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Kaah Express BV AML
Manual for Italy
1
Content
1.1
Introduction Kaah Express BV
2.1
Compliance Policy
3.1
Privacy Policy
4.1
Money laundering, terrorist financing and consumer Fraud
5.1
Procedures regarding Anti Money Laundering (AML) Italy
6.1
Checks against the Sanction lists
7.1
How to make a transaction
8.1
Work description of an agent
9.1
How to use the Business Portal
10.1
Complaint procedure
11.1
Training
Appendix
1. Letter DNB concerning Typologies of Money laundering
2. Compliance rules Italy in remit one
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1. Introduction Kaah Express BV
About Kaah Express Bv
Kaah Express is founded in 2002 by Mr. A.Y. Hassan. Since April 2011 it is a limited liability
company with the name Kaah Express BV. Kaah Express Bv has its operational status in
Payment Service 6 which is making moneytransfers (send and receive).
In April 2011 Kaah Express BV received the license as payment institution (payment service 6)
from the Dutch Central Bank (DNB) .This License has given Kaah Express BV the possibility to
expand its operations to the entire European Union/ the European Economic Area.
Initially the remittance service was done entirely with Kaah Group, based in Dubai, with focus
mainly with East Africa. Since August 2005 Kaah Express became an agent of MoneyGram in
the Netherlands and since July 2012 it is a super-agent. As super-agent for MoneyGram, Kaah
Express is allowed to work with sub agents for MoneyGram. Since March 2011 Kaah Express
BV is the main partner for Kaah Group in Europe.
As described in our mission we are looking to expand our services across Europe. For this it is
essential that Kaah Express meets all regulatory requirements in order to keep the license for
payment service 6. This means that compliance plays a central role in our operations.
Mission
Our mission is to give our customers the opportunity to send money to their beloved families,
friends, relatives and business affiliates at competitive rates. Kaah Express BV believes that
making money is not an object itself, but supporting the individuals and communities whom you
deal with is a moral obligation.
We have strong commitments to fair business practices. The main objective of our operation is
based on: honesty, integrity and respect.
To ensure a clear understanding of and ensure a consistent level of commitment to our
company‘s ethical business standards, the company has developed a code of business conduct,
described in this manual, for all employees and others who act on behalf of the company. We
expect each of our team members to perform in a manner that maintains the trust and
confidence of our valued customers.
Vision
The vision of Kaah Express is that non-banking remittance is a lifeline for many people in the
world and thus deserves to be capitalized and improved without causing significant problems to
its users.
We believe that we can make remittance safe from illegal use and make it an alternative money
service with affordable charges.
Kaah Express will strive to help other financial institutions, government regulators and law
enforcement to understand how the lives of millions of people and even entire countries depend
on the unconventional remittance services. Kaah express has the policy that we follow both the
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letter and the spirit of the law and the regulations. We work hard to earn and maintain customer
confidence around the world.
Our vision is to create sustainable growth by being the most trusted Money Transfer Company
with fair rates in Europe. We exist to create ―Customers for Life‖ and ―To be the best at what
Customers Value the Most‖
Structure
To achieve the objectives Kaah Express BV and to be complaint with regulations Kaah Express
is structured as follows:
CEO (M)
COO (M)
Employees MT
NL
CFO (M)
Compliance
officer
Assistent
compliance
officer
Employees MT
outside NL
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Administration
2. Compliance Policy
Kaah Express recognizes that compliance with current regulatory changes and revisions to the
Bank Secrecy Act and other related regulations are fundamental to the successfully operation of
a money services business in most regions of the world. As a result, Kaah Express‘s mission is
to adhere and adapt sound business ethics and practices through the execution and
maintenance of strict corporate internal policy, risk and operational controls. The corner stone of
the Corporation‘s Enhanced Policy Mechanisms ensure ―strict compliance‖ in the current
regulatory environment the delivery of excellent services to its clients the provision of products
and services tailored to unique client needs and to provide reliable reporting and information to
all concerned parties, including all relevant regulatory agency. The task of Regulatory Agencies
is to curb and protect the society from all sorts of Money Laundering and Terrorist Financing
Activities.
In Chapter 5 is described how this policy is implemented in the anti-money laundering and
terrorist financing-procedures off the company for your country.
3. Privacy Policy
This privacy statement applies to transactions originating in European Union countries.
Our Privacy Commitment
Kaah Express BV (Kaah Express) is committed to respecting and protecting the privacy of our
customers. We value their trust and want them to understand how we collect, protect, use and
disclose the personal information they share with us.
This privacy statement applies to personal information we obtain anytime a customer interact
with Kaah Express such as when they visit our website at Kaah Express.eu, complete
transaction forms or contact Kaah Express. We want to ensure they are aware of our practices
for collecting and processing personal information, which is information about a person that can
be used to identify that person.
What we collect
The type of personal information we collect depends on our needed uses such as to process
transactions, provide products and services, and administer our business. Personal information
includes contact information such as name, address, telephone number or email address,
financial information including bank account information, or debit/credit card information, and
other identifying information such as passport or government identification number, or date of
birth, and such other information we may collect with your consent or as permitted or required by
law.
Generally, personal information is collected from the customers on transaction forms and by
telephone to request product or services, and at our website to request information.
How we use it
We use personal information to complete the transaction, administer any problems that may
arise in effecting the transaction, to better understand and manage our ongoing relationship with
the customer, to assure good service, to prevent fraud and abuse and other potential prohibited
or illegal activities, and otherwise with consent or as permitted or required by law. Kaah Express
may store personal information on databases used by Kaah Express for these purposes,
including our ongoing relationship with the customer, in accordance with applicable laws.
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Who we share it with
We may share all of the information, as described above, with our affiliates and/or our agents to
assist us in our business activities for the uses described in ―How we use it―, and for other
purposes as permitted or required by applicable law and international conventions and treaties.
Disclosures permitted or required by law and international conventions and treaties may include
cooperation with criminal or government investigations, fraud prevention and detection, and
responses to a court order or subpoena. In limited situations, our agents and affiliates may use
information about the customer to offer products and services to the customer in compliance
with their privacy policy. Kaah Express agents are bound by appropriate data safeguarding
obligations. Our agents and affiliates may be located outside the European Economic Area.
Kaah Express may disclose some or all of the personal information to service providers for the
purposes of processing requested transactions or to perform business support functions on our
behalf. Our agreements with these service providers contain confidentiality provisions and
restrictions on using this information for any other purposes.
If Kaah Express becomes involved in a merger, acquisition or any form of sale of some or all its
assets, we may disclose personal information to third parties in connection with the evaluation of
the transaction. The surviving company would have access to personal information which would
continue to be subject to this privacy statement.
Choice
Kaah Express will not use or share personal information provided to us in ways incompatible
with the ones described above without informing the customer and offering the customer a
choice as provided by the European Union Safe Harbor principles described below.
Accuracy & Access
Kaah Express wants to ensure that the information we obtain and use about the customer is
accurate for its intended purpose and therefore we have processes to help maintain the
accuracy of the personal information we collect. The customer can request access to their
personal information or help us maintain accurate records by using one of the methods listed
under ―Contacting Kaah Express― at our website.
We will also take reasonable steps to verify the identity before granting a customer access or
enabling the customer to make corrections. Kaah Express will retain personal information only
for the time period needed for business purposes or as required by law and will ensure secure
destruction thereafter.
Data Security
Kaah Express uses physical, electronic and procedural security measures to protect against
loss, misuse, and alteration of personal information under our control. Kaah Express uses
industry–standard practices and security measures to safeguard such information.
Access to personal information is restricted to employees and service providers who need to
have access to that information as described in this privacy statement, in accordance with
applicable laws. Our service providers are required to observe standards for the security,
collection, use and sharing of personal information, and to comply with applicable law.
Preventing Identity Theft
Kaah Express is dedicated to protecting the personal information of the customer. We will never
initiate a request for personal information or request your Money Transfer reference number
from the customer by fax or email. Please do not send personal information such as passport
numbers, government identification numbers, or account numbers to Kaah Express via an
unsecured email message. The customer may send personal confidential information to Kaah
Express via posted mail or using the ―Contact Us‖ link available on our website.
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4. Money laundering, terrorist financing and consumer fraud
It is common knowledge that, because of the nature of the service, moneytransfers have an
increased risk of being used for money laundering, terrorist financing and consumer fraud. In this
chapter we will give more information on money laundering, terrorist financing and consumer
fraud to give the agent a better understanding.
Money laundering
All European countries have incorporated the third European directive for money laundering in
there national legislation.
What is Money Laundering
Money laundering is the process by which large amounts of illegally obtained money (from drug
or people trafficking or other serious crimes) is given the appearance of having originated from a
legitimate source.
Money Laundering is also defined in Article 1 of the draft European Communities (EC) Directive
of March 1990 as:
“the conversion or transfer of property, knowing that such property is derived from serious crime,
for the purpose of concealing or disguising the illicit origin of the property or of assisting any
person who is involved in committing such an offence or offences to evade the legal
consequences of his or her action, and
the concealment or disguise of the true nature, source, location, disposition, movement, rights
with respect to, or ownership of property, knowing that such property is derived from serious
crime.”
Stages of money laundering
Money Laundering ,which is a global problem, is becoming very complex due to the numerous
techniques used hence making it very sophisticated. While the techniques for laundering funds
vary considerably and are often highly complicated, there are generally three stages in the
process:
 Placement: this involves placing the proceeds of crime in the financial system;
 Layering: involves converting the proceeds of crime into another form and creating
complex layers of financial transactions to disguise the audit trail and the source and
ownership of funds (e.g., the buying and selling of stocks, commodities or property); and,
 Integration: involves placing the laundered proceeds back in the economy under a veil of
legitimacy.
Effects of Money Laundering
Money Laundering is a serious crime as it has an untold effect on the economy of the country
where it occurs. However studies are proving now that effects of Money Laundering is greatest
in developing countries.
Below are some of the effects of money laundering:
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The Financial Sector: Money Laundering Undermines Domestic Capital Formation
The Real Estate Sector: Money Laundering Depresses Growth
The External Sector: Money Laundering Diverts Capital Away from Development
Increases sponsors of national and international terrorism.
Increases crime and corruption.
Terrorist Financing
Terrorist financing is actually a collective name for various phenomena, which ultimately aim to
make terrorist activities possible. It involves obtaining, providing, moving and the use of money
or other valuables that can be converted in to funds, by persons who develop terrorist activities
or by those who support it.
Terrorist financing shows great similarities with money laundering. An important difference with
money laundering is that funds intended for terrorist activities may have a legal origin and not
necessarily have been derived from criminal activities.
This means the money can also come from a bank account and the origin of the money can be
explained.
Consumer fraud
Criminals use moneytransfers to rip off unsuspecting consumers. Kaah Express considers it her
social responsibility to discover this fraud at an early stage and to warn and protect its customers
against it.
A common form of fraud is when consumers are approached with a request to send money to
the criminal or an accomplice. The reasons that are used to convince the consumer to send the
money vary:
- The receiver needs the money to buy tickets (travel)
- The receiver is a unknown relative in distress
- The sender won a lottery abroad he did not know he participated in and needs to pay a
fee to get the prize
- The sender is given the opportunity by a stranger to participate in a lucrative business
deal with very high profits, but needs to pay some costs first
- The sender has bought something through the internet (for example on E-bay) and
needs to pay with a moneytransfer.
- The sender (mostly older men) has met a girlfriend (young) on the internet and is asked
to send money for 1 of the reasons mentioned above.
The victims are often driven by the fact that they get a big reward in return. The reward can be
money, goods or affection. Often the victims have a weaker personality (older people) and are
convinced they are not scammed. It is our task (Kaah Express AND the agent) to detect this kind
of fraud at an early state and act upon this.
Often you discover the fraud by asking the right questions to the consumer and look for unusual
situations (For example: an original inhabitant of your country is sending money to a risk country
like Nigeria).
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Appendix 1 is a letter from the Dutch Federal Bank that gives you a number of typologies of
money laundering.
FATF
The FATF (Financial Action Task Force on Money Laundering) is an inter-governmental body
which sets standards, and develops and promotes policies to combat money laundering and
terrorist financing. There are currently 36 members of the FATF; 34 jurisdictions and 2 regional
organizations (the Gulf Cooperation Council and the European Commission). These 36
Members are at the core of global efforts to combat money laundering and terrorist financing.
There are also 27 international and regional organizations which are Associate Members or
Observers of the FATF and participate in its work.
You can find reports of the FATF regarding moneytransfers and AML in the business portal.
5. Procedures regarding Anti Money Laundering (AML) Italy
The violation of legal provisions to combat money laundering and terrorist financing is subject to
penalties and can have serious consequences for the agent personally and for his business.
Therefore it is very important that you have knowledge of the legislation regarding AML and
know how to act upon it.
In this section we will give information about the AML legislation in Italy (legal framework) and
give the definition / explanation of a number of terms / subjects that are important to the daily
operations and how we have embedded this in the internal control and procedures of Kaah
Express.
Legal framework
Legislation in Italy
Regulations regarding AML can be found in the Italian legislative Decree 231/2007 (hereinafter
referred to as ‗AML act‘). The risk-based approach is implemented in the Italian legislation. A
copy of the act and the regulations can be found in the business portal.
AML Supervision in Italy
The Banca d‘Italia (The financial supervisory authority of Italy) has the powers to conduct
AML/CFT supervision of the financial sector and to sanction in individual cases. In addition, it
has powers to issue rules, regulations or other enforceable instruments, on the basis of the
supervisory laws and the AML Act, with respect to both individual institutions and to single
institutions or groups of institutions. The Banca d‘Italia has been given the power and tasks of
the former Italian Exchange Office and Financial Intelligence Unit (Ufficio Italiano dei Cambi)
since the AML act of 2007.
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Cash transaction
Italian law states that it is forbidden for any reason to transfer cash in euro of foreign currency
between different persons when the value of the transfers is in total equal to or greater than EUR
1,000,-. Transfers are also forbidden when carried out as a series of payments that appear to be
intentionally divided in amounts lesser than the limit. AML law states that payment institutions
(provided that they do not perform money remittance services) are included in the list of entities
authorized to carry out transactions in cash above the threshold of €1,000. Meaning that for
Kaah Express, in any case, a maximum of EUR 999,- per person can be sent.
Customer Due Diligence (CDD)
Customer due diligence measures shall comprise:
1. Identifying the customer and verifying the customer‘s identity on the basis of documents,
data or information obtained from a reliable and independent source.
2. Identifying, where applicable, the beneficial owner and verifying his identity.
3. Obtaining information on the purpose and intended nature of the continuous business
relationship or professional service.
4. Conducting ongoing monitoring of the continuous relationship or professional service.
CDD / Identifying the customer and verifying the customer‘s identity
Parties subject to the reporting obligation shall identify their customers and verify their identity:
1) when establishing a continuous relationship;
2) when carrying out occasional transactions involving the transmission or transfer of means
of payment amounting to EUR 15,000,- or more, whether the transaction is carried out in a
single operation or in several operations which appear to be related or split;
3) when there is a suspicion of money laundering or terrorist financing, regardless of any
applicable derogation, exemption or threshold;
4) when there are doubts about the veracity or adequacy of previously obtained customer
identification data.
In Italy money transfers have to conduct a CDD for all transactions disregarding the usual
threshold of EUR 15,000,- (article 15, paragraph 4 AML act). Meaning that with every transaction
the customer has to be identified and this identity has to be verified.
The customer due diligence procedures shall be applied by calibrating them to the risk
associated with the type of customer, continuous relationship, professional service,
operation, product or transaction in question.
If someone acts on behalf of a customer (representative), parties subject to the reporting
obligation shall also identify and, if necessary, verify the identity of the representative.
Parties subject to the reporting obligation shall identify their customers and verify the identity of
their customers when establishing a relationship with them or at the latest before their customers
obtain control over the assets or other property involved in a transaction or before the
transaction has been concluded.
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ID cards and other identification documents referred to in Articles 1 and 35 of Presidential
Decree 445/2000 shall be considered valid for identification purposes.
Provisions on the identification obligation are also laid down in Regulation (EC)
No 1781/2006 of the European Parliament and of the Council on information on the payer
accompanying transfers of funds, hereafter the Payer Information Regulation.
Parties subject to the reporting obligation shall identify the beneficial owners and, if
necessary, verify their identity.
Obtain information and ongoing monitoring
Parties subject to the reporting obligation shall obtain information on their customers‘
transactions, the nature and extent of the customers‘ business and the grounds for the use of a
service or product.
Ongoing monitoring of the continuous relationship or professional service shall be
conducted by analyzing transactions concluded throughout the course of that relationship to
verify that such transactions are consistent with the obligated institution or person‘s
knowledge of its customer, his business activities and risk profile, including, where
necessary, the source of funds, and by ensuring that the documents, data or information held
are kept up to date.
Enhanced Due Diligence for Higher Risk Customers
Institutions and persons covered by the Directive shall apply enhanced due diligence
measures when there is a greater risk of money laundering or terrorist financing.
In addition the AML Act specifies that enhanced due diligence must always be applied for nonface-to-face identification and politically-exposed persons (PEPs).
Foreign PEPs—Requirement to Identify
In respect of transactions with politically exposed persons resident in another EU country or a
non-EU country, institutions and persons subject to this decree must:
1. establish adequate risk-based procedures to determine whether the customer is a
politically exposed person;
2. obtain the authorization of the general manager, his delegate or a person performing an
equivalent function before establishing a continuous relationship with such customers;
3. take all necessary measures to establish the source of wealth and source of funds that
are involved in the continuous relationship or the transaction;
4. conduct enhanced ongoing monitoring of the continuous relationship or professional
service.
Keeping of records and documents
Parties shall retain the documents and record the information acquired in satisfying the customer
due diligence requirements for use in any investigation into, or analysis of, possible money
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laundering or terrorist financing conducted by the FIU or other competent authorities. In
particular:
1. In the case of requirements for adequate verification of the customer or beneficial owner,
they shall retain a copy or the references of the documents required for a period of ten
years after the professional service has ended;
2. In the case of transactions they shall keep the supporting evidence and records,
consisting of the original documents or copies admissible in court proceedings, for a
period of ten years following the carrying-out of the transaction or the end of the
continuous relationship or professional service.
3. For all transactions amounting to €15,000 or more, whether carried out in a single
operation or in several operations which appear to be related or split: the date, the
payment details, the amount, the type of transaction, the means of payment and the ID
data of the person carrying out the transaction and, where applicable, of the person on
whose behalf it is being carried out.
Financial Intelligence Unit
Parties subject to the reporting obligation shall immediately report a suspicious transaction or
suspicion of terrorist financing to the Financial Intelligence Unit. The content of the reports will be
defined by the FIU, which will issue instructions in accordance with Article 6, paragraph 6, letter
e-bis of the AML act. According to Article 6, paragraph 7, the FIU may, on condition that such
action is not prejudicial to investigations under way, suspend transactions suspected of involving
money laundering or terrorist financing for up to five working days, including at the request of the
Special Foreign Exchange Unit of the Finance Police, the Bureau of Antimafia Investigation or
the judicial authorities, immediately informing such bodies thereof.
Suspicious transaction reports
Having fulfilled the obligation to obtain information under Article 18, paragraph 3 of the AML act,
parties subject to the reporting obligation shall immediately report a suspicious transaction or
suspicion of terrorist financing to the Financial Intelligence Unit. The reporting can also be done
through a ―centralised point of contact‖. The establishment of a point of contact is always
required when the payment institution or the electronic money institution provides payment
services through more than one agent.
The suspicious transaction shall not be executed until a report has been made, unless it is
impossible not to execute it given normal operating procedures or if not executing it could
obstruct the investigation.
Parties shall send a report of any suspicious transactions to the FIU whenever they know,
suspect or have reason to suspect that money-laundering or terrorist financing is being or has
been carried out or attempted. Reports of suspicious transactions, any requests for further
details, as well as requests for an exchange of information about the suspicious transactions
reported between the FIU, the Finance Police, the Bureau of Antimafia Investigation, the
supervisory authorities and the professional associations shall be sent electronically, in such a
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way as to ensure that the report only reaches the people concerned and that the information
sent is received intact and in its entirety.
The suspicion may arise from the characteristics, size or nature of the transaction or from any
other circumstance ascertained as a result of the functions carried out, also taking account of the
economic capacity and the activity engaged in by the person in question, on the basis of
information available to the reporters, acquired in the course of their work or following the
acceptance of an assignment. Frequent or unjustified recourse to cash transactions will
represent cause for suspicion, even if not in violation of the limit of EUR1000,-, and, in particular,
cash withdrawals or deposits through financial intermediaries for amounts equal to or greater
than EUR 15,000,-.
Indicators of suspicious transactions are listed in the FIU-document ‗measure establishing
anomaly indicators for intermediaries. These anomaly indicators are periodically updated. When
conduct described in the indicators is found, intermediaries shall conduct an overall assessment
of the nature of the transaction on the basis of all the other information available.
It is not allowed to inform the customer or other parties involved about the suspicious transaction
report and information obtained regarding the suspicious transaction report.
Filing a suspicious transaction report will reduce your liability of being involved in behaviour
subject to penalties under the AML or criminal legislation.
Aggregate transaction reporting by the AUI
Article 40 of the AML Act requires banks and other intermediaries to send to the FIU monthly
Aggregate Anti-Money-Laundering Reports containing data on the transactions recorded in each
intermediary's single electronic archive, the so-called AUI (Archivio Unico Informatico). The AUI
shall be set up and managed in such a way as to ensure the clarity, completeness and
immediacy of the data, their retention according to uniform criteria, maintenance of the
chronological order of the data, the possibility of deriving integrated records, and ease of
consultation (article 37 AML Act). Payment institutions are obliged to keep record of transactions
less than €15.000. Failure to create the single electronic archive referred to in Article 37 can be
punished with a fine of from €50,000 to €500,000.
The necessary information includes the reporting entity, the town where the transaction took
place, the transaction nature, the economic sector of the client‘s activity, the total amount
transacted and the corresponding cash component, plus the number of transactions aggregated.
Data must be forwarded to the FIU within the second day of the third month following the month
of reference. For example, this means that the data of January should be forwarded prior to the
2nd of April.
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The suspicious transaction reporting is checked by the FIU against the information available on
the AUI.
Penalties
The Italian legal system has an extensive range of (criminal and administrative) sanctions to
punish infringements of AML rules. The Bank of Italy, as supervisory authority, has made an
extensive use of administrative sanctions, both pecuniary and coercive (e.g., prohibitions, bans,
etc.), following to controls on supervised entities.
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Internal control and procedures of Kaah Express
Customer Due Diligence
In accepting a transaction the cashier checks the transaction against the Italian AML Act and
regulations and will carry out the customer due diligence as referred to in the previous section.
For this he will use his knowledge of the Italian Legislation, his knowledge of the typologies of
money laundering, his experience acquired in day to day operations and in training and other
tools like work instructions and the transaction software.
The cashier will register the transactions in compliance with the AML regulations in place. The
transaction software requires all necessary information to be entered before a transaction can be
made.
To get information about the nature and purpose of a transaction a questionnaire is integrated in
the transaction software. The cashier is obligated to fill out this questionnaire to get the required
information.
In addition to the questionnaire the cashier needs to register additional information for all
transactions which according to his professional judgment have a higher risk and for all
transactions that meet conditions set by the compliance officer of Kaah Express BV. The
cashiers also need to register the information if circumstances surrounding the transaction or
customer cause suspicion. The compliance officer will specify these circumstances in work
instructions. The compliance officer will update the work instructions based on continuing risk
analyses and changes in regulations.
Every transaction above a limit set by the compliance officer of Kaah Express BV is held for
compliance checks and needs to be approved by the compliance officer. This limit is based on
the objective indicator as used by the FIU-Nederland.
Recognizing the mentioned circumstances and obtaining the additional information will be part of
every periodic training (3 times per year). For more information on the training program see
chapter 11.
The compliance Officer and the cashier have the possibility, based on a customer‘s behavior or
transaction history, to mark a customer as suspicious or block the customer. Transactions from a
suspicious customer are held for compliance checks and are only executed after the compliance
officer approves the transaction. A blocked customer cannot make a transaction.
In addition a number of velocity checks (day, month, quarter and year) are applicable. If a
customer surpasses one of the velocity checks he will not be able to make the transaction,
unless the compliance officer gives permission. The velocity checks are based on the amounts
and the number of transactions send during a specified period.
In Appendix 2 there is an overview of the compliance checks that are applicable in the
transaction software.
A copy of valid and legal ID of the customer is required, if a transaction (send and receive)
meets the meets the requirements for verification or if the cashier deems necessary based on
his professional judgment. Identification and registration of the customers identity is performed
before a transaction (send or receive) is accepted.
In case Kaah Express receives the amount for the transaction (send) by bank transfer (not cash)
a copy of the customers ID and bankcard will be registered before the first transaction is carried
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out. The customer can only make a transaction after an employee or agent of Kaah Express has
verified that the ID and bankcard belong to the customer.
Continuous monitoring of the business relationship
According to Dutch regulations one needs to assume a business relationship by every
transaction (send and receive).
For the purpose of monitoring the business relationship every month an analysis is made for
customers that transfer an amount that exceeds a limit set by the compliance officer. The limit is
subjective and based on the professional judgment of the compliance officer.
This analysis always consists of the transactions (send and receive) for the past 2 months and is
made for both senders and receivers.
For the analysis the following indicators are used:
 The total amount sent or received
 The frequency and the amount
 The countries,
 Information provided by the customer
 The information of the employee about the customer
 Relationships between persons based on the address, ID numbers and related persons.
For example, from 1 address several people can make transactions. Kaah Express uses
sentinel visualizer software to visualize these connections.
 Other known data, for example: a sender has multiple addresses or ID data.
 Already reported transactions to the FIU
Based on the assessment of the indicators as mentioned above the following action can be
taken:
1. Report all suspicious transactions of the customer and related persons
2. In addition to item 1 the customer will be blocked
3. In addition to item 1 the person must be monitored and additional information
should be collected.
4. Currently no cause for reporting of suspicious transactions, however, the person
must be monitored.
5. Currently no action needs to be taken.
The monitoring is scheduled for the 2nd or 3rd week of every month and includes all transactions
(send and receive) of the past 2 months.
All employees and agents will be informed of the results of the monitoring by the compliance
Officer.
Reporting Suspicious Transactions
All transactions need to be judged by the cashier on the basis of the anomaly indicators for
suspicious transactions. Periodically, but at least monthly, the compliance officer checks whether
or not the indicators are still up to date and if necessary he will replace the list with the updated
one.
If the cashier finds a transaction suspicious, based on the anomaly indicators, he will
immediately report to the compliance officer or the designated officer within his own company
indicating:
customer;
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of the transaction;
he finds the transaction suspicious;
business.
The compliance Officer or the designated officer of the agent will file the report to the Italian FIU.
See also the suspicious transaction reports in the section legal requirements,
In the context of the data protection, the above mentioned data will only be used for the review
of a transaction (money transfer send and receive).
The procedures described in this section will apply for all employees and agents of Kaah
Express in Italy. If legal Requirements in Netherlands, Italy or other countries where Kaah
Express has notified agents require adjustments of these procedures, the adjustments will be
implemented.
6.1
Checks against the Sanction lists
There are two moments where a check against the sanctions legislation has to be carried out:
1. Acceptance of a new customer
2. Updates in the European sanctions and, in particular, the penalty for Somalia and/or
sanction list. Sanctions, sanctions list and the amendments are to be found on
http://ec.europa.eu/external_relations/cfsp/sanctions/index_en.htm
1. Acceptance of a new client
- The transaction software checks whether the client is on the European sanction list.
- The cashier checks whether the transaction falls under a current sanctions, in particular the
penalty on Somalia.
- If necessary supplementary information is asked to determine whether the customer is on the
European sanctions list.
- If necessary the cashier will make a report in accordance with the scheme set out in the annex
regarding the ―regeling toezicht Sanctiewet 1977 van 1 oktober 2005‖ that replaces the
reporting procedure 2002. The registration procedure and log format are also included. See
annex 4.
2. Updates in the European sanctions and sanction list
- The updates in the European sanctions and / or list are integrated in the sanction list that is
used by the transaction software.
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- If necessary the cashier will make a report in accordance with the scheme set out in the annex
regarding the ―regeling toezicht Sanctiewet 1977 van 1 oktober 2005‖ that replaces the reporting
procedure 2002. The registration procedure and log format are also included. See annex 4.
As far as the procedures and checks are not integrated in the transaction software every cashier
will perform them independently.
The above processes and procedures apply to send and receive transactions.
7.1
How to make a transaction
How to make send transactions
1. The customer must show his valid ID at every transaction. If the customer is going to use the
services of Kaah Express B.V. for the first time it is necessary that the agent make a copy of
the valid identification document (ID). The information from the ID is entered into the system
so that an identification check can be carried out at subsequent transactions.
2. The customer should provide the following information for every transaction.
 The name, address and place, telephone number and the date of birth of the sender
 The type, number, issue and expiry date, place of issue of the ID
 Nationality of the sender
 The name, address and place and telephone number of the receiver (beneficiary)
 The amount of the transaction (send amount in local currency or receive amount in relevant
currency.
 Information to determine the collection point (country, city)
 Transfer purpose
 Source of income / source of the money for the transfer
For new customers this information is entered in the transaction software and for existing
customers the information needs to be in correspondence with the already available information
in the system of Kaah Express B.V.
3. The cashier makes a professional judgement of the presented information and the situation
regarding the transaction to determine whether or not the transaction is suspicious. For this
judgement he should use the transaction history that pops up after entering the information of
the sender (if the customer has a history of transactions with Kaah Express), his knowledge
about money laundering, terrorist financing and consumer fraud (see chapter 4 and the
training). If the cashier finds something suspicious about the transaction he should report this
immediately to the designated officer of his company or directly to the compliance officer of
Kaah Express.
4. The cashier informs the customer about the rate of the relevant currency and the appropriate
commission. If the customer agrees, the transaction is entered into the system.
5. The cashier enters the transaction information into the transaction software. The cashier
checks the information into the system with the customer and after approval from the
customer submits the transaction.
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6. The transaction software checks the transaction against the information requirements and the
compliance rules and the sanction list. There are 3 possible outcomes of the checks: 1 the
transaction is submitted without any further messages. 2. The message appears that the
transaction is held for compliance checks, which means that the compliance officer has to
approve the transaction, but the transaction can continue for now. 3. The transaction is
blocked because the transaction failed one of the checks / information requirements. In the
red bar at the top of the screen it will show what caused the block.
7. If the transaction is successfully submitted the cashier collects the ―remitter to pay amount‖,
reads the compliance checks and if no other action is necessary confirms the compliance
checks and confirms the transaction. He should do this in that order.
8. Based on the result of checks the cashier should make a second judgement whether or not
he should report the transaction to the designated officer of his own company or to the
compliance officer of Kaah Express.
9. The cashier prints the transaction receipt. The receipt contains the following information:
 The name, address, place of the sender
 Date of birth of the sender
 Type, number, issue and expire date of the ID
 Nationality of the sender
 Transaction number
 Name, address, place of the receiver
 Information about the collection point
 The source amount, rate, commission and destination (receive) amount
 Referral to our terms and conditions and the complaint procedure
 Fraud warning
The cashier lets the customer sign the agency copy for his own administration and signs the
customer copy and gives this to the customer.
10. After all compliance checks are completed (including the ones by the compliance officer if
applicable) the transaction will be send for pay out to the collection point.
11. The cashier gives the customer a transaction code which he/she needs to pass on to the
beneficiary. The beneficiary can pick up the money at the collection point with the specific
transaction code and a valid ID.
How to make receive transactions
1. The customer must show his valid ID for every transaction. If the customer is going to use the
services of Kaah Express B.V. for the first time it is necessary that the agent makes a copy of
the valid identification document (ID). The information from the ID is entered into the system
so that an identification check can be carried out at subsequent transactions.
2. The customer should provide the transaction code so that the cashier can check if the
transaction is still available for pay out.
3. The cashier identifies the receiver and makes sure that it is the intended receiver.
4. The cashier informs the customer about the destination (receive) amount.
5. The cashier needs the following information from the receiver:
 Name, address, place, phone number and date of birth of the receiver
 Nationality of the receiver
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6.
7.
8.
9.
 Type, number, issue and expire date and the issue place of the ID.
 Purpose of the transfer
 Source of income / of the money.
The information of the sender should already be in the system.
The cashier enters the information in the transaction software and checks the information with
the customer.
The cashier prints the transaction receipt. The receipt contains the following information:
 The name, address, place of the receiver
 Type, number, issue and expire date of the ID
 Nationality of the receiver
 Transaction number
 Name, address, place of the sender
 Information about the collection point
 The source amount, rate, commission and destination (receive) amount
 Referral to our terms and conditions and the complaint procedure
 Fraud warning
The cashier lets the customer sign the agency copy for his own the administration and signs
the customer copy and gives this to the customer.
The cashier pays the destination amount to the receiver and submits the transaction for pay
out.
All receive transactions are checked upfront by the compliance department.
Documents with the information on how to make a send and receive transaction are also
available on the business portal.
8.1
Work description of an agent
Kaah Express expects an agent to perform at least the following activities:
Daily
- Timely opening of the branch.
- After opening direct logon into the front office applications.
- Neatly hold of the branch, even during working hours.
- Counting the cash (including vault) of the location at the beginning and end of the workday. If
there are other products or services besides money transactions that are offered at the location
there need to be a separate register for these products / services.
- Send and receive of transactions including the direct, complete and correct registration in the
front office application.
- Identifying the customer for the send and receive transactions based on a valid ID and verifying
the identity (before a transaction is made).
- Establishing the necessary information and supporting documents to perform a money
transaction.
- Handle mail including e-mail from HQ.
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- Reporting of suspicious transactions to the nominated officer.
Periodic
Location
- Keep the locations representative
- Timely ordering of the necessary office supplies, cleaning materials etc.
- Timely deposit money in the bank account
Timely payment of the settlements
Commercial
Maintaining contacts with customers.
Presentable appearance and behavior
Timely ordering of promotion materials
Develop and implement local (branch) promotion in consultation with Kaah Express BV.
Tools
• Folder with work instructions, training and training materials , which are also available on the
business portal.
• Front office applications
• Other instructions
• Promotional Material
• Budget for promotional activities as mentioned in the outsourcing agreement.
• Website Kaah Express
Responsibilities
• Working according to the instructions and guidelines of Kaah Express BV
• Safety and security at the location and protection of the cash
• Timely opening and closing branch / Money Transfer desk
• All things that are not arranged in the outsourcing agreement, but that are necessary for a
continuous exploitation of the business, like sufficient insurance.
9.1
How to use the Business Portal
Introduction
At the new website of Kaah Express B.V. (www.kaahexpress.eu) you can find the business
portal. The link to the business portal is in the main menu or you can use the following link
(https://www.kaahexpress.eu/business-portal/). With the username and password the agents
received you can obtain access the business portal.
The business portal is an online platform which will provide the agents and employees of Kaah
Express B.V. with essential information they need for day to day operations and is a way for the
back office to communicate with the agents.
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The business portal contains news, regulations, manuals, training and other documents or
information that will help you to perform your task and be compliant with the companies
procedures and legal requirements.
Sections of the business portal
The business portal has the following sections that will be discussed din the same order.
- Latest news
- Documents
- Manuals training and business portal
- External links
Latest news
Latest news posts refer to messages from the back office to inform agents and employees on
specific new information and/or developments. Example of news posts are the update of a
manual, a fraud warning, messages from regulators, signing of new agents, expansion of
collection points etc.
Documents
There are general documents that are applicable for all agents and country specific documents.
FATF
The business portal consists of general documents concerning money laundering and terrorist
financing acts. These documents, provided by the FATF, are available under the heading
‗documents‘.
Country specific documents
In every country in which an agency of Kaah Express B.V. is present they have country specific
regulations that are applicable for the moneytransfer business.
To make sure every agent and employee has easy access to the latest available information that
is applicable for his country the documents are categorized by country.
There are documents about:
- AML regulations
- Other AML information
- AML manual
Manuals training and business portal
In this section you can find a manual with an explanation of the business portal and a manual on
the training module (see external links)
External links
There are the following external links
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Training module
In order to meet to keep agents and employees well equipped for their task, Kaah Express has
developed a training module. Periodic agents and employees will have to follow an online
training to keep their knowledge and skills up to date.
Online cash registry
All employees are obligated to use the online cash registry that has been specially developed for
Kaah Express BV. It is developed especially for the cash registration of money transfers. For
agents the use of the online cash registry is optional and a decision of the management of the
agent.
Remit1
This is the link to the transaction software from Kaah Express (front office application).
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Complaint procedure
Kaah Express is dedicated and committed to providing its clients the best of service possible. To
achieve this Kaah Express strives to a proper and quick handling of complaints and every
complaint is taken seriously. The designated complaint officer is responsible for the complaint
process. Kaah Express makes sure that every complaint is processed properly and timely.
Definitions
Complaint
Complaint is defined as either an oral or written statement made by or on behalf of a client
expressing some sort of discontent, resentment, faultfinding and dissatisfaction for the services
provided by Kaah Express.
Plaintiff
The client or his/her representative who brings up a complaint.
Complaint Procedure
The procedure laid down and adopted by the management of Kaah Express BV for handling
complaints.
Document complaint procedure
This document, which is the verbal or written version of the complaint procedure used by Kaah
Express BV.
Compliant Officer(s)
This is the person or persons other than the employee / agent against whom the complaint is
made responsible for handling the complaint.
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Complaints Registration form
This is a form internally used to perform the complaint procedure.
Objectives
The objectives are:
1-To handle the complaints within a reasonable time and in in a constructive and professional
way.
2-To set up a procedure to identify the cause/causes of the complaints.
3-To Maintain and improve the existing relationship with the client by handling the complaint
properly and timely.
4-Train our staff with respect to a customer focused response.
5-To improve the quality of the services of Kaah Express Bv by analyzing the complaints and a
proper and timely handling of complaints.
Informing the clients
The complaints Officer(s) or employee at the location of Kaah Express will:
1-Inform the client about the complaint procedure
2-Inform the client that there is a possibility to submit unsolvable complaints to the management
of Kaah Express Bv.
The internal complaint procedure
1-When a client contacts on location / agent of Kaah Express Bv in any way with a complaint
,the concerned location / agent / employee needs to be informed.
2-The concerned location / agent / employee tries to solve the complaint either with or without
2-The the prior consultation of the complaints officer(s).
3- The concerned location / agent / employee or the complaint officer makes sure that the
complaint is handled properly in accordance with the complaint procedure.
4-Confidentiality must be guaranteed in all circumstances.
5-The decision with respect to the complaint must be communicated to the client.
6-In case the client is not satisfied with the solution given him/her with respect to his/her
complaint, the client can submit the matter to management of Kaah Express Bv .
The complaint procedure can be displayed as follows:
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Complaint
A. Verbal
B. In writing
Complaint registration
form
Employees / Agents
Responsibilities
Compliance Manager
Complaint Officer
client: complaint is
handled
Management team:
unsolvable complaint
The contact information of complaint officer and the compliance officer will be published in the
business portal.
Registration and classification of the complaint
1-All complaints are registered on the complaint registration form.
2-The complaints officer(s) registers and classifies the complaints.
3-The complaints are classified with respect to the method of filing the complaint and the nature
of the complaint.
i-The Method which can be used to file in a complaint.
Oral
Writing
ii-The nature complaints according to the categories as follows:
Complaints about the treatment by the staff of Kaah Express BV in general.
Complaints with respect the treatment with respect to the services provided.
Complaints with respect to the financial aspects of the service provided.
Complaint in general with respect to the service we provide (mistakes in spelling the clients
name, amount etc)
4.A Complaint can be categorized in multiple categories.
5-If the complaint is satisfactorily dealt, the concerned location / agent / employee and the
complaint officer will sign the complaint registration form.
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Responsibilities
1- the concerned location / agent / employee and the complaint officer are responsible for the
treatment and handling of the complaints.
2-The employee / agent is responsible for the completion of the complaint registration form.
3-The concerned location / agent informs the complaint officer about the status of the complaint.
4-The complaint should be handled in writing within one working day.
5-The complaints officer shall respond to the plaintiff.
6-The complaint officer will maintain the complaint file.
Analyses of the complaints
1-The complaint registration form will be collected by the complaint officer after the complaint is
handled.
2-The complaints officer(s) shall report the handling of complaints periodically.
3-The complaints officer(s) shall process the periodic reports and make annual analysis.
4-The complaints officer(s) shall also make recommendations to prevent future complaints with
and to improve the complaint procedure.
Internal communication
1-The management of Kaah Express Bv and the complaints officer(s) will have a weekly meeting
to discuss the complaints based on the analysis.
2-Possible improvements are prepared and planned.
3-The complaints officer(s) is responsible for preparing the analysis and the meetings.
Preventive action
1-Based on the monthly analysis by the complaints Officer(s) Kaah Express decides on
preventive measures to improve the quality of the service of Kaah Express.
2-The measuers will be presented together with the analysis in the meetings in Tilburg.
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The cycle of preventive measures can be displayed as follows:
PREVENTIEVE
MEASURES.
Measures to improve
quality of the service of
Kaah Express.
COMPLAINT
A. Oral
B. Written
COMPLIANT
PROCEDURE
the complaint
procedure used by
Kaah Express.
11.1
Training
Kaah Express has developed a specific training program
- The management of the agents
- For the employees of new agents
The online training program for the management of the agents covers the following areas:
- Knowledge about relevant legislation
- Knowledge about policies and procedures used by Kaah Express with special focus on
AML.
- Knowledge of day to day operations including the responsibilities, available tools and
documents
This training for the employees of new agents consists of:
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1. Training front office application (s)
2. Internal training by the compliance officer
3. Training national AML regulations
Sections 1 and 2 must be completed before a new agent will conduct independent operations.
Point 3 most be completed before starting transactions.
A more exhaustive description of the training program can be found in the business portal.
Kaah Express also gives periodic training to the agents. It has developed a online training
module for this purpose.
Besides that the compliance department will initiate a training on the spot for every agent at least
1 a year.
An important part of the training will be risk analyses. Based on cases, the employees / agents
will be explained in which situations and for which transactions there is an increased risk of an
unusual / suspicious transaction and how to act in those situations
All training will be done in English or the language of the country where the agent is located
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