AML/CTF policy Mendora LLP

  1. Policy Statement

Mendora LLP is committed to fully comply with all applicable laws and regulations regarding anti-money laundering procedures. Mendora LLP has adopted and will enforce the provisions set forth in AML/CFT Regulations in order to prevent and detect money laundering, terrorist financing and other illegal activities. If Mendora LLP, its personnel and/or premises are inadvertently used for money laundering or other illegal activities, Mendora LLP can be subject to potentially serious civil and/or criminal penalties. Therefore, it is imperative that every member, officer, director, and employee (each, an "Employee") is familiar with and complies with the policy and procedures set forth in this document. This Compliance Statement is designed to assist all clients in adhering to Mendora LLP policy and procedures, which, if followed diligently, are designed to protect themselves, Mendora LLP, its Employees, its facilities and its activities from money laundering or other illegal activities. To ensure that the Mendora LLP policies and procedures are adhered to, Mendora LLP shall designate an Anti-Money Laundering Compliance Officer (the "Compliance Officer"). The Compliance Officer is responsible for establishing and conducting Employee training programs to ensure that all appropriate Employees are aware of the applicable AML/CFT Laws and Regulations, Mendora LLP AML/CFT Policies & procedures and their responsibilities with respect to these policies.

  1. Objectives of Mendora LLP Anti-Money Laundering / Counter Financing of Terrorism Policy and Procedures

  • Comply with all AML/CFT Rules & Regulations of the jurisdictions it operates in;  Appointment of a Compliance Officer who shall ensure adherence to the Mendora LLP AML/CFT Policy and Procedures;  
  • Require all Employees to prevent, detect and report to the Compliance Officer all potential instances in which Mendora LLP or its employees, its facilities or its activities have been or are about to be used for money laundering, terrorist financing and other illegal activities;  
  • Require all Employees to attend anti-money laundering training sessions, so that all such Employees are aware of their responsibilities under Mendora LLP policies and procedures; and as affected by current developments with respect to anti-money laundering events.

  1. What is Money Laundering?

Money laundering involves the placement of illegally obtained money into legitimate financial systems so that monetary proceeds derived from criminal activities are transformed into funds with an apparently legal source. Money laundering has many destructive consequences both for society as a whole and for those entities involved in money laundering activities. With respect to society as whole, money laundering may provide resources for drug dealers, terrorists and other criminals to operate and expand their criminal activities. With respect to entities, any involvement whether it be to instigate, assist, conceal, or ignore the source, nature, location, ownership or control of money laundering activities, can lead to both civil and criminal proceedings against both the individual and the entity involved . Additionally, the adverse effects, including the adverse publicity to the Firm associated with involvement in money laundering events cannot be emphasized enough.

Money laundering transactions may include:  

  • Advising a potential or existing client on how to structure a transaction to avoid reporting and/or record keeping requirements;  
  • Engaging in any activity while willfully or recklessly disregarding the source of the funds or the nature of the Clients transaction;  
  • Engaging in any activity designed to hide the nature, location, source, ownership or control of proceeds of criminal activity;  
  • Dealing in funds to facilitate criminal activity; or  
  • Dealing in the proceeds of criminal activity.

Money laundering can involve the proceeds of drug dealings, terrorist activities, arms dealings, mail fraud, bank fraud, wire fraud or securities fraud, among other activities.

  1. What Is Terrorist Financing?

Terrorist financing refers to the processing of funds to sponsors involved in or those who facilitate terrorist activity. Terrorist individuals/ groups/ organization derive income from a variety of sources, often combining both lawful and unlawful funding, and where the agents involved do not always know the illegitimate end of that income. The forms of such financing can be grouped into two types:

Financial Support – In the form of donations, community solicitation and other fundraising initiatives. Financial support may come from states and large organizations, or from individuals.

Revenue Generating Activities - Income is often derived from criminal activities such as kidnapping, extortion, smuggling or fraud. Income may also be derived from legitimate economic activities such as diamond trading or real estate investment

  1. Anti-Money Laundering Compliance Officer

The Mendora LLP has appointed a dedicated Compliance Officer to oversight the Compliance function who will be reporting to the Board of Directors of the Mendora LLP. Any Employee shall immediately notify the Compliance Officer if he/she suspects or has any reason to suspect that any potentially suspicious activity has occurred or will occur if a transaction is completed. Employees are encouraged to seek the assistance of the Compliance Officer with any questions or concerns they may have with respect to the Mendora LLP AML/CFT Policy & Procedures.

Responsibilities of the Compliance Officer include the following:

  • Review of Account Opening Forms and sign off from Compliance perspective  Coordination and monitoring of Mendora LLP day-to-day compliance with applicable AntiMoney Laundering Laws and Regulations and Mendora LLP own AML/CFT Policy and Procedures;  
  • Conducting Employee training programs for appropriate personnel related to the Mendora LLP AML/CFT policy and procedures and maintaining records evidencing such training;  
  • Receiving and reviewing any reports of suspicious activity from Employees;  Determining whether any suspicious activity as reported by an Employee warrants reporting to senior management of the Firm;  
  • Coordination of enhanced due diligence procedures regarding Clients; and Responding to both internal and external inquiries regarding Mendora LLP AML/CFT policy and procedures.

  1. Anti-Money Laundering Employee Training Program

As part of the Mendora LLP anti-money laundering program, all Employees are expected to be fully aware of the Mendora LLP AML/CFT policy and procedures. Each Employee is required to read and comply with this Compliance policy and procedures, address concerns to the Compliance Officer and sign the acknowledgement form confirming that he/she has read and understands Mendora LLP AML/CFT policy and procedures. To ensure the continued adherence to Mendora LLP AML/CFT policy and procedures, all Employees are required to reconfirm their awareness of the contents of this document by signing the acknowledgement form annually, or more frequently, as required by the Compliance Officer.

All Employees are required;  

  • At a time specified by the Compliance officer, to undertake training programs on AML/CFT policy and procedures.  
  • To get trained in how to recognize and deal with transactions which may be related to money laundering.  
  • To timely escalate and report the matter to the Compliance Officer.  
  • To get themselves acquainted with Anti Money Laundering Rules & Regulations.  To comply with the requirements of Rules & Regulations.

  1. Client Identification Procedures
  1. General

Mendora LLP AML/CFT policy and procedures are intended to ensure that, prior to accepting funds from Clients, all reasonable and practical measures are taken to confirm the Clients' identities.

Mendora LLP may take assistance from the bank or other financial institutions for completing client identification process. The assistance shall not relieve the Mendora LLP for identification process to be conducted by the company.

These Client Identification Procedures are based on the premise that the Mendora LLP will accept funds from a new and existing Client only after:

  • Mendora LLP has confirmed the Client's identity and that the Client is acting as a principal and not for the benefit of any third party unless specific disclosure to that effect is made; or  
  • If the Client is acting on behalf of others, Mendora LLP has confirmed the identities of the underlying third parties.

The Client Identification Procedures should be reviewed in light of the specific characteristics presented by a Client and in any instance the Compliance Officer may determine to apply enhanced measures for reasons other than those discussed in section below.

As a reference tool, an Individual Client KYC Checklist is used. Employees are encouraged to provide the Compliance Officer with any revisions they consider appropriate. The Compliance Officer shall retain copies of all documents reviewed or checklists completed in connection with its Client Identification Procedures in accordance with Mendora LLP Client Records Retention policy.

Every Customer shall be identified for establishing business relationship. For this purpose, investors need to fill out the Account Opening Form available at the customer support counters at Mendora LLP office or download it from Mendora LLP website.

  1. Client Identification Procedures for Natural Persons

For Identity and due diligence purposes, at the minimum following information shall be obtained, verified and recorded on KYC/CDD form or account opening form:

  • Full name as per Identity document
  • Date of Birth
  • Residential Status, Nationality, Country of Residence  
  • Passport/ID Number  
  • Existing Mailing and Permanent address  
  • Mobile Number
  • Email address  
  • VAT Number

Joint Accounts: In case of Joint account, the customer due diligence measures on all of the joint account holders shall be performed as if each of them were individual customers of the Mendora LLP.

  1. Client Identification Procedures for Corporations, Partnerships, Trusts and Other Legal Entities

Mendora LLP shall take reasonable steps to ascertain satisfactory evidence of an entity Client's name and address.

For Identity and due diligence purposes, at the minimum following information shall be obtained, verified and recorded on KYC/CDD form:

  • Full name as per Identity document  
  • Company registration /Incorporation number  
  • Date and country of Incorporation  
  • Date of Business Commenced  
  • Residential Status
  • Type of Business  
  • Name of parent Company  
  • Email, website and contact numbers  
  • Registered and mailing address  
  • NTN number and Sales Tax number  
  • Details of Contact Person and authorized person to operate the account  
  • Nature and Type of Account  
  • Details of Bank Account  

  1. Customers’ Screening

In terms of AML/CFT Regulations, it is prohibited to provide services to proscribed individual & entities or to those who are known for their association with such individuals & entities, whether under the proscribed name or with a different name. Accordingly, it is imperative for Mendora LLP to monitor its relationships on a continuous basis and ensure that no such relationship exists. Further, in case, if any such relationship is found, immediately report the same to Financial Monitoring Unit (FMU) and take any other action, as per law.

In pursuance of above, all customers should be prorely screened through UN/OFAC sanctioned lists as available in the data base of the company.

  1. Approval

The account will only be processed for account opening after it has been authorized by Compliance officer and incase of High risk customer, by the senior management of Mendora LLP.

  1. Account Shall Not Open

  • Where CDD Measures are not completed In case the Mendora LLP is not been able to satisfactorily completed required CDD measures, account shall not be opened or any service provided and consideration shall be given if the circumstances are suspicious so as to warrant the filing of an STR.  
  • Anonymous or Fictitious Account: Mendora LLP shall not open or maintain anonymous account or accounts in the name of factitious persons.  
  • Proscribed Individuals/Entities: Mendora LLP shall not provide services to Proscribed Individuals, Groups and Entities declared/ listed by UNSC OR those who are known for their association with such entities and persons, whether under the proscribed name or with a different name.

  1. General Reporting Procedures

  • The Compliance Officer on behalf of the organization is nominated to receive disclosures under this regulation.  
  • Anyone in the organization, to whom information comes in the course of the relevant business as a result of which he suspects that a person is engaged in money laundering, must disclose it to the Compliance Officer;  
  • Where a disclosure is made to the Compliance Officer, the officer must consider it in the light of any relevant information which is available to Mendora LLP and determine whether it gives rise to suspicion: and
  • Where the Compliance Officer determines in consultation with the Senior Management, the information must be disclosed to the Regulatory Authority after obtaining an independent legal advice.

  1. Policy Review Period

The AML/CFT Policy & Procedures will be reviewed on as and when required basis but not

later than two years.