Information in relation to Anti-Money Laundering and Counter Terrorism Financing

The Company (“we” or “us”) as defined in the Client Agreement, is obliged to follow certain requirements as set out by the local regulatorfor preventing and suppressing money laundering activities, which obliges the Company  to follow strict Anti-Money Laundering and Counter Terrorism Financing procedures (“AML&CFT”) while also requires the Company to obtain certain verification information as well as documentation.

The Company determines the identity of the beneficial ownership of all its clients’ accounts and does not open or maintain such accounts, unlessitisfully satisfied that such identification requirements have been met, in accordance  with applicable AML & CFT legislation. If the Company becomes aware that a prospective client is acting on behalf  of a beneficial owner, the Company is required to carry out verification of the parties, and such business relationship  will only be formed after the verification process is completed. 

We do not open or maintain anonymous accounts or accounts under fictitious names. Where we identify or become aware that (i) a prospective individual client is acting for the benefit of a third party/beneficial owner, we are required to refuse the onboarding; and (ii) where a non-individual client has a beneficial owner, we will identify and verify the beneficial owner up to the ultimate beneficial owner and verify the authority of any representative acting for the client.

The Company has established procedures to obtain appropriate evidence of client identity and maintains adequate records of client identity and transactions involved in such a manner as assisting, if necessary, in the investigation of criminal offences. In line with these requirements, the Company must conduct customer due diligence (“CDD”) assessment to determine the client’s profile and verify the accuracy of the information and supporting documents provided at the following stages:

a) at the client’s onboarding stage;

b) occurrence of financial transactions with the amount of at least or equal to IDR 100 million;

c) there is doubt on the accuracy of data, information and/or supporting documents provided by the prospective client, the client, its proxy and/or its beneficial owner; or

d) there is an indication of suspicious transactions related to money laundering and/or terrorism funding.

Specifically related to the verification of a prospective client’s identity may be performed through:

a) a direct face-to-face meeting; or

b) electronic verification through the Company’s system, where the prospective client would be required to submit information and/or documents related to its identification (e.g., residential information).

Where customer acceptance is conducted electronically online, the system will verify the financial ability and eligibility of the prospective client. Therefore, customer acceptance process and system will include the required disclosures and confirmations, including (among others) (i) the customer’s confirmation not to share the personal access password, (ii) the customer’s confirmation that funds used are the customer’s own funds, not derived from unlawful acts and not intended for money laundering, and (iii) an electronic audit trail of the acceptance process.

The Company will retain customer’s identification data, CDD/EDD records, transaction records, analytical reports, and customer correspondence for at least 5 (five) years following the termination of the business relationship or completion of the transaction, as applicable, and in a manner that enables transaction reconstruction upon request by competent authorities.

The Company has in place policies and procedures to identify and avoid money laundering transactions and to ensure compliance with the requirements of any relevant legislation issued by its regulator. These AML & CFTpolicies and procedures include at a minimum: 

a) client identification and verification;

b) identification and verification of the beneficial owner;

c) termination of business relationships or refusal of transactions;

d) on-going management of AML & CFT risks associated with the clients, countries, products and services, and delivery channels;

e) maintenance of accurate data relating to transactions, documentation of the CDD process, and record‑keeping of policies and procedures;

f) updating and monitoring processes;

g) reporting to senior officers, the Board of Directors, and the Board of Commissioners regarding the implementation of AML & CFT policies and procedures; and

h) reporting to the Indonesian Financial Transaction Report and Analysis Center (Pusat Pelaporan dan Analisis Transaksi Keuangan or “PPATK”).

The Company is vigilant in ensuring the prevention of its involvement or misuse in money laundering activities and is not knowingly accepting assets or enter into business relationships where there is reasonable cause to believe thatsuch assets may have been acquired illegally or that they represent the proceeds of criminal activity.

The Company shall carry out ongoing monitoring and tracing of client transactions. In the event where suspicious financial transactions arise, the Company shall promptly report such transactions alongside with relevant client  information to the PPATK. We maintain systems capable of identifying, analysing, monitoring and producing reports on customer transaction characteristics.

Where there is suspicion that the source of funds maybe criminal or that a client maybe involved in criminal activity,the Company shall follow its established AML & CFT procedures for assessing the evidence and determining what course of action should be pursued.

The Company shall keep records of reports made by their staff and of reports made to the PPATK.

In accordance with the AML & CFT legislative requirements, the Company establishes the identity and verifies the identity of any customer of the Company by requiring the customer to produce an identification record or such other reliable, independent source documents in accordance with the prevailing local AML & CFT legislation.

The Company shall:

a) when establishing a business relationship, obtain information on the purpose and nature of the business relationship;

b) if the transaction is conducted by a natural person, adequately identify and verify their identity including information relating to:

▪ data related to the person’s identity documents (i.e., the person’s full name or alias, identity number, address, place and date of birth, occupancy, gender, marital status and nationality;

▪ telephone number;

▪ the national identity card (KTP) (for Indonesian citizens) or passport (for foreign citizens), and/or other official identity documents issued by competent authority, as applicable

▪ the person’s Taxpayer Identification Number, bank and account number, source of fund, average income per year, and intentions for opening of transaction accounts;

▪ maiden name of biological mother; and address and phone number of the person’s office (if any).

c) if the transaction is conducted by a legal entity, adequately identify the beneficial owner ofsuch entity and take reasonable measures to identify and verify its ownership and control structure, including information relating to:

▪ the customer’s name, legal form, business field / activity, head office address and identities of directors;

▪ its legal entity, business licenses, and place and date of establishment;

▪ telephone number;

▪ the entity’s Taxpayer Identification Number, bank and account number, source of fund, average income per year, and intentions for opening of transaction accounts

▪ the principal owners and beneficiaries and controlstructure;

▪ provisions regulating the power to bind the entity and to verify that any person purporting to act on behalf of the customer is so authorized, and identify those persons; and

▪ We may require supporting documents, including constitutional documents, licences, management and ownership structure, specimen signatures and evidence of authority (including powers of attorney), as applicable.

d) have appropriate risk management systems to determine if a customer or beneficial owner is a politically exposed person (“PEP”) or close associates of a politically exposed person, and if so, shall at least carry out the following:

▪ conduct enhanced due diligence (“EDD”) of the said person or entity in accordance with the prevailing local AML & CFT legislation;

▪ adequately identify and verify his identity asset out in this section;

▪ obtain the approval of senior management before establishing a business relationship with the politically exposed person; and

▪ take reasonable measuresto establish the source of funds and source of wealth;

▪ apply enhanced ongoing monitoring of the business relationship, including more stringent and continuous scrutiny.

For avoidance of doubt, where the beneficial owner is classified as a PEP, EDD applies.

Following the CDD or EDD, in circumstances where a client is confirmed to be listed on the Terrorist Suspect List and Terrorist Organizations List, the Company is obligated and entitled to carry out the blocking of the client’s funds. We are also required to refuse onboarding and/or refuse transactions and/or close the business relationship where, among others, the customer/beneficial owner (i) does not meet identification/verification requirements, (ii) uses or is suspected of using false documents, (iii) provides information of doubtful accuracy, (iv) has transaction funds known or reasonably suspected to be derived from crime, and/or (v) is included in the terrorist suspect/terrorist organisation list. Where the business relationship is closed, the customer will be notified in writing, with a copy to the Head of Bappebti (Badan Pengawas Perdagangan Berjangka Komoditi or Commodity Futures Trading Supervisory Agency), and thereafter the account may be restricted to closing existing positions only (no new positions). This section is notified to the customer and forms part of the mandate documentation

Should you require any further information and/or have any questions about this document please direct your request and/or questions to [email protected].

You must promptly notify us of any change in your identification and beneficial ownership information and provide any additional information/documents we reasonably request for compliance purposes