InfoGlobal Markets LTD. and its associates are committed to ensuring full compliance by the Company with all applicable federal and state laws and regulations, Self- regulatory organization (e. g., NASD) rules and any other industry rulemaking authorities’ rules regarding anti- money laundering (“AML”). Executive Director of InfoGlobal Markets LTD. has vested program responsibility for AML.
Executive Director is responsible for ensuring that: (i) the company keeps its AML policy current and that each operating area implements and maintains procedures to detect and report possible money laundering and suspicious activity; and (ii) all required governmental and regulatory filings are completed accurately and submit ted timely; and (iii) the Company fully complies with all applicable AML laws and regulations.
Executive Director has the responsibility and authority to ensure that AML practices and procedures are consistent with the AML policy and reasonably designed to satisfy the requirements of the policy and related regulatory requirements. In addition, Executive Director is the primary contact for the Company on AML compliance implementation and oversight, any questions about this policy may be directed to Executive Director at [email protected].
The Anti-Money Laundering Program of InfoGlobal Markets LTD. (the “Program”) is applicable to all aspects of the operations of the Company. The Program , as set forth in this Policy, is designed to address, among other things, the requirements of the Title III of the U. S. A Patriot Act (the “Money Laundering Abatement Act”) , including:
The Company continues to monitor regulatory and other developments in the anti-money laundering area, and is firmly committed to ensuring that all Company departments, affiliates, subsidiaries, agents, and employees are and remain in compliance with applicable law.
Money Laundering is the process by which a criminal conceals the existence, source or nature of illegally derived funds to make them appear legitimate. Money laundering typically occurs in three stages: placement, layering and integration. Insurance companies and other financial institution are at any point in the process susceptible to being used by criminals to carry out money laundering activities.
Criminals often employ sophisticated methods of disguising the proceeds of their crimes, just as terrorists seek to funnel the proceeds of ostensibly legitimate businesses to fund and execute terrorist plots. Terrorists and other criminals are increasingly using the facilities of securities firm s and insurance companies to conceal the source of their funds. The concept of money laundering can also include the activities of individuals and businesses seeking to
conceal their earnings from the Internal Revenue Service and state and local taxing authorities.
The United States Government principally administers and enforces anti- money laundering laws through the U. S. Treasury Department. As described below, depending on the type of financial institution, one or more of the following apply:
Failure to comply with anti- money laundering and/or OFAC laws and regulations may result in severe criminal and civil penalties against InfoGlobal Markets LTD. and their respective employees and agents. Criminal and civil penalties can include imprisonment, substantial fines, loss of business licenses, and forfeiture of property involved. Employees and agents also may be subject to disciplinary action by the Company up to and including termination of employment for participating in such activities.
The corporate procedures for the Anti- Money Laundering Program may be found in the “InfoGlobal Markets LTD. Anti-Money Laundering Corporate Procedures Guide” which is a supplement to this policy.
The Company has developed an ongoing training program for agents and employees on anti- money laundering issues. The Company’s Anti-Money Laundering Compliance Officer is responsible for the t raining program.
The training program is designed to familiarize employees and agents with the following:
Training for agents and employees will be conducted no less than annually. The Company’s AML Compliance Officer may delegate responsibility for individual training activities in certain instances. In addition, the Company will properly document any delegation of responsibility for the t raining program.
The anti-money laundering guidelines outlined below are applicable to the operations of InfoGlobal Markets LTD.
InfoGlobal Markets LTD. agents and employees have an obligation to avoid transactions with individuals or organizations (e. g., partnerships, trusts, corporations, joint ventures) that seek to use Company Services and products to launder money or otherwise carry out illegal activities. Company personnel must be careful to avoid receiving the proceeds of, or unwittingly aiding in, transactions linked to criminal activities of any kind.
Specific AML compliance procedures are covered in the Corporate Procedures, which supplement this policy.
Some financial institutions are required by law to report “suspicious activity” at their institutions on “Suspicious Activity Report” forms (“SARs”). SARs are to be filed with FinCEN.
The Company will apply due diligence in an effort to make an informed decision about the suspicious nature of particular transactions and other activities in determining whether to file an SAR in a particular situation.
The Company will file SARs for any transaction conducted or attempted by, at or through the Company involving (separately or in the aggregate) funds or assets of $5,000 or more for which the Company detects any known or suspect federal criminal violation involving the Company; or the Company knows, suspects, or has reason to suspect that the transaction:
Notwithstanding the $5,000 threshold described above, the Company will file SAR and, when appropriate, notify law enforcement authorities of all transactions where there is a suspicion that the proceeds of criminals, terrorists or other corrupt activities may be involved.
The Company will in all cases keep SARs and any supporting documentation confidential. InfoGlobal Markets LTD. will not inform anyone outside of law enforcement or regulatory agency or securities regulator about a SAR. The Corporate Compliance Department is responsible for filing and maintaining copies of all SARs and supporting documentation.
A principal method used by the Federal government to detect money laundering is to require financial institutions and other businesses to report the receipt of currency or cash equivalents (such as cashier’s check, money orders, bank drafts, or traveler’s checks) Other laws require financial institutions to report certain situations involving the use of a com bination of currency and/or cash equivalents, each of which is valued at $10,000 or less, but which together total more than $10,000.
When there is a reportable event, the company will file IRS Form 8300 (“Cash Received in a Trade or Business”) . Also, Company policy prohibits customers and policyowners from using currency (U. S. or otherwise) to pay for securities transactions and procedures are in place to ensure that currency is not accepted as payment in such transactions.
The Company does no wire transfers.
Financial institutions, including insurance companies and broker-dealers, are required by law to report transactions, which are structured to avoid the various reporting requirements. Structuring includes the breaking down of a single sum or currency that exceeds $10,000 into smaller amounts and engaging in multiple transactions, each below $10,000. Active assistance in structuring or passive acceptance of transactions designated to circumvent reporting requirements is also against the law. Violation could lead to civil fines and criminal penalties for InfoGlobal Markets LTD., the agent, and employee.
The following are examples of policy owner activity which might suggest structured transactions involving currency and/or cash equivalents totaling over $10,000 that must be reported:
If a InfoGlobal Markets LTD. agent or employee detects an attempt to structure transactions or suspects that transaction structuring is occurring, he/she should immediately bring it to the attention of the Company’s AML compliance officer.
The concept of Know Your Customer (KYC) is critical in both the securities and non- securities aspects of our business. As general rule, the Company gathers information about the clients. The information required under NASD Rules (applicable to broker- dealer activities) is the starting point for anti- money laundering customer identification procedures.
It is Company policy to:
Because of the risk that the prospective policyowner or customer could be involved in criminal activity, the Company will consider, depending on the nature of the proposed transaction, not effecting a transaction prior to verifying information about the customer. In addition, if a potential or existing customer either refuses to provide the information requested by the Company, or it appears to have intentionally provided misleading information, InfoGlobal Markets LTD. will not open an account and the AML Compliance Officer must be notified so that a determination can be made as to whether the circumstances should be voluntarily reported to FinCEN or OFAC.
InfoGlobal Markets LTD. is prohibited from establishing, maintaining, administering, or managing a “correspondent account” in the United States for an unregulated foreign shell bank. The term “correspondent account” is broadly defined as an “account established to receive deposits from or make payments on behalf of a foreign financial institution, or handle other financial transactions related to such institution.”