The United Arab Emirates (UAE) sets out its commitment in the Fight against money laundering and terrorist Financing through the establishment and adoption of a legislative regime which defines activities that amount to money laundering and terrorism activity and the criminalization of all such activities.
As an organization, G E M Crypto is subject and committed to the observance of the Anti-Money Laundering (AML) legislative and regulatory regimes applicable in the UAE. In particular, G E M Crypto has adopted systems and procedures to ensure compliance with:
What is Money Laundering?
Article 2 of the UAE Federal Decree-law No.20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations (“Law No 20”) describes money laundering as any act involving:
What this Means to G E M Crypto.
At G E M Crypto, we have implemented appropriate Anti-Money Laundering (AML) – Counter Financing of Terrorism (CFT) practices across our business in accordance with local AML legislations and international standards. We adopt the use of AML- compliant software which is meticulously tailored to meet Know Your Customer (KYC) and Customer Due Diligence (CDD) requirements within the digital assets’ ecosystem. Our approach focuses on adopting a combination of measures under our AML Compliance Program to prevent our business from being used to introduce proceeds of crime into the financial system or as a means to perpetrate financial crime.
Anti-Money Laundering Compliance Policy Declarations
G E M Crypto is fully committed to observing internationally accepted principles of AML-CFT compliance and adhering to local and international AML laws and regulations. We commit to observing and Reflecting within our processes the relevant recommendations issued by bodies such as Financial Action Task Force (FATF), Wolfsburg Group, etc. on preventing the utilization of our operations for criminal purposes.
Accordingly, we take necessary procedures and control measures to provide the optimum support in the Fight against money laundering and Financing of terrorism.
Furthermore, G E M Crypto is committed to continually Fulfilling its Anti-Money Laundering (AML) obligations to its local and foreign associates and correspondent banks that may sometimes require due diligence information on accounts and transactions. G E M Crypto will fulfil any such obligations in accordance with applicable legislations or regulations to which it is subject and under the guidelines and recommendations of the FATF.
G E M Crypto pledges to examine, review, and update its AML processes and control on an on-going basis and maintain high standards of processes through reporting and independent audit examinations and random testing of our AML Compliance Program.
Appointment of a Money Laundering Reporting Officer
G E M Crypto appoints at all times within its employment a Money Laundering Reporting Officer (MLRO) with full
responsibility for establishing and maintaining our AML Compliance Program. The MLRO is responsible for implementing G E M Crypto’ AML Compliance Program; effectively monitoring compliance with applicable AML legislations and regulations; overseeing the day-to-day operation of AML systems and controls, establishing and implementing an appropriate training program for G E M Crypto’ employees; receiving and investigating internal suspicious transaction reports and where appropriate, submitting external suspicious transaction reports to the relevant authorities.
Customer Identity Verification
Prior to opening an account on G E M Crypto and assessing the G E M Crypto platform, G E M Crypto will mandatorily verify each customer’s identity and screen each customer against local and international blacklists and sanctions lists, PEP lists and adverse media. G E M Crypto meticulously adheres to its Know Your Customer/Customer Due Diligence procedures and guidelines. This involves all necessary actions to ensure that its customers are real persons and that the risks of money laundering, Financing of terrorism and other financial crimes are properly identified and mitigated.
G E M Crypto undertakes due diligence of its customers prior to account opening and on an on-going basis throughout the business relationship. G E M Crypto may refuse to open an account or halt a customer’s continued access to the G E M Crypto platform if the customer does not meet our initial or ongoing KYC requirements.
Establishment of Beneficial Ownership of Funds
G E M Crypto is required under applicable legislation and/or regulation to identify the Beneficial owner of all transactions undertaken on the G E M Crypto platform and/or funds held in a G E M Crypto account. No customer is permitted to act on behalf of a third party while transacting on G E M Crypto. G E M Crypto considers all persons holding an account or transacting through G E M Crypto to be the Beneficial owner of the funds held in a G E M Crypto account or transaction executed through G E M Crypto. G E M Crypto may halt a customer’s continued access to the G E M Crypto’ platform if the customer is found to be acting on behalf of third parties.
Enhanced Know Your Customer/Due Diligence
Enhanced due diligence is conducted when a customer is deemed as exposing G E M Crypto to a high AML risk and/or when a transaction appears to be potentially suspicious on the basis of well-defined red Flag indicators. Our client relationship Staff will request additional KYC documents such as proof of source of the fund or additional identification documents as may be necessary to appropriately mitigate the risk. In such cases, an in-depth due diligence is conducted outlining the expected and actual transaction behavior and the on-going monitoring of transactions that may reveal potentially suspicious activities. Senior management approval is required prior to approving customers with high AML risk exposure.
On-going Transaction Monitoring
On an ongoing basis, our platform enables us to analyze the transaction behavior of the users while monitoring the volumes and frequency of their transactions.
In addition to the above, our tools enable us to identify the red Flags based on different parameters we use for risk Profiling of our customer base such as:
Occupation/profession
Expected transaction volumes and frequency Age.
Nationality Location
Customers deemed as having high AML risk exposure are subject to more stringent and frequent on-going transaction monitoring. G E M Crypto maintains the use of systems to effectively monitor its customers and all transactions executed through the G E M Crypto platform. Suspicious transactions or activity on G E M Crypto are subject to investigation.
Internal Reporting of Unusual/Potentially Suspicious Transactions
All client relationship Staff liaising with the client(s) for increased limits requests and overseeing subsequent remittances in the client’s account are required to report any potentially/actual suspicious or unusual transactions to the MLRO using our internal reporting system.
Reporting of Unusual/Suspicious Transactions/Activity
All G E M Crypto Staff are required to monitor, detect and report unusual/potentially suspicious activities or transactions to the MLRO, who will in turn, conduct an in-depth investigation, and determine whether an external
Staff Training
Within three months of joining G E M Crypto, a new employee receives mandatory AML training to raise awareness of their AML/CFT obligations under the legislations and regulations and to provide employees with the instructions necessary to detect suspicious activity. AML training is also provided annually. Additional training may be provided in the event of significant amendments to the AML legislations and/or regulations which directly impact on G E M Crypto AML policies and procedures. Our AML training seeks to build an AML/CFT compliance culture which is embedded in the activities and decision-making process of all employees.
AML training materials are adequately tailored for and to the different roles and functions within G E M Crypto and adequately covers:
Internal Security Measures – Know Your Staff
The Human Resources function essentially Confirms and documents the reliability of candidates considered for employment with G E M Crypto before on-boarding and on an on-going basis. Prior to making an Offer of employment, G E M Crypto conducts a due diligence check on potential candidates and screens all potential candidates through local and international sanctions lists and blacklists, PEP and adverse media. Employees are continually screened through the various lists on-going basis throughout the employee’s employment with G E M Crypto. Our Know your Staff process ensures that to a reasonable extent, we understand a potential employee’s background, Conflict of interests, and susceptibility to money laundering complicity (if any). .
Record Keeping
G E M Crypto maintains a records of all information and documentation obtained from its customers during the customer on-boarding process and thereafter throughout the duration of the relationship between G E M Crypto and the customer. Records maintained by G E M Crypto include customers’ identification documents, transaction data, and any other related documents. Records are retained as long as the customer holds an account with G E M Crypto and subsequently for a minimum period of Five (5) six years after the closure/redundancy of the account.
Confidentiality of Records and Suspicious Transactions
All customer records and transactional information are kept Confidential at all times, and the customers are not intimated if their transactions are considered suspicious and being reported to the MLRO internally or are being Filed as STRs or SARs to the FIU. Non-compliance to Confidentiality provisions under any legislation and regulation to which G E M Crypto is subject may constitute a criminal Offence against G E M Crypto, its directors, management, and its employees at fault.
Internal Audit’s Role
Internal Audit tests the Effectiveness of the AML Compliance Program and performs random checks on key responsibilities. All Findings and observations are discussed with the MLRO and are reported to the board of directors.