Anti-Money Laundering Policy
Asia Green Development Bank is strongly aware that Money Laundering and Terrorist Financing will be highly damage to bank’s image, reputation and the bank may suffer the legal risk. AGD Bank is committed to the highest standards of Anti-Money Laundering (AML) and Combating Terrorist Financing (CTF) compliance and requires management and employees to adhere to these standards to prevent use of our products and services for Money Laundering and Terror Financing purposes.
AML/CTF strategies, goals and objectives will be maintained an effective Anti-Money Laundering procedures manual for the bank’s business that reflects the best practices for a financial institution.
AGD Bank AML/CTF policy is the responsibility of all staffs. The policy includes client screening and monitoring requirements, “Know Your Customer (KYC)” policies, Sanction Policies, record keeping requirements, the reporting requirements of threshold transactions and suspicious transactions and AML/CTF training.
- Relevant Laws and Regulations
AGD Bank is practicing to comply with the following laws and regulations;
- The Anti-Money Laundering Law of Myanmar (The Pyidaungsu Hluttaw Law No.11/2014)
- The Anti-Money Laundering Rule of Myanmar
- The Counter Terrorism Law of Myanmar
- Directive for Customer Due Diligence Measures, Central Bank of Myanmar Directive No. (21/2015)
- Consolidated United Nations Security Council Sanction List
- Sanction Regulations by Office of Foreign Asset Control (OFAC), U.S. Department Of The Treasury.
- Myanmar Laws, Rules, Regulations, Directives and Instructions by local regulator from time to time
- Definition of Money Laundering
Money Laundering is defined as the following in Section 3(n) of Anti-Money Laundering Law of Myanmar;
- Converting or transferring of money and property, knowing or having reason to know that it is money and property obtained by illegal means for the purpose of disguising or concealing the source or for the purpose of assisting before or after commission of the offence to any person who is involved in the commission of any offence to evade the legal action;
- Changing the true nature, source, location and disposition of money and property, knowing or having reason to know that it is money and property obtained by illegal means and conceal or disguise of ownership or rights of such money and property;
- Acquiring, possessing or using of money and property, knowing or having reason to know at the time of receipt that it is money and property obtained by illegal means;
- Participating, facilitating, aiding, supporting, managing, counseling, being a member of an organized group in committing, attempting to commit or conspiring to commit any offences
- Know Your Customer (KYC) Policy
Know Your Customer (KYC) policy helps to build our relationship with customers. It includes the following processes;
- Customer Acceptance Policy
- Customer Identification
- KYC reviewing process
- Specific KYC issue for Correspondent Banks and Inter-Bank Relationship
- KYC issue for Non-account Customer (Walk-in Customer)
- KYC issue for Wire Transfers
Customer Due Diligence shall be applied to customer, it base upon customer risk, product risk and geographical risk. Enhance Due Diligence shall be applied to high risk customer.
AGD bank would not do business with shell banks or adequate AML/CTF regime country and would not provide the products and services to those
- Record Keeping
According to the Section 23 of Anti-Money Laundering Law of Myanmar, the bank shall maintain the records of the necessary information at least 5 years under local laws and regulations
- Local Black List and International Sanctions
AGD Bank Sanctions procedure is designed to ensure that the bank complies with applicable local black list and international sanction regulations. International Banking Division (IBD) and local branches are required to screen with associate black list/sanction list (such as local black list, UN Consolidated list, OFAC Sanction list)
- Roles and Responsibilities of Chief Compliance Officer and Branch Compliance Officer
Chief Compliance Officer of Head Office shall be approved by the Board of Directors of the bank and roles and responsibilities of Chief Compliance Officer of Head Office are specified in the section 28 (b) of the Anti-Money Laundering Law of Myanmar.
Branch Compliance Officers shall be appointed to perform proper AML/CTF responsibilities of the branch by the approval of Chief Compliance Officer or Senior Management of the bank. Branch Compliance Officer shall organize the Branch Compliance Team with proper number of staffs and report to Head Office Legal and Compliance Department.
The threshold transaction (equivalent or over 100 million MMK or 10,000USD) shall be reported as threshold transaction report and the suspicious transactions shall be reported to the competent authorities according to local law.
All new staffs shall receive the AML/CTF awareness training within six months after an employee has joined AGD Bank. The advanced AML/CTF training and workshops will provide to specific level of staffs occasionally.
AGD Code of Conduct
Asia Green Development Bank (AGD) has adopted a Code of Conduct (“the Code”) that applies to all staff. The Code sets out the principles to guide staff in carrying out their duties and responsibilities to the highest standards of personal and corporate integrity when dealing with AGD, its competitors, customers, suppliers, other staff and the community. The Code sets the minimum standard that the bank expects of all staff. Where appropriate, the Code can be supplemented by additional specific requirements related to a country, entity or business unit. It is the essential responsibility of every staff to comply with the spirit and principles of the Code, as amended from time to time.
Compliance with the Law
AGD develop the strong compliance culture in the bank. The main purpose is that all AGD staff shall comply with all laws, regulations and legal requirements by the different regulators where the bank’s operations are related.
Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF)
Money laundering and terrorist financing have been identified as major threats to the AGD bank and the bank is committed to the standards of anti-money laundering and counter-terrorist financing compliance and requires management and employees to adhere to these standards to prevent use of our products and services for money laundering and terror financing purposes. All staff including managements shall comply with internal AML/CTF policy and procedures as well as local AML laws and regulations.
According to the Section 3 (a) of Anti-Corruption Law of Myanmar, corruption is defined as misusing his/her designation, and authorized person to do something, to refrain from doing legally, to give benefit legally to someone or to prohibit untruly the benefit deem right legally or doing directly or indirectly the bribes or chances or opportunities from relevant person for giving, receiving, obtaining, attempt to obtain, offering, promising, discussing for him or for other person or for organization.
All staff including managements shall comply with Anti-Corruption Law of Myanmar and Entertainment Guide Line from Myanmar President Office (which is especially for receiving gifts of government officials). The bank adopted the entertainment guide lines for all staff in relationship with both customers (such as depositors, credit customers and potential customers) and government officials.
The bank aware that the effective management of risks is a requirement of the section 18 of Anti-Money Laundering Law, the Basel Core Principles (BCP) for Effective Banking Supervision and the Financial Action Task Force (FATF) 40 recommendations.
The bank developed an effective risk management function to manage and mitigate bank’s financial risk, operation risk, ML/TF risk, reputational risk and legal risk. The risk management function is the business unit with day to day operational responsibility for ensuring that bank effectively identifies, measures, monitors, and controls and mitigate risks.
Health and Safety Environment
The bank is committed to provide a healthy and safe work environment for all staff. Every staff has a personal responsibility to support this commitment. Staff are obliged to carry out their work in a safe manner, without causing harm to themselves or others, and to report any potentially unsafe or unhealthy situations immediately to Human Resource Department.
The bank is committed to providing quality and efficient products and services to all customers, and every staff has an important role to play. The bank has adopted and practiced the KPI process to measure the performance of all staff. They are required to perform tasks assigned in a responsible and reliable manner and to manage time at work efficiently, without wasting bank time and resources by taking part in unauthorized activities including, but not limited, to trading, gambling or political activities on the premises.
Staff Communication Practice
At all times, every staff has a responsibility to treat colleagues with respect and consideration. Improper behavior includes, but is not limited to, discrimination or harassment in any form such as bullying, intimidation, threats, ridicule, sexual, racial or verbal abuse, insults, gestures, willful or serious insubordination, physical violence etc. The bank respect Human Rights and adopt the proper practice in bank Human Resource policy.
Bank Property and Assets
Staffishighly responsible for bank property entrusted to them. This property includes, but is not limited to physical property (such as bank uniform, phones, bank vehicles or computers), records (such as customers information, transaction records or financial records), ,intangible property (such as computer software, email and computer records) and intellectual property (such as bank logo, reputation or image). It is important that, whichever category the property falls into, all staff must treat the bank’s property as they would their own and must not damage it, deface it or remove or abuse it for personal use, unless authorized to do so.
Anti-Alcohol &Combating Illegal-Drugs
To retain the banker’s ethics, staff must attend work in a fit state and is not to be under the influence of alcohol or drugs during working hours. Involvement with the manufacture, possession, use, distribution, sale, purchase, or transfer of illegal drugs is specified as criminal and strictly prohibited.
According to Section 81 of Financial Institutions Law of Myanmar, bank information including customer information is strictly prohibited to disclose to others, except from Section 82 and 83. All staff shall comply with those confidentiality and criminal penalties will be punished to anyone who breach the mentioned law. As recordable information, bank’s financial information, business information, customer information and others information which is described in the law are strictly kept as confidential for at least 5 years and all staff shall comply with bank record retention procedure.
Conflict of Interest
As a financial services provider, the Bank faces actual and potential Conflicts of Interest periodically. The Bank’s policy is to take all reasonable steps to maintain and operate effective organizational and administrative arrangements to identify and manage relevant conflicts. Senior management within the Bank are responsible for ensuring that the Bank’s systems, controls and procedures are adequate to identify and manage Conflicts of Interest. The Legal and Compliance Departments of the Bank assist in the identification and monitoring of actual and potential Conflicts of Interest. The Bank has in place business-specific procedures that address the identification and management of actual and potential Conflicts of Interest that may arise in the course of the Bank’s business.
Corporate Social Responsibility (CSR)
AGD Bank shall be aware to contribute to educational, social, ecological, cultural and other projects and programs. In those programs, all staff shall be inclusively as active member to support the bank’s CSR activities.