1.2       Definitions

Definition of acronyms and terminology:

i.        Agent -  any party in a temporary or permanent customer facing role, conducting cash-in and/or cash-out transactions, and/or registering new customers, and/or providing customer service tasks. It can include agents, aggregators, super agents, freelancers, walkers, or brand ambassadors.

ii.       Money laundering and terrorist financing the process whereby “dirty money” produced through criminal or illegal activity is converted into “clean money” with the criminal origin very difficult to trace. E.g. a mobile financial service being used to deposit or transfer the proceeds of any crime or finance acts of terrorism.

 

iii.     Financial Action Task Force (FATF) – an inter-governmental body which sets standards, and develops and promotes policies to combat money laundering and terrorist financing.

 

iv.     Low Risk Accounts – domestic, on-network mobile financial services with a maximum total throughput limit of GHS 3,600 per annum. 

v.       Third Party – any non- Ecurrency4u entity that undertakes regulated business on behalf of Ecurrency4u. It can include hubs, partners, Agents, or merchants. 

 

2

Controls and deliverables required for compliance

The following are the controls and deliverables required to accomplish compliance with the principles above:

2.1       Know Your Customer

All prospective customers wishing to use Ecurrency4u  must have their identity verified using reliable, independent documentary and/or electronic sources. The verification must take place prior to an account being opened   or a transaction being performed with the Customer. When evidence cannot be produced, the application should be declined. 

 

The identity checks carried out on non-face to face applicants should be designed to mitigate increased risks posed by non-face to face business e.g. identity theft. 

Additional know your customer (KYC) information should be obtained on all new and, where appropriate, existing customers. KYC information includes, but is not limited to:

 

•                  Full Name 

•                  Date of Birth

•                  Address

•                  Telephone Number

•                  An acceptable national ID (Passport, National ID, Voter ID card, Driver’s license only).

 

The extent of the KYC information obtained should be determined on a risk-based approach, depending on the type of customer, level of transaction and other relevant risk factors as a minimum, a low risk customer would be required to provide full name and an ID.

 

For enhanced KYC, Customers in addition to the KYC requirements above will have to provide the following:

•                  Tenancy Agreement

•                  Utility Bill

•                  Income Tax Certificate

•                  Bank statements

•                  Reference letter or Employee’s reference letter.

 

Customers categorised as Politically Exposed Persons should be subject to enhanced KYC checks.

 

For non-personal customers (e.g. agents), the KYC information should include the nature and purpose of the business, ownership and control structure. Based on this information, appropriate identification and verification checks should be carried out. The required information should include:

 

•                  Business/Corporate registration documents

•                  Copies of IDs of the Directors and Beneficial Owners

•                  TIN and Tax Certificates

•                  Shareholders and their nationalities.

 

Unregistered customers (Over the Counter Customers) who use Ecurrency4u must be required to provide identification (ID) in order to conclude the transaction and be subject to transaction limits more stringent than a registered customer. 

Detailed KYC procedures shall be contained within the Ecurrency4u Manual taking into account Ghanaian legal or regulatory requirements.

2.2       Third Party Management  

Robust and effective controls must be in place for all third parties that undertake regulated business on behalf of Ecurrency4u , for example, agents who register and conduct transactions for Ecurrency4u . Appropriate due diligence must be conducted prior to business commencing. This will include, but is not limited to, verification of the nature and purpose of the business, and risk based identity checks and watch-list screening of owners and directors. 

Third parties will also be formally required to adhere to AML policies and procedures, be monitored to ensure adherence, and face sanctions for breaches. Due diligence will be refreshed annually.

2.3       Systemic Transaction, Balance and Account Limits 

All Ecurrency4u transactions shall have appropriate, system-enforced, transaction amount /volume and balance limits in place across all account and customer types, taking a documented risk based approach proportionate with the level of KYC. This requirement applies equally to unregistered customer transactions. The objective of these limits is to   proactively deter the use of the service in channelling of proceeds of crime. 

The maximum transaction throughput per customer/agent should be proportionate with the level of KYC and as provided under the provisions of the Bank of Ghana Guidelines for E-Money Issuers in Ghana or its relevant amendments from time to time. The MLRO and Policy Owner must sign-off on transaction limits in place for mobile financial service products

2.4       Transaction Monitoring 

In order to identify potential suspicious activity, monitoring of transactions and account activity should be carried out using a documented risk based approach. 

Transactions and account activity of customers categorised as Politically Exposed Persons should be subject to enhanced monitoring.

2.5       Suspicious Activity Reporting 

The Ecurrency4u  Money Laundering Reporting Officer (MLRO) is responsible for the receipt, investigation and disclosure (where appropriate) of suspicious activity reports from employees and third party agents as directed under the Bank of Ghana Guidelines for E-Money Issuers in Ghana. 

 

The AML procedure manual shall contain procedures for employees to report suspicions of money laundering to the MLRO for further investigation.

 

The MLRO shall then conduct a full investigation into the suspect’s activity including a review of any connected accounts, businesses or agents. If the suspicion is validated, a report shall be submitted to the Financial Intelligence Centre as required under Act 749 and any other relevant legislation of Ghana. 

 

Information about a suspicious activity report made internally to the MLRO or externally to the authorities must not be disclosed to customers. 

When a customer has been subject of a suspicious activity report validated by the MLRO, a decision should be made as to whether the account(s) should be closed. This decision should be made by the MLRO and senior management, taking into account risks applicable to Ghanaian legislation such as tipping off the customer that a suspicion exists by closing the account with no logical explanation.

2.6       Record Retention 

A record of all registered customer and agent KYC information (ID records and transaction history) must be kept for a minimum of 6 years after the relationship with Ecurrency4u (or partner) has ended. This includes any copies taken of documentary evidence of identification and residential address verification.

 

Exception: Customers who are categorised as low risk and therefore qualify for simplified due diligence do not require a copy of identification. However, a reference number that would enable the document to be reproduced must be stored.

Transaction records must enable the transaction to be reproduced and therefore include the amount, names, (example of originator and beneficiary of a Ecurrency4u cryptocurrency transactions). 

 

Records of suspicious activity reports made internally to the MLRO and externally to the authorities must be kept for a minimum of 6 years after the report is made. This should include details of the investigation carried out and the logic behind the MLRO’s decision. 

All of the above mentioned records must be stored securely and be easily accessible to the MLRO.

At the end of the six (6) year period, the records shall be sent to the Public Records and Archives Administration Department in accordance with Act 749 of Ghana.

2.7       Employee and Agent Training 

All new employees (including temporary, contract and agent employees) and Agents whose roles involve working with Ecurrency4u  must complete induction training in relation to their roles within 30 days of their start date (or prior to commencing for Agents) and refresher training at least once every year from a competent trainer. This will be general AML awareness training tailored to Ghanaian AML legislation and risks associated with the products and services offered. Employees are required to demonstrate awareness by passing a knowledge test. 

 

Employees in higher risk or key programme areas must complete more detailed training covering money laundering risks specific to their area. The minimum frequency for this training will be once every year.

 

The MLRO is required to complete specialist AML training in the form of a recognised qualification. 

On-going records of all AML training must be securely maintained and kept for 6 years after an individual has left Ecurrency4u’s employment.

2.8       Watch-List Screening 

Accounts must not be opened and services not provided for sanctioned individuals and any existing accounts identified in the name of sanctioned individuals must be immediately closed and the relevant authorities notified. 

All applicants (individuals and entities) should be screened against relevant sanction lists, namely: 

 

•                United Nations 

•                European Union 

•                Office of Foreign Asset Control (OFAC), US

•                HM Treasury, UK 

 US Sanctions List

• Any other list as required under the Anti-Money Laundering Act, 2008 of Ghana (Act 749). 

 

All existing customers should be screened against the above lists periodically (at least annually), and records maintained of this action. 

2.9       Compliance Monitoring 

Adherence to this policy as well as its related procedures shall be monitored by the Ecurrency4u MLRO. Compliance breaches will be reported to both Ecurrency4u Senior Management Team and the Group MLRO and local regulator where appropriate. 

A documented Compliance Monitoring programme will exist to regularly assess compliance with AML Policy and procedures and the effectiveness of the AML controls, identify areas that require improvement. 

The findings and analysis of monitoring (including breaches and areas requiring improvement) will be reported to both the local senior management and the Group MLRO. This must include documented reporting to local Exco Policy Owner and local Compliance Committee or equivalent. 

Local procedures must include random sample checking of data, and on-site and off-site agent monitoring. 

Regular compliance reviews would be carried by local internal and nominated external auditors.