Definition

• Money Laundering (ML): means the process by which criminals attempt to conceal the origin and/or illegitimate ownership of property and assets that are the proceeds of criminal activities.
• Terrorism Financing: includes both legitimate and illegitimate money characterised by concealment of the origin or intended criminal use of the funds.
• Know Your Customer (KYC): This entails obtaining and verifying customer identity, preservation of records of customers, mandatory disclosure of transactions to authorised statutory bodies.
• Nigeria Financial Intelligence Unit (NFIU): The Nigerian arm of the global Financial Intelligence Unit (FIU).
• Politically Exposed Persons (PEPs): Individuals who have been entrusted with prominent public functions in any country. Generally presenting a higher risk for potential involvement in bribery and corruption by virtue of their position and the influence that they may hold.
• Enterprise Risk management (ERM): includes the methods and processes used by organisations to manage risks and seize opportunities related to achieving their objectives.
• Client: includes any entity with a business relationship with the Company or any entity connected with a financial transaction that can pose significant reputational or other risks to the Company

Policy mandate

Policy description

• To guide the standard of conduct and practice that Busha must follow in implementing the AML, KYC, and CFT regulations.
• To protect the Company against fraud, reputational and other financial market risks.
• To minimise the risks faced by the Company from proceeds of crime
• To prevent money laundering and establish ERM systems to monitor the Company’s exposure to financial crime.

Compliance with policy

• Formulate and implement internal controls and other procedures that will deter criminals from using its facilities for money laundering and terrorist financing and ensure that its obligations under Nigerian and subsisting laws and Regulations are met.
• Embark on Enterprise Risk Management (ERM) and maintain an ERM register
• Designate a Money Laundering Reporting Officer (MLRO) with the relevant competence and independence to implement the Company’s AML/KYC compliance policy.
• Comply with the Money Laundering (Prohibition) Act, the Money Laundering (Prohibition) (Amendment) Act (together, the Money Laundering Act) and the Economic and Financial Crimes Commission Act.
• Identify and report any suspicious transactions from the criminal activities defined in AML/KYC Regulations.
• Ensure the implementation of the AML/KYC Act requirements is not inhibited through the Company’s Confidentiality Agreement or Policy.
• Effectively communicate and raise staff awareness on AML/KYC issues
• Establishing and maintaining a risk-based approach to assessing and managing money laundering and terrorist financing risks.

Know your client

• Establishing and maintaining a risk-based approach to Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), including customer identification, verification and KYC procedures.
• Issue a KYC compliance form to clients.
• Obtain the necessary documents and information from every client
• Report suspicious activities and transactions to the regulatory authorities
• Update client information as and when available
• Identify the client and verify the client’s identity using reliable, independent source documents (e.g. passport data page, national ID card, voters card, utility bills stating their current postal address. e.t.c), data or information.
• Verify the legal status of business names, incorporated trustees and companies with the Corporate Affairs Commission.
• Refuse to transact business with “shell companies” as described under the International Conventions.
• Conduct due diligence for higher-risk clients, business relationships or transactions including PEP, cross border transactions and business relationships.

Record keeping and reporting

• Draw up a report on the identity of the principal and the beneficiary or beneficiaries;
• Take appropriate action to prevent the laundering of the proceeds of criminal conduct;
• Send a copy of the report and action taken to the Nigerian Financial Intelligence Unit (NFIU);

Politically Exposed Persons (PEPs)

Sanctions