Anti Money Laundering Guidelines
Bona Trust Corporation has established the following Anti Money Laundering (hereafter referred to as “AML”) guidelines as a countermeasure against money laundering, and will contribute to the further sound development of an appropriate Labuan Financial Centre.
Our AML guidelines are as follows.:-
1. AML Guidelines
This guidelines is constructed for compliance with applicable AML requirements.
2. Key person of Bona Trust Corporation (hereafter referred to as “BTC”)
Managing Director: Yudai Watanabe (hereafter referred to as “MD”)
3. AML related knowledge and development of BTC
BTC has background and hands-on expertise AML-related matters.
Frequently, they attend AML- and other relevant- seminars & conferences, and are maintaining up to date.
4. AML Guidelines Statement (“the Guidelines”)
It is the guidelines of BTC to prohibit and actively prevent money laundering and any activity that facilitates money laundering or the funding of terrorists or criminal activity. The responsibility for the implementation of the guidelines rests with the MD. The MD specifies the AML related procedures for the aforementioned implementation with the present guidelines.
5. Definition of Client
A client or potential client of BTC in relation to entity incorporation / escrow or custody services is the legal entity or physical person having an agreement with BTC for services.
Consequently, the background characteristics of the aforementioned entity or person are the characteristics attributed to the legal structure for AML-risk assessment purposes.
6. Client Acceptance Policy (“the CAP”)
BTC recognizes that the risk of money laundering varies based on characteristics of clients, and hence does not accept new clients where any of the following apply:
Customer related risk-facts:
i. Refusal or other form of Failure of client to provide appropriate due diligence or legitimate rationale for engagement or level of acceptable direct communication
ii. Client’s or Parent’s company shares are in bearer form
iii. Client appears having doubtful creditworthiness or closely relates to substantial negative information (third party checks/database) and/or publicity
iv. Client is related to or is a non-US citizen
Geographical related risk-facts:
v. Client resident in country which inadequately apply Financial Action Task Force’s (“the FATF”) recommendations, incl. (may vary from time to time at the discretion of BTC):
a. Iran *
b. Democratic People’s Republic of Korea *
c. Algeria **
d. Ecuador **
e. Indonesia **
f. Myanmar **
g. Ethiopia ***
h. Pakistan ***
i. Syria ***
j. Turkey ***
k. Yemen ***
* Jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/FT) risks emanating from the jurisdictions.
** Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below.
*** Identified in the FATF document, “Improving Global AML/CFT Compliance: On-going Process” due to their progress in substantially addressing their action plan agreed upon with the FATF
Business type related risk-facts:
i. Client with non-acceptable business profile, incl. (may vary from time to time at the discretion of the MD):
a. Cash intensive businesses
b. Weapons and ammunition
c. Adult industry products and services
d. Entertainment night-clubs
e. Unregulated charities and non-profit organizations
Stricter than policy:
BTC may at their full discretion reject engaging in any business/client
engagement for other reasons in addition to the aforesaid risk-facts.
7. Client Acceptance Decision
The MD can take BTC’s decision for acceptance of a client.
A rejection of a client is followed by a communication to the affected party informing of same with reference to the CAP only (without the need of detailed justification of the reasons).
In the event of a rejection for high-risk money-laundering related reasons, as per the judgement of MD, justifying the notification of authority, the MD will inform so as to prevent the rejected party from finding refuge to establish via other arrangements/providers in the applicable territory/jurisdiction.
8. Default Normal Risk Classification
Based on the CAP, BTC classifies and treats all its clients as per the Normal
Risk Classification category since at least Simple Due Diligence is applied always.
9. BTC Business Profile categorisations
Based on BTC fields of expertise:
The MD assigns 1 of 2 basic business categorization to new clients as follows:
General Field:
1 of 2: Business history of shareholders and directors and business plan of the entity
Specialised Field:
2 of 2: Corporate relationship between client and business partner
10. Norms regarding BTC Clients / Commonly Non Face-to-Face applicability
The typical client (person or legal entity) of BTC seeks utilisation of Labuan offshore entities or Offshore transactions
Due to the aforesaid, the typical client of BTC is Non-Face-to-Face as per the common norm of the relevant market.
11. Know-your-Client (KYC) and Client records/information
Communication details verification, ID/Passport verification, Corporate certificates verification (if applicable) and Additional Information Collection, is done by means of communication with the Client (client-parties) before inception of business relationship or around the time of commencement of it.
Contact details are obtained and regular communication with each client is done by MD; more often for client whose affairs suggest so and vice versa.
Additional Information Collection:
i. Reason for establishing trading account;
ii. Identification documents and contact details of person or each director(s) / shareholder(s) / beneficiaries of the Client / Structure;
iii. Professional-status and relevant background of person or each director(s) / shareholder(s) / beneficiaries of the Client / Structure;
iv. Utility bill or Bank statement showing residential address;
v. Full-set of corporate/statutory documents/certificates;
If deemed necessary:
i. Bank reference;
ii. Certificate of Incumbency (if structure involved)
Third party check at discretion of BTC:
World Compliance ® * verification of Passport / ID, Structure name-check, PEP check, and Adverse facts-check of each director(s) / shareholder(s) / beneficiaries of the Client / Structure;
*World Compliance ®:
Information database service providing reliable screening and information to assist
with compliance with (Information survey database of financial institutions provided by THOMSON REUTERS)
(among others):
3rd EU AML Directive
OFAC, Office of Foreign Affairs
FATF, Financial Action Task Force
12. Ongoing Monitoring
The occurrence of client related events (transactions, deviations from norm etc.) are dynamically/closely monitored by MD, due to the nature of modus operandi of BTC and its platform/systems.
Particular events, incl. but not limited to the below Risk-alerts, call for an interim review of client information and affairs relating to BTC, as well as attempt for clarifications from client’s side.
Risk-alerts: indicative list (not exhaustive) and areas:
i. Presenting Power of Attorney that limits the power of Director
ii. Request for cash deposit arrangement above critical-defined level (set at:
Fixed amount monthly; threshold for special attention as per IFSC conditions)
iii. Sudden surge of activity level
iv. Frequent changes of account info and person(s) involved
v. Lack of communication with / Unable to reach client or delay for information provision
vi. Transaction request: unusually complex, or inconsistent with profile and knowledge BTC has developed about client
vii. Mismatch or Lack of information in critical banking or legal or instruction documents
13. Maintenance of Client List
At BTC is responsible for the maintenance of a reference Client List of BTC that carries at least following information:
– Name of Person / Entity
– Contact information
– Date of account opening
– ID of account
– Account Balance
– Total activity (trading volume)
14. Records keeping
BTC maintains records of all client info in its possession (hard-copy or soft-copy) for a minimum of 7 years following a complete termination of client relationship.
15. Long-term scheduled Review of Client information
Without limiting or compromising any provisions of section 12 “Ongoing monitoring”, the MD executes communication with- and review of- client and its information (files), all or specific clients:
– If it has been decided / deemed necessary to conduct an all-presently-existing-clients review (advisable every 3 years); OR
– If a considerably active client expands into new affairs in business and with BTC; OR
– At a more frequent time or other timing, and at the full discretion of MD;
OR whichever occurs first:
– If certain client(s) have been relatively inactive for a respectable period of time
(advisable period: 1 year);
– If a min 1-year-inactive client returns to BTC with activity;
16. Internal evaluation & Reporting to Labuan Financial Service Authority
Any knowledge or suspicion that may arise in BTC of money laundering or terrorist financing activities or related activities is put in writing onto report, and then evaluated jointly by Director.
And finally,
17. Reporting to Labuan Financial Service Authority
BTC shall report any and all information requested by LFSA from time to time.