Last review date: 12/22/2020
Prepared by: Katherine Hicks, LLC Manager
LIBERTY DOLLAR FINANCIAL (LDF) in compliance with FinCEN and BSA Regulations has adopted these Anti-Money Laundering (ALM) Policies and Procedures. The Private Membership Association known as LIBERTY DOLLAR FINANCIAL will actively prevent and take measures to guard against being used as a medium for money laundering activities, terrorism financing activities and any other activity that facilitates money laundering or the funding of terrorist or criminal activities.
For the purposes of this Policy, the terms “Members” and “Customers” are used interchangeably.
To these ends:
• Katherine Hicks will act as the Money Laundering Reporting Officer (MLRO) to coordinate the AML policies and procedures of the business.
• All staff that meets or contact Members and potential Members of this firm is required to acknowledge that the policy and procedures have been read and understood before meeting or contacting Members.
• The identities of all new and existing Members will be verified to a reasonable level of certainty.
• A risk-based approach will be taken to the monitoring of Member tax and accounting affairs.
• Any suspicious activity will be reported, and all AML activities recorded
ANTI-MONEY LAUNDERING PROCEDURES FOR THE LIBERTY DOLLAR NETWORK
1. CUSTOMER DUE DILIGENCE
The business has established a Know-Your-Customer (KYC) policy to ensure that the identities of all new and existing Members are verified to a reasonable level of certainty. This will include all individual Members. Identities will be verified either online or face-to face or by a combination of both.
The following documentation may be presented by the individual:
• Either a passport, driver’s license, or government issued document featuring a matching photograph of the individual with the full name and date of birth matching those provided, or a photograph thereof, AND
• A scanned or original recent utility bill or government issued document with the name and address matching those provided by the individual, AND
• A verifiable Tax Identification Number issued by the country of origin of the individual
If LDN fails to verify the identity of a potential member with reasonable certainty it will not establish a business relationship or proceed with the transaction. If a potential or existing Member either refuses to provide the information described above when requested, or appears to have intentionally provided misleading information, the business shall refuse to commence a business relationship and will not proceed with the transaction requested.
2. RISK ASSESSMENT AND ONGOING MONITORING
The business shall take a risk-based approach in monitoring the financial activities of its Members. This will be carried out whilst preparing the accounts, tax notices or conducting any other business with the Member.
The business will actively not accept high-risk Members that are identified as follows:
• Members with businesses that handle large amount of cash (i.e. involving $10,000 USD or more) or complex, unusually large transactions.
• Members with larger one-off transactions, or a number of transactions carried out by the same Member within a short space of time.
• Members with complex business ownership structures with the potential to conceal underlying beneficiaries.
• Members based in or conducting business in or through, a high-risk jurisdiction, or a jurisdiction with known higher levels of corruption, organized crime or drug production/distribution.
• Situations where the source of funds cannot be reasonably verified.
• Unusual patterns of transactions that have no apparent economic or visible lawful purpose.
• Money sent to or received from areas known to have high levels of criminality or terrorist activity.
The business will conduct ongoing monitoring of business relationships with Members to ensure that the documents, date or information held evidencing the Member’s identity are kept up to date.
The following are examples of changes in a Member’s situation that may be considered suspicious:
• A sudden increase in business from an existing customer
• Uncharacteristic transactions which are not in keeping with the customer’s known activities
• Peaks of activity at particular locations or at particular times
• Unfamiliar or untypical types of customer or transaction Whenever there is cause for suspicion, the Member will be asked to identify and verify the source or destination of the transactions, whether they be individuals or company beneficial owners.
No action need be taken if there is no cause for suspicion.
3. INTERNAL CONTROLS AND COMMUNICATION
Internal controls and Communication are not applicable as the business only has one employee involved in Member compliance and they are also the MLRO.
4. MONITORING AND MANAGING COMPLIANCE
The MLRO will regularly monitor the following procedures to ensure they are being carried out in accordance with the AML policies and procedures of the business:
• member identity verification
• reporting suspicious transactions
• record keeping
The MLRO will also monitor any developments in the MLR and the requirements of the MLR supervisory body. Changes will be made to the AML policies and procedures of the business when appropriate to ensure compliance.
5. SUSPICIOUS ACTIVITY REPORTING
A Suspicious Activity Report (SAR) will be made to the Financial Crimes Enforcement Network (FinCEN) as soon as the knowledge or suspicion that criminal proceeds exist arises.
The MLRO will be responsible for deciding whether or not the suspicion of illegal activity is great enough to justify the submission of a SAR.
Records of all identity checks will be maintained for up to 5 years after the termination of the business relationship or 5 years from the date when the transaction was completed. The business will ensure that all documents, data or information held in evidence of customer identity are kept up to date.
Copies of any SAR, together with any supporting documentation filed will be maintained for 5 years from the date of tiling the SAR.
All records will be handled in confidence, stored securely and will be capable of being retrieved without undue delay.
The training of staff is not applicable as the business only has one employee involved in ML compliance who is also the MLRO.
All affected employees will be provided with training that explains Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer), FinCEN, BSA regulations and how these affect LDN, its members and employees.
All affected employees are trained regarding their responsibilities, money laundering legislation and are aware of how to identify and deal with transactions that may involve money laundering.