasonable measures to establish the source of any funds and of the wealth of the customer and beneficial owner and underlying principal;

• carrying out more frequent and more extensive ongoing monitoring; and

• taking one or more of the following steps as would be appropriate to the particular business relationship or occasional transaction

• obtaining additional identification data;

• verifying additional aspects of the customers identity; and

• obtaining additional information to understand the purpose and intended nature of each business relationship.

Furthermore, the Company shall perform ongoing and effective monitoring of any existing business relationship, which shall include:

• reviewing identification data to ensure it is kept up to date and relevant in particular for high risk relationships or customers in respect of whom there is a high risk;

• scrutiny of any transactions or other activity, paying particular attention to all:

• complex transactions;

• transactions which are both large and unusual; and

• unusual patterns of transactions, which have no apparent economic purpose or no apparent lawful purpose; and

• ensuring that the way in which identification data is recorded and stored is such as to facilitate the ongoing monitoring of each business relationship.

The extent and frequency of any monitoring carried out shall be determined on a risk sensitive basis including whether or not the business relationship is a high-risk relationship.

12. Monitoring of transactions

12.1 Ongoing monitoring is an essential element of effective KYC procedures. Risk can be effectively controlled and reduced only if an understanding of the normal and reasonable activity of the customer is available to identify transactions that fall outside the regular pattern of activity. However, the extent of monitoring shall depend on the risk sensitivity of the account.

12.2 Ongoing due diligence with respect to the business relationship with every client shall be exercised and the transactions shall be examined closely to ensure that they are consistent with their knowledge of the client, his business and risk profile and where necessary, the source of funds.

WIRE TRANSFER TRANSACTIONS

To ensure that wire transfer systems are not used by criminals as a means to break the audit trail, where RMD Trader makes a payment on behalf of its customer, accurate and meaningful originator information (name, residential address and any account number or reference of the originator) should be included on all funds transfers and related messages and should remain with the transfer through the payment chain until it reaches its final destination.

This information is particularly important for international transfers on behalf of individual customers to ensure that the source of funds can be identified in the event of an investigation in the receiving jurisdiction.

Where the originator is acting on behalf of others (e.g. as nominee, agent, or trustee), then it is the name, address, and account number of the nominee, agent, trustee, etc. that should be included. RMD Trader should have on file the name and address of underlying principals.

RMD Trader should conduct enhanced scrutiny of, and monitor for suspicious activity, incoming funds transfers which do not contain complete originator information. This will involve examining the transaction in more detail in order to determine whether certain aspects related to the transaction could make it suspicious (origin in a country known to harbour terrorists or terrorist organisations, for example). The lack of complete originator information may be considered as a factor in assessing whether a wire transfer or related transaction is suspicious and to consider, as appropriate, whether they are thus required to be reported to the FIU.

13.Reporting of suspicious transactions

13.1 The Company undertakes to report any suspicious activities in line with the requirements of the FIAML Act 2002 as amended and FSC Code of Conduct

13.1 Information to be reported concerning property associated with terrorist and related activities.

13.2 Cash threshold reporting (Rs 500, 000 or more)

13.3. Recognition And Reporting Of Unusual And/Or Suspicious Transactions:

As the types of transactions which may be used by a money launderer or to finance terrorism are almost unlimited, it is difficult to define a suspicious transaction. Suspicion is personal and subjective and falls far short of proof based on specific evidence. However, it is more than the absence of certainty that someone is innocent. Where there is a business relationship, an unusual or suspicious transaction will often be one which is inconsistent with a client’s known legitimate business profile or personal activities or with the normal business for that type of relationship. Therefore the first key to recognition is knowing enough about the client and the client’s business to recognise whether a transaction or series of transactions is unusual.

IDENTIFYING A SUSPICIOUS TRANSACTION

How to identify a suspicious transaction?

There is no monetary threshold for making a report concerning a suspicious transaction. A suspicious transaction may involve several factors that may on their own seem insignificant, but when taken together, may raise suspicion that the transaction is related to the commission or attempted commission of a money laundering offence.

As a general guide, a transaction may be connected to a money laundering offence when one think that it (or a group of transactions) raises questions or gives rise to discomfort, apprehension or mistrust.

The context, in which the transaction occurs or is attempted, is a significant factor in assessing suspicion. This will vary from business to business and from one client to another. The Company should evaluate transactions in terms of what seems appropriate and is within normal practice in its particular line of business, and based on its knowledge of the client. The fact that transactions do not appear to be in keeping with normal industry practices may be a relevant factor for determining whether there are reasonable grounds to suspect that the transactions are related to money laundering.

An assessment of a suspicion should be based on a reasonable evaluation of relevant factors, including the knowledge of the customer’s business, financial history, background and behaviour. One should remember that it is the behaviour which is suspicious, not the person. Also, it could be the consideration of many factors, not just one factor, which will lead to a conclusion that there are reasonable grounds to suspect that a transaction is related to the commission or attempted commission of a money laundering offence. All circumstances surrounding a transaction(s) should be reviewed.

The following indicators shall assist RMD Trader in identifying suspicious transactions.

Indicators of suspicious transactions

The indicators that follow are provided to help assess whether or not transactions might give rise to reasonable grounds for suspicion. They are examples of common and industry-specific indicators that may be helpful when evaluating transactions, whether completed or proposed. These indicators include indicators which is based on certain characteristics that have been linked to money laundering in the past.

The indicators emanates from money laundering typologies and/or trends as experienced and developed in other jurisdictions. As money laundering is a global phenomenon, these typologies and/or trends are relevant and helpful to reporting entities in that it reflects a pattern or behaviour that prompts deployment of diligence in any given transaction. These indicators are not intended to cover every possible situation and are not to be viewed in isolation. As such, a single indicator is not necessarily indicative of reasonable grounds to suspect money laundering. However, if a number of indicators are present during a transaction or a series of transactions, then the company might want to take a closer look at other factors prior to making the determination as to whether the transaction must be reported.

The indicators have to be assessed in the context in which the transaction occurs or is attempted. Each indicator may contribute to a conclusion that there are reasonable grounds to suspect that the transaction is related to the commission or attempted commission of a money laundering offence. However, it may also offer no indication of this in light of factors such as the client’s occupation, business, financial history and past investment pattern. Taken together, the presence of one or more indicators as well as RMD Trader’s knowledge of its client’s business or financial affairs may help the company in identifying suspicious transactions.

Some of the indicators provided could result in the transaction being aborted if the client requests a service that is prohibited by RMD Trader or by its anti-money laundering measures. RMD Trader policies, standards and procedures may already reflect these as inappropriate or questionable.

Becoming aware of certain indicators could trigger reasonable grounds to suspect that one or more transactions from the past (that had not previously seemed suspicious) were related to money laundering. For example, this could happen if it were reported in the media or some other reliable source that one of the company’s clients is suspected of being involved in illegal activity. If this amounts to suspicion regarding a previous transaction with this client, the company would have to report it to the FIU as soon as practicable but not later than fifteen (15) days after establishing a suspicion.

Characteristics to watch for

There are a number of characteristics which are a common feature of money laundering or terrorist financing activity. Some of these are:

• A willingness to pay over the odds for services provided;
• A willingness to accept low or even negative returns;
• A reluctance to provide basic information to verify identity;
• Engaging in transactions which do not make commercial sense;
• A history of frequent movement between financial institutions;
• An inactive or dormant account that suddenly becomes active;
• Transactions out of character with the business expected or with the history of the relationship;
• Changing patterns of account usage without proper explanation;
• Reluctance to clearly explain source of funds;
• Transfers to/from parties unrelated to the account holder without proper explanation;
• Multiple similar transactions that could have been more effectively combined; transactions spanning many jurisdictions with no obvious reason; or
• Extreme urgency to finalise

The existence of one or more of the above characteristics does not automatically mean that a client is engaged in criminal activity. However, they are an indication that something may be wrong and should give rise to further scrutiny which may include enquiry of and explanations from the client. The client may have a perfectly good reason for the unusual characteristics which would allay any suspicion.

Staff should query clients who exhibit changes in transaction patterns or other “red flags” as long as the questions are sought to better understand the client and his relationship with the company. If this occurs before any report is made to the MLRO, there is generally no danger of committing the offence of tipping off. All questions should be directed towards clarification and no mention should be made of the staff’s concern.

Examples of Potentially Suspicious Transactions

The following are examples of unusual or suspicious transactions, sometimes called “red flags” with which staff should become familiar. Staff should be aware that unusual behaviour could occur at any time during a relationship with a client. There are some red flags of which staff should be aware, which are generic, i.e., relating to a relationship. There are also red flags or unusual activity relating to particular types of transactions. This section attempts to provide staff with examples of unusual activity, regardless of whether a specific transaction type is involved. This list is not exhaustive, but is provided to assist staff in understanding transactions which could be unusual when compared against a client’s expected pattern of activity.

The examples provided may not, by themselves, equate to money laundering or terrorist financing but should put a member of staff on enquiry to investigate further.

Red Flags related to Due Diligence

• Clients who exhibit unusual concern regarding compliance with reporting requirements and the Company’s anti-money laundering policies, particularly with respect to his or her identity, type of business and assets, or is reluctant or refuses to reveal any information concerning business activities, or furnishes unusual or suspect identification or business documents;
• The information provided by the client that identifies a legitimate source for funds is false, misleading, or substantially incorrect;
• Clients who (or a person publicly associated with the client) have a questionable background or are the subject of news reports indicating possible criminal, civil, or regulatory violations;
• The client’s activity demonstrates outflows of funds or other assets well beyond the known income

or resources of the client;

• Unsatisfactory or incomplete identification evidence;
• A refusal by a client to provide complete identification evidence;
• Clients asking staff to “bend” the rules;
• Unwillingness to disclose the source of funds;
• Unwillingness to disclose identity of ultimate beneficial owners;
• Lack of adequate identification or source of funds being provide

Red Flags related to Account Profiling

• Any action or request by a client which is inconsistent with your experience or knowledge of their business, affairs, income or previous account history;
• The receipt or transmission of funds in circumstances which appear to have no commercial logic or perhaps involve jurisdictions which are renowned for money laundering;
• Clients who request regular and large transactions that cannot be clearly identified as bona fide transactions to, or receive regular and large payments from, countries which are commonly associated with the production, processing or marketing of drugs or with terrorist organization

Red Flags related to Excessive Secrecy

• Unnecessary granting of power of attorney;
• Using a client account rather than paying for things directly;
• Sales invoice totals exceeding known value of good

Red Flags related to Introducers

• Introducer’s creation of corporate vehicles or other complex legal arrangements which might serve to confuse the links between the proceeds of a crime and the perpetrator;
• Introducer fronting for criminals with a large amount of money to invest, posing as individuals hoping to minimise their tax liabilities or desiring to place assets out of reach in order to avoid future liabilities;
• Agent, attorney or financial advisor acts for another person without proper documentation such as a power of attorney;
• Clients introduced by third party intermediaries where it is not possible to obtain direct identification evidence for the ultimate client or beneficial owner of the client

Red Flags related to Corporate Structures

• Subsidiaries which have no apparent purpose;
• Companies which continuously make substantial losses;
• Complex group structures without a cause;
• Uneconomic group structures for tax purposes;
• Frequent changes in shareholders and director

Red Flags related to Investment vehicles, including Companies, Trusts, Investment products

• Clients whose beneficiaries, or other parties associated with an investment do not have a familial or other business relationship;
• Frequent changes of beneficiaries;
• Receipt of assets exclusively from unregulated intermediaries who may have failed to ensure that thorough due diligence has been conducted on the funds being placed into its policies;
• Requests by a client for investment management services where the source of funds is unclear or

not consistent with the client’s current standing;

• Large or unusual settlement of securities transactions or settlement of a trust in cash;
• Buying and selling a security with no discernible purpose or in circumstances which appear unusual;
• Assets are disproportionate to client’s stated income and occupation;
• Holding in trust of shares in an unlisted company whose activities cannot be ascertained by the Company;
• Clients who wish to maintain a number of trustee or clients’ accounts that do not appear consistent

with their type of business, including transactions that involve nominee names.

Red Flags related to Off-Shore Activity

• Use of Letters of Credit and other methods of trade finance to move money between countries

where such trade is not consistent with the client’s usual business;

• Clients who make regular and large payments, including wire transactions, that cannot be clearly identified as bona fide transactions to, or receive regular and large payments from, countries which are commonly associated with the production, processing or marketing of drugs or with terrorist organizations;
• Building up of large balances, not consistent with the known turnover of the client’s business, and

subsequent transfer to the account(s) held overseas.

Red Flags related to Public Officials

• Clients who are public officials conducting business in the name of a family member who begins making large transfers not consistent with the known legitimate sources of income of the family;
• Clients who are related to public officials and make large transfers not consistent with the client’s own legitimate sources of income

Red Flags Involving Financial Institution Employees and Agents

• Changes in employee characteristics e.g. lavish life styles or avoiding taking holidays;
• Changes in employee or Agent performance;
• Any offers of “hospitality”, entertainment or gifts;
• Any concerns about the activities or conduct of colleague

Transactions which do not make economic sense

• Transactions in which assets are withdrawn immediately after being deposited, unless the client’s

business activities furnish a plausible reason for immediate withdrawal;

• Transactions that cannot be reconciled with the usual activities of the client, for example, the use of Letters of Credit and other methods of trade finance to move money between countries where such trade is not consistent with the client’s usual business;
• Transactions which, without plausible reason, result in the intensive use of what was previously a relatively inactive account, such as a client’s account which shows virtually no normal personal or business related activities but is used to receive or disburse unusually large sums which have no obvious purpose or relationship to the client and/or his business;
• Provision of bank guarantees or indemnities as collateral for loans between third parties that are not in conformity with market conditions;
• Unexpected repayment of an overdue credit without any plausible explanation.

Reporting of Suspicions to MLRO

If any member of staff forms a suspicion that a client may be involved in money laundering, terrorist financing or have benefited from the proceeds of crime, they must report, in writing, their suspicion immediately to the MLRO, using the form which  may be downloaded  from the FIU website at www.fiumauritius.org . Documenting one’s suspicions ensures that the staff member is protected from criminal liability for failure to report. Reporting the issue immediately assists the MLRO, and potentially the Reporting Authority, to act quickly and within the requirements of the legislation.

Upon his receipt of an Internal Report Form, the Money Laundering Reporting Officer will date and sign the form, confirming receipt. He will remind the staff member concerned not to do or say anything which might alert the client that they may be under investigation. The MLRO will also advise the staff member how to continue dealing with the client, if at all.

The MLRO will review the information on the Internal Report Form as well as other information available from various sources and determine whether there is a suspicion of money laundering or terrorist financing, in which case, he will make a disclosure to the Financial Intelligence Unit (FIU), as applicable.

If the Money Laundering Reporting Officer makes a disclosure to the FIU, as applicable, he will complete the form which may be downloaded from its website at www.fiumauritius.org , and file a copy along with the MLRO’s Internal Review Checklist and the Internal Report Form in his files of Unusual and Suspicious Activity. He will update the relevant log (Log of Reports Made to FIU, Log of Reports not made, as applicable A disclosure such as this is also called a Suspicious Transaction Report (“STR”). When a confirmation of receipt has been provided from the FIU, the relevant reference and any other comment are documented on the Log of Reports Disclosed to the FIU, as applicable.

On occasion, the FIU may request additional information regarding the contents of a STR. In such cases, the MLRO will log receipt of the request on the Log of Reports Disclosed to the FIU, as applicable. He will evaluate the contents of the request, respond accordingly, and update the Log of Reports Disclosed to the FIU, as applicable as appropriate.

It is very important that internal and external disclosure forms and related materials, including Logs of Reports are kept in files that are entirely separate from those of the client files. It is the responsibility of the MLRO to maintain these files, which are kept securely in the MLRO’s office.

Any report to the Reporting Authority must be approved or instituted by the MLRO. This procedure of reporting through the MLRO ensures that nothing is overlooked before a disclosure is made. This effectively protects the Company, but just as important, this procedure protects the staff member making the report.

If the Money Laundering Reporting Officer does not make a disclosure to the FIU, as applicable, he will file the MLRO’s Internal Review Checklist and the Internal Report Form in his files of Unusual Activity Not Reported. He will update the Log of Reports Not Made to the FIU.

Reporting a Suspicious Transaction to the FIU

Who should file suspicious transaction reports?

In line with Section 14 of the Financial Intelligence and Anti-Money Laundering Act 2002, RMD Trader is imposed with the obligation to report suspicious transactions to the Reporting Authority.

When should a suspicious transaction report be submitted to the FIU?

A suspicious transaction report must be submitted to the FIU no later than fifteen working days from the time that RMD Trader has reason to believe that a transaction is suspicious. The fifteen working days runs from the time the suspicion is formed. Saturdays, Sundays and Public holidays are excluded. RMD Trader must contact the FIU immediately regarding a suspicious transaction if it is reasonably foreseeable that carrying out that transaction or other related transactions will jeopardize any significant law enforcement or regulatory interest under Mauritian law, including, but not limited to, forfeiture of the proceeds of crime under the Assets Recovery Act, where carrying out the transaction will put proceeds beyond the reach of Mauritian authorities. This contact must be made with a view to alert the FIU of the suspicious transaction and the grounds of urgency that may have been established. The following scenarios may be regarded as urgent situations namely:

• suspicious transactions that has a potential to jeopardize freezing of trading accounts or attaching in the hands of the alleged suspect any property, which is in whole or in part, directly or indirectly representing proceeds of crime;
• instructions for an immediate cross border repatriation of funds or assets;
• instructions to immediately withdraw large amounts of money from a trading account that is highly regarded as suspicious;
• correspondent accounts being used as pass-through points from foreign jurisdictions with subsequent outgoing funds to another foreign jurisdiction;
• transactions linked with the financing of terroris

THE REPORTING PROCESS

A suspicious transaction report (STR) can be submitted to the FIU, either electronically or manually. The electronic submission of STRs can be done in the following two manners:

• in XML format;
• by completing an online web-based STR form

Options (a) and (b) above, of STR submission are done via the FIU website (www.fiumauritius.org). The FIU will only accept STRs under option (a) and (b) from the Company. In order to be able to submit the STRs electronically, the Company must be registered with the Reporting Authority.

However, in case the Company does not have the technical capability to submit STRs via electronic means, it can complete the STR form manually and submit the completed STR form by hand delivery to the FIU Mauritius. The blank STR forms can be downloaded from the FIU’s website (www.fiumauritius.org)

How to complete a suspicious transaction form?

The STR form has been designed to capture information that will be required for analytical purposes. The Company shall be required to complete the form as prescribed and to submit STRs that are complete, sufficient, organized and timely filed. STRs that contain incomplete, incorrect, and/or disorganized narratives, makes further analysis difficult, if not impossible and undermines the very purpose of the STR and lessens its usefulness to law enforcement agencies.

Late filings and the absence of supplementary STRs also have an impact upon law enforcement’s ability to determine whether a crime was committed or continues to be committed, and the extent of any possible criminal activity that has been committed. Those filing paper STRs are required to enclose Photostat copies of documents facilitating the identification of the party or parties to the transaction. Other forms of supporting documents can be copies of Identity Cards, Birth Certificates, Passports and References from banks. Also, the following documents shall be enclosed namely, handwriting samples and a photograph of the suspected party or parties, if available. When completing a STR form, the Company should note that the fields marked with an “*” in the form are mandatory and must be completed if the specific field is applicable to the transaction in question.

Collecting information for the STR

According to international standards and best practices a STR should identify the five essential elements of information of the suspicious transaction being reported namely WHO, WHAT, WHEN, WHERE and WHY, that is:-

• Who is conducting the suspicious transaction?
• What instruments or mechanisms are being used to facilitate the suspicious transaction(s)?
• When did the suspicious transaction take place?
• Where did the suspicious transaction take place? and
• Why does the reporting entity think the transaction is suspicious?

The method of operation (or how?) is also important and should be included in the narrative. The current STR form provides for these five essential elements, but the Company should pay attention to the extra information that is not specifically asked for in this form.

The STR shall be duly filled in by the Company in compliance with the FIU Guidance Note 3.

Additional Information relating to reports made to the FIU Request for further information

The Director of the Reporting Authority may, having regard to the intricacy of a case or where the Reporting Authority becomes aware of any information which gives rise to a reasonable suspicion that a money laundering offence may be committed, request for additional information from RMD Trader. Tipping Off/ Confidentiality

Pursuant to Section 16(1) of the Financial Intelligence and Anti-Money Laundering Act 2002, the Company shall not be allowed to inform anyone, including the client about the contents of a suspicious transaction report or even that such a report has been made to the Reporting Authority. It shall amount to an offence under the Financial Intelligence and Anti-Money Laundering Act 2002. As it is important not to tip the client off that a suspicious transaction report is being made, the Company should not request information that it would not normally request during a normal transaction. In the event that a person is found guilty of tipping off he may, on conviction, be liable to a fine not exceeding Rs.1,000,000 and to imprisonment for a term not exceeding five (5) years.

Immunity

In line with Section 16(2) and (3) of the Financial Intelligence and Anti-Money Laundering Act 2002, no criminal or civil proceedings may be brought against the Company for making a report in good faith concerning a suspicious transaction. This also applies if RMD Trader is not required to submit a report to FIU, but decide to provide information voluntarily to FIU because of its suspicions of money laundering or financing of terrorist activity.

Penalties

According to Section 19(1) of the Financial Intelligence and Anti-Money Laundering Act 2002, there are penalties in case the Company fails to meet the suspicious transaction reporting obligations. Failure to report a suspicious transaction could lead to an imprisonment for a term not exceeding five (5) years and a fine of not exceeding MUR1,000,000.

Evidence

By virtue of Section 15(3) of the Financial Intelligence and Anti-Money Laundering Act 2002, STRs are not admissible as evidence in Court proceedings.

Data Protection

The FIU operates in compliance with the Data Protection Act 2017 (as amended).

Processing Official Requests for Information or Court Orders

In the event that staff receive requests for information regarding one or more clients, they should direct the enquiring party to the Money Laundering Reporting Officer. Only the Money Laundering Reporting Officer may respond to requests for information about one or more clients. They may seek clarification from the company’s attorneys on the matter.

When such requests are received, the Money Laundering Reporting Officer logs the relevant information on the Log of Court Orders and Requests for Information form. He ensures the appropriate parties, where applicable, process the request within the required time frame, noting that certain types of requests have strict processing deadlines. When the information and/or documentation has been delivered to the requesting party, the Money Laundering Reporting Officer reviews the information and/or documentation for completeness, completes the log, maintains a copy of the information and/or documentation in his files and forwards a copy to the requesting party.