Anti Money Laundering Policy

Accountable Institutions:

All businesses or persons as listed in Schedule 1 of the Act, which includes inter alia listed companies, attorneys, estate agents, insurance companies and intermediaries, and unit trust management companies, which are identified as being vulnerable to money laundering activities and are therefore subject to specific obligations relating to money laundering. In the financial services environment, it would include any FSP or a person carrying on the business of foreign exchange or providing investments.

Beneficial Owner:

In respect of a legal person, means a natural person who, independently or together with another person, directly or indirectly: - Has majority ownership of the legal person, or exercises effective control over the legal person, including his or her capacity as executive officer, non-executive director, independent non-executive director, director, or manager, or trustee (such person is also referred to as a controlling person).

This is not based on only the persons who are noted as being owners or management on business documentation. For example, if a company is owned by another company or a trust, the beneficial owners are actually the natural persons who are behind that second company or trust and who are controlling it.

Cash/cash transaction:

Coins and paper money of the Republic or of another country that is designated as legal tender and that circulates as, and is customarily used and accepted as, a medium of exchange in the country of issue. This also includes travelers' cheques. It does not however include negotiable instruments, as well as the transfer of funds by means of a bank cheque, bank draft, electronic funds transfer, wire transfer or other written order that does not involve the physical transfer of cash.

CDD Procedures:

Customer Due Diligence procedures in respect to the identification and verification of the identities of clients.

ECDD (Enhanced Due Diligence):

ECDD means the application of an enhanced due diligence by investigating and obtaining additional information and verification when a client or transaction is classified as a high risk for ML/TF.

Money Laundering:

An activity which has or is likely to have an effect on concealing or disguising the nature, source, location, disposition or movement of the proceeds of an unlawful activity or any interest which anyone has in such proceeds and included any activity which constitutes an offence in terms of Section 64 of FICA or Sections 4, 5 and 6 of POCA.

PEP's:

High-risk clients with more opportunities than ordinary nationals to gain assets through illegal means like bribe-taking and money laundering. The potential risk of using titles for criminal activity makes them high-risk individuals. Among PEPs, there are different levels in terms of risk level: foreign, domestic and International Organization PEPs.

POCA:

The Prevention of Organized Crime Act, 121 of 1998 - which provides for the main money laundering offences and for the forfeiture of the proceeds of crime.

Proceeds of Crime:

Any financial benefit that a criminal derives in respect to any criminal activity.

Proceeds of Unlawful Activities:

Any property or any service, advantage, benefit or reward which was acquired, received or retained, directly or indirectly, in the Republic or elsewhere, at any time before or after the commencement of POCA, in connection with or as a result of any unlawful activity carried on by any person, and includes any property representing property so acquired.

Single Transaction:

A transaction other than a transaction concluded in the course of a business relationship and where the value of the transaction is not less than R 5000.00, except in the case of Section 20A.

Smurfing, Splitting, Structuring:

Money Laundering methods which involve the splitting of proceeds of crime into smaller amounts to avoid detection.

Suspicious Activity Reporting:

Suspicious and Unusual Activity Report to be submitted by AI in terms of Section 29(1) of the Act in respect of proceeds of unlawful activities or money laundering where the report relates to an activity which does involve a transaction between two or more parties; OR In terms of Section 29(2) in respect of a transaction or a series of transactions about which enquiries are made, but which has not been concluded.

STR (Suspicious or Unusual Transaction Report):

Suspicious or Unusual Transaction Report to be submitted by the AI in terms of Section 29(1) of the Act, in respect to proceeds of unlawful activities or money laundering where the report relates to a transaction relating to a transaction or series of transactions between two or more parties.

Transaction:

A transaction concluded between a client and an AI in accordance with the type of business carried on by that institution (not limited to transactions involving the flow of money).

Unlawful Activity:

Conduct which constitutes a crime, or which contravenes any law, whether such conduct occurred before or after the commencement of POCA and whether such conduct occurred in the Republic of South Africa or elsewhere.

Verification:

A process whereby an AI is required to investigate and collect documentation providing sufficient proof of information requested from a client and where the accountable institution will compare the information with documentation that confirms such information.