France is one of the charter members of the Financial Action Task Force on Money Laundering (“FATF”). Therefore, the laws and regulations and their subsequent amendments being promulgated by France to combat Money Laundering and Financing of Terrorism are in line with the FATF standards and controls.
We, «LOCAL TRANSFER AGENT ENTITY NAME hereby confirm that our company, established in France, is subject to the supervision of Autorité des Marchés Financiers “AMF” (the “regulator”). As an evidence for our license and as a regulated entity by the regulator, please refer to its website: https://www.amf-france.org/fr.
Our company is consequently submitted to French relevant laws and regulations for the prevention of money laundering and terrorism financing, on the financial sector, as well as to the circulars and regulations issued by the regulator on that subject. Our policies, procedures and controls for the prevention of money laundering and terrorism financing are compiled and have adopted the requirements of French relevant laws and regulations as well as the FATF standards and controls.
Procedures, Audit and Management validation
In order to comply strictly with such regulations, our company has implemented a Compliance function, responsible for the elaboration of a programme and policies on the prevention of money laundering and terrorism financing. These policies, including duties with regard to Customer Due Diligence obligations (only when investors are client of «Entity Name as Custodian » ). Suspicious Transaction Reporting as well as transaction monitoring processes, are validated by senior management. AML-CTF policies are applicable to all employees. We have procedures in place for the oversight over third-party introducers and outsourcing of AML-CTF duties where applicable. Our company also constantly adapts and improves its internal anti money laundering procedures and policies. In addition, their implementation is checked by our internal audit department and by the external auditor on a regular basis. The results of these controls are reported to the regulator.
Customer Due Diligence
Our company duly applies the Know Your Customer diligence rules (only when investors are client of « ENTITY NAME as custodian» ). More specifically, each client of our company has to be identified before entering in a business relationship – including beneficial owners, controlling parties and proxies where applicable – and documentary evidence of their identity is held. Therefore, the ownership and control structure of the underlying investors in particular legal persons, trusts and similar legal arrangements are understood and risks are assessed. We are also legally bound to keep the documents relating to the client’s files for at least five years after the end of the relationship; and the documents relating to the client’s transactions for at least five years after their execution of a transaction, regardless of whether the business relationship ends during the period.
Knowledge of the customer is based not only on the formal identification of that client but also on its profile. A risk assessment of the underlying investor is performed when such underlying investor is the client of «LOCAL TRANSFER AGENT ENTITY NAME» using a combination of relevant risk factors prior entering into a business relationship. Information is obtained on the purpose of the business relationship with the underlying investor. According to the risk-based approach principle, our company understands the client risk profile through a monitoring program with regard to their transactions and activities, and based on documentation collection and risk assessment. Our procedures include guidelines for detecting suspected money laundering or terrorism financing activities, including detection of unusual transactions which are not consistent with the expected business activity, and where necessary, the origin of funds and origin of wealth, which are to be reported to the Compliance department.
Specific Enhanced Due Diligence concerns
We perform enhanced due diligence on higher risk underlying investors and their beneficial owners, where applicable. This includes:
High risk clients and Politically exposed persons: Business relationships with high risk clients and politically exposed persons (as well as their family and close associates), if any, are covered by our policies which are consistent with legal requirements and industry best practices.
High risk countries and territories: Where a relationship is established with countries or territories which do not or insufficiently apply AML-CTF measures.
Shell banks: We comply with rules on correspondent banking activities. Our company has also a policy prohibiting accounts/relationships with « shell banks » and with “shell bank” as underlying investors or beneficial owners (i.e. a foreign bank without any physical presence in any country and that is unaffiliated with a regulated financial group)
Cooperation with Authorities and suspicious transaction report
In accordance with applicable laws and regulations, including privacy and data protection laws, our company fully co-operates with governmental and law enforcement authorities and reports any suspected money laundering or terrorist financing activities to the TRACFIN. We are strictly complying with any information request from those authorities to which client information and documentation may be made available upon request
We are aware that the Transfer Agent is relying upon us to have carried out customer due diligence checks (only when investors are client of « AGENT ENTITY NAME as Custodian» ), and on beneficial owners if applicable, in accordance with the requirements of the Directive in conjunction with the paragraph below.
In accordance with applicable AML and sanctions regulations governing the Fund, we will provide, through an obligation of means in a bearer market context, to the Fund with the appropriate assistance by transmitting to the Affiliated Banks of the Euroclear French Market the TA’s request to obtain with no guaranty the relevant information on their underlying customers and beneficial owners if applicable, that would allow them to discharge their regulatory obligation accordingly.
In the context of preventing the financing of terrorism, we use lists issued by international bodies, the supervisory and judiciary authorities. We ensure that clients’ files and transactions are checked regularly. Our company has also implemented appropriate controls to assure the respect of embargo and financial restrictive measures decided by European and/or United Nations authorities.
We perform sanctions screening prior the account opening and on an on-going basis of the underlying investors (only when investors are client of « ENTITY NAME as custodian »), their beneficial owners , mandate and proxy holders where applicable. The sanctions lists are amongst others, the resolutions of the United Nations Security Council as well as acts adopted by the European Commission regarding CTF/EU sanctions list. Our company also comply with OFAC sanctions programs and performs sanctions screening against the listing of the US Department of Treasury, OFAC.
Branches and subsidiaries
As required by relevant laws and regulations, our AML/CTF procedures and practices apply to our branches and subsidiaries. In the event of a conflict between our policies and procedures and applicable local legal requirements, our branches and subsidiaries must comply with the more restrictive of the conflicting requirements, unless doing so would violate local legal or regulatory requirements.
Our company also provides appropriate training on the prevention of AML/CTF measures to its employees on a regular basis.
This only reflects current legal obligations incumbent to our company who reserves the right to adapt its procedures at all times with the legal or regulatory framework and professional guidelines.