As a global policy, this policy applies to:
- people who buy lands or Houses through SAVIKAM.
- All national organizations that have signed a membership agreement and license agreement with SAVIKAM
- All other entities that agree to be bound by global policies.
with this global policy. When required by law, the SAVIKAM office may improve the standards and requirements set out in this policy.
Our mission is to stay focused on the main keys such as client needs, communication and the new challenges and opportunities that are developing in real estate in Mauritius.
This policy aims to strengthen and support SAVIKAM to enable it to realize its full potential in real estate transactions and above all to ensure integrity, services and the growth of the level of satisfaction by helping people in need of real estate through Mauritius.
Through this policy, SAVIKAM seeks to meet the challenges of a changing global financial environment and to fulfill its obligation to promote transparency and integrity and to recognize that public confidence in the real estate transaction is paramount. The policy aims to establish best practices in an anti-money laundering (AML) policy. The policy sets out the basic purpose and purpose of SAVIKAM in order to enable the review of disbursements of funds accordingly and to maintain information on the purpose and objectives of SAVIKAM activities.
MONEY LAUNDERING – DEFINED
Money laundering is the process by which criminals introduce the proceeds of their criminal activities into a financial system through transactions that attempt to conceal the true source of funds. In terrorist financing, funds can come from legitimate or criminal sources. These funds are used to finance terrorist activities. Criminals and terrorists have access to large amounts of foreign currency. However, until the currency is deposited into the banking system, their ability to use it is limited. Criminals and terrorists use real estate as a means of making cash deposits knowing that they appear to legitimize (or launder) the source of the money. SAVIKAM is diligent in detecting and reporting suspicious activity.
Money laundering is the term used for a number of offenses involving the proceeds of crime or terrorist funds. This includes the possession, handling or concealment of the proceeds of crime.
The money laundering process has three stages:
- placement, whereby funds (often cash) enter financial systems;
- overlay, whereby funds pass through a complex sequence of transactions designed to prevent investigators from following an evidence trail to the origin of the funds; and
- integration, the point where funds exit the process and return to the legitimate economy in a way that makes them unrecognizable as the proceeds of crime.
Real estate can be particularly likely to attract the attention of potential money launderers. An international presence, often in areas with serious control and regulatory challenges, makes them particularly attractive for use as a step in the stratification process.
Terrorism, like other criminal acts, violates the basic rights of the innocent and the helpless and thus launder the funds of real estate projects.
OBLIGATIONS OF ALL EMPLOYEES
Current criminal law imposes three obligations on everyone:
- not to participate in the money laundering process by acquiring, concealing, disguising, keeping or using the proceeds of crime
- not to interfere with an investigation
- not to contact a person suspected of, and reported for, possible money laundering in order to inform them of the suspicion or report (“whistleblower”)
It is important to note that the law requires that all cases of suspicion be reported, regardless of their size.
RISK FACTORS AND SUSPICIOUS ACTIVITY
There are a number of specific areas where SAVIKAM is potentially vulnerable to money laundering: The purchase of expensive / luxury properties as part of money laundering is well known and SAVIKAM recognizes that it must be vigilant. SAVIKAM is exposed to money launderers in general because some properties have very high costs. SAVIKAM works internationally, crossing international borders and jurisdictions, which makes any audit trail difficult to follow. Due to this international dimension, the public perception of the integrity of SAVIKAM and the partial dependence of landowners on a money launderer, as this creates opportunities to conceal the flow of funds.
It is impossible to define all the people who would be qualified as suspects. SAVIKAM is particularly concerned with the following types of buyers: In cases where the source cannot respond to SAVIKAM’s requests for the appropriate identifying information of those involved, or the source of monetary income, SAVIKAM may decline a purchase. SAVIKAM may choose to decline any transaction if any of the following conditions apply:
- Country offices may receive requests for unusual transactions, such as a request to transfer funds through an office account, or to hold funds. cash on behalf of a third party, or transfer of This is somewhat up to SAVIKAM
- Programs and partners abroad may be the subject of suspicious or unusual transactions resulting from money laundering.
Other areas of risk that SAVIKAM considers are: The conclusion
- of partnership agreements with organizations that may be fronts for criminal activities.
- Use of an alternative banking system (Hawala) to move funds to areas of operations.
- Use of conduits for fundraising (money held for the organization on behalf of a conduit).
- Use of couriers to transport money or valuables (gold or merchandise) to areas of operation.
- Payment of facilitation fees in an area of operation where these amount to a private benefit rather than a tax or legal right.
- Request to use SAVIKAM as an intermediary and to pass money on it.
To avoid being an unconscious accomplice in money laundering, SAVIKAM applies the following guidelines to determine whether to accept the purchase of real estate or not:
- Project financing – maintain budgets of complete programs that take into account all the spending programs of the.
- Solicitations – tell buyers how to prove the source of funds and ensure that funds are ultimately from a legal and legitimate source.
- In-depth reviews – where accounting and financial auditing might be insufficient, direct audits of the source of funds may be considered in order to satisfy AML / CFT.
It is a legal obligation for SAVIKAM to appoint a money laundering reporting officer (‘MLRO’) to be legally responsible for the receipt of suspicious transaction reports at SAVKAM and their transmission to the National Criminal Investigation Department (NCIS ).
Following best practices, the MLRO for SAVIKAM Responsible for Finance and Audit.
- He assumes all responsibilities regarding this policy and receives suspicious activity report forms.
- He is also responsible for communication with NCIS.
If a staff member knows or suspects that there is money laundering, they should report it to MLRO as soon as knowledge or suspicion first strikes them. Any delay exposes them to both counts of failure to report and assisting in the offense. They do not need to determine the nature of the crime which leads them to suspect that the unusual transaction may be a case of money laundering. However, they are able to explain what made them suspicious. The report must always be made immediately to MLRO, even if subsequent knowledge proves that the suspicion is unfounded.
Suspicions are not discussed with co-workers, especially if some of them also have connections with the suspected person, as they may (even inadvertently) say or do something that could cause that person to realize that it could be the object of suspicion. The matter is not discussed with anyone outside of SAVIKAM other than the competent statutory authorities, except with the permission of MLRO.
Any suspicion is reported in writing using a suspicious activity report form. The Suspicious Activity Report form is submitted in hard copy only or by facsimile; email is not sufficient to discharge legal liability and is not secure enough to avoid the danger of alerting the potential money launderer. Once the report is submitted, any contact with the suspected person or organization is only made with the express consent of MLRO. If the MLRO decides to submit a report to NCIS, all activities involving the suspected person are immediately frozen and no contact is made without the consent of NCIS.
SAVIKAM has an alert policy and a fraud and loss policy. We have policies and procedures regarding the source of funds used to purchase real estate. This anti-money laundering policy is in addition to these other policies.
SAVIKAM staff adhere to the following guidelines:
- Roles and responsibilities of the operations manager and operational persons and sales / legal / MELO agents as defined in the SAVIKAM Standard Operating Procedures Manual.
- Follow a risk-based approach in handling SAVIKAM projects (as defined when it comes to real estate projects).
- Disbursements – Identify high risk projects and / or locations.
- Perform due diligence on the buyer’s source of funds and their disbursements.
- Filter against anti-terrorism funding and sanctions lists relevant to the country of origin of funds.
- Depending on the risks, adopt enhanced due diligence procedures – such as; request more information on entities at risk, increase monitoring and reviews of projects. Identify, escalate and report suspicious activity – define suspicious activity and staff responsibility for reporting to the assigned MRLO officer.
- Report to the competent body of the jurisdiction. Note the confidentiality of suspicious transaction reports / reports (STRs) and notification from the MRLO and SAVIKAM international board of directors.
- Record keeping – SAVIKAM must be able to ensure that it has information on the source of funds (origin of funds, identity of the person carrying out the transaction, destination of funds, form of instruction and authority (if identity is anonymous)).
- When cash is handled, SAVIKAM has thresholds (MUR 500,000) on cash purchases.
- SAVIKAM follows record retention procedures for all cash received. These procedures are performed in consultation with legal counsel and in accordance with SAVIKAM’s standard operating manual.
Education and Training – SAVIKAM provides AML training to administrators, staff, entities involved in handling cash and / or transactions, for example as follows:
- training for new staff and / or administrators
- training for administrators
- training for specific high-risk individuals or projects and
- continuing education.
Audit strategy – SAVIKAM has set up an AML audit component as part of its
regular internal audit procedure to be carried out at the time of the financial audit each year.
CHECK PROCEDURES FOR COMPLIANCE WITH THIS POLICY
At least once a year, SAVIKAM’s internal auditor and / or an independent third party examines the MRLO’s suspicious activity file. The auditor ensures that all suspected activities identified have been investigated and dealt with appropriately. The auditor also examines the system accountant with respect to cash transactions and payments to look for suspicious activity that the MRLO may have missed.
RISKS OF THE PROJECT COUNTRY
Wednesday February 13, 2019, the European Commission revised its list of countries whose control is permissive in the fight against money laundering and the financing of terrorism. As the necessary measures have been taken to ensure that its financial sector meets international standards, the Commission has removed Mauritius from its list of high-risk third countries.
The 23 countries that appear on the list of high risk third countries are: Afghanistan, American Samoa, Bahamas, Botswana, Democratic People’s Republic of Korea, Ethiopia, Ghana, Guam, Iran,) Iraq, Libya, Nigeria, Pakistan, Panama, Puerto Rico, Samoa, Saudi Arabia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, US Virgin Islands, Yemen.
Director of Finance, Operations and Audit / MLRO (SAVIKAM)
Mahesh POLIGADOO [email protected]
CEO Mahendranath POLIGADOO [email protected]