CROSS SWITCH MALTA TECHNOLOGIES LTD. (Cross Switch) Anti-Money Laundering policy complies with all the statutory and regulatory requirements for money laundering control and combating of terror financing as stated in the following statues and their corresponding Regulations, Exemptions and Guidance notes:
The contents of this policy are the minimum requirements based on applicable legal and regulatory requirements and apply to all employees of the entity including temporary and/or contract workers. These requirements are intended to prevent Cross Switch, our employees and clients from being misused for money laundering, terrorist financing or other financial crime. This Policy establishes the general framework for the fight against money laundering and financing of terrorism.
Cross Switch recognises and accepts responsibility for compliance with the money laundering control requirements contained in the relevant statutes, regulations thereto, supervisory requirements and the internal rules (collectively referred to as “regulatory requirements”).
Cross Switch supports the developing national and international commitment to combat money laundering. To this end, all staff members are required to prevent Cross Switch from being exploited by criminals for the purposes of money laundering activity. As an accountable institution, Cross Switch will have to comply and adhere to certain stringent requirements, which include:
Client identification and verification is important in establishing an effective money laundering control system. Cross Switch’s procedures are designed to comply with the regulatory requirements and to obtain information from clients that will provide appropriate knowledge of them. All new and existing clients must be identified and verified before a business relationship may be established or a single transaction concluded, as required in Cross Switch’s internal rules.
The money laundering control records that are required in terms of the regulatory requirements must be kept safe from loss, damage and theft, as specified in the internal rules. Records pertaining to the following need to be recorded and stored:
All staff must satisfy any legal obligation to report knowledge or suspicions relating to the proceeds of unlawful activities or money laundering in the required format and within the time frames required. Where a suspicious activity report has been filed or otherwise reported to the relevant authorities, staff must not notify any person of any matters relating thereto i.e. besides the Money Laundering Control Officer or specifically authorised Cross Switch officials. All reports submitted remain confidential and each staff member is protected.
The internal rules of Cross Switch have been documented and made freely available to all employees. Cross Switch follows a risk-based approach to its verification and identification procedures and will take reasonable steps to verify the particulars of a client. The internal rules detail the manner in which these records are to be kept and for what time period. The internal rules document the steps to be taken when determining whether a transaction is reportable and instances where suspicions should be raised. In view of the importance of the requirements referred to above, it is essential that all staff must comply with all requirements contained in the internal rules.
This policy is sponsored by the CEO and is approved by the Board of Directors.
The Board of Directors is ultimately responsible for money laundering control compliance. Cross Switch’s executive and management is delegated the responsibility to ensure that all Cross Switch’s activities comply with regulatory requirements. The primary responsibility of the Money Laundering Control Officer is to assist management to discharge this responsibility, however all staff members are responsible for conducting business in accordance with regulatory requirements and Cross Switch’s internal rules.
Any breach of the money laundering control regulatory requirements will be seen in a very serious light. Staff members that do not comply with the Cross Switch’s money laundering control policy or its internal rules will be subject to disciplinary action.
Cross Switch is required to identify Politically Exposed Persons “PEPS”. PEPS is the term used for an individual who is or has been in the past entrusted with prominent public functions in a particular country. Cross Switch has implemented risk management systems to determine whether a potential client is a PEP.
Cross Switch has to ensure that client documentation for verification and identification purposes is updated as a minimum, every 5 years.
Client particulars are confirmed with independent forms of verification.
Cross Switch applies standards and policies applicable in accordance to FATF’s 40 Recommendations and is fully committed to maintaining high levels of integrity, professionalism and ethical behaviour. Special attention is given to recommendation V11 and ensuring that the full originator’s information is included in all payments made.
Cross Switch has established a compliance review function that tests the adequacy of compliance and is audited yearly by independent external auditors.
Special verification procedures are required when setting up business relationships with institutions from countries not applying the FATF rules.
Records pertaining to the conclusion of a single transaction and establishment of a business relationship are safely stored and kept for a period of at least five years from the date of concluding a single transaction and the termination date of the business relationship. As documented in our internal policy, parameters have been put into place to ensure that suspicious customers are identified. Payments made and received are carefully monitored by all staff and then reported to Cross Switch’s money laundering Control Officer who in turn reports any suspicious activity.
