KYC/Compliance Policy of ABZ Capitals
Procedures for New Accounts
Establishing a business relationship with ABZ Capitals necessitates a comprehensive understanding of the intended activities by the customer. This understanding is pivotal in discerning normal business operations from suspicious transactions. Therefore, our compliance team must diligently grasp the legitimate business objectives of our clientele.
In the current landscape marked by heightened competition among brokerage firms, the imperative to expand our client base is undeniable. Nonetheless, caution must be exercised when onboarding new accounts, whether for institutional entities, businesses, or individual investors. It is incumbent upon our staff to meticulously verify customer references for authenticity and reliability. Detailed evidence of each customer’s identity must be recorded, including copies of provided identification documents, along with relevant submission dates. Additionally, thorough comprehension of the purpose, terms, and sources of repayment or settlement of any facility requested by the customer is imperative. Periodic visits to business premises may also be advisable to ensure alignment with the disclosed nature of operations, whether as a manufacturer, producer, hedger, retail trader, etc. Corporate accounts, in particular, demand heightened scrutiny due to their susceptibility to money laundering activities.
Documentation of customer interactions, whether in person, over the phone, or at their premises, should always be meticulously prepared, as these records may serve as admissible evidence in legal proceedings. Moreover, evidence of account closures must be retained for five years, including details of the handling of the closing transaction to ensure an auditable trail.
Account Opening for Personal Customers:
For personal account openings, it is imperative to establish and independently verify the customer’s true name(s) and correct permanent address, including postcode. The written name must be identical to the legal name mentioned in the government documents. Ideally, verification should be supported by documents obtained from reputable sources bearing a photograph, such as a current valid passport or national identity card. In cases where face-to-face verification is not feasible, legally certified copies should be requested. Introduction from a respected customer or staff member may aid in verification but should not replace address verification procedures. Registered letters to the provided address may also serve as verification.
Internet and Cyber Trading/Banking:
The proliferation of internet and cyber trading/banking introduces additional risks, including fraud, money laundering, and unlicensed deposit-taking. Therefore, stringent identity verification procedures are imperative for accounts opened online, along with thorough communication to confirm the customer’s address.
Account Opening for Institutions (Clubs and Institutions):
For institutional accounts, verification of the institution’s constitution is necessary to ensure legitimacy. Where multiple signatories are involved, the identity of at least two signatories must be verified initially, with subsequent verifications upon changes in signatories.
Trust, Nominee, and Fiduciary Accounts:
Trust, nominee, and fiduciary accounts are susceptible to misuse for money laundering purposes, particularly in offshore jurisdictions with strict bank secrecy rules. Therefore, additional scrutiny and verification procedures are warranted for such accounts.
Account Opening for Corporates and Other Financial Services Clients:
In line with industry guidelines, account openings for corporates and financial services clients at ABZ Capitals must adhere to stringent KYC procedures. This includes obtaining references, comprehensive account opening documentation, and maintaining detailed compliance and due diligence reports for all accounts.
Security of Accounts and Monitoring:
Regular scrutiny and monitoring of accounts are essential to detect any suspicious transactions or patterns, including excessive trading, incoming transfers of funds, and deposits/transfers to offshore jurisdictions. Additionally, special care must be taken when handling bearer securities to ascertain their authenticity and origin.
In conclusion, ABZ Capitals prioritizes adherence to robust KYC and compliance policies to mitigate the risk of illicit activities and safeguard the integrity of our operations.
