AML Policy
Last updated
Last updated
May 2024
Introduction
Application
Governance
Definitions of Money Laundering and Terrorism Financing
Obligations
Risk Assessment
Customer Due Diligence (“CDD”)
Training
Monitoring and Reporting
Cooperation with Authorities
Miscellaneous
Annex
List of Definitions
Factors of Higher Risk Situations
Factors of Lower Risk Situations
This Anti-Money Laundering Policy is established, and may be amended by, the Management of Jarsy
The meaning of certain capitalized or uncapitalized terms used in this AML Policy is set forth in the List of Definitions attached as Annex 1.
The Anti-Money Laundering Policy (“AML Policy”) applies to Jarsy, its wholly owned subsidiaries (“Jarsy” or the “Company”) and their directors, officers, full-time, part-time and seconded employees, and anyone working on Jarsy’s behalf, e.g. consultants and representatives. Personnel are expected to act in a manner that will enhance Jarsy’s reputation for honesty, integrity and reliability. Adherence to this AML Policy is a condition of employment and/or engagement with the Company, and therefore the Employees must acknowledge on an annual basis that they have understood the AML Policy and have disclosed any suspected and actual violations through appropriate channels.
The AML Policy will not give answers for every ethical or legal situation. If Employees have any doubts about the right thing to do, they should seek advice from the General Counsel.
If Employees violate Jarsy’s policies and procedures or any of the laws that govern Jarsy’s business, Jarsy will take immediate and appropriate action up to and including termination of employment.
The purpose of this AML Policy is to substantially prevent, manage and mitigate the risk that Jarsy and their Employees become directly or indirectly involved in actual or potential money laundering activities, or terrorist financing activities.
This AML Policy sets out the key principles and obligations in relation to the AML Framework in order to identify and assess the Money Laundering (“ML”)/Terrorism Financing (“TF”) risks to which Jarsy is exposed to ("ML/TF", respectively the "AML" measures, or more broadly "AML"), as defined below.
The CEO is ultimately responsible for monitoring and enforcing compliance with the AML Policy and, with the assistance from the General Counsel, have the final responsibility for developing and executing mitigation actions in case of issues. This is set out in more detail in the Governance Framework.
The CEO is ultimately responsible for compliance with all relevant laws, regulations, rules and professional standards applicable to Jarsy, whereunder those with respect to AML. This is set out in more detail in the Governance Framework.
The CEO and the General Counsel are responsible for the day-to-day execution of the risk management function. This is set out in more detail in the Governance Framework.
Money Laundering is the process by which it attempts to hide and disguise the true origin and ownership of the proceeds from criminal activities, thereby avoiding prosecution, conviction and confiscation of criminal funds.
Terrorism Financing means: the provision or collection of funds, by any means, directly or indirectly, with the intention that they be used or in the knowledge that they are to be used, in full or in part, in order to carry out any terrorist act.
The main obligations for Jarsy and its Personnel under this AML Policy are as follows:
perform a risk assessment on overall activities, including contemplated activities;
perform an individualized customer due diligence on a risk-sensitive basis; and
report to and cooperate with the competent authorities (if required).
Jarsy complies with all applicable laws and regulations wherever Jarsy conducts business, enters into, or maintains business relationships.
Jarsy has adopted the AML Policy and has put procedures in place to mitigate the risk it may become directly or indirectly involved in actual or potential money laundering activities, or in terrorist financing activities.
Jarsy takes a risk-based approach to prevent, manage and mitigate AML offences, including (but not limited to):
identification of the risk of AML to which it could be exposed;
categorizing such risk in accordance with its internal risk categorization methodology; and
defining and implementing appropriate measures to mitigate the identified risk.
Customer Identification and verification: Jarsy employs various methods to locate and verify customers, including but not limited to:
Electronic verification: Utilizing third-party identity verification services to verify the identity of customers based on information provided electronically.
Document verification involves collecting and verifying government-issued identification documents such as passports, driver's licenses, or national identification cards.
Address verification: Verifying customer addresses through utility bills, bank statements, or other official documents.
Ongoing Monitoring: Customer information will be periodically reviewed and updated to ensure accuracy and completeness. Any changes or discrepancies will be promptly investigated and resolved.
Consistent with a risk-based approach, Jarsy will, before the establishment of a business relationship or the carrying-out of a transaction, as part of all due diligence measures that are applied to such business relationship or transaction:
identify and verify the identity of its customer and the (ultimate) beneficial owner(s);
assess the level of AML risk such customer could present; and
decide the intensity (i.e. simplified, standard or enhanced) of the AML Customer Due Diligence it applies.
The due diligence measures performed are documented and kept on file.
The General Counsel monitors the due diligence performed by responsible Employees and shall review the assessment performed and any supporting documentation, as relevant.
It is prohibited that accounts are kept under fictitious names.
"Customer due diligence measures" comprise, where applicable:
identifying the customer and verifying the customer’s identity based on documents, data or information obtained from reliable and independent sources;
and
identifying the (ultimate) beneficial owner and taking reasonable measures to verify his/her identity so that the professionals are satisfied that they know who the (ultimate) beneficial owner is, including, as regards legal persons, fiduciaries, trusts, companies, foundations and similar legal arrangements, taking reasonable measures to understand the ownership and control structure of the customer.
The following is a non-exhaustive list of risk variables that Jarsy considers when determining to what extent it shall apply customer due diligence measures:
the purpose of the account or relationship;
the (intended) regularity or duration of the business relationship;
the risk profile; and
the results of financial sanctions/Politically Exposed Person (“PEP”)/negative media screening.
Standard Customer Due Diligence (“Standard CDD”)
Jarsy conducts standard due diligence on all customers, which includes:
Collecting basic customer information such as name, address, date of birth, and contact details.
Verifying customer identities.
Assessing each customer's risk profile based on factors such as transaction history, geographic location, and nature of business.
Enhanced Customer Due Diligence (“Enhanced CDD”) Enhanced due diligence measures will be applied to high-risk customers, including:
Obtaining additional information and documentation to verify the source of funds and wealth of the customer.
Conducting more frequent monitoring of transactions and account activity.
Seeking additional information from reputable sources or conducting independent research to validate customer information.
Employee Training: Jarsy recognizes the importance of staff members understanding their obligations to prevent money laundering. Therefore, all employees will receive comprehensive training programs to educate them about AML/CFT regulations, suspicious activity indicators, and the company's policies and procedures for detecting and preventing money laundering.
Ongoing Education: Training sessions will be conducted regularly to ensure that staff members remain informed about the latest developments in AML/CFT regulations and best practices. Additionally, educational materials and resources will be available to employees for continuous learning and reference.
Role-Specific Training: Employees with specific roles or responsibilities related to AML/CFT compliance, such as compliance officers and customer support staff, will receive specialized training tailored to their functions to enhance their ability to identify and address potential money laundering risks.
Promoting a Culture of Compliance: Jarsy will foster a culture of compliance by encouraging open communication and collaboration among employees regarding AML/CFT matters. Employees will be encouraged to promptly report any concerns or suspicions regarding potential money laundering activities.
As part of the ongoing relationship with the customer, ongoing AML monitoring will be carried out on a risk-based approach and where needed or otherwise required. In case unusual transactions, such as data changes, payments or withdraws, or activities potentially linked to money laundering, are identified, further investigation will take place. Transactions / activities not consistent with the initially declared purpose or nature of the relationship may also be further investigated. This is set out into more detail in the Compliance Program.
All Employees will endeavor to avoid carrying out a transaction which they know or suspect or have reasonable grounds to suspect to be related to money laundering. Unusual transactions shall be escalated to the General Counsel.
An internal log will be maintained by the General Counsel with information on all unusual transactions escalated to the CEO, the investigations carried out for each report received and the outcome of such investigation, including whether the instance was reported to the authorities or not.
The General Counsel will report to the CEO, on an as needed basis, on unusual or suspicious transactions, their status and the outcome of investigations carried out.
The customer support team (support@getjarsy.com), is responsible for frontline interaction with customers and ensuring compliance with AML/CFT policies and procedures. Roles and responsibilities include:
Verify customer identities and collect necessary documentation for KYC purposes.
Educating customers about AML/CFT requirements and reporting obligations.
Escalating any suspicious activity or compliance concerns to the AML/CFT team for further investigation.
All Employees are obliged to cooperate fully with the appropriate governmental authorities responsible for combating AML, if required. If needed, this could include reporting suspicious transactions and cooperating with the authorities, or inform promptly, on their own initiative, the appropriate authority when they know, suspect or have reasonable grounds to suspect that money laundering, an associated predicate offence, or terrorist financing is being committed or has been committed or attempted, in particular in consideration of the person concerned, its development, the origin of the funds, the purpose, nature and procedure of the operation.
The identity of the Employees or authorized representatives having provided such information is kept confidential by the aforementioned authorities, unless disclosure is essential to ensure the regularity of legal proceedings or to establish proof of the facts forming the basis of these proceedings.
Occasional non-compliance. Subject to applicable law and regulation, the CEO may occasionally and in specific events decide at its sole discretion that this AML Policy can be deviated from.
Amendment. This AML Policy may be amended by the Company at its sole discretion without prior notification.
Interpretation. In case of uncertainty or difference of opinion on how a provision of this AML Policy should be interpreted, the opinion of the Chairman shall be decisive.
Governing law and jurisdiction. This AML Policy is governed by the laws of the Netherlands. The courts of the Netherlands have exclusive jurisdiction to settle any dispute arising from or in connection with this AML Policy (including any dispute regarding the existence, validity or termination of these rules).
Complementarity to law and Articles of Association. This AML Policy is complementary to the provisions in laws and regulations and the Articles of Association. Where this AML Policy is inconsistent with laws and regulations, the latter shall prevail. Where this Code is consistent with the Articles of Association but inconsistent with laws and regulations, the latter shall prevail.
Partial invalidity. If one or more provisions of this AML Policy are or become invalid, this shall not affect the validity of the remaining provisions. The Company may replace the invalid provisions by provisions which are valid and the effect of which, given the contents and purpose of this Code is, to the greatest extent possible, similar to that of the invalid provisions.
* * * * *
In this AML Policy, the following terms have the following meanings:
AML means anti-money laundering.
AML Policy means the Anti-Money Laundering Policy of Jarsy.
CDD means Customer Due Diligence as described in Clause 7.
Company means Jarsy Holdings B.V., its direct and indirect parent companies (i.e. Jarsy Investments S.à r.l. and Jarsy Holding Company S.à r.l. respectively), and its direct wholly owned Subsidiaries.
Employee means any director, officer, full-time, part-time and seconded employee including any third-party contractor, who receives or is entitled to receive remuneration for goods or services from Jarsy.
Enhanced Customer Due Diligence means the Enhanced Customer Due Diligence process as described in Clause 7.7 and further.
General Counsel means the general counsel of Jarsy.
Governance Framework means the governance framework document of Jarsy as adopted by the Company.
Jarsy means Jarsy Holdings B.V., its direct and indirect parent companies (i.e. Jarsy Investments S.à r.l. and Jarsy Holding Company S.à r.l. respectively), and its direct wholly owned subsidiaries.
ML means Money Laundering.
Money Laundering means Money Laundering as defined in this AML Policy in Clause 4.
Personnel means the directors, officers, full-time, part-time and seconded employees of Jarsy, and anyone working on Jarsy’s behalf, e.g. consultants and representatives.
Portfolio Investments means companies that Jarsy has invested in.
Simplified CDD means the Simplified Customer Due Diligence process as described in Clause 7.8.
Standard CDD means Standard Customer Due Diligence process as described in Clause
7.6 and further.
Terrorist Financing means Terrorist Financing as defined in this AML Policy in Clause 4.
TF means Terrorist Financing.
Save where the context dictates otherwise, in this AML Policy:
Save where the context dictates otherwise, in this AML Policy:unless a different intention clearly appears, a reference to a Clause or Annex is a reference to a clause or annex of this AML Policy;
words and expressions expressed in the singular form also include the plural form, and vice versa;
words and expressions expressed in the masculine form also include the feminine form; and
a reference to a statutory provision counts as a reference to this statutory provision including all amendments, additions and replacing legislation that may apply from time to time.
Headings of clauses and other headings in this AML Policy are inserted for ease of reference and do not form part of this AML Policy for the purpose of interpretation.
Customer risk factors
the business relationship is conducted in unusual circumstances;
counterparties that are resident in geographical areas of higher risk;
legal persons or arrangements that are personal asset-holding vehicles;
companies that have nominee shareholders or shares in bearer form;
businesses that are cash-intensive; and
the ownership structure of the company appears unusual or excessively complex given the nature of the company's business;
Product, service, transaction or delivery channel risk factors
products or transactions that might favor anonymity;
non-face-to-face business relationships or transactions, without certain safeguards, such as electronic signatures;
payment received from unknown or unassociated third parties; and
new products and new business practices, including new delivery mechanism, and the use of new or developing technologies for both new and pre-existing products;
Geographical risk factors
countries identified by credible sources, such as mutual evaluations, detailed assessment reports or published follow-up reports, as not having effective anti-money laundering and counter terrorist financing systems;
countries identified by credible sources as having significant levels of corruption or other criminal activity;
countries subject to sanctions, embargos or similar measures issued by, for example, the European Union or the United Nations; and
countries providing funding or support for terrorist activities, or that have designated terrorist organizations operating within their country.
Customer risk factors
public companies listed on a stock exchange and subject to disclosure requirements (either by stock exchange rules or through law or enforceable means), which impose requirements to ensure adequate transparency of beneficial ownership;
public administrations or enterprises from countries or territories having a low level of corruption; and
counterparties that are resident in geographical areas of lower risk.
Product, service, transaction or delivery channel risk factors
products, service, transactions or delivery channel where the risks of money laundering and terrorist financing are managed by other factors such as purse limits or transparency of ownership (particularly, certain types of electronic money).
Geographical risk factors
the customer is in one of the Member States of the European Union;
the customer is in a third country having effective anti-money laundering and counter terrorist financing systems;
the customer is located in third countries identified by credible sources as having a low level of corruption or other criminal activity; and
the customer is located in third countries which, on the basis of credible sources such as mutual evaluations, detailed assessment reports or published follow-up reports, have requirements to combat money laundering and terrorist financing consistent.
