LendCorp Limited Anti-Money Laundering Policy

1. Introduction

1.1 This document sets out the policy adopted by LendCorp Limited in response to its obligations to detect and prevent money laundering and terrorist financing taking place through the firm.

2. Statutory and Regulatory Requirements

2.1 LendCorp Limited shall arrange its affairs in such a way that it can ensure reasonable compliance with relevant statutory requirements as they relate to anti-money laundering (AML), fraud, bribery and combating of terrorist financing (CFT) obligations and procedures.  It shall demonstrably do this through its:

• organisational structure;
• allocation of responsibilities and accountabilities to designated persons;
• detailed operational procedures; and
• fulfilment of money laundering awareness training for all staff and specific training for all relevant staff.

2.2 Such arrangements shall be subject to periodic review to ensure that they are responsive to:

• the jurisdictions within which the firm operates;
• changing statutory and legal requirements.  In particular they shall be responsive to the current version of the Guidance Notes issued by the Joint Money Laundering Steering Group (JMLSG) and be amended on a timely basis to reflect revisions to the Guidance Notes.

3. Responsibilities and Accountabilities

3.1 Mario Falcone will be allocated overall responsibility for the establishment and maintenance of effective anti financial crime systems and controls

3.1.1 All staff shall be made aware of and accordingly recognise their general responsibilities with respect to anti-financial crime procedures under the relevant statutes and regulations.

3.1.2 Staff who operate anti-financial crime procedures shall be made aware of their specific accountabilities and be subject to an appropriate training and competence regime to ensure the satisfactory fulfilment of their accountabilities and responsibilities.  This regime shall ensure that appropriate and relevant training takes place with sufficient frequency to ensure that it is given to substantially all relevant staff.

4. Cooperation with Enforcement Agencies

4.1 Communications to and from the enforcement agencies shall be made by Mario Falcone.

4.2 The reporting of suspicions of financial crime to the National Crime Agency (NCA) shall be made on a full and timely basis once they have been considered as reportable by Mario Falcone.

4.3 The firm will adhere to the 7-day consent rule contained within the Proceeds of Crime Act (2002) and the need to freeze accounts pending receipt of consent where necessary.

4.4 The firm shall respond to requests for information from the relevant anti-money laundering enforcement agencies on a full, positive, and timely basis.

4.5 With respect to requests received from such agencies within the UK the firm shall provide relevant information on the production of a court order or a written request from an investigating officer of a recognised government or quasi government institution, who has proper accreditation with NCA.

4.6 With respect to any other requests arising from enforcement agencies within the UK and to all requests arising from outside the UK, the response to the request will be made after reasonable enquiries have been made as to the bona fide nature and source of the request.

4.7 All communications to enforcement agencies shall give due regard to customers’ rights to confidentiality.

5. Risk Assessment Criteria

5.1 The firm shall periodically undertake a “know your business” review relating to the firms products and services, customers, and methods of distribution so that it can perform a risk-based assessment of:

• (i) the circumstances in which regular business acceptance and acquisition procedures apply; and
• (ii) the exceptional circumstances in which business acceptance and acquisition is subject to extended procedures applied by Mario Falcone.

5.2 In addition, the firm shall review and amend its risk based assessment in light of any changes to its business model.  For example, if the firm introduces new distribution channels to sell products – e.g. the internet, when new products are introduced.

6. Procedural Standards

The firm shall establish detailed procedures and controls in order to mitigate the following risks:

6.1 Money laundering

Suitable procedures will be put in place to the Risk associated with proceeds of crime being processed by, at or through the firm; non-compliance with applicable anti-money laundering (AML) and terrorist financing laws and regulations) to include:-

6.1.1 Customer Due Diligence – verification of identity & ‘know your customer’ information

Customer Due Diligence (CDD) measures as specified under the Money Laundering Regulations shall be undertaken in accordance with the Guidance provided by JMLSG and documented in the firm’s AML User Guide.

Likewise the firm shall maintain and periodically update an assessment of its products and means of distribution to establish its “know your customer” procedures, which shall be sufficient to establish (1) identity and (2) the nature of the relationship with the customer, including source of funds / wealth as appropriate

6.2 Screening

LendCorp Limited will ensure appropriate checks are conducted to ensure compliance with international sanctions laws and regulations

6.3 Bribery and corruption

LendCorp Limited will ensure adequate procedures are in place to ensure compliance with applicable anti-bribery and corruption laws and regulations

6.4 Fraud

LendCorp Limited will ensure that there are suitable procedures in place to enable the reporting of material fraud incidences, including any attempted fraud, that are identified (whether in respect of external fraud (e.g. – by parties such as customers, and suppliers) or internal fraud (e.g. – by employees, directors or officers engaging in acts of fraud))

Employee awareness and training

6.4.1 The firm shall establish and maintain a formal money laundering awareness and training regime for all employees, tailored to the specific job functions carried out by each employee.  Records of such training shall be maintained appropriately.

6.4.2 Responsibility for the effective functioning of the money laundering awareness and training regime shall rest with the MLRO, who will ensure that there is also a system to ensure that awareness and training procedures are regularly updated to take account of:

• (i)    statutory and regulatory changes;
• (ii)   changes to the firm’s anti-money laundering procedures; and
• (iii)  changes in the firm’s strategy and in the operational environment in which the firm operates.

6.5 Internal reporting of suspicions

6.5.1 The firm shall establish and maintain procedures to ensure that all of its employees are aware of their legal obligations to report suspicions of money laundering.

6.5.2 Mario Falcone shall design, implement, and maintain a system for the recognition and reporting of suspicions so that:

• (i)   each employee is clear as to whom they should report suspicions; and

6.5.3 The system for the recognition of suspicions should be founded upon adequate training and awareness procedures for staff engaged in relevant activities and upon an effective transaction monitoring system to identify exceptions.

6.6 Keeping and updating of records

6.6.1 Mario Falcone will ensure that all records and copies of documents relating to suspicions are kept securely and confidentially.

6.6.2 Records of suspicions shall be kept for the following periods.

• (i)   those raised internally but not disclosed to NCA should be retained for five years from the date of the suspicion;
• (ii)  those which were disclosed to NCA but which NCA have not advised are of interest should be retained for five years from the date of the suspicion; and
• (iii) those which were disclosed to NCA, and which are of interest should be retained until the MLRO is advised by NCA that they are no longer needed.

6.6.3 Accounting and transactional records shall be kept for a period in line with current legal and regulatory requirements. Training records shall be kept for a minimum period of 5 years.

7. Customer Due Diligence

Client Identification

Verification of Full Name, Residential Address, and Date of Birth

All clients must be identified before any business is transacted:

• A copy of clients passport (must be in date) or driving licence must be retained on file
• A copy of a recent utility bill no older than  3 months old must be retained on file
• A Confirmation of Verification of Identity form must be fully completed, signed, and retained on file for audit purposes.