AML/FICA MANUAL 

2020  

FSP : Bluetrino SA t/a Bluetrino 

FSP Number: 27056 

CONTENTS 

1. PURPOSE OF THE MANUAL 

2. DEFINITIONS 

3. RISK MANAGEMENT FRAMEWORK 

4. RISK MANAGEMENT & COMPLIANCE PROGRAMME 

5. REPORTING SUSPICIOUS ACTIVITIES 

6. TIPPING-OFF 

7. STAFF TRAINING 

8. OTHER REPORTABLE ACTIVITIES 

9. RECORD KEEPING 

10. MONEY LAUNDERING REPORTING OFFICER DETAILS 

ANNEXURE 1: CLIENT RISK RATING 

ANNEXURE 2: “CUSTOMER DUE DILIGENCE” DOCUMENTATION ANNEXURE 3: SCREENING & WATCHLISTS 

ANNEXURE 4: POLITICALLY INFLUENTIAL PERSONS 

ANNEXURE 5: CDD CONFIRMATION CERTIFICATE 

ANNEXURE 6: ANTI-MONEY LAUNDERING REPORT 

1. APPLICATION OF THE MANUAL

To be read together with: 

• Financial Intelligence Centre Act, 2001 (Act 38 Of 2001) 

• The FIC Amendment Act;  

• Amendments to the Money Laundering and Terrorist Financing Control  Regulations; 

• Guidance Note 4A – to assist accountable institutions, reporting institutions  and any other person to whom the FIC Act applies in meeting their reporting  obligations in terms of section 29 of the Act;  

• Guidance Note 5B – to assist accountable institutions and reporting  institutions in meeting their cash threshold reporting obligations in terms of  section 28 of the FIC Act;  

• Guidance Note 6 – provides guidance on terrorist financing and terrorist  property reporting obligations in terms of section 28A of the FIC Act; and  • Guidance Note 7 – to assist accountable institutions on the implementation of  the various provisions of the FIC Act. 

2. DEFINITIONS 

Accountable Institution (AI): An accountable institution is any person or entity as  described in Schedule 1 of the Financial Intelligence Centre Act No. 38 of 2001 who  must ensure adherence to the legal requirements and responsibilities as set out  therein. An accountable institution can be split into two distinct categories: 

i) Primary Accountable Institution: These institutions are responsible for  verifying and keeping record of the identities of their clientele. 

ii) Secondary Accountable Institutions: These institutions rely on the  adherence of the Primary Accountable Institutions and as such, are not  required to verify the identities of the Primary Accountable Institution’s clients. 

Act: Financial Intelligence Centre Act No. 38 of 2001 (also known as “FICA”), as  amended by the Financial Intelligence Centre Amendment Act of 2017. 

Controlling ownership interest: refers to the ability by virtue of voting rights attached  to share holdings to take relevant decisions within the legal person and impose those  resolutions. 

Customer Due Diligence: The steps and procedures taken to identify and verify  clients. For the purposes of abbreviation, it is also referred to as “CDD”. 

Effective control: means ability to materially influence key decisions in relation to a  legal person (e.g. the manner in which the majority of voting rights attached to  shareholdings are exercised, the appointment of directors of a legal person, decisions  taken by a board of directors, key commercial decisions of a legal person), or the  ability to take advantage of capital or assets of a legal person.

Financial Intelligence Centre: The Financial Intelligence Centre is South Africa’s  national centre for gathering, analysis and dissemination of financial intelligence. It  was established to identify proceeds of crime, combat money laundering and the  financing of terrorism and, in so doing, has a primary role to protect the integrity of  South Africa’s financial system. For the purposes of abbreviation, it is also referred to  as “FIC”. 

Financial Sector Conduct Authority: The Regulatory agency responsible for non banking financial services in South Africa. For purposes of abbreviation, it is also  referred to as the “FSCA”. 

Financial Services Provider: Any person (including both natural and juristic persons)  other than a Representative who furnishes advice or who furnishes advice and renders  intermediary services. For the purposes of abbreviation, it can also be referred to as a  “FSP”. 

Law enforcement Agencies: Financial Intelligence Centre, South African Police,  National Prosecuting Authority, Financial Services Board. 

MLRO: Money Laundering Reporting Officer. 

ML & TF: Money Laundering and Terror Financing 

Money Laundering: Any process which gives the proceeds of unlawful activities the  appearance that they originate from a legitimate source. 

PIP: Prominent Influential Persons refer to any individuals who are or have in the past  been entrusted with prominent functions in a particular country and encompasses the  immediate family members and known close associates of any given client. PIPs can  be split into two distinct categories: 

i) Foreign Prominent Public Officials: Individuals who hold or have held  prominent positions at any time during the preceding 12 months in a foreign  country. 

ii) Domestic Prominent Influential Persons: Individuals who hold or have held  (including acting positions exceeding 6 months) prominent positions within the  Republic of South Africa 

POCA: Prevention of Crime Act No 24 of 1999, which stipulates criminal and civil  offences, tipping-off and penalties. 

Payments: Payments can be a money transaction of a transaction of Crypto Assets for  an investment or for paying another party or for depositing into a Bank account. 

Risk: means the impact and likelihood of ML/TF taking place. Risk refers to inherent  risk, i.e. the level of risk that exists before mitigation. It does not refer to residual risk,  i.e. the level of risk that remains after mitigation.

Risk factors: means variables that, either on their own or in combination, may  increase or decrease the ML/TF risk posed by a business relationship or single  transaction.  

Risk-based approach: means an approach whereby accountable institutions identify,  assess and understand the ML/TF risks to which institutions are exposed and take  AML/CFT measures that are proportionate to those risks.  

Senior management: in an accountable institution is determined by the size,  structure, and nature of the institution. The senior manager whose approval is sought  for purposes of the FIC Act should have sufficient seniority and oversight to take  informed decisions concerning the institution’s compliance with the FIC Act that bind  the institution to those decisions. 

Source of funds: means the origin of the funds involved in a business relationship or  single transaction. It includes both the activity that generated the funds used in the  business relationship (for example the client’s salary, occupation, business activities,  proceeds of sale, corporate dividends, etc.), as well as the means through which the  client’s funds were transferred.  

Source of wealth: means the activities that have generated the total net worth of the  client that is, the activities that produced the client’s funds and property (for example  inheritance or savings). 

Tipping-off: Any instance where an individual within the FSP (including its Associates)  discloses information to someone outside of the approved reporting chain and, in so  doing, the information could potentially prejudice an investigation into money laundering.

3. General Provisions  

3.1. This Guide establishes internal security measures to comply with the requirements  for the prevention of money laundering and terrorism and international sanctions, as well  as the identification of suspicious and unusual transactions. 

3.2. The employees of Bluetrino SA must recognize and strictly observe the  requirements of international sanction, regulations on detecting suspicious transaction  traits of money laundering and terrorist financing, issued by the Financial Intelligence  Unit, other instructions regulating the compliance with the Money Laundering and  Terrorist Financing Prevention Act and the requirements herein. 

3.3. The employees of Bluetrino must independently review the amendments to laws and  other legal acts that appear on the website of the Financial Intelligence Unit at the FSCA  of South Africa. 

3.4. The Management Board of Bluetrino is required to present these Guidelines to all  members of Bluetrino. 

3.5. The employees of Bluetrino are obliged to confirm the reviewing of this manual with  a handwritten signature. 

3.6. The employees of Bluetrino are personally liable for compliance with the  requirements of the Money Laundering and Terrorist Financing Prevention Act pursuant  to the procedure provided by law. 

3.7 Client Evaluation and Risk Analysis 

Each client of Bluetrino is assessed in accordance with these guidelines. 

In the evaluation of the Client, Bluetrino proceeds from the "Know Your Customer"  principle and international standards and practices.

Figure 1 Diagram of KYC/ AML procedure. The continuous monitoring loops back to the initial  documentation gathering, after certain document elapsed/ limits were exceeded. What this means is  that any outdated documents need to be refreshed ( passport, proof of address if residence  changed and from there moved back to 3rd party sanction list to check same person again.  

3.7.1 Prospective clients desiring to transact with the FSP are required to complete the  necessary application form(s) to facilitate their investments or escrow  transmissions. Each application form requires a number of supporting documents  to be provided pertaining to the prospective client’s identity. Acceptable forms, as  per Annexure 2 of verification form the basis of the FSP’s CDD processes.  

3.7.2. Upon receipt of the completed applications and supporting documents, the  information is reviewed to ensure consistency, completeness and accuracy. 

3.7.3 Should the FSP be in any way dissatisfied with the provided documentation, have  any doubts as to the identity of the prospective client, be unable to resolve any  noted inconsistencies or should the prospective client be unwilling to provide the  required supporting documents, the FSP shall not establish a business  relationship with the prospective client, or conclude any transactions on their  behalf. Subject to the circumstances involved, the FSP reserves the right to file a  Suspicious & Unusual Transaction Report with the Financial Intelligence Centre. 

3.7.4 After the initial application and acceptance, a client will be screened against a  number of watch lists, as detailed in Annexure 3, on an ongoing basis to identify: i) Sanctioned individuals; 

ii) Organized crime and threat finance; and 

iii) Politically Influential Person relationships. 

Any client, as identified by the United Nations Security Council, shall remain a client of  the FSP. Once identified, such a client will be subject to a Suspicious and  Unusual Transaction Report and the FSP shall cease any and all transactions  with the sanctioned client, including concluding transactions on their behalf, as  required by Section 26B of the Act. 

Any client found to be concluding transactions under a false identity will be subject to a  Suspicious and Unusual Transaction Report and the FSP shall cease any and all  transactions with the sanctioned client, including concluding transactions on their  behalf, as required by Section 20A of the Act.

Should the FSP at any time doubt the veracity of the provided FICA documentation, the  FSP reserves the right to request FICA documentation as detailed in Annexure 2. 

3.8. When conducting a preliminary background check of a potential Client, the  assessment of the risks of money laundering and terrorist financing is based on  the Client’s residence, economic and personal activities, legal form, expected  volume of transactions and selected services. 

3.9. In the assessment of a potential Client, his reputation is also taken into account. 3.10. The following background study is conducted for the client: 

1. Information about the Client’s personal or economic activities. 

2. Information on the origin of the Client’s financial resources. 

3. Information about the actual beneficiary. 

4. Tracking transactions on the client’s account and, if necessary, asking for  documents related to transactions. 

5. Keeping and protecting the information received and updating regular  information and documents. 

3.11 Bluetrino does not serve or co-operate with the following persons: 

1. that are not identified in conformity with law requirements due to the lack of data  provided. 

2. Who fails to submit the requested documents that are required by law and are  necessary for the establishment of the account and the execution of  transactions or attempts to circumvent the submission of documents or to  submit fewer documents than required. 

3. There is a reason to doubt the authenticity of the documents submitted. 4. Who refuses to provide data on the origin of his or her financial means where  the provision of such information is required by law. 

5. There are grounds for believing that he or she has participated in or contributed  to the commission of a terrorist act. 

6. Under 18 years of age. 

7. about whom information has been gathered accord to which there are grounds  for believing that money laundering or terrorist financing may be involved. 8. to whom international sanctions apply 

9. are politically influential people who are in the sanctions list or South African  and under a current legal trial for fraud and corruption. 

4. RISK MANAGEMENT & COMPLIANCE PROGRAMME 

4.1. The Risk Management & Compliance Programme (“RMCP”) encompasses the  processes and procedures employed by the FSP and its Associates to identify,  assess, monitor, mitigate and manage any risks related to money laundering  and the financing of terrorist activities.

4.2. An FSP’s CLIENT BASE 

4.2.1. An FSP may interact with a broad client base encompassing natural and  legal entities, both within and outside the Republic of South Africa. The  client base can broadly be classified into two groups: 

i) Direct Clients and Escrow Clients. 

In the normal course of business, direct clients contact the FSP  directly, without the assistance of an intermediary, such as a  brokerage or a third parties clients. The FSP assumes direct  responsibility for the risk assessments, AML procedures, record  keeping and reporting obligations applicable to these clients. 

ii) Broker-Engaged Clients (insurance) 

The FSP may interact with a number of Broker-Engaged Clients,  each with their own client base. The FSP will rely on the AML/CFT  policies and procedures of the institutions concerned to identify and  verify Broker-Engaged Clients. While the FSP primarily rely on  these policies and procedures, periodic reviews will be conducted to  ensure continued compliance to the Act. 

4.3. CLIENT RISK RATING (To be read together with Annexure 1) 

4.3.1. Due to the broad scope of the aforementioned client base, it is not  practical to determine whether prospective clients intend to establish  long-term business relationships or conclude single transactions with the  FSP. The FSP chooses to focus primarily on Customer Due Diligence  and the associated reporting obligations. 

4.3.2. The FSP shall treat all prospective or new clients as high risk until  factors indicate low risk. 

4.3.3. Factors which will escalate a client’s risk rating include, but are not  limited to the following: 

i) A client’s unreasonable resistance or unwillingness to provide  requested CDD documentation; 

ii) Inconsistencies between provided CDD documentation and client  information on record; 

iii) Suspicious account activity and/or transactions; 

iv) Being flagged against sanction watch lists; 

v) Being identified as a PIP or as a family member or associate of a  PIP; and 

vi) The client pays or receives more than Euro 20 000 (in total) during  the course of a year or the client’s portfolio market value exceeds  Euro 20 000 during the year.

4.4. PRINCIPLES 

4.4.1. No exceptions, other than those set in the rules, will be made for small  transactions transaction , just once off transactions. This is to prevent  the individual/entity from becoming a client with a small amount and  later increase the limits hoping that there compliance will not notice it. 

4.4.2. The FSP will not establish relationships with any individual or entity that  will expose the reputation of the FSP to risk. This is done to protect not  only the good name of the FSP but also the names of the clients  associated with the FSP. 

4.4.3. If a client is suspected of engaging in or being involved with illegal  activities, this will be deemed as a violation of the “good faith” extended  by the FSP. As such, the FSP reserves the right to terminate business  relationships with existing clients if the “good faith” is violated in this  manner. The decision to terminate the relationship will be made by  executive management on a case-by-case basis. Any such terminations  will be followed by reporting the FSP’s suspicions to the relevant law  enforcement agencies. 

4.4.4. All employees involved in the termination of the business relationship  must co-ordinate the termination with the Money Laundering Officer of  the FSP. The MLRO will in turn liaise with law enforcement agencies  before communicating the FSP’s intention to terminate the client  relationship.  

The MLRO of the FSP: Gregor Peter Josef Schmitz 

4.5. CUSTOMER DUE DILIGENCE 

4.5.1. DIRECT CLIENTS 

Prospective clients desiring to transact with the FSP are required to  complete the necessary application form(s) to facilitate their investments or escrow transmissions. Each application form requires a number of  supporting documents to be provided pertaining to the prospective client’s  identity. Acceptable forms, as per Annexure 2 of verification form the  basis of the FSP’s CDD processes.  

Upon receipt of the completed applications and supporting documents,  the information is reviewed to ensure consistency, completeness and  accuracy. 

Should the FSP be in any way dissatisfied with the provided  documentation, have any doubts as to the identity of the prospective  client, be unable to resolve any noted inconsistencies or should the 

prospective client be unwilling to provide the required supporting  documents, the FSP shall not establish a business relationship with the  prospective client, or conclude any transactions on their behalf. Subject to  the circumstances involved, the FSP reserves the right to file a  Suspicious & Unusual Transaction Report with the Financial Intelligence  Centre. 

After the initial application and acceptance, a client will be screened  against a number of watch lists, as detailed in Annexure 3, on an ongoing  basis to identify: 

i) Sanctioned individuals; 

ii) Organized crime and threat finance; and 

iii) Politically Influential Person relationships. 

Any client, as identified by the United Nations Security Council, shall  remain a client of the FSP. Once identified, such a client will be subject to  a Suspicious and Unusual Transaction Report and the FSP shall cease  any and all transactions with the sanctioned client, including concluding  transactions on their behalf, as required by Section 26B of the Act. 

Any client found to be concluding transactions under a false identity will  be subject to a Suspicious and Unusual Transaction Report and the FSP  shall cease any and all transactions with the sanctioned client, including  concluding transactions on their behalf, as required by Section 20A of the  Act. 

Should the FSP at any time doubt the veracity of the provided FICA  documentation, the FSP reserves the right to request FICA  documentation as detailed in Annexure 2. 

4.5.2. BROKER-ENGAGED CLIENTS & ON-SITE REVIEWS 

When interacting with various Broker-Engaged Clients, it is the policy of  the FSP to obtain a “CDD Confirmation Certificate” from the Broker Engaged Client concerned. The certificate provides written confirmation  from the Broker-Engaged Client that the FSP may rely on the  identification, verification, record keeping processes and procedures of  the Broker-Engaged Client. The Broker-Engaged Client accordingly  assumes the role of the Primary Accountable Institution in the business  relationship, while the FSP assume the role of Secondary Accountable  Institutions. A template of the CDD Confirmation Certificate is attached in  Annexure 5. 

It is the Manual of the FSP and its Associates to conduct on-site reviews  of a Broker-Engaged Client’s FICA processes. On-site reviews will be  conducted at the discretion of the Compliance department. The on-site  review process is outlined as follows:

i) The Compliance department will select an appropriate audit  sample from the Broker-Engaged Client’s customer base. The  

audit sample will be reflective of the customer base’s composition  

and will be compiled using a mixture of sampling methodologies. 

ii) The Broker-Engaged Client will be contacted and the time and  date of the review will be arranged. The Broker-Engaged Client  

will be given sufficient time to compile the auditing sample and any  

supporting documentation. 

iii) The audit will be conducted by a representative of the Compliance  department at the time and date as arranged. A comprehensive  

audit report will be compiled detailing any and all findings,  

including shortfalls in FICA documentation. The audit report will be  

filed for record keeping purposes with the Compliance department. 

iv) Upon completion, the audit report will be forward to Management.  Management will in turn relay the audit findings to the Broker 

Engaged Client 

v) The Broker-Engaged Client shall have opportunity to respond to  the findings and rectify any shortcomings in the FICA  

documentation. Proof of such action shall be forwarded to the  

Compliance department for record-keeping purposes 

vi) If issues detailed in the audit report are not addressed in a  reasonable amount of time, Management will take appropriate  

action to protect the interests of the FSP. These actions may  

include reporting the Broker-Engaged Client to the Financial  

Intelligence Centre, depending on the circumstances. 

4.5.3. PROMINENT INFLUENTIAL PERSONS 

Since PIPs as a category are viewed as high-risk clients, they need  management sign of for onboarding and manual searches for recent  ongoing corruption trials. 

5. REPORTING SUSPICIOUS ACTIVITIES 

5.1. REPORTING OBLIGATIONS 

5.1.1. The FSP recognises that they has a legal duty to protect the  confidentiality of their clients. However, the FSP will release any and all  required information to law enforcement agencies in the course of  reporting and investigating suspicious business activities. 

5.1.2. The FSP will not hesitate to report knowledge or suspicion of criminal  conduct where it is legally obligated to do so. The FSP recognise that  failing to do so would constitute an offence. In reporting suspicious and 

illegal activities, the FSP will make full use of the protection afforded by  legislation to reporters. This legislation effectively protects any reporting  entity. They cannot be charged with assisting criminal endeavours. 

5.1.3. The MLRO will serve as the FSP’s primary contact when meeting with law  enforcement agencies. When meeting with the aforementioned agencies,  the MLRO may include the Section 43 Compliance Officer and/or Senior  Management. 

5.1.4. The FSP have also placed procedures in place to reduce the risk of an  employee tipping-off a client or any other person with whom they are in  contact. Tipping-off is a criminal offence that carries heavy penalties, both  for the FSP (as accountable institutions) and the offending employee (in  his/her individual capacity). 

5.2. PROTECTION WHEN MAKING REPORTS 

5.2.1. No action – criminal or civil – can be brought against the FSP (as  accountable institutions) or any of its employees (as individuals) for  complying in good faith with the provisions of the Act. 

5.2.2. Any person who has made, initiated or contributed to a report in terms of  the Act is not obligated to give evidence in criminal proceedings. 

5.2.3. The identity of any person who has made, initiated or contributed to a  report in terms of the Act will not be admissible as evidence in criminal  proceedings unless the person testifies at those proceedings. 

5.3. REPORTING PROCEDURES 

5.3.1. The FSP have implemented a strict reporting process to report any and  all suspicious activity that may be identified during the ordinary course of  business. This process has been laid out in detail in the pages to follow.  Any deviation from this process will require the approval of the Board of  Directors. 

5.3.2. The FSP and its Associates will never take on a Direct Client who is a  PIP. 

5.3.3. STAGES 

• STAGE 1 

Stage one of the process requires staff members to identify  suspicious activity. An abnormal or suspicious transaction is any  transaction that has been structured in an extraordinary or unusual  way. 

• STAGE 2

Stage two requires that the staff member complete an “Anti-Money  Laundering Report”. A template of this report can be found in  Annexure 6. It is very important that the staff member explains  his/her reasons for suspecting a given transaction in full detail. 

Once the report has been filled out, the staff member should present  the report to the Head of their Business Unit. They will discuss the  facts, review the report and, where appropriate, add additional  information about the client or transaction if it is relevant to the  matter under consideration. All staff members involved in discussing  the report must sign the report to acknowledge that they are  suspicious of the transaction. If a staff member suspects the Head of  the Business Unit to be involved with the suspicious activity under  consideration, the MLRO should be contacted immediately. If, the  MLRO is suspected, the staff member should speak directly with  Senior Management. 

Suspicions must not be discussed with anyone other than those  mentioned above. Once the reporting process has commenced, it  must be followed through to completion, even if the original suspicion  does not exist. All reports will be kept on file by the MLRO for record 

keeping and referral purposes. 

It is of vital importance, regardless of whether the suspicions are  proven true or not, that no mention of these suspicions be made to  the client. Any discussion of this nature would risk a tipping-off  offence. Staff should at all times neither confirm nor deny the  existence of a report to the client or to a third party. Any  correspondence that could indicate the existence of a report should  not be placed in the client’s file. 

Once the report has been finalised, it must be presented to the  MLRO who in turn will acknowledge its receipt in writing. The staff  member will then receive guidance from the MLRO on how to  proceed with the client in question. In particular, if the client  demands that subsequent transactions be executed, the situation  must be discussed with the MLRO before any action is taken. In  certain cases, the MLRO may decide to allow transactions to  continue in order not to raise the client’s suspicions. Regardless, the  MLRO should be kept informed of all subsequent dealings with the  client. 

• STAGE 3 

Stage three of the process is handled exclusively by the MLRO. The  MLRO must decide, based on the staff member’s report and all  available information (including additional enquiries), whether or not  the transaction has remained suspicious. If the MLRO feels that the  transaction has remained suspicious, the MLRO will make an official  report to the relevant law enforcement agencies All reports made to 

law enforcement agencies will be kept in a “Money Laundering  Reporting Register” for record-keeping and referral purposes. 

The initiating staff member will receive an acknowledgment signed  by the MLRO confirming that their personal legal obligations in terms  of this Manual have been met. If the staff member has not received a  confirmation within one week of submitting the initial report, the  MLRO should be contacted immediately. 

5.3.4. NON-DISCLOSURE OF REPORTS 

When the MLRO files a report concerning suspicious transactions with the Financial Intelligence Centre, any person involved in the making and  submission of that report may not disclose the nature of the report or any  information related to it to any other person. 

5.3.5. RECORD KEEPING RELATED TO REPORTS 

Records are kept to provide an audit trail and adequate evidence to law  enforcement agencies during the course of their investigations. However,  these records will only be provided at the request of law enforcement  agencies. 

All records will be kept for at least 5 (five) years from the date of the last  transaction on the account. 

6. TIPPING-OFF 

6.1. WHAT IS “TIPPING-OFF”? 

“Tipping-off” is an offence in terms of the Act. Any employee of the FSP who  discloses information to someone outside the internal reporting chain of the  FSP, potentially prejudicing an investigation into money laundering activities,  will be guilty of “tipping-off”. 

6.2. The internal reporting chain of the FSP is as follows: 

i) The employee(s) who become aware of the suspicious activity 

ii) The Head of their Business Unit 

iii) The MLRO 

iv) The Law Enforcement Agencies 

6.3 Any employee who has been found to have deliberately acted against the  provisions of this Manual – including tipping-off clients – will be subject to the  internal disciplinary procedures of the FSP as well as the potential penalties  as detailed in legislation.

6.4 For an employee to be guilty of “tipping-off”, they must have had knowledge of  or suspected that a money laundering investigation was about to be  conducted. An employee would be aware of a pending investigation because: 

i) A disclosure has been made or is about to be made to a person in the  internal reporting chain or; 

ii) A court order has been served or is about to be served by a law  enforcement agency compelling the production of documents and/or  information. 

6.5 WHAT “TIPPING-OFF” DOES NOT MEAN 

If an employee makes a general enquiry, requesting additional information  from a client (specifically regarding their identity or the nature of a transaction)  before a person in the internal reporting chain is notified or a court order is  received, the employee will not have committed a tipping-off offence. 

7. STAFF TRAINING 

7.1. INTERNAL TRAINING PROGRAMME 

All employees of the FSP, whether permanent or part-time, will receive anti money laundering training necessary to their job function within the FSP.  Training will be provided by the Compliance department. 

All employees have been made aware of the offences detailed in the legislation  for non-reporting, tipping-off and consciously or unconsciously assisting money  launderers. As such, they have also been made aware of their responsibilities,  both as individuals within their respective business units and as employees of  the FSP. 

All staff are required to sign a register when attending the training sessions.  Each staff member attending the session will receive a copy of the latest version  of this Manual as well as the accompanying explanatory notes. The signed  register will be kept in the Compliance department. 

Due to staff movement, ongoing training is necessary to maintain awareness of  anti-money laundering processes. Refresher courses will be offered from time to  time for the benefit of new and existing employees alike. 

7.2. MANUAL AMENDMENTS & DISTRIBUTION 

This Manual may be updated from time to time in line with changes to legislation  or to better improve the anti-money laundering processes of the FSP. An  updated version of the Manual will be made available to staff, either through  internal communications or the FSP’s website. 

7.3. DISCIPLINARY PROCEEDINGS

Any employee of the FSP found to be in contravention of the requirements and  provisions outlined in this Manual shall be subject to internal disciplinary  proceedings as well as administrative sanctions / penalties as may be required  by the Act. 

8. OTHER REPORTABLE ACTIVITIES 

8.1. CASH THRESHOLD REPORTING 

All cash transactions exceeding R24 999-00 will be automatically reported to  the MLRO. We do not accept cash in other currencies. 

8.2. CROSS BORDER CONVEYANCE AND ELECTRONIC TRANSFER  REPORTING 

All cross border conveyance and electronic transfers from the Republic of  South Africa with a value over 8 000 Euro worth will automatically be reported  to the MLRO. 

8.3. TERRORIST PROPERTY REPORTING 

Any property connected to an offence relating to the financing of terrorist and  related activities or any property directly connected to terrorist and related  activities will be automatically reported to the MLRO. 

All client records will be checked against the United Nations Security Council  Sanctions list and any client who is found to be connected with the financing of  terrorist and related activities will be automatically reported to the MLRO. 

9. RECORD KEEPING 

9.1. DOCUMENTATION RETENTION 

The FSP will retain all documentation detailing transfers in and out of client  accounts, including any and all supporting documents. These documents will be  kept on file to provide an audit trail for the money transfers and, should the  need ever arise, provide adequate evidence for law enforcement agencies  during the course of their investigations. 

If and when the FSP receive a court order requiring documents or other  information for the use of law enforcement agencies, all staff members must co operate and assist the MLRO in complying with the court order. 

Documents will be kept on file according to the time periods dictated by local  legislation. The minimum retention periods for documentation are as follows: 

i) Opening Account Records – These records will be kept on a  permanent file for as long as the business relationship continues

between the client and the FSP. Should the relationship is terminated,  documents will be kept on file for at least 5 years after the last  transaction or closure of the account. 

ii) Account Transaction Records – At least 5 years. 

iii) “Individual” or Stand-alone Transaction Records – At least 5 years  after the transaction was completed. 

iv) MLRO register of Reports and supporting documentation – At least 5  years. 

v) Training Records relating to Anti-Money Laundering – At least 5 years. 

If the FSP is aware that a money laundering investigation is currently being  conducted by law enforcement agencies, all records relating to the client and  the account under investigation must be kept on file until advised otherwise by  the investigating authorities. The MLRO will be responsible for managing such  situations, should they arise. 

9.2. RETRIEVAL OF DOCUMENTS 

Documents that are required under a court order must be retrieved and  produced for inspection within a reasonable period of time, as stipulated by the  court order, from the date the court order was served. Electronic records are  also acceptable. 

9.3. DESTRUCTION OF DOCUMENTS 

No documentation in respect of the procedures outlined above will be destroyed  until the documents have been archived and the destruction of the documents  have been authorized by the MLRO. 

10. MONEY LAUNDERING REPORTING OFFICER DETAILS 

The details of the MLRO are as follows: 

Name: Gregor Peter Josef Schmitz 

E-mail: Gregor@bluetrino.com 

Tel: +2121 812 1700

ANNEXURE 1 

CLIENT RISK RATING 

A client’s risk rating shall directly impact the level of CDD required. Risk ratings are  assigned as follows:

TRANSACTION  

TYPE

RISK  

RA 

TI 

NG

REQUIRED INFORMATION

Single Incoming or  

Outgoing 

Transaction 

<Euro 1000

Low Risk 

Full name of person or legal entity. Bank  verification.

Single incoming 

Transactions  

< Euro 5 000

Low Risk

Basic Information (Full name & ID 

document) Completed Application,  Sanction List screening.

Single incoming  

Transactions  

> Euro 5 000

High Risk

Full FICA 

Completed Application, Sanction List  screening, ID verification, document  verification

Total incoming 

transactions  

Annual  

< Euro 16 000

Low Risk

Basic Information (Full name & ID) Completed Application, Sanction List  screening.

Annual incoming 

Transaction >  

16 000 Euro

High Risk

Full FICA 

Completed Application, Sanction List  screening, ID verification, document  verification

Single Client  

Redemption <  

5 000 Euro

Low Risk

Bank Verification prior to  

Redemption pay out, Sanction List  screening.

Single client redemption 

High Risk 

Full FICA

> Euro 5 000 

ESCALATION FACTORS 

A “low risk” client may be classified as a “high risk” client if: 

i) The client is unwilling or unusually resistant to providing the required  documentation; 

ii) There are inconsistencies between the provided documentation and the client  information on record; 

iii) The client engages in suspicious activity, including: 

a. Multiple redemptions per month; and 

b. Making multiple investments & redemptions within the space of 30 days. iv) The client is identified as a family member of a PIP; 

ONGOING CDD MEASURES 

High risk clients will be actively monitored and be required to provide up-to-date  details at least once per year to ensure that the risk ratings and information on  record are accurate and up to date. 

ANNEXURE 2 

“CUSTOMER DUE DILIGENCE” DOCUMENTATION 

SOUTH AFRICAN CITIZENS 

Funds coming in or going out by a Natural Persons and their Representatives

NATURAL PERSONS (FICA Reg. 3 & 4)

IDENTIFY 

VERIFY

Full Name & Surname: 

ID Document / Passport 

Date of Birth: 

ID Document / Passport 

Identity Number: 

ID Document / Passport 

Income Tax Number: 

SARS Document

Residential Address: 

Proof of Address (not older than 3 months)

REPRESENTATIVE OF A NATURAL PERSON 

(FICA Reg. 3, 4 & 17)

IDENTIFY 

VERIFY

Proof of Representation: 

Letter of authority, Court order etc.

Full Name & Surname: 

ID Document / Passport 

Date of Birth: 

ID Document / Passport 

Identity Number: 

ID Document / Passport 

Income Tax Number: 

SARS Document

Residential Address: 

Proof of Address (not older than 3 months)

Contact Particulars: 

Telephone number / Cell Number / Email

Funds made on behalf of a Minor by a Parent or Legal Guardian, not allowed. 

If the investment is made by a court appointed Guardian and not the  natural parent(s) of the minor, the following documents must be  provided: 

• Verified copy of proof of guardianship from the Master of the Supreme Court. • Verified copy of the minor’s birth certificate. 

FOREIGN NATIONALS 

Investments made by a Natural Persons and their Representatives 

NATURAL PERSONS (FICA Reg. 5 & 6)

IDENTIFY 

VERIFY

Full Name & Surname: 

Passport

Date of Birth: 

Passport

Nationality: 

Passport

Passport Number: 

Passport

South African Income Tax Number (if issued): 

SARS Document

Residential Address:

Proof of Address (not older than 3 months)

REPRESENTATIVE OF A FOREIGN NATIONAL (FICA Reg. 5, 6 & 17)

IDENTIFY 

VERIFY

Full Name & Surname: 

Passport

Date of Birth: 

Passport

Nationality: 

Passport

Passport Number: 

Passport

Residential Address:

Proof of Address (not older than 3 months)

Contact Particulars: 

Telephone number / Cell Number / 

Email 

LEGAL ENTITIES: SOUTH AFRICA 

Payments made by a South African Companies 

If a company is listed on a recognised security exchange, no FICA documentation  (apart from Proof of Listing) is required. This exemption does not apply to  subsidiaries of a listed company, whether wholly owned or not. For all unlisted South  African companies, the following documents will be required: 

SA COMPANIES (FICA SECTION 21B and FICA Reg. 7 & 8) 

IDENTIFY VERIFY 

CM1 & CM2 / CoR 14.1, CoR 14.3 &  

Registered Name: 

Registration Number: 

Registered Address: 

Name under which Conducting  

CoR 15.1 

CM1 & CM2 / CoR 14.1, CoR 14.3 &  CoR 15.1 

CM1 & CM2 / CoR 21 or Confirmation  Certificate. 

Business: Corporate Letterhead Operating Address:Proof of Address (not older than  

3 months) 

Income Tax & VAT Numbers: SARS Documents Company Share Register /  

Ownership Structure 

COMPANY REPRESENTATIVES: 

Corporate Organogram 

For each Manager, Director and Authorised Individual of the Company (FICA Reg. 7  & 8) 

IDENTIFY VERIFY 

Full Name & Surname: ID Document / Passport  Date of Birth: ID Document / Passport  Identity Number: ID Document / Passport  Residential Address:Proof of Address (not older than 3  

months) 

Proof of Representation: Resolutions / Letter of Authorisation INDIVIDUAL SHAREHOLDERS OVER 25% (FICA Reg. 7 & 8) 

IDENTIFY VERIFY

Proof of Shareholding: 

Share Certificate / Company Share  Register 

Full Name & Surname: ID Document / Passport  Date of Birth: ID Document / Passport  Identity Number: ID Document / Passport  CORPORATE SHAREHOLDERS OVER 25% (FICA Reg. 7 & 8) 

IDENTIFY 

VERIFY

Proof of Shareholding:

Share Certificate / Company Share Register

Registered Name:

CM1 & CM2 / CoR 14.1, CoR 14.3 & CoR 15.1

Registration Number:

CM1 & CM2 / CoR 14.1, CoR 14.3 & CoR 15.1

Registered Address:

CM1 & CM2 / CoR 21 or  

Confirmation Cert.

Name under which Conducting Business: 

Corporate Letterhead

Operating Address: 

Proof of Address (not older than 3 months)

Payments made by Partnerships 

The FICA Amendment Act of 2017 subjects Partnerships to enhanced Customer  Due Diligence procedures in terms of Section 21B. The following documents will be  required: 

PARTNERSHIPS  

(FICA SECTION 21B) 

IDENTIFY VERIFY

Registered Name: 

Type of Partnership: 

Partnership Agreement 

Partnership Agreement

Registered Address: 

Partnership Agreement

Operating Address: 

Proof of Address (not older than 3 months)

PARTNERS 

(FICA SECTION 21B) 

IDENTIFY VERIFY

Number & Identity of  Partners 

Partnership Agreement

Full Name & Surname: 

ID Document / Passport 

Date of Birth: 

ID Document / Passport 

Identity Number: 

ID Document / Passport 

Residential Address: 

Proof of Address (not older than 3 months)

Income Tax Number: 

SARS Document

REPRESENTATIVES OF PARTNERS  

(FICA SECTION 21B)

IDENTIFY 

VERIFY

Proof of Representation: 

Letter of authority, Court order etc.

Full Name & Surname: 

ID Document / Passport 

Date of Birth: 

ID Document / Passport 

Identity Number: 

ID Document / Passport 

Income Tax Number: 

SARS Document

Residential Address: 

Proof of Address (not older than 3 months)

Contact Particulars: 

Telephone number / Cell Number / Email

Payments made by Closed Corporations

CLOSED CORPORATIONS (FICA Reg. 7 & 8) 

IDENTIFY VERIFY 

Registered Name: CK1 & CK2 

Registration Number: CK1 & CK2 

Registered Address: CK1 & CK2 

Name under which Conducting  

Business: Corporate Letterhead Operating Address:Proof of Address  

(not older than 3 months) 

Income Tax & VAT Numbers: SARS Documents1 CORPORATION REPRESENTATIVES: 

For each Member and Authorised Individual of the Company (Reg. 7 & 8) IDENTIFY VERIFY Full Name & Surname: ID / Passport  

Date of Birth: ID / Passport  

Identity Number: ID / Passport  

Residential Address:

Proof of Address (not older than 3 months)

Proof of Representation:

Resolutions / Letter of Authorisation

Payments made by Trusts 

The FICA Amendment Act of 2017 subjects Trusts to enhanced Customer Due  Diligence procedures in terms of Section 21B in addition to those stipulated in the  FICA Regulations. The following documents will be required: 

TRUSTS (FICA SECTION 21B and FICA Reg. 15 & 16)

IDENTIFY 

VERIFY

Trust Name & Number: 

Trust Deed / Founding Document

Address of the Master of the High Court: 

Letter of Authority

Income Tax Number: 

SARS Document

TRUSTEES OF A TRUST (FICA SECTION 21B and FICA Reg. 15 & 16)

IDENTIFY 

VERIFY

Full Name & Surname: 

ID Document / Passport 

Date of Birth: 

ID Document / Passport 

Identity Number: 

ID Document / Passport 

Residential Address:

Proof of Address (not older than 3 months)

Authority to Act: 

Letter of Authority

BENEFICIARIES OF A TRUST (FICA SECTION 21B and FICA Reg. 15 & 16)

IDENTIFY 

VERIFY

Method of Beneficiary Determination: 

Trust Deed

Full Name & Surname: 

ID Document / Passport 

Date of Birth: 

ID Document / Passport 

Identity Number: 

ID Document / Passport 

Residential Address:Proof of Address (not older than 3  

months)

FOUNDER OF A TRUST (FICA SECTION 21B and FICA Reg. 15 & 16)

IDENTIFY 

VERIFY

Method of Beneficiary Determination: 

Trust Deed

Full Name & Surname: 

ID Document / Passport 

Date of Birth: 

ID Document / Passport 

Identity Number: 

ID Document / Passport 

Residential Address:Proof of Address (not older than 3  months) 

LEGAL ENTITIES: FOREIGN CORPORATIONS 

made by a Foreign Corporations 

FOREIGN COMPANIES (FICA Reg. 9 & 10) 

IDENTIFY VERIFY Business Registration  

Registered Name: 

Registration Number: 

Registered Address: 

Name under which Conducting Business in  

Documents 

Business Registration  Documents 

Business Registration  Documents 

Country of Incorporation : Corporate Letterhead Operating Address in Country of Incorporation:Proof of Address (not older  

than 3 months) 

Name under which Conducting Business in South  

Africa : Corporate Letterhead Operating Address in South Africa:Proof of Address (not older  

than 3 months) 

Income Tax & VAT Numbers (if issued): SARS Documents 

COMPANY REPRESENTATIVES: 

For each Manager, Director and Authorised Individual of the Company (FICA  Reg. 9 & 10) 

IDENTIFY VERIFY 

Full Name & Surname: Passport

Date of Birth: 

IDENTIFY VERIFY 

Proof of Shareholding:

ACCEPTABLE DOCUMENTS FOR PROOF OF RESIDENTIAL ADDRESS 

For documents issued on a monthly basis, the document provided to the FSP cannot  be older than 3 months. 

For documents issued on an annual basis, the document provided to the FSP cannot  be older than 12 months. 

The items below are acceptable in terms of proof of residential address. 

• A lease/rental agreement. 

• Affidavit from a CC/Company/Partnership or Mandated Official. Affidavit6from a  person co-habiting with the client. 

• Affidavit from clients Employer. 

• Bank Statements, must evidence an official bank stamp. 

• Declaration from the clients Financial Advisor after an on-site visit - within 3  months of the on-site visit. Long term/short term insurance Manual document  issued by an insurance company. 

• Mortgage /home loan statement. 

• Motor vehicle license documentation. Municipal rates and taxes invoice. • Telephone or Cellular account. 

• Utility Bill reflecting Erf/stand no if sent to a P O Box. Valid TV Licence.

ANNEXURE 3: SCREENING & WATCHLISTS 

As part of the FSP’s ongoing due diligence practices, all underlying clients and  beneficial owners are screened against the Consolidated United Nations Security  Council Sanctions List. Utilising the services of DocFox (Pty) Ltd, the FSP and its  Associates also screen for anti-money laundering, sanction, organized crime and threat  finance as well as Politically Influential Person relationships. 

Underlying clients and beneficial owners are currently screened against the list of  Comply Advantage. Document Name 

ComplyAdvantage Compliance Data Overview - February 2020

ANNEXURE 4: POLITICALLY INFLUENTIAL PERSONS 

DOMESTIC PROMINENT INFLUENTIAL PERSONS 

A domestic prominent influential person is an individual who holds, including in an acting  position for a period exceeding six months, or has held at any time in the preceding 12  months, in the Republic— 

a prominent public function including that of— 

• the President or Deputy President; 

• a government minister or deputy minister; 

• the Premier of a province; (iv) a member of the Executive Council of a province; • an executive mayor of a municipality elected in terms of the Local Government:  Municipal Structures Act, 1998 (Act No. 117 of 1998); 

• a leader of a political party registered in terms of the Electoral Commission Act, 1996  (Act No. 51 of 1996); 

• a member of a royal family or senior traditional leader as defined in the Traditional  Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003); • the head, accounting officer or chief financial officer of a national or provincial  department or government component, as defined in section 1 of the Public Service  Act, 1994 (Proclamation No. 103 of 1994); 

• the municipal manager of a municipality appointed in terms of section 54A of the  Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), or a chief  financial officer designated in terms of section 80(2) of the Municipal Finance  Management Act, 2003 (Act No. 56 of 2003); 

• the chairperson of the controlling body, the chief executive officer, or a natural  person who is the accounting authority, the chief financial officer or the chief  investment officer of a public entity listed in Schedule 2 or 3 to the Public Finance  Management Act, 1999 (Act No. 1 of 1999); 

• the chairperson of the controlling body, chief executive officer, chief financial officer  or chief investment officer of a municipal entity as defined in section 1 of the Local  Government: Municipal Systems Act, 2000 (Act No. 32 of 2000); 

• a constitutional court judge or any other judge as defined in section 1 of the Judges’  Remuneration and Conditions of Employment Act, 2001 (Act No. 47 of 2001); • an ambassador or high commissioner or other senior representative of a foreign  government based in the Republic; or (xiv) an officer of the South African National  Defence Force above the rank of major-general; 

• the position of— 

o chairperson of the board of directors; o chairperson of the audit committee; o  executive officer; or 

o chief financial officer, 

• of a company, as defined in the Companies Act, 2008 (Act No. 71 of 2008), if the  company provides goods or services to an organ of state and the annual  transactional value of the goods or services or both exceeds an amount determined  by the Minister by notice in the Gazette; or 

• the position of head, or other executive directly accountable to that head, of an  international organisation based in the Republic.

FOREIGN PROMINENT PUBLIC OFFICIALS 

A foreign prominent public official is an individual who holds, or has held at any time in  the preceding 12 months, in any foreign country a prominent public function including  that of a— 

• Head of State or head of a country or government; member of a foreign royal family; • government minister or equivalent senior politician or leader of a political party; • senior judicial official; 

• senior executive of a state owned corporation; or high-ranking member of the  military.

ANNEXURE 5 

CDD CONFIRMATION CERTIFICATE 

[Date] 

[FSP Entity Name] 

[FSP ADDRESS] 

CDD Certificate of Confirmation with the Requirements to Identify and verify the  Identity of Clients in terms of the Financial Intelligence Centre Act, 1 of 2017  (“the Act”) 

WHEREAS: 

ABC (Pty) Ltd, (Registration number: XXXX/XXXXXX/XX), the Primary Accountable  Institution (“ABC”) established a business relationship with 

[FSP Entity], (Registration number: XXXX/XXXXXX/XX), the Secondary Accountable  Institution (“FSP Entity”) 

We confirm that: 

1. We confirm that we are an accountable institution in terms of Schedule 1 of the Act and  acknowledge that the business conducted by us is governed by the Act and the  regulations issued under section 77 thereof. In particular, we confirm the following: 

a. In terms of our Risk Management and Compliance Programme ordinarily applied in the  course of establishing business relationships or conducting single transactions, we will  have established and verified, in accordance with the provisions of Section 21, 21(A),  21(B), 21(C), 21(D), 21(E), 21(F), 21(G) and 21(H) of the Act, the identity of every  client on whose behalf we will be establishing a business relationship or concluding  single transactions with FSP Entity. 

b. In terms of our Risk Management and Compliance Programme ordinarily applied in the  course of establishing business relationships or conducting single transactions, we will  keep record of, in accordance with the Section 22 and 22A of the Act, the identity of  every client, the manner in which the identity was established and any document or  copy of document obtained to verify the client’s identity in terms of section 21, 21(A),  21(B), 21(C), 21(D), 21(E), 21(F), 21(G) and 21(H) of the Act, on whose behalf we will  be establishing a business relationship or concluding single transactions with FSP Entity. 

c. We are responsible to ensure that the client verification documents mentioned above  comply with the requirements of the Act and, should it be found that the our records  are not in compliance with the requirements of the Act, we shall assume all costs of  any measures taken by the Product Provider to obtain the required compliant client  verification documents for the applicable client(s).

2. We acknowledge that FSP Entity reserves the right to request any identification and  verification documents from ABC, with respect to any of the mutual clients that fall within  the scope of this certification and that the Product providers may from time to time review  our records in order to ensure compliance with the requirements of the Act. 

This certification shall remain valid from the date of signature hereof until such time as  ABC gives written notification to the contrary to the Compliance Officer of FSP Entity. 

Signed: 

Name [Signatory name(s)] 

Designation [Signatory designation(s)]

ANNEXURE 6 

ANTI-MONEY LAUNDERING REPORT 

A copy of the completed report must be retained by the person reporting the suspicious  activities elaborated on therein. This retained copy should be signed by the MLRO. 

DETAILS OF CLIENT BEING REPORTED 

Full name: 

Address (registered if required): 

Postal Physical: 

Telephone numbers (as appropriate): 

Home: 

Work: 

Cell: 

Email: 

Identity /passport / company  

registration No: 

Income Tax Number: 

____________________________

Bank account details (as  

appropriate): 

Name of organization client represents or 

works for: 

Capacity: 

NATURE OF SUSPICION: 

REASON(S) FOR SUSPICION: 

SUPERVISOR / MANAGER REFERRED TO: 

Name: 

Position: 

Contact details: 

Supervisor / Manager Comments: 

Attach any copy of supporting documentation to this report. Further information  can be written on the back of the report.

NAME OF STAFF MEMBER MAKING THIS REPORT 

Contact details: 

Date handed to MLRO: 

SIGNATURE:

RECEIPT FOR ANTI-MONEY LAUNDERING REPORT HANDED TO MONEY  LAUNDERING REPORTING OFFICER 

Report received from: 

Name: ________________________________________________________ Email address: ______________________ 

Cell: _________________________ 

Date received: ______________________ 

Signed by: 

___________________ 

Signature: 

___________________ 

Entered in registry: