AML Policy

1. INTRODUCTION

Overview:

Evelors Limited (hereinafter Evelors) is a company headquartered at 18 Soho Square, London, United Kingdom (Company Number: 1452607718), establishes and maintains this Anti-Money Laundering Policy (AML Policy). The policy is subject to periodic amendments as deemed necessary by the company.

Importance and Consequences:

Participation, whether intentional or unintentional, in money laundering activities poses a serious threat to Evelors and its employees. It may lead to criminal liabilities and severe reputational damage. This policy underscores the firm’s commitment to preventing, managing, and mitigating such risks.

2. APPLICATION

Scope and Applicability:

This AML Policy applies to all aspects of Evelors’ operations. Employees are expected to uphold the highest standards of honesty, integrity, and reliability. Adherence to this policy is a mandatory condition of employment and/or engagement with the company. Annual acknowledgment of understanding and compliance is required from all employees.

Purpose:

The primary objective of this AML Policy is to effectively prevent, manage, and mitigate the risks associated with money laundering and terrorist financing activities. It establishes key principles and obligations within the AML Framework to identify and assess Money Laundering (ML) and Terrorism Financing (TF) risks.

3. DEFINITIONS

Money Laundering:

Money laundering involves attempting to conceal the origin and ownership of proceeds from criminal activities, aiming to evade prosecution, conviction, and confiscation of criminal funds.

Terrorism Financing:

Terrorism financing encompasses the provision or collection of funds, directly or indirectly, with the intention or knowledge that they will be used, in full or in part, to carry out any terrorist act.

4. OBLIGATIONS

Main Obligations (Evelors Limited and its personnel must):

a) Conduct a risk assessment on overall activities, including contemplated activities;

b) Perform individualised counterparty due diligence on a risk-sensitive basis;

c) Report to and cooperate with competent authorities if required.

Legal Compliance:

Evelors Limited ensures compliance with all applicable laws and regulations in the United Kingdom.

5. RISK ASSESSMENT

AML Policy Implementation:

Evelors has adopted this AML Policy and implemented procedures to prevent, manage, and mitigate the risk of direct or indirect involvement in money laundering or terrorist financing activities.

Risk-Based Approach:

a) Identifying AML risks based on its activities;

b) Categorising risks using its internal risk categorisation methodology;

c) Defining and implementing appropriate measures to mitigate identified risks.

Factors Considered:

In the risk-based approach, Evelors considers the nature and size of its activities, as well as risk factors related to counterparties, services, and geographical locations.
This AML Policy reinforces Evelors’ commitment to conducting business with integrity and in compliance with relevant laws and regulations, thereby contributing to a safer financial environment.

6. CLIENT DUE DILIGENCE («CDD»)

Client Due Diligence (CDD) is a meticulous process integral to our commitment to maintaining the highest standards of integrity, regulatory compliance, and risk mitigation. This comprehensive CDD framework encompasses the following key elements:

a) Identification and Verification of Client’s Identity: The initial step involves rigorously identifying and verifying the identity of our clients. This involves stringent checks and authentication processes to ensure the accuracy and legitimacy of client information;

b) Identification of Beneficial Owners: In instances where the client is not the beneficial owner, we employ robust mechanisms to identify and verify the beneficial owner. This is essential for a transparent understanding of the ownership structure and potential associated risks;

c) Collection of Business Relationship Details: Obtaining comprehensive details regarding the purpose and intended nature of the business relationship is crucial. This step ensures a clear understanding of our clients’ objectives and enables us to tailor our services accordingly;

d) Ongoing Monitoring of Business Relationship: CDD is not a one-time procedure; rather, it involves continuous monitoring of the business relationship. This ongoing vigilance allows us to adapt to any changes in the client’s profile, ensuring the continued alignment of our services with their evolving needs.

7. WHEN IS CDD CONDUCTED

a) Before Establishing a Business Relationship:

CDD is mandatory before initiating any business relationship with a client. This prerequisite underscores our commitment to conducting due diligence from the outset.

b) One-Off Transactions and Company Formation:

For one-off transactions, including company formations, CDD is a prerequisite. This ensures that even singular transactions adhere to our rigorous due diligence standards.

c) Inadequate Existing CDD:

If there is a reason to believe that CDD previously conducted on an existing client is inadequate, a reassessment and update of CDD become imperative.

d) Changes in Client’s Details:

Any alterations in a client’s identifying details necessitate a fresh round of CDD. This includes changes in name and address.

e) Lack of Regular Contact:

Clients not in regular contact with us trigger a review of their status, emphasising our commitment to continuous monitoring.

f) Representation by a Third Party:

When someone purports to act on behalf of a client, an additional layer of due diligence is applied to verify the authenticity of representation.

g) Suspected Money Laundering or Terrorist Financing:

In situations where there is a suspicion of money laundering or terrorist financing, an immediate and thorough CDD is conducted.

8. IDENTIFYING BENEFICIAL OWNERS

Identifying beneficial owners involves more than solely relying on the Companies House register of beneficial ownership. We go further to obtain and verify details such as the body corporate’s names, registration number, registered address, principal place of business, applicable laws, constitution, and the names of its board of directors and senior management.

9. HOW IS CDD CONDUCTED?

Risk Assessment:

The CDD process initiates with a meticulous assessment of the risk of money laundering or terrorist financing posed by the client. This risk evaluation forms the basis for determining the required level of CDD.

Determining Necessary CDD Level:

Based on the risk assessment, we strategically decide the level of CDD required for each client. This tailored approach ensures that our due diligence efforts are proportionate to the potential risks involved.

Our commitment to rigorous CDD practices reflects our dedication to safeguarding the integrity of our operations and ensuring compliance with regulatory requirements. As a dynamic process, CDD is continually adapted to meet evolving client needs and regulatory landscapes.

10. SIMPLIFIED COUNTERPARTY DUE DILIGENCE («Simplified CDD»)

Low AML Risk Assessment:

In scenarios characterised by low Anti-Money Laundering (AML) risk, Evelors may choose to implement Simplified CDD. The determination to employ Simplified CDD is always grounded in a comprehensive risk assessment. Evelors has the flexibility to conduct a prior evaluation of cases where Simplified CDD is deemed appropriate. This involves a meticulous risk analysis, considering factors that contribute to identifying low-risk counterparties.

Components of Simplified CDD:

Simplified CDD involves a verification process where Evelors validates the declared identity of the counterparty against pertinent public registers and other accessible sources. Additionally, it entails an assessment of the information received regarding the purpose and intended nature of the business relationship.

11. STANDARD COUNTERPARTY DUE DILIGENCE («Standard CDD»)

Onboarding and Transaction Process:

Standard CDD is an integral part of Evelors’ procedures during onboarding, establishing a business relationship, and conducting transactions when no material factors indicating increased AML risks are present.

The process involves:

a) Identifying the counterparty involved in the business relationship;

b) Verifying the identity declared by the counterparty through documents, data, or information obtained from reliable and independent sources;

c) If applicable, identifying the (ultimate) beneficial owner(s) when different from the counterparty.

12. ENHANCED COUNTERPARTY DUE DILIGENCE («Enhanced CDD»)

Increased AML Risk Situations:

Enhanced CDD becomes applicable when Evelors identifies an increased AML risk.

Specific Scenarios for Enhanced CDD:

Enhanced CDD is also mandated when dealing with natural persons or legal entities established in third countries lacking or inadequately applying AML measures. Notably, Enhanced CDD does not automatically apply to branches or majority-owned subsidiaries of Evelors, or affiliated entities fully compliant with Evelors Limited’s policies and procedures.

Cross-Border Correspondent and Similar Relationships:

In cross-border correspondent and analogous relationships with institutions in third countries, and, contingent upon the assessment of a higher risk, Evelors shall:

a) Gather sufficient information about a respondent institution to fully understand its business nature and assess its reputation and the quality of supervision through publicly available information.

b) Evaluate the respondent institution’s AML and anti-terrorist financing controls.

c) Obtain prior approval from the company management before establishing business relationships.

13. SOURCE OF FUNDS IN CONSULTING SERVICES

Understanding the source of funds is a pivotal aspect of the Client Due Diligence (CDD) process within the consulting industry.

When is an Investigation into the Source of Funds Necessary?

While it’s not obligatory to delve into every detail of a client’s financial history, additional steps must be taken to ensure that transactions align with the known information about the client. This is particularly emphasised in the ongoing monitoring exercise applicable to all consulting matters.

An in-depth exploration of the source of funds becomes imperative when dealing with a Politically Exposed Person (PEP).

Steps to Take:

a) Analysing the source of funds goes beyond merely confirming that the money originates from a bank account in the client’s name. The focus should extend to comprehending how the client legitimately funds the transaction.

b) For transactions involving PEPs, considerations should include:

b1) Identifying warning signs of corruption.

b2) Assessing evidence related to the inappropriate use of government or state funds.

In cases where a third party funds the client, a thorough examination of the source of funds is required. All investigations into the source of funds, including questions asked, responses received, and supporting evidence provided, must be meticulously documented.

Any concerns regarding the source of funds should prompt a careful evaluation of whether a Suspicious Activity Report (SAR) needs to be submitted to the Nominated Officer.

14. BENEFICIAL OWNERS DUE DILIGENCE IN CONSULTING

Conducting Client Due Diligence (CDD) on beneficial owners differs from CDD on clients and involves the following steps:

Identification of Beneficial Owners:

a) For corporations, identify individuals owning or controlling more than 25% of shares or voting rights.

b) For partnerships, identify individuals with more than a 25% share of capital, profits, or voting rights.

c) For trusts, identify individuals entitled to at least 25% of trust property or those controlling the trust.

d) For other legal entities, identify individuals benefiting from at least 25% of the property or exercising control.

Verification Process:

a) Utilise reliable public sources such as Companies House.

b) Assess risk factors, business structure, and transaction nature to determine the verification steps required.

c) Examine organisational charts, trust deeds, partnership agreements, and engage in discussions with clients to record findings.

d) For corporate beneficial owners, identify the individual at the apex of the corporate hierarchy.

The level of verification should align with the assessed risk profile of the client, taking into account the intricacies of the business structure and the nature of the consulting matter at hand.

15. MISCELLANEOUS

Occasional Non-Compliance:

Subject to applicable law and regulation, Evelors may, on specific occasions and at their sole discretion, decide to deviate from this AML Policy.

Amendment:

Evelors reserves the right to amend this AML Policy at their sole discretion without prior notification.

Governing Law and Jurisdiction:

This AML Policy is governed by the laws of the United Kingdom. The courts of the United Kingdom have exclusive jurisdiction to settle any dispute arising from or in connection with this AML Policy, including disputes regarding its existence, validity, or termination.

Complementarity to Law and Articles of Association:

This AML Policy complements the provisions governing Evelors Limited’s, as outlined in the laws and regulations of the United Kingdom and the Articles of Association. In cases of inconsistency between this AML Policy and applicable laws and regulations, the latter shall prevail. Similarly, if there is consistency with the Articles of Association but inconsistency with laws and regulations, the latter shall take precedence.

Partial Invalidity:

Should one or more provisions of this AML Policy be deemed invalid or become invalid, it will not affect the validity of the remaining provisions. Evelors has the authority to replace the invalid provisions with valid ones, ensuring that the new provisions, given the contents and purpose of this AML Policy, are as similar as possible to the invalid ones.