AML Policy
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Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework
At Digital Tribe Cooperative Multipurpose Society Limited (“DTCoop”), we are committed to the fight against all forms of financial crime, which includes money laundering, terrorism financing, bribery and corruption. To this end, DTCoop has continually implemented a framework for Anti-Money Laundering (“AML”), Combating the Financing of Terrorism (“CFT”) and the Prevention of the Financing and Proliferation of Weapons of Mass Destruction. Strict adherence to the same is mandatory for all members of staff Group wide.The framework ensures compliance with AML/CFT legislation and regulations in Nigeria and has incorporated leading best practices including, but not limited to:
Structure of the Framework
Policies and procedural guidelines have been developed by DTCoop and are regularly reviewed/revised to ensure that they remain relevant and current and are in line with the evolving regulatory requirements and leading practices. The Policies and Procedures clearly articulate DTCoop’s AML and CFT stance in the global fight against financial crime and are available on DTCoop’s Website site for access to all members and staff at any point in time.DTCoop’s Compliance Policies are reviewed and approved by the Board of Directors on an annual basis and where it is necessary to update the policy between cycles, an addendum is drafted for implementation of the same and incorporated into the Policy at the next annual review.
DTCoop has moved away from a “rule based, tick box” approach for combating financial crime risk, to a risk-based approach. Thus, DTCoop identifies and assesses the risks from a proactive stance and allocates the requisite resources which center around systems and controls to manage these risks.
Scope of the Framework
The scope of DTCoop’s AML/CFT framework includes the following:(i) Board and Management Responsibilities:
The Board of Directors of DTCoop has oversight responsibilities for the AML/CFT framework. The Board ensures that DTCoop’s Management and all employees conform strictly with all regulatory and internal procedures relating to AML/CFT and that DTCoop maintains a zero tolerance to regulatory infraction. In accordance with AML/CFT global best practice, the “tone is set from the top”.
(ii) Reports to Senior Management and the Board:
AML & CFT reports are submitted on request to Senior Management and the Board respectively. These reports provide the Board and senior management with information to enable them assess DTCoop’s compliance with its regulatory obligations. The reports also ensures that Directors and senior management are kept abreast on current trends and developments in the financial industry, particularly in the area of AML/CFT risk management.
(iii) Know Your Member (KYC) Procedures:
A duly completed profile data and the provision of identification and other relevant information and documents are the foundation/bedrock for on-boarding a member in DTCoop. Member Due Diligence (MDD) is conducted prior to entering into any Cooperative relationship with a member. This includes at a minimum, identity and address verification as well as ascertaining the source of income and wealth of the member. Where appropriate, KYC includes ascertaining who the Ultimate Beneficial Owner (UBO), Legal representatives and Trustees are.
Enhanced Due Diligence (EDD) is conducted on high risk members including Politically Exposed Persons (PEPs). The approval of Senior Management and Compliance is required prior to entering into a relationship with high risk countries.
DTCoop takes requisite and regulatory measures when embarking on relationships with Designated Non-Financial Businesses and Professionals (DNFBPs) and other prescribed businesses, due to their perceived risk and in compliance with regulatory requirements.
As part of DTCoop’s KYC and MDD procedures, identification documents are requested and obtained to confirm the ultimate beneficial owners of a business and the organization’s control and structure. Sanction screening is also conducted prior to entering into a relationship as well as prior to effecting a transaction to ensure that DTCoop does not enter into a relationship with a sanctioned person/entity.
DTCoop is in compliance with the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards criteria, and thus, has put measures in place in identifying the defined persons in DTCoop’s database. All identified US persons are required to complete the requisite tax forms i.e. W8 BEN, W8 BEN-E and W9. A Member who fails to complete the forms would be regarded as recalcitrant.
(iv) Transaction Monitoring:
Transaction monitoring occurs on a manual and automated basis. The former is performed by all members of staff, who are regularly provided with red flags to look out for and the latter resides within the Compliance Unit.
All members of staff are aware of the fact that suspicious activities/ transactions should immediately be referred to the Compliance Unit.
Suspicious Transactions are brought to the attention of the Compliance Unit on a manual or automated basis, the former by way of members of staff filing internal suspicious transaction reports to the Compliance Unit and the latter by way of transaction monitoring tools reviewed by Compliance Officers. If deemed appropriate, a report is filed to the NFIU.
(v) Relationship with Regulators and Law Enforcement Agencies:
DTCoop understands that part of its corporate and social responsibility is to cooperate with law enforcement agencies in the fight against financial crime. To this end, DTCoop maintains a cordial and supportive relationship with all regulatory and law enforcement agencies. DTCoop promptly complies with all requests made, pursuant to the law, and provides information to regulators and relevant agencies.
DTCoop is also at the forefront of cooperating with regulators to give feedback on new regulations and means to mitigate the risks that are being encountered in the financial industry brought on by new innovations and developing trends.
(vi) Sanctions Compliance Management:
DTCoop as a policy, does not enter into any relationship with sanctioned individuals/entities. All employees, as applicable to their functions, are required to screen names of individuals and organizations who have or plan to enter a business relationship or carry out a transaction with/through DTCoop against DTCoop’s internal watch list.
The internal watch list contains amongst others, the names of individuals and entities, who have been blacklisted by various regulatory bodies worldwide: Office of Foreign Asset Control “OFAC”; European Union (EU); Her Majesty’s Treasury (HMT); The Ministry of Economy, Finance and Industry in France (MINEFI); The United Nations (UN); The Local List as provided by local regulatory and enforcement bodies.
Employees are required, as part of DTCoop's policy, to refrain from any relationship and/or transaction which yield a true or positive match and follow the escalation procedure. Sanctions screening is done at account opening and on a real time basis for all SWIFT transactions.
(vii) Politically Exposed Persons (PEPs)
PEPs are individuals who are or have been entrusted with prominent public functions and people or entities associated with them. Enhanced due diligence measures are applied to PEPs, as with other high-risk members to mitigate the AML/CFT risk they pose. This is to ensure that DTCoop is not unknowingly supporting activities such as money laundering and/or the financing of terrorism.
In line with FATF's recommendation, DTCoop employs the use of an automated monitoring tool in identifying and monitoring PEP transactions. This is achieved through the thorough review of information provided by members and their transaction trends.
Establishment of new accounts for PEPs as well as continuity of such accounts (for those already existing in the system) is subject to the approval of an Executive Director and the Compliance Unit.
(viii) AML/CFT principles for Correspondent Cooperative:
DTCoop only enters into and maintains correspondent Cooperative relationships with financial institutions that have implemented sufficient AML/CFT policies and procedures. DTCoop does not enter into any form of relationship with shell banks nor maintain any payable through accounts. DTCoop ensures that due diligence is performed annually on our correspondent relationships to avoid AML/CFT risks.
(ix) Prohibited Business Relationships
In line with international best practice, DTCoop does not open accounts or conduct transactions for members using pseudonyms or numbers instead of actual names or maintain relationships with individuals or entities that have been sanctioned.
(x) Risk Assessment
DTCoop conducts Risk Assessments on its members, products and services. This is to ensure that AML/CFT risks are identified and mitigated.
(xi) Anti-Bribery and Corruption (ABC) and Anti-Fraud)
DTCoop is committed to the highest standards of ethical conduct in all its endeavors and interactions. DTCoop has zero tolerance for any form of bribery, corruption, fraud and unethical practices among employees, between DTCoop and its employees, as well as between DTCoop and external parties. DTCoop also expects the same standards to be applied by third parties acting on behalf of DTCoop.
(xii) AML/CFT Training:
DTCoop places a high premium on the training of its employees. Training is conducted to ensure employees are well informed about the AML/CFT laws, KYC principles and the red flags of money laundering or terrorism financing which may occur in their job functions. Annual Compliance training is mandatory for all members of staff, including Senior Management and Directors.
Training is conducted via e-learning, face to face or on an ad hoc basis by email to the appropriate personnel in relation to topical national and international findings.
(xiii) AML/CFT Audits:
In order to adhere to regulations and to ensure an ever-evolving fit for use Compliance function, internal audit of the AML/CFT function is conducted on a quarterly basis. The purpose of the audit is to test the adequacy of the AML/CFT functions and ensure that the AML/CFT measures put in place by DTCoop are effective.
The report and findings of the audit are circulated to Senior management. A follow-up to the audit takes place to ensure that the relevant issues are closed out and highlighted recommendations have been implemented.
(xiv) Record Retention:
Member identification documents are retained throughout the life of the account and for 5 years after the cessation of DTCoop relationship and for 5 years after the transaction date for transaction instruments. In litigation and/or regulatory investigations, the records will be kept for as long as they are required.
(xv) Data Protection:
DTCoop has a duly approved Data Protection Policy which is revised on an ad-hoc basis to reflect the legal, regulatory and operating environment. DTCoop adheres strictly to both local and international data protection policies such as the National Data Protection Regulations in countries where we operate and the European Union General Data Protection Regulation (EU-GDPR.)