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Anti-Money Laundering Policy

Title

Anti-Money Laundering Policy

Institution

NATIONAL INSTITUTE OF ADVANCED TECHNICAL & MANAGEMENT STUDIES

Website

niatm-edu.com

Email

info@niatm-edu.com

Short Name

NIATM

Policy Type

Anti-Money Laundering Policy

A. Introduction

NATIONAL INSTITUTE OF ADVANCED TECHNICAL & MANAGEMENT STUDIES (NIATM) has framed this policy with the sole objective of eradicating any possibility of any unethical, illegal, or unconstitutional transaction of money, whether within India or in any international transaction.

Due care and caution have been taken while designing this policy so that it complies with:

  1. Guidelines and regulations laid down in light of applicable circulars on Anti-Money Laundering.
  2. Rules, regulations, and guidelines relating to combating financing of terrorism and obligations of intermediaries under applicable anti-money laundering laws.

Due care has also been ensured so that this policy achieves its core objectives to prohibit and actively prevent money laundering in any form, including any activity that facilitates money laundering or terrorist financing, apart from ensuring that no source of revenue or income of the institute is hidden.

B. Definition

1. Money Laundering

For the purpose of this policy, money laundering can be defined as any process, activity, or act in any form that conceals or attempts to conceal the source of revenue earned or the origin of money obtained, knowingly or unknowingly, with the help of any illegal, illicit, or criminal act such as drug trafficking, terrorism, smuggling, corruption, gambling, or similar prohibited conduct.

This definition also includes any activity or action of converting such income or revenue into legitimate or apparently lawful money or assets.

2. Principal Officer / Responsible Officer

For NIATM, the Principal Officer is the professional who is heading the Finance and Accounts function and/or the Audit function and who is responsible for financial planning, budgeting, auditing, monitoring, and financial compliance for the institute.

C. Key Objectives

  1. To create and design a structure or framework to define procedures, guidelines, and controls in business operations and financial transactions of NIATM.
  2. To ensure internal and external checks and controls to monitor, detect, and report any suspicious activity that may lead to violation of this policy or any applicable law on money laundering.
  3. To ensure compliance with local or international laws, as applicable, on money laundering and financial transactions.
  4. To impart appropriate training to NIATM team members on this policy and applicable law so that they ensure compliance.
  5. To offer all support and assistance to statutory or competent authorities in their investigation process whenever applicable.

D. Policy Framework and Mechanism

a. Customer / Learner Due Diligence

  1. At the time of enrolment of the learner, NIATM will verify the identity records and current address details, including permanent address details, of the learner and, where relevant, the learner’s current business or occupational details.
  2. NIATM will ensure that required KYC documents are verified before enrolling the learner.
  3. Due verification and validation of information provided by the learner will be ensured before enrolment.
  4. The enrolment officer shall be held responsible for ensuring the above processes are followed.
  5. No applicant who fails to provide satisfactory evidence of identity and, where applicable, business details to NIATM will be registered as a learner.

b. Opening and Operations of Bank Accounts

  1. NIATM will open accounts only in recognized and/or approved banks in accordance with applicable law and banking norms.
  2. All accounts opened shall be in the name of the registered institution or in the name of authorized directors or officials as permitted by law and internal authorization.
  3. NIATM will ensure that all incoming and outgoing payment modes are classified and notified to the respective agents, learners, employees, and business associates, where relevant.
  4. Due reconciliation will be ensured for all financial transactions every month and all suspicious transactions will be reported to the competent institutional authority.
  5. Due documentation and maintenance of records for all transactions will be ensured by the Responsible Officer or Principal Officer defined in this policy.
  6. Only authorized persons approved by the institute shall be permitted to approve and sign financial transactions on behalf of NIATM.

c. Financial Transactions and Transactions of Business Activities

  1. Before initiating any financial transaction, NIATM will ensure that the identity of the client, learner, vendor, or business associate has been reasonably ascertained and that the relevant person or entity is not known to be associated with criminal activities, banned conduct, or restricted activities under applicable law.
  2. After compliance with the above, and without diluting those requirements, NIATM may obtain other relevant data and/or information to ensure the identity of each new learner, business associate, or vendor for the purpose of financial and/or business transactions.
  3. Records of all transactions made by NIATM and account reconciliation data of bank accounts shall be maintained for five years after the account has been closed, unless some investigation, enquiry, or legal proceeding is going on. In such cases, NIATM will maintain records for such further period as directed by the appropriate authority.

Such records of transactions may include, where applicable:

  • Transactions with non-resident clients
  • Transactions of high net worth clients
  • Transactions related to trusts, charities, or NGOs receiving donations
  • Transactions with family-owned or closely held organizations or companies
  • Transactions with political parties or persons associated with political parties
  • Transactions with foreign exchange agencies or companies
  • Transactions with business associates, learners, or vendors residing in or hailing from high-risk jurisdictions, sanctioned jurisdictions, offshore financial centres, tax havens, or places known for suspicious financial transactions

E. Maintenance of Records

NIATM will ensure the maintenance of statutory and institutional records for financial transactions and, in particular, the following records:

  1. Any cash transaction of high value exceeding the threshold applicable under law or equivalent institutional threshold.
  2. All cash transactions where currency received or paid is found, knowingly or unknowingly, to involve counterfeit notes or suspicious instruments.
  3. All payments made for statutory compliance in cash, if the amount paid in cash exceeds the prescribed internal or legal threshold.

The records shall contain the following information:

  1. The receipts or proof of transactions
  2. The details of the beneficiary and bank details where applicable
  3. The nature and purpose of the transaction
  4. The date on which the transaction was conducted

NIATM will also ensure, through the Responsible Officer, the maintenance of such records as may be required to permit reconstruction of individual transactions so as to enable investigation or prosecution of criminal behaviour where required.

Such records may include:

  1. The beneficiary and account details
  2. The amount and value of funds transacted
  3. The source and/or origin of the funds, where relevant and available
  4. The nature of the transaction, such as cash, cheque, draft, transfer, or otherwise
  5. The identity of the person undertaking the transaction

The Principal Officer shall not prohibit or restrict any competent investigating authority where such authority requires retention, production, or preservation of certain records, customer identification files, account files, or business correspondence for a longer period under law.

F. Retention of Records

NIATM will ensure the retention and safe custody of all financial records for a period of five years from the date of such financial transaction with its learners, business associates, government agencies, external agencies, vendors, or any such person or party.

However, for transactions where the records relate to ongoing investigations or where transactions are subject to investigation due to suspicious nature, records will be retained until the matter has been finally closed.

G. Monitoring Accounts for Suspicious Activity

The following kinds of activities are to be treated as red flags and reported to the Principal Officer:

  1. Clients whose identity verification seems difficult or who appear non-cooperative.
  2. Transactions where the origin of funds is not certain, traceable, or appears suspicious, including transactions involving high-risk jurisdictions.
  3. Sudden increase in revenue without apparent or satisfactory cause.
  4. Sudden unexpected deposits or inflow of cash by any individual, agency, or company.
  5. Transfer of investment proceeds or funds to apparently unrelated third parties.
  6. Unusual transactions by clients of special category and businesses undertaken by shell corporations, offshore banks or financial services, or businesses in high-risk sectors.

The above list is illustrative only. Whether a particular transaction is suspicious or not will depend upon the background, details of the transactions, and other facts and circumstances.

H. Reporting of Suspicious Transactions

According to the applicable provisions of anti-money laundering law and internal institutional compliance procedure, the Principal Officer or Responsible Officer is accountable to gather intelligence and information about suspicious transactions and report the same to the Board of Directors or competent institutional authority and, where required, to the appropriate financial intelligence or enforcement authority.

Any such reporting shall be carried out in accordance with applicable law, regulatory requirements, and institutional procedure.

I. Internal Audit

NIATM is responsible for appointing:

  1. A team of competent accounting and financial professionals to monitor, manage, and control the finance and accounts function.
  2. An independent and impartial external or internal audit function, where applicable, to ensure:
    • Process compliance of all policies related to finance and accounts
    • Compliance with statutory provisions and legal requirements applicable in all jurisdictions in which NIATM operates
    • Compliance with financial and banking norms issued by competent authorities
  3. A team of competent professionals to carry out investigation for reported suspicious transactions and ensure appropriate action against any defaulting person or entity where required.

J. Employee Hiring – Training

  1. NIATM, through competent professionals, will ensure appropriate training on this policy and on related financial compliance, anti-bribery and anti-corruption policy, whistle blower policy, and complaint and appeal policy at regular intervals so that employees are aware of the process parameters and compliance requirements.
  2. The Human Resources Officer or Manager shall be responsible for coordinating such training and maintaining training records.
  3. The training shall include:
    • How to identify suspicious transactions
    • How to blow the whistle or raise concerns
    • How to identify red flags and signs of money laundering during the course of duties
    • What to do once a risk is identified
    • The employee’s role in the company’s compliance efforts and how to perform it
    • The company’s record retention policy
    • The disciplinary consequences for non-compliance with applicable law and policy
  4. Monitoring employee conduct and accounts: NIATM may subject employee-related financial conduct or internal financial activity to the same anti-money laundering procedures as customer-related accounts, under the supervision of the Principal Officer, where permitted and necessary under law and institutional policy.

Contact Information

NATIONAL INSTITUTE OF ADVANCED TECHNICAL & MANAGEMENT STUDIES (NIATM)
Website: niatm-edu.com
Email: info@niatm-edu.com