Client Acceptance Procedure

1. CLIENT ACCEPTANCE PROCEDURE
T H E C O M P L I A N C E D E P A R T M E N T :
• J U D I T H Z I M M E R M A N
• Z A Y N U R I E V A L K S
• J O C H A N E L L A B A L E N T I N A
M A R C H 2 0 2 2

2. PURPOSE OF THE TRAINING
 Create awareness and improve job
productivity;
 Increase efficiency in Compliance regarding
the New Client Acceptance Procedure;
 Self-execution of the Verification and
Screening Process by the front line staff;
 Examination.

3. CONTENT
 ACU is a financial institution
 Risk-Based Approach
 What is Compliance?
 Know Your Client (KYC)
 CDD Process
 Client Acceptance Procedure
 Documents
 Forms
 Red flags
 Tips

4. ACU IS A FINANCIAL INSTITUTION
Definitions:
A financial institution (FI) is a company engaged in the
business of dealing with financial and monetary transactions
such as deposits, loans, investments, and currency
exchange.
A credit institution is legally defined as ‘an undertaking
whose business is to receive deposits or other repayable
funds from the public and to grant credits for its own
account‘.

5. ACU IS A FINANCIAL INSTITUTION (CONT.)
Regulators:
1. Centrale Bank van Curaçao en Sint Maarten
(CBCS);
2. De Nederlandsche Bank (DNB); and
3. De Autoriteit Financiële Markten (AFM).

6. ACU IS A FINANCIAL INSTITUTION (CONT.)
CBCS Enforcement Procedure:
1. Penalties and administrative fines
(Max. ANG 500,000 and Naf. 1,000);
2. Public notice
3. Referral for criminal investigation or
prosecution.
4. Other actions and (administrative ) sanctions
(f.e. Revocation of the license).

7. RISK-BASED APPROACH
FATF recommends Financial Institutions (FI)
to apply a Risk-Based Approach
 Countries must implement these standards in
national laws and regulations.

8. RISK-BASED APPROACH (CONT.)
Internal business operations according to Risk
Based Approach
FI must understand the money laundering and
financing of terrorism threats they face and
implement measures to manage their risk
exposure;
They must identify the clients with higher risk
and focus their operations to mitigate that risk.

9. RISK-BASED APPROACH (CONT.)
Internal control:
3 lines of defense:
1. 1st line of defense: Front & Back office
staff;
2. 2nd line of defense: Compliance & Risk
Department;
3. 3rd line of defense: Internal Audit
Department & external auditor.

11. WHAT IS COMPLIANCE?
Compliance
The practice of following and applying all
Compliance Guidelines (internal and external) and
Regulations defined by the regulators.

12. WHAT IS COMPLIANCE? (CONT.)
Compliance Department
 The Compliance department is responsible for ensuring the institution as a whole remains
compliant with Compliance Guidelines and Regulations defined by the regulators. Its goal is
to ensure the institution functions within regulation, thus maintaining its integrity and
reputation in the industry.
 Is responsible for monitoring the compliance risk for the institution
 Independent but influence the whole organization
 Reports to Management and Supervisory board (Compliance report)

13. WHAT IS COMPLIANCE? (CONT.)
Compliance Department activities
 Knowledge of Compliance Guidelines and Regulations defined by the
regulators;
 Draft and implement policies, procedures, and measures to limit and
control the risk of Money Laundering and Financing Terrorism;
 Provides adequate training to staff, including Management and Board,
to identify suspicious transactions, potential risk and risk mitigation,
and the internal reporting of suspicious activities;
 Approves the acceptance of Medium and High risk members;
 Transaction monitoring;
 Suspicious activity reporting (FIU);
 Compliance Reporting to Management and Supervisory Board.

14. Non-compliance:
 Missing or incomplete files;
 Deficient CDD procedure;
 Assign incorrect risk
classification;
 No or insufficient
monitoring of transactions;
 Lack of qualitative
personnel;
Insufficient measures
taken after warnings;
 Not Reporting a
transaction to the FIU;
 Not terminating a
business relationship in a
timely manner;
 No drafting of Compliance
Reports.
WHAT IS COMPLIANCE? (CONT.)

15. EXAMPLES OF NON-COMPLIANCE:

16. KNOW YOUR CLIENT OR CUSTOMER
(KYC)
What is KYC?
The process that is implemented by a financial
institution to identify and understand its clients
when opening an account or periodically over
time.
We must assure that the clients are genuinely
who they claim to be.

17. KNOW YOUR CLIENT OR CUSTOMER
(KYC) (CONT.)
Financial Institutions may refuse to open an
account or halt a business relationship if the
client fails to meet minimum KYC
requirements.

18. KNOW YOUR CLIENT OR CUSTOMER
(KYC) (CONT.)
An effective KYC program requires:
 Customer Identification & Verification;
 Client Due Diligence (CDD);
 Ongoing monitoring;
 Updated client files.

19. CDD PROCESS
Identify Verify Source of Funds Screen
3 levels of Due Diligence:
1. Simplified Due Diligence (for low risk clients);
2. Basic Due Diligence (for all clients);
3. Enhanced Due Diligence (for high risk
clients).

20. CDD PROCESS (CONT.)
LOW RISK MEDIUM RISK HIGH RISK
Required documents
mentioned in Client Acceptance
Procedure
Required documents for Low
risk clients + Bank or
Professional reference letter
Required documents for Low
risk clients + Bank or
Professional reference letter +
SOW

21. SCREENING
 Purpose of screening
 To detect that the client is on
a sanction list in order to determine the
level of CDD; and
 To prevent that the client can use the
Financial Institution for terrorism financing.
 Screening of employees (Know Your Employees)

22. SCREENING (CONT.)
 Sanction lists (Law imposed):
1. OFAC (Office of Foreign Assets Control);
2. EU (European Union);
3. UN (United Nations).

23. SCREENING (CONT.)
 Internal lists:
1. PEP list;
2. Watch list;
3. Red flag list;
4. Denied clients.

24. CLIENT ACCEPTANCE PROCEDURE
New Client Acceptance Procedure
 Since September 2020;
 Verification and Screening process at front;
 New CDD form to assign risk level:
Low risk approved at front;
Medium and High risk approved by Compliance
and Management;
Screening of names performed by Compliance.

25. CLIENT ACCEPTANCE PROCEDURE
(CONT.)
“Cliënt Acceptatie en Transactie Monitoring
Procedure”
 Page 9-14: Requirements to become a
member;
 Page 15-18: Risk classification (LOW, MEDIUM,
HIGH).

26. DOCUMENTS
Identification documents
National ID, Drivers license, or Passport.
Proof of income
Latest salary slip, recent employment letter, or any other document that can
verify the income.
Proof of address
Utility bills, Certified Extract of the Civil Registry, or Tax documents not older than
3 months.
Bank or Professional reference letter
Only in case the person does not have the Dutch nationality.
Other type of documents
Can be requested if needed

27. IDENTIFICATION DOCUMENTS
Must always contain the following data:
- Type of ID
- Photo (confirms if you have the right person in front of you)
- Document number
- First and Last name
- Birthdate and Birthplace
- Issued date and expire date (ID cannot be accepted if expire date was reached)
- Issued country
- Signature (must match signature on other documents)
- All required data on the original ID must be legible and clear
- Copy of ID must always be certified by an employee of ACU unless it was
already certify by a Notary. (copy of ID must be legible and clear).
Choose the option”photo” when making a copy.

28. IDENTIFICATION DOCUMENTS (CONT.)

29. IDENTIFICATION DOCUMENTS (CONT.)

30. PROOF OF INCOME
Must always contain the following data:
- Logo and/or name of the Company (must be legible)
- First and Last name
- Identification number and/or Birthdate (must match with ID)
- Payment period
- Address (must match with proof of address)
- Location or Country of the company
- Occupation
- Service entrance date
- Gross and/or Net income and currency
- Cumulative balance on the salary slip must align with each other
- Template

31. PROOF OF INCOME (CONT.)

32. PROOF OF ADDRESS
Must always contain the following data:
- Logo and name of the Company (must be
legible);
- First and Last name;
- Date and billing period;
- Address (must match address on other
documents);
- Location or Country;
- Template.

33. BANK OR PROFESSIONAL
REFERENCE LETTER
Must contain the following data:
- Logo and name of the Company or person who is writing (must
be legible)
- Address (Location or Country)
- Date
- First and Last name
- Identification number
- Job title
- Relationship with the reference and/or recommendation

34. OTHER DOCUMENTS
In case of Sole proprietorship or Freelance:
 Excerpt from the Commercial Register;
Original and not older than 6 months
 Bank statements;
Last 3 months
 Financial statements;
Prepared by a Registered Accountant or well known
Administrative office
! Note: The accounts can NOT be used for business transactions of
the company. If this takes place ACU will take the required
measures.

35. FORMS
 Membership Application form
 Transaction Profile form
 Source of Wealth form
 Source of Funds form
 CDD form (new)
 Check-List
 Interne Doormeldingsformulier

36. MEMBERSHIP APPLICATION FORM

37. TRANSACTION PROFILE FORM

38. SOURCE OF WEALTH FORM

39. SOURCE OF FUNDS FORM

40. RISK PROFILE OVERVIEW (HIGH)

41. RISK PROFILE OVERVIEW (MEDIUM)

42. RISK PROFILE OVERVIEW (LOW)

43. CDD FORM

44. CHECK-LIST

45. INTERNE DOORMELDINGSFORMULIER

46. RED FLAGS
 Suspicious behavior (f.e. nervous, angry);
 Insufficient or suspicious information;
 Avoids reporting (f.e. makes deposits below
specified threshold);
 Transaction profile inconsistent with actual
situation;
 Tax evasion (CRS/FATCA).

47. CASES
Case 1

48. CASES
Case 2

49. TIPS
 Understand the client and his/her activity;
- Know what information to ask and look for
 Always wear the thinking cap;
- What’s the next step? Ask questions
 Keep yourself updated;
- Learn on the job and its concepts
 Be open lo learning;
- Lots of changes
- Unlearn and relearn
 Build confidence