ANTI MONEY LAUNDERING, KNOW YOUR CUSTOMER
& DUE DILIGENCE POLICY
POLICY’S OBJECTIVES
The Anti Money Laundering, Know Your Customer & Due Diligence Policy of GLOBAL CAPITAL MARKET LIMITED
(“the Company”) is formulated in accordance with the provisions of the Anti-Money Laundering, Anti-Terrorism
Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFA) and the Financial Action Task Force 40
Recommendations and is intended to ensure that reporting institutions at Labuan International Business
Financial Centre (Labuan IBFC) understand and comply with the requirements and obligations imposed on them.
a. Since the formation of the National Coordination Committee to Counter Money Laundering (NCC), efforts
have been undertaken to effectively enhance the Anti Money Laundering, Counter Financing of Terrorism &
Countering Proliferation Financing (AML/CFT/CPF) compliance framework in the introduction of the Standard
Guidelines on AML/CFT/CPF.
Besides bringing the recommendation up to date in addressing new and emerging threats, the 2012 revision
of the International Standards on Combating Money Laundering and the Financing of Terrorism &
Proliferation (FATF 40 Recommendations), sought to clarify and strengthen many of its existing obligations as
well as to reduce duplication of the Recommendations. One of the new Recommendations introduced is on
the obligation of countries to adopt a risk-based approach in identifying, assessing and understanding the
Money Laundering and Terrorism Financing (ML/TF) risks, which places further expectation to assess and mitigate
ML/TF risks. Labuan Financial Services Authority has issued necessary directives via circulars from time to
time, covering issues related to Know your Client (KYC norms), Anti- Money Laundering (AML), Client Due
Diligence (CDD) and Counter Financing of Terrorism (CFT) in pursuant to Section 13, 14, 15, 16, 17, 18, 19,
20, 66E and 83 of the AMLATFA and Section 4B of the Labuan Financial Services Authority Act 1996 (LFSAA).
b. The purposes of creation of this policy are as listed below:
i. To look at the origins of the clients and will not deal with clients from countries that are listed by the
Financial Action Task Force (FATF) and/or the Government of Malaysia with either on-going or
substantial ML/TF risks or strategic AML/CFT/CPF deficiencies that pose a risk to the international
financial system.
ii. Not to conduct business with shell banks, risk-based assessment of customer base and all transactions,
prohibition of anonymous customer accounts, implementation of KYC policy etc.
iii. Not to enter into business relationships with any criminals and/or terrorists.
iv. Not to process transactions which result from criminal and/or terrorist activity and not to facilitate any
transactions involving criminal and/or terrorist activity including the financing of terrorism.
c. The Company undertakes to implement all policies and procedures necessary to prevent the money
laundering and to comply with all applicable legislation in this regard.
i. The directors, officers and employees of the Company shall at all times make every effort to maintain the
highest standards of ethics, integrity, and prudence in the Company’s operation and administration so as
to ensure that the Company creates and maintains a good reputation and standing.
ii. The directors, officers and employees shall at all times act in such a manner as to preserve the reputation
of Labuan is a major international financial center and to prevent the use of the jurisdiction for illegal,
criminal and terrorist purposes.
iii. The anti-money laundering policies and proceduresto be adhered to by the Company are partly contained in this
policy and any amendments thereto.
iv. Where any issue or matter is not addressed by this policy, guidance is to be sought from the anti-money
laundering legislation referred above (together with Labuan Financial Services Authority and/or Bank Negara
Malaysia requirements, where applicable).
ANTI-MONEY LAUNDERING REQUIREMENTS
There are five key anti-money laundering requirements that are specific to “regulated activity”. These provides a useful
approach for the Company to consider when looking at how to manage the money laundering risk.
i. Customer identification procedures (KYC).
ii. Record keeping procedures in relation to customer’s identity and their transactions.
iii. Procedures of internal reporting to the Compliance Department (and Designated Compliance Officer (DCO) appointed)
to receive and consider information that give rise to knowledge or suspicion that a customer is engaged in money
laundering activities.
iv. Other internal control and communication procedures for the purpose of forestalling and preventing money
laundering.
v. Measures for making employees aware of the above procedures to prevent money laundering and of the legislation
relating to money laundering and provision of training to their employees in the recognition and handling of
transactions suspected to be associated with money laundering and suspicioustransactions.
COMPLIANCE TO ANTI MONEY LAUNDERING, KNOW YOUR CUSTOMER & DUE DILIGENCE POLICY
Compliance with the Company’s Anti Money Laundering, Know Your Customer & Due Diligence Policy is the utmost
importance. Not only it is important to maintain the Company’s integrity, but failure to comply may constitute a criminal
offence and call into question whether or not the Company and the employee concerned is fit and proper to conduct the
business for which the Company has been licensed. Failures by individuals to comply with the anti money laundering
procedures set forth in this policy can therefore result in dismissal.
TARGETED FINANCIAL SANCTIONS ON TERRORISM FINANCING, PROLIFERATION FINANCING AND UNDER
OTHER UN-SANCTIONS REGIMES
i. The Company is required to keep abreast of the relevant United Nations Security Council Resolutions (UNSCR) list
relating to combating the financing of terrorism, which includes:
a) UNSCR 1267 (1999), 1373 (2001), 1988 (2011), 1989 (2011) and 2253 (2015) which require sanctions against individuals
and entities belonging or related to Taliban, ISIL (Da’esh) and Al-Qaida; and
b) new UNSCR list which is published by the UNSC or its relevant Sanctions Committee as published in the United Nations
(UN) website.
ii. The Company must maintain a sanctions database which comprised, at the minimum, the following:
a) UNSCR list: Company shall refer to the Consolidated UNSCR List published in the following UN website:
https://www.un.org and/or http://unscr.com. The UNSCR List shall remain in the sanctions database until delisting
of the specified entities and designated country or person by the UNSC or its relevant Sanctions Committee is
published in the UN website.
b) Domestic List: A Labuan KRI may refer to the Domestic List published in the following website:
https://moha.gov.my. The Domestic List shall remain in the sanctions database until such specified entities are
delisted from theGazette.
c) A Labuan KRI may monitor and consolidate other countries’ unilateral sanctions lists in their sanctions database.
iii. Sanctions Screening Customers: Company shall conduct sanctions screening on existing, potential or new customers
against the Domestic List and UNSCR List. Where applicable, screening shall be conducted as part of the CDD process
and ongoing due diligence.
iv. Dealing with False Positives:
a) To ensure that any matches to Domestic List or UNSCR List are true matches in order to eliminate false positives.
b) Conducting further inquiries for additional information and identification documents from the customer (e.g
request of Bank Statements, Curriculum Vitae/Resume, Reference Letter, Certificate of Good Conduct, Certificate
of Good Standing (for Corporate entity) & ors), counter-party or credible sources to assist in determining whether
the potential match is a truematch.
c) In the case of similar or common names, the Company may direct any query to the relevant authorities to ascertain
whether or not the customer is a specified entity.
v. Upon determination and confirmation of a customer’s identity as a specified entity, designated person and/or related
parties, a Labuan KRI is required to immediately conduct the following:
a) freeze the customer’s funds, properties, other financial assets and economic resources, upon received of the
Authority(ies) approval (where applicable); or
b) to block transactions in order to prevent dissipation of the funds, other financial assets and economic resources.
vi. The Company will reject a potential customer, when there is a positive name match generated during the screening
process.
CLIENT DUE DILIGENCE (CDD)
The Company must ensure as soon as reasonably practical after the first contact has been made, and in any event before
transferring or paying any money out to a third party, that satisfactory evidence is produced or such other measures are taken
as will produce satisfactory evidence of the identity of any customer or counterparty (an “applicant”). If a client appears to be
acting on behalf of another person, identification obligations extend to obtaining sufficient evidence of that third party’s identity.
Where satisfactory evidence is not supplied, the firm will not proceed with any further business and bring to an end any
understanding it has reached with the client unless in either case the firm has informed Labuan Financial Services Authority. If
there is knowledge or a suspicion of money laundering, it will be reported without delay as provided under these procedures to
the DCO.
Further described identification requirements should be carried out using documents checklist.
METHODS OF IDENTIFICATION
The Company will make sure that it is dealing with a real person or legal entity and obtain sufficient evidence to establish that
the applicant is that person or organization. When reliance is being placed on any third party to identify or confirm the identity
of any applicant, the overall legal responsibility to ensure that the procedures and evidence obtained are satisfactory rests with
the Company.
As no single form of identification can be fully guaranteed as genuine, or representing correct identity, the identification process
will need to be cumulative, and no single document or source of data (except for a database constructed from a number of other
reliable data sources) must therefore be used to verify both name and permanent address.
The Company will take all required measures, according to applicable law and regulations issued by regulatory authorities, to
establish the identity of its clients and, where applicable, their respective beneficial owners in accordance to our KYC policy.
DUE DILIGENCE
In addition to identification information (as described below), it is essential to collect and record information covering the
following for all categories of clients:
i. Source of wealth (description of the economic activity which has generated the net worth);
ii. Estimated net worth;
iii. Source of funds to be invested;
iv. References or other documentation to corroborate reputation information where available;
v. Independent background checks through a reputable screening system;
vi. Whether the individual (or director and/or shareholder of a Corporate entity) is a Politically Exposed Person (PEP). If yes,
additional information and documentation will be requested for verification purpose.
INDIVIDUAL CUSTOMERS
The identity will be established to the Company’s satisfaction by reference to official identity papers or such other evidence as
may be appropriate under the circumstances. Information on identity will include, without limitation: full name; date of birth;
nationality; complete residential address. Identification documents must be current at the time of the opening.
Documents used for client identification purposes will typically include:
i. A passport, a national identity card or an equivalent in the relevant jurisdiction;
ii. A separate document confirming the residential address (utility bill, bank statement, acknowledgement of address issued by
a relevant official).
CORPORATE CUSTOMERS
Where the applicant company is listed on a recognized or approved stock exchange or where there is independent evidence to
show that the applicant is a wholly owned subsidiary or subsidiary under the control of such a company, no further steps to verify
identity over and above the usual commercial checks and due diligence will normally be required.
Where the applicant is an unquoted company, it will be subject to a procedure aimed to identify it, confirm its existence, good
standing and authority of persons acting on its behalf. Documentation required for such purposes may change depending on each
particular jurisdiction and will typically include:
i. Certificate of incorporation/certificate of trade or the equivalent, evidencing the company is indeed incorporated in a
particular jurisdiction under the respective legislation;
ii. Certificate of Incumbency or an equivalent document, listing current directors of the company.
CORPORATE CUSTOMERS (CONT’D)
iii. Statutes, Memorandum and Articles of Association or equivalent documents confirming the authority of the respective
officers of the company to legally bind it and the manner in which this may be done.
iv. Extract from the Commercial Register of the country of incorporation may also be used to confirm the aforementioned
information, if such information is provided in the extract.
REVIEW OF ANTI MONEY LAUNDERING, KNOW YOUR CUSTOMER & DUE DILIGENCE POLICY
GLOBAL CAPITAL MARKET LIMITED is committed to continuously improve this policy and it will be reviewed regularly (at least
every six months) for effectiveness and updated.
This Anti Money Laundering, Know Your Customer & Due Diligence Policy is supported by management. GLOBAL CAPITAL MARKET
LIMITED commits to providing this policy to all employee and displaying it in its business with clients.