Introduction
As a company, we are committed to carrying on business in accordance with the highest ethical
standards. This includes complying with all applicable laws and regulations aimed at combating
money laundering and terrorist financing. This Policy has been developed by Terra Verde Limited to reduce the risk of money laundering and terrorist financing associated with its business and the sale of its products. This Policy explains our individual responsibility in complying with anti-money laundering and counter-terrorist financing laws (“AML Laws”) around the world and ensuring that any third parties that weengage to act on our behalf, do the same.
The management of Terra Verde Limited is committed to complying with all laws. Any employee who violates the rules in this Policy or who permits anyone to violate those rules may be subject to appropriate disciplinary action, up to and including dismissal, and may be subject to personal civil or criminal fines.
If you have any questions about this Policy you should contact the Ethics and Compliance or the Legal
Department.
Policy Statement on AML
It is Terra Verde Limited’s policy to comply with all applicable AML Laws in our operations worldwide. To this end, Terra Verde Limited will only conduct business with customers who are involved in legitimate business activity and whosefunds are derived from legitimate sources.
This Policy is intended to help employees, contractors, and other third parties acting on the company’s
behalf to understand where breaches of AML Laws might arise and to support them in making the
right decisions in line with our corporate position as stated in this Policy.
Board Endorsement
The Board of Terra Verde Limited will not criticise management for any loss of business resulting from adherence to this Policy. No employee or contractor will suffer as a consequence of bringing to the attention of the Board or senior management, in good faith, a known or suspected breach of this Policy nor will any employee or contractors suffer any adverse employment or contract decision for abiding by this Policy.
Who is subject to this Policy?
This Policy applies to Terra Verde Limited’s operations globally, including all legal entities worldwide owned or controlled by Terra Verde Limited (including all group companies), and to all directors, officers, employees, contractors, and other third parties acting on behalf of the foregoing.
What’s the risk?
Violations of AML Laws may lead to severe civil and/or criminal penalties against companies and
individuals, including significant monetary fines, imprisonment, extradition, blacklisting, revocation of
licences, and disqualification of directors.
In addition, violations of AML Laws can lead to damaging practical consequences, including harm to
reputation and commercial relationships, restrictions in the way we can do business, and extensive
time and cost in conducting internal investigations and/or defending against government investigations
and enforcement actions.
What do we mean by Money Laundering and Terrorist Financing?
Money laundering means exchanging money or assets that were obtained criminally for money or
other assets that are ‘clean’. The clean money or assets don’t have an obvious link with any criminal
activity. Money laundering also includes money that’s used to fund terrorism, however it’s obtained.
The following types of activities are considered to be “money laundering” and are prohibited under this
Policy:
-the conversion or transfer of property (including money), knowing or suspecting that such
property is derived from criminal or certain specified unlawful activity (“criminal property”), for
the purpose of concealing or disguising the illicit origin of the property or of assisting any person
who is involved in the commission of such activity to evade the legal consequences of his
action;
-conducting a financial transaction which involves criminal property;
-the concealment or disguise of the true nature, source, location, disposition, movement, rights
-with respect to, ownership or control of criminal property;
-the acquisition, possession or use of criminal property;
-promoting the carrying on of unlawful activity;
-and participation in, association to commit, attempts to commit and aiding, abetting, facilitating and
counselling the commission of any of the actions mentioned in the foregoing points.
The broad definition of money laundering means that anybody (including any Terra Verde Limited employee) could be in violation of the law if he/she becomes aware of, or suspects, the existence of criminal property within the business and becomes involved in or continues to be involved in a matter which relates to that property being linked to the business without reporting his/her concerns.
Property can be criminal property where it derives from any criminal conduct, whether the underlying
criminal conduct has taken place in the country where you are situated or overseas.
Terrorist financing may not involve the proceeds of criminal conduct, but rather an attempt to conceal
the origin or intended use of the funds, which will later be used for criminal purposes.
Red Flags
Where any suspicions arise that criminal conduct may have taken place involving a customer,
colleague or third party, you should consider whether there is a risk that money laundering or terrorist
financing has occurred or may occur.
Some examples of red flags to be reported include:
-A customer provides insufficient, false or suspicious information or is reluctant to provide complete
information
-Methods or volumes of payment that are not consistent with the payment policy or that are not
customarily used in the course of business, e.g., payments with money orders, traveller’s checks,
and/or multiple instruments, and payments from unrelated third parties
-Receipts of multiple negotiable instruments to pay a single invoice
-Requests by a customer or partner to pay in cash
-Early repayments of a loan, especially if payment is from an unrelated third party or involves
another unacceptable form of payment
-Orders or purchases that are inconsistent with the customer’s trade or business
-Payments to or from third parties that have no apparent or logical connection with the customer
or transaction
-Payment to or from countries considered high risk for money laundering or terrorist financing
-Payments to or from countries considered to be tax havens or offshore jurisdictions
-Payments from countries unrelated to the transaction or not logical for the customer
-A customer’s business formation documents are from a tax haven, or a country that poses a high
risk for money laundering, terrorism or terrorist financing, or a country that is not logical for the
customer
-Overpayments followed by directions to refund a payment, especially if requested to send the
payment to a third party
-Any customer for whom you cannot determine the true beneficial owner
-Structuring transactions to avoid government reporting or record keeping requirements
-Unusually complex business structures, payment patterns that reflect no real business purpose
-Wire transfer activity that is not consistent with the business activities of the customer, or which
originates or terminates with parties unrelated to the transaction
-Unexpected spikes in a customer’s activities
-The above is not intended to be an exhaustive list. Deviation from customer and accepted
business practice should alert you to further investigate the activity in accordance with this
Policy.
Compliance controls
8.1 Senior management in each Terra Verde Limited business are responsible for ensuring that their business has a culture of compliance and effective controls to comply with AML laws and regulations to prevent, detect and respond to money laundering and counter-terrorism financing and to communicate the serious consequences of non-compliance to employees.
Employee Responsibility
9.1 The employees have the obligation to read and follow this Policy, to understand and identify any red
flags that may arise in their business activities and to escalate potential compliance concerns related
to AML to Ethics and Compliance or the Legal Department without notifying anyone involved in the
transaction and should not take any actions prior to receiving advice and/or instructions.
Due Diligence and Record Keeping
10.1 It is our policy to carry out due diligence (“DD”) at the outset of any business relationship and, if
necessary, where any red flags arise subsequently on our suppliers, distributors, counterparties,
agents and any person with whom Terra Verde Limited has an established business relationship that will involve the transfer to or receipt of funds (“Customers”), so we can be satisfied that they are who they say they are and so that we can ensure that there are no legal barriers to working with them before contracts
are signed or transactions occur. Various factors will determine the appropriate forms and levels of
screening.
10.2 You should escalate any instances where you have cause for suspicion as a result of carrying out DD
and ongoing monitoring to Ethics and Compliance or the Legal Department, who will advise them
regarding which tools and processes should be used to facilitate appropriate screening.
10.3 You must, in consultation with the Ethics and Compliance or the Legal Department, carefully consider
screening outcomes before deciding whether to do business with the third party.
10.4 Finance managers must regularly monitor and/or review Customers to identify business activity or
governance that could indicate money laundering or terrorist financing is taking place.
10.5 Record-keeping is an essential component of the audit trail required to assist in any investigation. You must maintain records as evidence of the DD and ongoing monitoring undertaken.
Non-compliance
11.1 Any Terra Verde Limited employee or contractor, who violates this Policy may be subject to appropriate disciplinary action, independently from potential other penalties resulting from their behaviour.
11.2 Internal Audit shall conduct regular checks on local businesses to ensure compliance with AML Laws.