Hensex Commodities wishes to be at the forefront, towards ensuring compliance with all the regulatory requirements and is committed to maintaining and promoting high ethical standards and business practices. As an effort in the same direction we have prepared this Anti-Money Laundering Policy & Procedures (“Policy”) in order to ensure compliance under the Prevention of Money Laundering Act, 2002 and to establish a common vision of our commitment to safeguard India’s common values and international peace and security.
Hensex Commodities as an intermediary under the Prevention of Money Laundering Act, 2002, (“PMLA”) is required to have a system in place for identifying, monitoring and reporting suspected money laundering or terrorist financing transactions to law enforcement authorities. The Policy is intended to establish certain guiding principles for all employees and consultants of Hensex Commodities.
All Employees subject to the provisions of this Policy must conduct themselves in a manner consistent with the requirements and procedures set forth herein. Adherence to the Policy is a fundamental condition of service with Hensex Commodities and the provisions of the Policy shall be deemed an intrinsic part of the terms of employment of the Employees. In the event that any Employee experiences any difficulties or doubts in respect of the meaning or interpretation of any of the provisions of the Policy or is unsure of whether a given action would be consistent with the Policy or any other applicable laws, he or she should contact the Designated Officer (appointed as specified below) for clarifications.
The Prevention of Money Laundering Act, 2002 (PMLA 2002) forms the core of the legal framework put in place by India to combat money laundering. PMLA 2002 and the Rules notified there under came into force with effect from July 1, 2005. Necessary Notifications / Rules under the said Act were published in the Gazette of India on July 01, 2005. The PMLA has been further amended vide notification dated March 6, 2009 and inter alia provides that violating the prohibitions on manipulative and deceptive devices, insider trading and substantial acquisition of securities or control as prescribed in Section 12 A read with Section 24 of the Securities and Exchange Board of India Act, 1992 (SEBI Act) will now be treated as a scheduled offence under schedule B of the PMLA.
As per PMLA, every banking company, financial institution (which includes chit fund company, a co-operative bank, a housing finance institution and a non-banking financial company) and intermediary (which includes a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and any other intermediary associated with securities / commodities market and registered under section 12 of the Securities and Exchange Board of India Act, 1992) shall have to maintain a record of all the transactions; the nature and value of which has been prescribed in the Rules notified under the PMLA. For the purpose of PMLA,Such transactions include:
a. All cash transactions of the value of more than Rs. 10 lakhs or its equivalent in foreign currency.
b. All series of cash transactions integrally connected to each other which have been valued below Rs 10 lakhs or its equivalent in foreign currency where such series of transactions take place within one calendar month.
c. All suspicious transactions whether or not made in cash and including, inter-alia, credits or debits into from any non-monetary account such as d-mat account, security account maintained by the registered intermediary.
a. Mr. Tahir Hussain of Hensex Commodities shall serve as the Designated Officer responsible for overseeing the implementation of this Policy and periodically reporting on issues covered herein to the Partners. Employees shall refer all matters concerning the issues covered by this Policy to the Designated Officer and shall act in accordance with his/her instructions in this behalf.
b. All submissions required to be made by Employees in terms of this Policy shall be addressed to the Designated Officer. The Designated Officer shall be responsible for maintaining and updating all records to be kept by Hensex Commodities in accordance with this Policy or any applicable laws/regulations. In addition, the Designated Officer shall be responsible for maintaining close liaison with enforcement agencies and other institutions which are involved in the fight against money laundering and combating financing of terrorism. In the absence of the Compliance Officer, the Designated Director / Partner will act as the Designated Officer for the purpose of this Policy.
The objective of this policy framework is to:
a) Create awareness and provide clarity on KYC standards and AML measures.
b) To have a proper Customer Due Diligence (CDD) process before registering clients.
c) To monitor/maintain records of all cash transactions of the value of more than Rs.10 lacs.
d) To maintain records of all series of integrally connected cash transactions within one calendar month.
e) To monitor and report suspicious transactions.
f) To discourage and identify money laundering or terrorist financing activities. g) To take adequate and appropriate measures to follow the spirit of the PMLA.