Anti-Money Laundering Policy
SEBI Registered Investment Adviser Registration No. INA000018540
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This Anti-Money Laundering (AML) Policy (“the Policy”) has been prepared in accordance Prevention of Money Laundering Act, 2002 (PMLA Act) and takes into account the provisions of the PMLA Act and other Rules laid down by SEBI from time to time.
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Prevention of Money Laundering Act, 2002 (PMLA) forms the core of the legal framework put in place by India to combat money laundering and related crimes. PMLA and the Rules notified thereunder came into force on July 01, 2005. Under PMLA, all the entities registered with SEBI are required to furnish information on all suspicious transactions whether or not made in cash to FIU-IND. Under Section 3 of PMLA, projecting crime as untainted property is an offense of money laundering liable to be punishment under Section 4 of the PMLA.
Money Laundering involves hiding financial assets so that they can be used without detection of the illegal activity that produced them. Through money laundering, the launderer transforms the monetary proceeds derived from criminal activity into funds with an apparently legal source.
Financial Intelligence Unit-India (FIU-IND) is the central national agency of India responsible for receiving, processing, analyzing, and disseminating information on suspect financial transactions. FIU-IND is also responsible for coordinating and strengthening efforts of national and international intelligence, investigation, and enforcement agencies in combating money laundering and related crimes. Section 2 (1) (g) of PMLA Rules defines suspicious transaction whether or not made in cash which, to a person acting in good faith:
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Gives rise to a reasonable ground of suspicious that it may involve the proceeds of crime: or
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Appears to be made in circumstances of unusual or unjustified complexity; or
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Appears to have no economic rationale or bonafide purpose; or
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Gives rise to a reasonable ground of suspicion that it may involve facing activities relating to terrorism.
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Some examples of suspicious transactions are as under:
For the purpose of PMLA, transactions include:
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All cash transactions of the value of more than Rs 10 lakhs or its equivalent in foreign currency.
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All series of cash transactions integrally connected to each other have been valued below Rs 10 lakhs or its equivalent in foreign currency, such series of transactions within one calendar month.
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All suspicious transactions whether or not made in cash and including, inter-alia, credits, or debits from any non-monetary account such as a Demat account.
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This Policy only supplements the existing SEBI / FIU guidelines relating to Anti Money Laundering and any subsequent guidelines from the date of the Policy on Anti-Money Laundering will be implemented immediately.
Hence the objective of the policy is to
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To have a proper Client Due Diligence Process thru KYC process before registering clients.
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To monitor/maintain records of all cash transactions of the value of more than Rs.10 lacs.
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To maintain records of all series of integrally connected cash transactions within one calendar month.
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To monitor and report suspicious transactions.
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To discourage and identify money laundering or terrorist financing activities.
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To take adequate and appropriate measures to follow the spirit of the PMLA.
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Client Due Diligence Process:
The KYC information is to be collected in the specified format ‘KYC Details’ which contains all information required as per SEBI KYC requirements including ‘In Person Verification’ (IPV). In addition, the information about FATCA declaration is also to be collected. All original PAN Cards/ Address Proof/ Aadhar Cards are to be signed and self-attested copies are to be taken. For NRIs, additional details and copies of their Passport / PIO Card/ OCI Card and their address in an overseas country along with their Tax Identification No. in that country to be collected.
The investment adviser shall not take a client on board where the Investment adviser is unable to apply appropriate customer due diligence measures i.e. it is unable to verify the identity and/or obtain documents required due to non-cooperation of the customer or non-reliability of the data/information furnished to an Investment adviser.
The guidelines for risk categorization for various types of clients are given below:
Maintenance of records of transactions
Investment Adviser shall have a system of maintaining proper records of all transactions including records of all transactions prescribed under Rule 3 of the Rules, as mentioned below:
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all cash transactions of the value of more than Rupees Ten Lakh or its equivalent in foreign currency.
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all series of cash transactions integrally connected to each other which have been valued below Rupees Ten Lakh or its equivalent in foreign currency where such series of transactions have taken place within a month and the aggregate value of such transactions exceed Rupees Ten Lakh;
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Information to be preserved:
Investment Adviser shall maintain the following information in respect of transactions referred to in Rule 3:
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the nature of the transactions.
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the amount of the transaction and the currency in which it was denominated.
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the date on which the transaction was conducted.
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the parties to the transaction.
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Maintenance and Preservation of records
The investment Adviser shall maintain and preserve the records of all transactions referred to above for a period of 5 years as required by the PMLA & SEBI Act.
The investment Adviser shall ensure that records pertaining to the identification of the customer and his address (e.g. copies of documents like passports, identity cards, driver's licenses, PAN, cards, utility bills, etc.) obtained while opening the account and during the course of the business relationship, are properly preserved for 5 years as would be required under the PMLA and SEBI Act even after the business relationship is ended.
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Reporting to Financial Intelligence Unit-India
Investment Adviser shall report information relating to cash and suspicious transactions to the Director, Financial Intelligence Unit-India (FIU-IND) in respect of transactions referred to above.
Suspicious Transaction Reports (STR)
The Suspicious Transaction Report (STR) shall be furnished within 7 days of arriving at the conclusion that any transaction, whether cash or non-cash or a series of transactions integrally connected are of a suspicious nature mentioning the reasons for treating any transaction or a series of transactions as suspicious.
We, Turiya Advisory Services LLP (“Investment Advisor”), a registered investment advisor, with SEBI Registration No. INA000018540, is implementing the above AML guidelines as a guiding principle for our investment advisory activities. The guidelines would be applicable to us along with our employees and associates.
For Turiya Advisory Services LLP
SEBI Registered Investment Advisers
Registration No. INA000018540
Date:
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Turiya Advisory Services LLP
SEBI Registered Investment Advisers Registration No.INA000018540
Address: 408, Oriana IT Business Park, Road No 22, Opp. GST Bhavan, Wagle Estate,
Thane, Maharashtra, India – 400604
Contact No: +91 9987779222, Email: bijoy@turiyaadvisory.com
Principal Officer: Mr. Robert Contact No: 91 918552574,