1. Introduction and Purpose
This Counter Terrorism and Proliferation Financing Policy and Procedure (“the Policy’) is developed as part of TradeUltra Ltd (“TRADEULTRA”) effort in counter terrorism and proliferation financing in response to the below:
1. Notification on the Directive on Implementation of Targeted Financial Sanctions Relating to Proliferation Financing issued by Labuan Financial Services Authority; and
2. Directive on Implementation of Targeted Financial Sanctions relating to Proliferation Financing issued by the Ministry of International Trade and Industry.
“Proliferation Financing” refers to the act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations.
The purpose of the Policy is aimed to provide guidance in detecting potential terrorism and proliferation financing when performing clients’ due diligence checks and/or reviews.
2. Screening Process
2.1 Screening on Customer(s)
TRADEULTRA perform customer due diligence screening process through the following means:
(a) Preliminary Identify and Know your Customers
TRADEULTRA has in placed the below policies for obtaining the documentation and information in identifying the customer as well as to develop a preliminary understanding on the customer’s business:
– Customer Identification and Documentation Policy and Procedure
– Customer Due Diligence Policy and Procedure
(b) Screening in World Check System
TRADEULTRA will perform screening of customer through the World Check System. The World Check Report will be submitted to the TRADEULTRA’s Compliance Officer for review and approval.
2.2 Screening on Beneficial Owner(s)
TRADEULTRA undertake further due diligence screening process, shall there are another person(s) apart from the known customer are being identify as the Beneficial Owner(s), through the following means:
(a) Preliminary Identify and Know your Customers
TRADEULTRA has in placed the below policies in obtaining the documentation and information in identifying the beneficial owner(s):
– Beneficial Ownership Policy and Procedure
(b) Screening in World Check System
TRADEULTRA will perform screening of beneficial owner(s) through the World Check System. The World Check Report will be submitted to the TRADEULTRA’s Compliance Officer for review and approval.
2.3 Sanctions issued by the United Nations Security Councils Resolutions (“UNSCR”)
TRADEULTRA takes into accounts the sanctions by UNSCR while performing screening on customer. For further information refer to https://www.un.org/securitycouncil/sanctions/information
2.4 Customer’s Business and Transactions Activities Review
TRADEULTRA conducts periodical reviews on customers’ transactions and business activities based on customer’s bank statements and/or any other available means, at its best available efforts, to detect any possible suspicious financing activities, in order to mitigate terrorism and proliferation financing.
TRADEULTRA has in placed the below policies to perform such review:
- Management Information Services Policy and Procedure
- Mechanism or Red Flag for Suspicious Transaction Occurrence.
2.5 Application of Screening
TRADEULTRA performs customer’s screening when on boarding a new customer.
TRADEULTRA perform customer’s screening on the existing customer on annually basis. This screening review will be conducted annually before or upon the anniversary date of the respective clients.
3. Evaluating and Rejecting
In accordance to the information obtained as a result of the screening process, TRADEULTRA will proceed for evaluation and further decide on accepting or rejecting the customer; or any other next course of action.
3.1 Rejecting based on UNSCR’s Sanction Lists
TRADEULTRA will not accept customer whose nationalities has been identifying as or hold passport as mentioned in the UNSCR’s sanction list. For further information refer to https://www.un.org/securitycouncil/sanctions/information
TRADEULTRA take this measure in line with UNSCR’s targeted financial sanctions relating to proliferation financing to prevent the provision of any forms of financial services through or from Malaysia, or to or by Malaysian nationals or entities organized under Malaysian law (including branches abroad), or persons or financial institutions in Malaysia, of any financial or other assets or resources if there is information that provides reasonable grounds to believe that such services, assets or resources could contribute to any restricted activity in any designated country.
3.2 Customer Profiling
TRADEULTRA has in placed a checklist on Customer Profiling where some of the risk factors includes high risk nature of business, business dealing in high risk country and etc.
TRADEULTRA’s officer(s) and/or employee(s) will complete the respective checklist on Client Profiling and submit to TRADEULTRA’s Compliance Officer for review and approval.
TRADEULTRA will further decide on accepting or rejecting the customer; or any other next course of action.
TRADEULTRA take this measure to perform customer profiling at its best available means, to the best extent of risk-based approach, in evaluating potential terrorism and proliferation financing.
3.3 Rejecting based on Suspicious Transactions
TRADEULTRA upon assessment and evaluation on any suspicious transactions, where no satisfactory evidences are provided, may decide on rejecting a customer at the discretion of TRADEULTRA’s Board of Directors. Please refer to the STR Policy on the website.
4. Maintenance of Sanctions List
For the purposes of keeping updated and informed with the list of countries and persons designated under the UNSCR’ sanction list, TRADEULTRA updates their database periodically to ensure the latest published sanction list is in records.
TRADEULTRA will download the updated sanction list from the official website and store in the company’s database which is accessible by TRADEULTRA’s officer(s) and/or employee(s).
5. Market Abuse
Client represents and warrants that it has sufficient knowledge and understanding of all applicable laws or regulations relating to market abuse, short selling and insider dealing and you and each Authorized User shall not submit any Order that could reasonably be considered not to be in compliance with such laws or regulations.
Trade Ultra will look to rigorously assess the nature of trading and usage of practices and strategies by clients, which may be classified as market abusive through internal surveillance and monitoring. The Company reserves the right to void and/or amend the terms of any transactions which it believes stem from the use of abusive practices/strategies without providing any prior notice. In its discretion and without any prior notice, the Company may increase the spreads on the Client’s account. All amounts received by the Client as a result of such transactions shall be forthwith paid back to the Company.
