PROCEDURES FOR COMPLIANCE WITH ANTI-MONEY LAUNDERING (‘AML’), COUNTER-TERRORIST FINANCING AND SANCTIONS
Money laundering is the process by which criminals attempt to hide or disguise the true origin and ownership of the proceeds of their criminal activities, thereby avoiding prosecution, conviction and confiscation of criminal funds. If carried out successfully, money laundering enables criminals to escape prosecution, maintain control over the proceeds of crime and continue their criminal activities. Money laundering also includes terrorist financing and financing of unlawful organisations.
Involvement in money laundering, whether knowingly or unknowingly, may result in criminal liability and severe reputational damage to the Firm and its Employees.
PFH Markets Limited, therefore, places the utmost importance on complying with all applicable laws and regulations to prevent money laundering and will use the policies and procedures set out in this Manual to prevent its business from being used for criminal activities.
This Anti-Money Laundering Procedures Manual (“Manual”) applies to all Employees, which term, for the purposes of this Manual, includes the Board of Directors, all operational staff, any Employee with Customer contact, and any other Employee who might otherwise encounter money laundering in the business.
This Manual has been prepared to provide Employees with a good understanding of what they and the Firm must or must not do to comply with the laws and regulations for the prevention of money laundering and terrorism financing and how to recognise and report that such activity may be taking place.
Employees should consult with the Money Laundering Reporting Officer (“MLRO”) or the Deputy MLRO in any case of doubt.
Capitalised terms are defined in the Glossary set out in Appendix A of this Manual. Any reference to “money laundering” in the lowercase includes a reference to terrorist financing and the financing of unlawful organisations unless the context indicates otherwise.
This Manual is for internal use only and must not be distributed outside the Firm without the prior approval of the MLRO. It must be read in conjunction with the use of the Client Verification Procedures (together, the Firm’s “policy”).
The Firm’s policy shall be reviewed at least annually, taking into account legislative changes, policy implementation, and how such implementation may be improved. Any amendments will be approved by the Board prior to taking effect.
The main laws and regulations applicable in Mauritius to PFH Markets Limited and its Employees are:
The Mauritius as “all-crimes” money laundering. Anti-Money Laundering and Combatting the Financing of Terrorism and Proliferation (Miscellaneous Provisions) Act 2020 defines money laundering as any act involving the transfer, conversion, deposit, saving, investing, exchanging or managing of any proceeds, with the intent to conceal or disguise their illicit origin, or the concealment or disguise of the true nature, origin, location or otherwise of any proceeds or the ownership thereof, or the acquisition, possession or use of proceeds derived from any offence or misdemeanor.
The FSC specifically requires PFH Markets Limited to establish and maintain appropriate policies, procedures, systems and controls to enable it to detect and deter the laundering of the proceeds of tax crimes related to both direct and indirect taxes and to comply with international obligations for the exchange of information for tax purposes.
PFH Markets Limited may be criminally liable for the offence of money laundering if it intentionally commits specified acts in relation to funds it knows are the proceeds of crime, and the Firm, its Board of Directors and Employees may face FSC enforcement action in respect of any breach of any Rule in the AML Module. The FSC may impose administrative penalties for breaches of Federal AML legislation. A failure to comply with Federal AML legislation may also evidence a failure to comply with the FSC Regulatory Law, resulting in disciplinary and remedial action as set out in that Law and FSC Rules. Employees are specifically advised that:
May each constitute a criminal offence that is punishable under the laws of Mauritius.
In particular, Employees must:
Failure to do so may lead to the Firm taking disciplinary action, up to and including summary dismissal, against the Employee concerned. Employees must sign and return to the MLRO within 7 days of joining the Firm a Money Laundering Undertaking (Form ED2) confirming that they will comply with the requirements set out in this Manual.
Many of the circumstances outlined in this Anti Money Laundering Procedures Manual may also indicate that a person is engaged in fraud. Suspicions of fraud must immediately be reported to the MLRO, who will ensure the matter is properly investigated and, if necessary, reported to the criminal authorities.
The key elements of PFH Markets Limited’s policies, procedures, systems and controls for the prevention of money laundering include the following:
Ensuring staff are aware of the money laundering risks facing the Firm, their obligations and liabilities under applicable laws and regulations, the Firm’s procedures for undertaking Customer due diligence and how to recognise and report suspicious activity.
Not only verifying the identity of PFH Markets Limited’s Customers (and their Beneficial Owners, where relevant) but also understanding their source of funds and wealth.
Taking account of government, regulatory and international findings concerning blacklisted countries and persons and checking that PFH Markets Limited’s Customers are not subject to them.
Not carrying on business with persons (e.g. a body corporate or un incorporate, trust, foundation, partnership, association, state, government, etc.) whose ultimate Beneficial Owners cannot be identified (e.g. ownership or control through bearer shares) or any other arrangement that prevents the Firm from identifying a significant beneficial owner (e.g. Nominees acting on behalf of persons whose identity has not been disclosed to the Firm). Not allowing a business relationship to commence unless the Customer’s due diligence has been completed.
Not establish or maintain an anonymous account, an account in a fictitious name or a nominee account which is held in the name of one person but which is controlled by or held for the benefit of another person whose identity has not been disclosed to the Firm.
Relying on other persons to conduct Customer due diligence on the Firm’s behalf only if PFH Markets Limited is satisfied that they are properly regulated and will undertake the work to the same standard as would the Firm if PFH Markets Limited were undertaking the due diligence itself.
Keeping PFH Markets Limited’s information about its Customers up to date and verifying any significant changes. Monitoring the Customer’s activities and Transactions throughout the life of the relationship for signs of suspicious behaviour that may require closer scrutiny.
Responsibility for PFH Markets Limited’s compliance with the policies, procedures, systems and controls set out in this Manual rests with each and every member of its Board of Directors.
PFH Markets Limited’s Board of Directors understand FSC’s expectation that they will establish a robust and effective AML/CTF and sanctions compliance culture for the business and acknowledge that they must exercise due skill, care and diligence in carrying out their responsibilities, noting that the FSC may take enforcement action against them (and against any PFH Markets Limited’s Employee) in respect of any breach of the AML Rules.
Specifically, the Board of Directors are responsible for:
PFH Markets Limited has appointed a Money Laundering Reporting Officer (“MLRO”) and a Deputy MLRO responsible for implementing and overseeing the Firm’s compliance with the Rules in the AML Module.
The MLRO and Deputy MLRO are required to deal with the FSC & FIU in an open and cooperative manner and must disclose appropriately any information of which the FSC would reasonably expect to be notified.
The MLRO and Deputy MLRO have direct access to the Board of Directors and timely and unrestricted access to all information necessary to enable them to carry out their duties.
The MLRO and Deputy MLRO have sufficient seniority and independence within the Firm to act on their own authority and to perform their duties in an effective, objective and independent manner and are fully authorised by the Board of Directors to do so.
All Employees are required to cooperate fully with the MLRO and the Deputy MLRO in the performance of their duties.
The MLRO is responsible for the implementation and oversight of the following matters:
The day-to-day operations for compliance by the Firm with its AML policies, procedures, systems and controls;
Acting as the point of contact to receive internal Suspicious Activity Report (“SAR”) from Employees;
Following receipt of a SAR from an Employee, taking appropriate action to:
Acting as the point of contact within the Firm for competent Mauritius authorities and the FSC regarding money laundering issues;
Responding promptly to any request for information made by competent Mauritius authorities or the FSC;
receiving and acting upon any relevant findings, recommendations, guidance, directives, resolutions, sanctions, notices or other conclusions issued by:
Establishing and maintaining an appropriate money laundering training programme and adequate awareness arrangements, as set out in Section 7 of this Manual.
The Firm and the MLRO will co-operate openly in all their dealings with the FSC and will disclose appropriately any information of which the FSC would reasonably be expected to be notified and ensure that all communications with the FSC are conducted in English.
The MLRO, with the prior approval of the Board, may delegate responsibilities, such as approval of low-risk clients, to the Compliance Department of PFH Markets Limited.
Audit The Firm will commission regular reviews and assessments of the effectiveness of its money laundering policies, procedures, systems and controls, and its compliance with them, and will specifically cover the following:
Such reviews will be carried out by the Group’s Compliance Department at least annually.
The Firm will complete the Annual AML Return form on an annual basis for the period 1 August to 31 July and submit it to the FSC by the end of September each year.
The Annual AML Return requires PFH Markets Limited to provide FSC with:
Its documentation as to:
An explanation of its policies and procedures for:
Information as to whether:
Numerical data as to:
The date:
The Annual AML Return also requests details of the names of the Board of Directors, the MLRO and Deputy MLRO, whether the role is outsourced, and a description of the MLRO’s role within the Firm (including any other roles he may perform within the Firm) and the arrangements in place when the MLRO is absent.
The contents of the Annual AML Return must be acknowledged by every member of the Board of Directors prior to its submission to the FSC, each of whom must sign a declaration that, to the best of their knowledge and belief, having made due enquiry, that the information given is complete and correct.
A copy of the annual AML Return (or a report in another form specified by the FSC & FIU) will be provided to the AMLSCU, who, under Cabinet Resolution 38 of 2014, require biannual reports.
Notifications to FSC
The Firm will inform the FSC in writing as soon as possible if, in relation to its activities carried on in or from the FSC it:
PFH Markets Limited adopts an AML approach that is proportionate to the risks it is exposed to as a result of reviewing the nature of its business, Customers, products, services and any other matters which are relevant in the context of money laundering and ensures such risk-based assessments are:
The Firm’s “risk-based approach”, involves:
The Firm will not do business with a client or business partner who is identified by reference to findings, recommendations, resolutions, sanctions etc. of, inter alia, the UN, any Mauritius enforcement agency as a proscribed person.
The Firm will not do business where the client’s ownership structure or control arrangements prevent it from identifying any significant beneficial owner.
Employees are referred to the Client Verification Procedures for detailed descriptions and information on higher-risk and prohibited client arrangements.
PFH Markets Limited will, at least annually, identify and assess any money laundering risks to which its business is exposed, taking into consideration the nature, size and complexity of its activities and, to the extent relevant, any vulnerabilities relating to:
PFH Markets Limited will ensure that any risk identified in the business risk assessment is taken into account in its day-to-day operations, including in relation to:
PFH Markets Limited will use the information obtained in its periodic business risk assessments to develop and maintain its AML policies, procedures, systems and controls, ensure that they adequately mitigate the risks that have been identified, assess their effectiveness, and assist in the allocation and prioritisation of AML resources and in carrying out its customer risk assessments.
Before undertaking CDD on a new Customer, PFH Markets Limited will undertake a Customer risk assessment and assign the Customer a risk rating proportionate to the Customer’s money laundering risks.
When undertaking a customer risk assessment, the Firm will:
The customer risk assessment will be fully documented, reviewed, and approved by the MLRO and filed in the customer file. All “high” risk business relationships and any business relationship involving PEP must be approved by the SEO.
The Firm will periodically review each Customer’s risk rating to ensure that it remains up to date in light of current AML risks.
Politically exposed persons (“PEPs”), members of their immediate families and close associates and others having a high-profile or position of influence can pose a higher money laundering risk as their position may make them vulnerable to corruption.
The FSC considers that:
Whilst “PEP” status does not of itself incriminate the individual concerned or any entity with which it is associated, the FSC considers that it puts the Customer, or the Beneficial Owner, into a higher risk category.
Generally, a foreign PEP presents a higher risk of money laundering because there is a greater risk that such person, if he were committing money laundering, would attempt to place his money offshore where the Customer is less likely to be recognised as a PEP and where it would be more difficult for law enforcement agencies in his home jurisdiction to confiscate or freeze his criminal property.
After leaving office, a PEP may remain at a higher risk for money laundering if such person continues to exert political influence or otherwise poses a risk of corruption.
PEPs will be identified by the Firm via GB Group If a PEP is identified, the MLRO will advise on how to proceed. If the PEP is a beneficial owner, it may be necessary to take further steps to establish the person’s source of wealth and source of funds and to monitor the person’s conduct during the business relationship.
The MLRO will maintain a PEP Register in which to record all PEPs that have been identified within the Firm’s client base and their connection with the client concerned.
PEP’s will be monitored at least annually by the MLRO for evidence of adverse media comments. Any significant issues arising will be reported to the SEO with a recommendation as to what action should be taken.
Customer due diligence (“CDD”) is the process of:
For the purposes of this manual, the term “Customer” includes any of the following:
It is important to identify a customer, understand the customer’s ownership and control structure and to assess the probity of all parties involved, including the directors, shareholders and any other persons with significant involvement in the business or transaction in question. Equally, it is important to establish the purpose and nature of the customer’s intended business relationship with the Firm, the nature and source of the funds or other assets involved, and whether the business or transaction in question is consistent with the Firm’s understanding of the nature and scale of the customer’s business, objectives and strategy.
The level of CDD to be undertaken, both initially and for the duration of the business relationship, must be determined by reference to the Customer’s risk rating assigned under the Customer risk assessment. If the Customer Risk Assessment indicates that Normal CDD will not be sufficient in relation to the higher money laundering risk perceived to be associated with the business relationship in question, the Firm should obtain and verify additional information about the customer, its beneficial owners and the purpose of the transaction. The additional measures are referred to as Enhanced CDD.
The Firm’s due diligence procedures for establishing and verifying the identity of the Customer and Beneficial Owners are set out in the Client Verification Procedures.
Understanding the customer’s “source of funds” means understanding where the customer will find the money to finance the business or transaction in question.
Understanding the customer’s “source of wealth” means understanding how the customer’s global wealth or net worth was acquired or accumulated.
When determining whether to verify the identity of a Beneficial Owner, PFH Markets Limited will take a risk based approach with regard to all the circumstances of the case, including, in particular, the Customer’s ownership and control structure, the size of the individual’s legal or Beneficial Ownership in the customer, whether the Beneficial Owners are associated or connected in some way, and the money laundering risks of the Customer and the product or service involved.
If PFH Markets Limited decides not to verify a particular Beneficial Owner or to adopt a threshold below which the verification of Beneficial Owners will not be carried out, it will document the reasons for its decision in the Customer risk assessment.
A threshold for verification may be appropriate in cases where the Customer-specific risks are lower, e.g.:
Conversely, in the case of a fund with a small number of investors, each with a large shareholding or other interest, identification and verification of each Beneficial Owners would be appropriate unless significant mitigates are identified (and documented in) the Customer risk assessment.
In respect of actual and potential Beneficial Owners of a trust, the identification and verification should include the trustee, settlor, protector, enforcer, beneficiaries, other persons with power to appoint or remove a trustee and any person entitled to receive a distribution, whether or not such person is a named beneficiary.
Under Federal AML legislation, if the customer is a legal person, PFH Markets Limited must obtain information identifying the names and addresses of partners and shareholders who each hold more than 5% of the capital of the legal person, i.e. it applies a specified threshold.
This does not affect the approach that should be taken to verify the identity of beneficial owners where no threshold is specified. As a result, under the Federal AML legislation, PFH Markets Limited will need to obtain information identifying partners and shareholders who hold more than 5% of the capital of the legal person. Then, in accordance with the risk-based approach, PFH Markets Limited should also determine whether it is necessary to identify other people who may be beneficial owners and verify their identity.
When undertaking due diligence, the Firm will carry out screening checks via ID3 checks, C6 ongoing screening tool and Google searches to establish whether the proposed relationship with the client will involve politically exposed persons (PEPs) or other higher-risk persons such as individuals, groups, organisations, entities, etc., where suspicion of money laundering or terrorist financing exists, and persons under sanctions or resolutions issued by the UN Security Council and/or by other bodies.
These background checks must be carried out on the client entity, its directors, and any relevant authorised signatories and on its ultimate beneficial owners. In the case of a private company, for example, screening checks and Google searches will be carried out on the company, its directors, any person who will sign the Engagement Letter, and any shareholder who has significant influence over the company.
The names of all persons checked and the results obtained must be recorded on the CDD Checklist.
If the screening and Google searches reveal adverse media comments or identify PEPs, sanctioned persons or other issues giving cause for concern, the MLRO will advise the SEO on how (and whether) to proceed and what further CDD should be obtained.
In particular, the MLRO will notify FSC immediately on the Firm becoming aware that it is providing, is about to provide, or has provided a service to any person in contravention of a relevant sanction or resolution issued by the United Nations Security Council.
All verification must be based on original documents or certified copies thereof or data or information issued by or obtained from reliable, independent sources. All documents should be checked for reasonableness. The Firm must not be blind to the possibility of forgery, fraud and identity theft as well as simple human error. Ideally, documents should be inspected in their original form and photocopied by any PFH Markets Limited employee who has physical possession of the document concerned.
Where this is not possible, for example, because the Firm has no physical contact with the person concerned, then the Firm should obtain a first-generation photocopy certified as a true copy of the original document by a person of good standing, such as a registered lawyer or notary, a chartered accountant, a police officer, embassy or consular official, or other similar person.
The certified photocopy must:
Note that the requirement for a “first generation” photocopy means that copies of photocopies are not acceptable.
Other acceptable sources of CDD are (a) publicly available information downloaded from government and regulator’s official websites, (b) reputable companies or information-reporting agencies, (c) banking references, and (d) on a risk-sensitive basis, information found on the internet or commercial databases.
For higher-risk situations, identification information should be independently verified using both public and non-public sources. For lower-risk situations, not all of the relevant identification information would need to be verified.
If the Customer has been assigned a “high” risk rating following the Customer risk assessment, the Firm must undertake Enhanced CDD.
Enhanced CDD involves, to the extent necessary, as determined on a case-by-case basis:
Where applicable, and if the Firm is not satisfied with the results of the due diligence overall, requiring that any first payment made by a Customer in order to open an account must be made through a bank account in the Customer’s name with a Bank; Regulated Financial Institution whose entire operations are subject to regulation and supervision, including AML regulation and supervision, in a jurisdiction with AML regulations which are equivalent to the standards set out in the FATF recommendations; or a Subsidiary of a Regulated Financial Institution referred to above if the law that applies to the Parent ensures that the Subsidiary also observes the same AML standards as its Parent.
Where appropriate, the Enhanced CDD measures may include:
If the Customer has been assigned a “low” risk rating following the Customer risk assessment, the firm may undertake Simplified CDD. The Simplified CDD must be proportionate to the money laundering risks identified and may include any of the following:
Not with standing that the risks may be low for all such Customers, the Firm will not adopt a one-size-fits-all approach for all its low-risk Customers and will undertake CDD that is proportionate to the risks identified on a case-by-case basis. For example, where the money laundering risks are very low, the Firm may simply identify the Customer and verify such information only to the extent that this is commercially necessary, whereas in the case of a complex Transaction, a more comprehensive simplified CDD might be required.
For the avoidance of doubt, PFH Markets Limited is always required to ‘identify’ beneficial owners, except for retail investment funds, which are widely held, and investment funds, which are investments where the investor invests via pension contributions. However, the Firm may decide not to ‘verify’ beneficial owners of a low-risk customer.
The Firm might reasonably reduce the frequency of or eliminate Customer identification updates where the money laundering risks are low, and the service provided does not offer a realistic opportunity for money laundering.
PFH Markets Limited will ensure that appropriate CDD is, or has been, undertaken when:
Generally, the CDD must be completed by or prior to the time at which any business relationship is formalised, e.g. by the signing of a client agreement or the acceptance of terms of business. Exceptionally, however, subject to the SEO’s approval, the CDD may be completed after that time if:
Where the Firm is not reasonably able to comply with the 30-day rule above, it must, prior to the end of the 30-day period, document the reason for its non-compliance, complete the verification as soon as possible and record the non-compliance event in its Annual AML Return. Note that the FSC may specify a period within which the verification must be completed, failing which the FSC may direct the Firm to cease any business relationship with the Customer.
The Firm’s policy is not to establish a business relationship with any Customer until CDD has been completed.
The Introducing Broker Agreement must contain the following language and must be signed by the client to signify its confirmation:
“This Agreement is subject to you providing PFH Markets Limited with information requested by PFH Markets Limited, at its absolute discretion, to enable PFH Markets Limited to satisfy any and all obligations it may have under the legislation and regulations applicable in the FSC for the prevention of money laundering, terrorist financing and other financial crimes. PFH Markets Limited may be obliged to terminate this Agreement if the information requested to satisfy these obligations is not submitted or is insufficient. By signing this Agreement, you warrant that you are acting on your own behalf and not on behalf of any third party.”
If the Firm is unable to conduct or complete the CDD, it will apply one or more of the following measures as may be appropriate in the circumstances:
Where CDD cannot be completed, it may be appropriate not to carry out a Transaction pending completion of the CDD. Where CDD, or a material part of it, such as identifying and verifying a:
Beneficial Owner cannot be conducted, and the business relationship with the Customer should not be established.
In the case of a new Customer, it may be appropriate to terminate the business relationship before a product or service is provided. In the case of an existing Customer, however, while termination of the business relationship should not be ruled out, suspension may be more appropriate depending on the circumstances. In either case, the Firm must be careful not to tip off the Customer.
The Firm is not obliged to terminate or suspend any existing business relationship with the Customer or return any monies or assets received from the Customer if:
Note that failure to comply with (b) above would constitute a significant violation of the AML Rules which may lead to FSC enforcement action.
When undertaking ongoing CDD the Firm must using the risk-based approach:
In monitoring the Customer relationship, the Firm will undertake a periodic review to ensure that Customer identity documentation, such as passport number and address and, for a Legal Person, its share register or list of partners, etc., is accurate and up-to-date.
In particular such reviews will be carried out when:
The degree of ongoing CDD to be undertaken will depend on the Customer risk assessment. The Firm will use manual or automated systems, or a combination thereof, depending on, amongst other things, the size and nature of the Firm’s business and Customer base, as well as the complexity and volume of Transactions.
PFH Markets Limited will also review its customers, their business and Transactions against UN Security Council sanctions lists and against any other sanctions list, such as EU, U.K. HM Treasury, U.S. OFAC, etc., that may be relevant.
Subject to certain conditions, PFH Markets Limited, may rely on the CDD obtained by a third party if it has reasonable grounds for believing that the third party will undertake the CDD in a manner that is consistent with FSC Rules and that there are no bank secrecy or data protection laws that would prevent the Firm from having access to any relevant information upon request without delay. In all such cases, however, the Board of Directors acknowledges that PFH Markets Limited remains responsible for compliance with and liable for any failure to meet the relevant CDD requirements. Accordingly, all such arrangements must be referred to the MLRO for pre-approval.
PFH Markets Limited may rely on any third party listed below to conduct one or more elements of CDD on its behalf or rely on information previously obtained by them:
However, PFH Markets Limited will rely on that person only if and to the extent that the third party. Immediately provides PFH Markets Limited with:
If PFH Markets Limited is not reasonably satisfied that a Customer or Beneficial Owner has been identified and verified by the third party in a manner that is consistent with FSC Rules, it will immediately perform the CDD itself with respect to any deficiencies identified.
Before appointing an outsourced service provider to undertake CDD, PFH Markets Limited will follow its inhouse outsourcing procedures and in particular will undertake appropriate due diligence to assure itself of the service provider’s suitability and ensure that the service provider’s obligations are clearly documented in a binding agreement.
A firm must exercise due care to ensure that it does not provide services to, or otherwise conduct business with, any person engaged in money laundering, terrorist financing or the financing of weapons of mass destruction. PFH Markets Limited will, therefore, ensure it is informed as to and takes appropriate measures to comply with relevant resolutions or sanctions issued by the United Nations Security Council.
PFH Markets Limited will immediately notify the FSC upon becoming aware that it is:
The MLRO will ensure that any notification made to FSC in accordance with (3) above includes details of the relevant activity and the action taken or proposed to be taken by PFH Markets Limited with regard to the matters specified in the notification.
Governments in many countries have enacted legislation to make money laundering and terrorist financing criminal offences and have legal and regulatory processes in place to enable those engaged in these activities to be identified and prosecuted. Internationally, the FATF has done much to encourage governments to adopt minimum standards, including, in particular, making their national regulators require financial services firms in their jurisdictions to follow specific due diligence procedures in relation to customers.
Generally, the member countries of the FATF are regarded as having arrangements for the prevention of money laundering that are at least equal to those in the FSC.
PFH Markets Limited will ensure it is informed as to, and take appropriate measures to comply with (including by undertaking further due diligence on, or by not carrying out a Transaction for or on behalf of, any person who is the subject of) any findings, recommendations, guidance, directives, resolutions, sanctions, notices or other conclusions issued by:
PFH Markets Limited will examine and pay special attention to any Transaction or business relationship with persons located in such countries or jurisdictions (including countries or jurisdictions which are no longer identified as deficient or which have been relieved from special scrutiny) and ensure that it is aware of the background against which the assessments, or the specific recommendations have been made.
Note, however, for the avoidance of doubt, that the MLRO is not obliged to report Transactions from these countries or jurisdictions to the FSC & FIU if they do not qualify as suspicious pursuant to Mauritius Law. PFH Markets Limited must immediately notify the FSC in writing if it becomes aware of non-compliance by a person with a finding and provide the FSC with sufficient details of the person concerned and the nature of the non-compliance.
The Firm will obtain and take appropriate measures to comply with sanctions and other national and international obligations. This includes undertaking further due diligence on, or by not carrying out a Transaction for or on behalf of, any person who is the subject of any sanctions and whose details are available on a national and international list, including suspect lists such as those provided by the Eastern and Southern Africa Anti Money Laundering Group (ESAAMLG), the Anti-Money Laundering and Combatting the Financing of Terrorism and Proliferation- MAURITIUS, and the Office of Foreign Assets Control (OFAC) of the US Department of Treasury, Financial Intelligence Unit – Mauritius and other credible sources, to perform initial and on-going checks on its Customers and their Transactions.
The Firm will maintain a list of the countries and jurisdictions referred to in 6.2(3)(e)(i) and will use G B Group and such other sources as may be appropriate to identify any person of a kind referred to in 6.2(3)(e)(ii).
The sources mentioned in (2) above will be referred to at the Customer onboarding stage and subsequently, as appropriate, as part of ongoing Customer monitoring. If an apparent match is found, the MLRO must be notified immediately for guidance on how to proceed.
Regarding (2) above, the Firm will continue to give special attention to Transactions with counterparties located in countries or jurisdictions that are no longer identified as deficient or have been relieved from special scrutiny.
PFH Markets Limited maintains:
Money laundering and terrorist financing operations may take many forms: there is no unique set of circumstances or pattern of behaviour by which they can be recognised. The key to recognising suspicious activity is knowing enough about the Customer and the Customer’s normal expected activities to recognise when their activity is abnormal.
By way of example, circumstances that might give rise to reasonable grounds for suspicion at the Customer take-on stage might be where the Customer:
Subsequently, during the course of a business relationship with a Customer, circumstances that might give rise to reasonable grounds for suspicion might be:
These examples are not exhaustive, and employees must use their reasonable judgment to determine if the circumstances they observe should be regarded as suspicious.
A Transaction that appears unusual is not necessarily suspicious. Even customers with a stable and predictable transaction profile may have periodic transactions that are unusual to them. Customers may, for perfectly good reasons, have an erratic pattern of Transactions. So, the unusual is, in the first instance, only a basis for further inquiry, which may, in turn, require judgment as to whether it is suspicious. A Transaction or activity may not be suspicious at the time, but if suspicions are raised later, an obligation to report then arises.
If you have reasonable grounds to suspect, you must not ignore a possibly valid suspicion by willful blindness, negligence (i.e. wilfully and recklessly failure to make adequate enquiries) or by failing to assess adequately the facts and information that is either presented or available.
Any Employee who knows or suspects or who has reasonable grounds for knowing or suspecting that a person is engaged in money laundering has a personal obligation to make an Internal SAR to the MLRO. This obligation applies even in situations when no business relationship was developed if the circumstances were suspicious.
Knowledge means actual knowledge such as that gained from a person’s admission that he is involved in a particular criminal activity, for example, tax evasion. Suspicion, on the other hand, is a personal and subjective assessment that falls short of belief but which must be more than mere speculation and which should be based upon some foundation that money laundering has occurred or is about to occur.
Note, however, that an Employee who considers a Transaction to be suspicious would not be expected to know the exact nature of the criminal offence or that the particular funds were definitely those arising from money laundering or terrorist financing.
The requirements mentioned above do not preclude an Employee from consulting with his line manager or other Employees in deciding whether or not the circumstances merit the sending of an Internal SAR to the MLRO. However, notwithstanding such consultation, the Employee must decide for himself whether the MLRO should be notified and the Employee should not be prevented or dissuaded from doing so if he knows, suspects or has reasonable grounds for knowing or suspecting that a person may be involved in money laundering.
Employees should be aware that Mauritius Law specifically provides that a person who makes a SAR shall be immune from any liability, including breach of client confidentiality unless such reporting is proved to have been in bad faith.
Employees are also reminded that failure to make an Internal SAR may result in disciplinary action by the Firm against the Employee and may also constitute a criminal offence punishable under the laws of Mauritius.
Notwithstanding that all External SAR’s should be made only by the MLRO or Deputy MLRO (as set out in 8.7), the Firm’s policy is that it will not prejudice an Employee who discloses any information regarding money laundering to the FSC or to any other relevant body involved in the prevention of money laundering including, the FIU or other Financial Intelligence Unit.
Any knowledge, suspicion or reasonable grounds for knowing or suspecting that a person is attempting money laundering or terrorist financing must be reported to the MLRO. This includes suspicious activity or behaviour of any kind, including customers or potential customers. In the first instance, the Employee may report informally, by telephone or in person but, subsequently, he must submit an Internal SAR which he must also date and sign.
The Internal SAR provides documentary evidence that the Employee has fulfilled his personal obligation to report suspicious circumstances and creates a permanent record of what those circumstances were.
The template for the Internal SAR form is shown at Appendix 7A.
On receipt of an Internal SAR, the MLRO will promptly:
If no External SAR is made the MLRO must record his reasons for not doing so. Note that the decision whether or not to make an External SAR is the MLRO’s alone and is not subject to the consent or approval of any other person.
If PFH Markets Limited knows or assumes that the funds which form the subject of the report do not belong to a Customer but to a third party, the MLRO must include this fact, and the details of the Firm’s proposed course of further action in relation to the case, in the report
The Financial Intelligence Unit – Mauritius acts as the national reception point for all External SARs. The primary role of the FIU is to make the External SARs available to the law enforcement agencies to facilitate their investigations.
The template for the External SAR is shown on the FSC website.
The External SAR will be completed by the MLRO and must be emailed or faxed to the FSC & FIU at the address shown below. Immediately following its submission, the MLRO will notify the FSC that such report has been made.
FIU
FSC
The Manager-in-charge Anti-Money Laundering Suspicious Cases Unit
FSC Supervision
The external SAR should be accompanied by any supporting information, and any additional information which would help the FIU to further its investigations, or which could link the SAR to other SARs and other investigations if possible.
The MLRO must request and be sure to obtain a formal acknowledgement from the FIU that the External SAR has been received, e.g., by way of a successful fax transmission report or email confirmation.
Following the submission of an external SAR, the FIU may establish an ongoing dialogue with the MLRO as the investigation continues, and more information may be requested. The FIU will provide the MLRO with a final outcome when a conclusion is reached.
Assisting in the commission of money laundering may constitute a criminal offence punishable under the laws of Mauritius. Accordingly, PFH Markets Limited must not carry out any Transaction which it knows or suspects or has reasonable grounds for knowing or suspecting to be related to money laundering until it has:
If the Customer in question expresses his wish to move the funds before the Firm receives instruction from the FSC & FIU on how to proceed, the MLRO should immediately contact the FIU for further instructions.
Informing any person that he is being scrutinized for or that any competent authority is investigating his possible involvement in suspicious activity related to money laundering is a criminal offence under Mauritius AML legislation.
Employees must, therefore, be sensitive to these issues when considering CDD measures and take all reasonable care to avoid “tipping off”.
Accordingly, if the Firm reasonably believes that performing CDD measures will tip off a customer or potential Customer, it may choose not to pursue that process and should file an External SAR instead.
Date: 24 March 2026