Anti-Money Laundering Policy

POLICY STATEMENT

ASHFAR is committed to full compliance with all applicable laws and regulations regarding anti-money laundering procedures. ASHFAR has adopted and will enforce the provisions set forth in Anti-Money Rules & Regulations in order to prevent and detect money laundering, terrorist financing and other illegal activities. If ASHFAR, its personnel and/or premises are inadvertently used for money laundering or other illegal activities, ASHFAR can be subject to potentially serious civil and/or criminal penalties. Therefore, it is imperative that every member, officer, director, and employee is familiar with and complies with the policies and procedures set forth in this Compliance Manual.

This Compliance Statement is designed to assist all clients in adhering to ASHFAR’s policy and procedures, which, if followed diligently, are designed to protect themselves, ASHFAR, its Employees, its facilities and its activities from money laundering or other illegal activities. To ensure that ASHFAR’s policies and procedures are adhered to, ASHFAR shall designate an Anti-Money Laundering Compliance Officer (the “Compliance Officer”).

The Compliance Officer is responsible for establishing and conducting Employee training programs to ensure that all appropriate Employees are aware of the applicable Anti - Money Laundering Laws and Regulations, ASHFAR’s Anti - Money Laundering Policies & Procedures and their responsibilities with respect to these policies.

 

OBJECTIVES

  • Comply with all Anti - Money Laundering Rules & Regulations of the jurisdictions we operate;
  • Require all Employees to prevent, detect and report to the Compliance Officer all potential instances in which ASHFAR or its Employees, its facilities or its activities have been or are about to be used for money laundering, terrorist financing and other illegal activity;
  • Provide for a Compliance Officer who shall ensure adherence to the ASHFAR’s Anti-Money Laundering Policies and Procedures;
  • Require all appropriate Employees to attend anti-money laundering training sessions, so that all such Employees are aware of their responsibilities under ASHFAR’s policies and procedures; this Compliance Manual; and as affected by current developments with respect to anti-money laundering events.

 

An outline of ASHFAR's Anti-Corruption and Anti-Money Laundering Policy and Procedures document is set out below.

 

COMPLIANCE WITH THE POLICY

Strict compliance with the requirements of the Policy is mandatory for all employees and by those who provide services to the Company ("Service Providers").

 

GIFTS AND HOSPITALITY

No gift or hospitality shall be given by an employee or Service Provider in exchange for a business benefit or any improper business advantage. Nor should it be given if it is intended to influence or could be perceived as influencing a business decision by the recipient. Employees and Service Providers may receive from their business contacts or offer or give to a person who is not a public official, any gift or hospitality which does not exceed $50 in value for each individual gift or $250 in value per head for each hospitality event (not to exceed a total value of $2500 in any financial year). Prior approval shall be required from the Group Financial Controller or the Compliance Officer for any gift or hospitality which does not fall within the aforementioned criteria or which is proposed to be made to a public official. All gift giving shall be recorded in the corporate books. Any receipt of gifts shall be declared in writing to the Financial Controller upon request.

 

DUE DILIGENCE

Before the Company enters into contractual relations of any kind with any third party, it shall assess the risk of that person committing acts of bribery on its behalf and conduct an appropriate level of due diligence on that person. Due diligence process which must be followed by the Company prior to entering into a contractual relationship with a third party is set out in Section 4 of the Policy.

Through its due diligence process the Company shall try to:

  • establish that third parties that in any way act on its behalf are suitable for this purpose. The aim is to minimise any risk that a third party shall take any actions that could breach any anti-corruption laws for which ultimately the Company could be held responsible;
  • ensure that the individuals and entities that it does business with are engaged in legitimate businesses. The aim is as to minimise any risk that the Company engages with a person or entity engaged in money laundering or other illicit activities or is used to facilitate such activities;
  • ensure that it does not have dealings with a third party that would result in the Company coming into disrepute.

 

TRAINING

All employees shall receive training about the threats posed by bribery and money laundering in general and the risks faced by the oil and gas sector in particular. The training shall cover the various ways in which the Company is addressing those risks. More advanced training shall be provided to certain employees, tailored to the specific risks associated with their particular roles. The Company shall also, where appropriate, provide advanced bribery prevention training to Service Providers who represent a higher degree of risk from a bribery perspective. If the Company does not train such Service Providers itself, it shall encourage them to conduct their own bribery prevention training.

 

SPEAK UP PROCEDURES AND PROTECTION

Any suspected violation of the Policy should be immediately brought to the attention of the Financial Controller, who shall consult with the Compliance Officer as appropriate. They shall take any steps which they deem necessary, which may include engaging legal counsel to conduct a privileged and confidential internal investigation. No further action should be taken by the person reporting the violation until a response is received from the Financial Controller and/ or the Compliance Officer. The Policy prohibits retaliation in any form against individuals who, in good faith, report concerns about possible violations.

 

COMPLIANCE COMMITTEE

Any issues that may arise in relation to the Policy shall initially be discussed by a committee consisting of the Chief Executive Officer, the Financial Controller and the Compliance Officer.

 

ANNUAL REVIEW

The Compliance Officer shall conduct an annual review in order to determine whether the Policy is fully understood and is being complied with and properly implemented. It shall be presented to the Chief Executive Officer and, as appropriate, to the Board of Directors or Audit Committee. More frequent reviews may be conducted if material issues of non-compliance have arisen or there are indications that the Policy has not been fully understood and/or implemented.

 

WHAT IS MONEY LAUNDERING?

Money laundering involves the placement of illegally obtained money into legitimate financial systems so that monetary proceeds derived from criminal activity are transformed into funds with an apparently legal source. Money laundering has many destructive consequences both for society as a whole and for those entities involved in money laundering activities. With respect to society as whole, money laundering may provide resources for drug dealers, terrorists and other criminals to operate and expand their criminal activities. With respect to entities, any involvement, whether it be to instigate, assist, conceal, or ignore the source, nature, location, ownership or control of money laundering activities, can lead to both civil and criminal proceedings against both the individual and the entity involved. Additionally, the adverse effects, including the adverse publicity to the Firm associated with involvement in money laundering events cannot be emphasized enough.

Money laundering transactions may include:

  • Advising a potential or existing client on how to structure a transaction to avoid reporting and/or record keeping requirements;
  • Engaging in any activity while wilfully or recklessly disregarding the source of the funds or the nature of the Clients transaction;
  • Engaging in any activity designed to hide the nature, location, source, ownership or control of proceeds of criminal activity;
  • Dealing in funds to facilitate criminal activity; or
  • Dealing in the proceeds of criminal activity. Money laundering can involve the proceeds of drug dealings, terrorist activities, arms dealings, mail fraud, bank fraud, wire fraud or securities fraud, among other activities.

 

CONTROLS TO PREVENT MONEY LAUNDERING

  • To put in place internal controls and policies to ensure continuing compliance with the Rules & Regulations
  • To appoint a Money Laundering Reporting Officer (Compliance Officer)
  • To establish / enhance record keeping systems for All transactions
  • To establish internal suspicion reporting procedures
  • To educate and train all staff with the main requirements of the Rules & Regulations Internal controls and policies should be established and recorded in order to:
  • Ensure that anyone who suspects money laundering knows how to report this information to their Compliance Officer
  • Provide the Compliance Officer with the means by which the reasonableness of the suspicion can be judged, and thereby assess which suspicious matter should be reported to the Regulatory Authority.

 

ANTI – MONEY LAUNDERING COMPLIANCE OFFICER

Any Employee shall immediately notify the Compliance Officer if he/she suspects or has any reason to suspect that any potentially suspicious activity has occurred or will occur if a transaction is completed.

Employees are encouraged to seek the assistance of the Compliance Officer with any questions or

concerns they may have with respect to the ASHFAR’s Anti-Money Laundering Policies or Procedures.

Responsibilities of the Compliance Officer include the following:

  • Coordination and monitoring of ASHFAR’s day-to-day compliance with applicable Anti- Money Laundering Laws and Regulations and ASHFAR’s own Anti-Money Laundering Policy and Procedures;
  • Conducting Employee training programs for appropriate personnel related to the ASHFAR’s antimony laundering policy and procedures and maintaining records evidencing such training;
  • Receiving and reviewing any reports of suspicious activity from Employees;
  • Determining whether any suspicious activity as reported by an Employee warrants reporting to senior management of the Firm;
  • Coordination of enhanced due diligence procedures regarding Clients; and Responding to both internal and external inquiries regarding ASHFAR’s anti-money laundering policies and procedures.

 

ANTI – MONEY LAUNDERING EMPLOYEE TRAINING PROGRAM

As part of the ASHFAR’s anti-money laundering program, all Employees are expected to be fully aware of the ASHFAR’s anti-money laundering policies and procedures.

Each Employee is required to read and comply with this Compliance Manual, address concerns to the Compliance Officer and sign the acknowledgement form confirming that he/she has read and understands ASHFAR’s anti-money laundering policies and procedures.

To ensure the continued adherence to ASHFAR’s anti-money laundering policies and procedures, all Employees are required to reconfirm their awareness of the contents of this Compliance

Manual by signing the acknowledgement form annually, or more frequently, as required by the Compliance Officer.

All Employees are required;

  • At a time specified by the Compliance officer, to undertake training programs on antimony laundering policies and procedures.
  • To get trained in how to recognize and deal with transactions which may be related to money laundering.
  • To timely escalate and report the matter to the Compliance Officer.
  • To get themselves acquainted with Anti Money Laundering Rules & Regulations.
  • To comply with the requirements of Rules & Regulations.

 

REGULAR REVIEWS AND AUDITS

A regular review of the program should be undertaken to ensure that it is functioning as designed. Such a review could be performed by external or internal resources and should be accompanied by a formal assessment or written report.

If and when regulations are amended concerning reporting of suspicious activities, ASHFAR will amend this Compliance Manual to comply with those regulations.