Anti-Money Laundering Policy

INTRODUCTION

Sagility Operations Inc., its parent companies, affiliates, and subsidiaries (“Sagility”) and its employees, agents, contractors, vendors, officers, and board members are guided by its company values. These values are the foundation of how it conducts itself and interacts with each other, its clients, suppliers, investors, and other stakeholders. Sagility is committed to ensuring corporate compliance and promoting ethical corporate culture by observing the highest standards of fair dealing, honesty and integrity in its business activity.
Sagility aims to detect, manage and mitigate the risks associated with money laundering during its business. In view of the above, Sagility has introduced this anti money laundering (“AML”) policy (“Policy”) aimed at detection, risk prevention or mitigation in respect of any suspicious transactions, payments and activities involved while conducting the business of Sagility. The further purpose of this Policy is to prevent, identify, and report attempts to use Sagility’s financial systems for money laundering or terrorist financing activities.
This Policy has been framed by Sagility in accordance with all the laws, applicable to Sagility, in the jurisdiction in which it conducts its business, relating to prevention of money laundering, including but not limited to the Indian Prevention of Money Laundering Act, 2002 and/or the Bank Secrecy Act (as amended by the USA Patriot Act of 2001), as may be applicable (“Applicable Laws”). Sagility has applied, and will continue to apply, its anti-money laundering policy and/or procedures to all its employees, customers/investors and will take appropriate steps in accordance with the Applicable Laws to ensure that all required relevant documentation is retained, including identification relating to those employees, customers/investors.

 

SCOPE & APPLICABILITY

2.1 This Policy is applicable to all individuals working at Sagility and/or Sagility’s parent companies, affiliates, and subsidiaries, at all levels and grades, including directors, senior managers, officers, board members, other employees (whether permanent, fixed-term or temporary). Further, this Policy also extends to agents, vendors, contractors, affiliates or any other person associated with Sagility and/or Sagility’s parent companies, affiliates, and subsidiaries.

2.2. To comply with the Applicable Laws and combat money laundering activities, Sagility shall:
2.2.1. Appoint a designated AML Compliance Officer who shall be responsible for and shall monitor the compliance under this Policy, define/implement appropriate criterion for identifying the Suspicious Transactions and report the same as required under Applicable Laws.
2.2.2. Appoint a director as the Designated AML Director for Sagility, who shall be responsible for the overall compliances of Sagility with respect to the Applicable Laws.
2.2.3. Establish appropriate ‘Client Due Diligence Process’ for:
(i) Identification of clients (and actual beneficial owners) and verification of their identity (through reliable, independent sources, documents, data and information);
(ii) Understand the nature of the client’s business activities and ensure the source of funds is consistent with customer business and risk profile;
(iii) Acceptance of clients; and
(iv) Identification of ‘Suspicious Transactions and Reporting’ of the validated suspicions to the appropriate authorities.

2.2.4. Maintain appropriate detailed records of client identification and trail of transactions to ensure that all financial activities can be clearly understood and traced.

2.2.5. Co-operate with the regulatory authorities to the extent required by the Applicable Laws and provide information as may be required.

2.2.6. Give appropriate training to the relevant staff for effective implementation of this Policy.

 

CLIENT DUE DILIGENCE (CDD) PROCESS

 

4.1. The purpose of the Client Due Diligence Process is to:

 

4.1.1. Obtain sufficient information about the client/customer/investor in order to identify the actual beneficial owner of the securities or on whose behalf the transaction is made.

4.1.2. Verify the customer’s/investor’s identity using reliable, independent sources, documents, data or information.

4.1.3. Conduct on-going due diligence and scrutiny of the account/client to ensure that the transactions conducted are consistent with the client’s background/financial status, its activities and risk profile.

 

4.2. The CDD Process includes four specific parameters:

 

4.2.1. Client Identification Procedure

 

Sagility will perform due diligence on counterparties and obtain the requisite documentation as required by Applicable Laws in order to make a formal identification of the ultimate beneficial owners.

Sagility might conduct enhanced due diligence on high-risk counterparties. Sagility will undertake on-going monitoring of its business relationships with counterparties. Sagility will retain relevant due diligence records for the period of time as required by applicable local laws.

Sagility will annually carry out a cross-check of its counterparties against international sanction lists (for example, OFAC List, EU List, UN Terrorists, FBI Most Wanted, etc.) or lists of known or suspected terrorists, terrorist organizations. In case of a positive match, further investigation will be conducted and appropriate action, including up-to termination will be undertaken. Sagility shall not engage with any customer/investor, which is a prohibited foreign shell bank; is named on any available lists of known or suspected terrorists, terrorist organizations or of other sanctioned persons issued by the United States government, the European Union (i.e. OFAC SDN List, EU List) and the government(s) of any jurisdiction(s) in which Sagility is doing business.

 

Clients of Special Category (as given below) may require a higher degree of due diligence and regular updates of the KYC profile and shall notify or report unusual or suspicious activity in accordance with the Applicable Laws. An illustrative list of clients is given below:

(i) Non – resident clients;
(ii) High net-worth clients;
(iii) Trust, Charities, Non-Governmental Organizations (NGOs) and organizations receiving donations;
(iv) Companies having close family shareholdings or beneficial ownership;
(v) Politically Exposed Persons (“PEP”) are individuals who are or have been entrusted with prominent public functions in a foreign country, e.g., Heads of States or of Governments, senior politicians, senior government/judicial/military officers, senior executives of state-owned corporations, important political party officials, etc.;
(vi) Clients who are immediate family members or close associate of PEPs;
(vii) Companies offering foreign exchange offerings;
(viii) Clients in high risk countries where existence/effectiveness of money laundering controls is suspect, where there is unusual banking secrecy, countries active in narcotics production, countries where corruption (as per Transparency International Corruption Perception Index) is highly prevalent, countries against which government sanctions are applied, countries reputed to be any of the following – Havens/sponsors of international terrorism, offshore financial centres, tax havens, countries where fraud is highly prevalent. While dealing with clients in high-risk countries where the existence/effectiveness of money laundering control is suspect, intermediaries apart from being guided by the Financial Action Task Force (FATF) statements that identify countries that do not or insufficiently apply the FATF recommendations, published by the FATF on its website (www.fatf-gafi.org), shall also independently access and consider other publicly available information;

(ix) Non face to face clients; and
(x) Clients with dubious reputation as per public information available etc.

 

4.2.2. Acceptance of Clients/Customers/Investors

In person verification is to be carried out as per the requirements of the regulators. Further checks would be done for actual beneficial ownership and control of the particular client. Details with respect to shareholders, promoters from the non-individual clients and wherever possible have to be verified independently. Also, verification of the sources of funds for funding the transaction is required to be carried out. Special care would be taken in the case of non-individual accounts such as corporate, partnership firms etc. where the ownership structure is opaque.

Periodic due diligence and scrutiny of client’s transaction and accounts to ensure that transactions are being conducted with knowledge, to find out the risk profile, source of funds, etc. At regular interval, ongoing due diligence and scrutiny needs to be conducted i.e. perform ongoing scrutiny of the transactions and account throughout the course of the business relationship to ensure that the transactions being conducted are consistent with Sagility’s knowledge of the client, its business and risk profile, taking into account, where necessary, the client’s source of funds.

 

4.2.3. Risk Based Approach

The parameters of risk perception in terms of the nature of business activity, location of client and his/its clients, mode of payments, volume of turnover, social and financial status etc. shall be captured to enable categorization of clients into low, medium and high risk.

 

For the purpose of risk categorization, individuals/entities whose identities and sources of wealth can be easily identified and transactions in whose accounts by and large conform to the known profile, shall be categorized as low risk. Clients that are likely to pose a higher-than-average risk shall be categorized as medium or high risk depending on client’s background, nature and location of activity, country of origin, sources of funds and his client profile etc.

 

Sagility shall apply CDD measures based on the risk assessment, thereby requiring intensive due diligence for higher risk clients, especially those for whom the sources of funds are not clear. Sagility will carry risk assessment to identify, assess and take effective measures to mitigate its money laundering and terrorist financing risk with respect to its clients, countries or geographical areas, nature and volume of transactions, payment methods used by clients.

 

The risk assessment carried out shall consider all the relevant risk factors before determining the level of overall risk and the appropriate level and type of mitigation to be applied. The assessment shall be documented, updated regularly and made available to competent authorities and self-regulating bodies, as and when required.

 

4.2.4. Suspicious Transactions identification

 

For the purpose of this Policy “Suspicious Transaction” shall mean a transaction whether or not made in cash, which to a person acting in good faith –

(i) Gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Applicable Laws, regardless of the value involved; or
(ii) Appears to be made in circumstances of unusual or unjustified complexity; or
(iii) Appears to have no economic rationale or bonafide purpose; or
(iv) Gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.

 

Sagility will refrain from executing any operation when there is suspicion of money laundering, until further investigation has been completed. Sagility will not execute any transaction on which there is evidence or certainty that is related to money laundering, even before making the communication to the competent authorities. The following should be considered red flags which may be related to money laundering or terrorism financing activities:

(i) Use of shell-companies,
(ii) Payments through accounts in shell banks;
(iii) Use of nominees, trusts, family member or third – party accounts;
(iv) Difficulty to verify the identity of the person or reluctance to provide relevant details;
(v) Disconnected clients/suppliers/third parties sharing common address;
(vi) The level of activity is not consistent with Sagility´s understanding of the client/supplier/third party´s business or level of legitimate income;
(vii) Clients/suppliers/third parties based in countries where production of drugs or drug trafficking is prevalent;
(viii) Business transactions involving countries where there is a high risk of money laundering and/or the financing of terrorism;
(ix) Funds are sent or received via international transfers from or to higher-risk locations or offshore accounts;
(x) Cash intense businesses;
(xi) Requests to inflate invoices;
(xii) PEP: When applicable, Sagility will obtain the required authorization from relevant governmental authorities before entering into a transaction with any PEP; and

Sagility will undertake enhanced due diligence for all PEPs. Such enhanced due diligence shall include approval at a higher level than the one required for non-PEP counterparties.

Employees must report suspicious activities or inconsistencies in financial transactions to the Compliance Officer at:

 

[email protected]
[email protected]
[email protected]
[email protected]
[email protected]

 

If the Compliance Officer/Sagility is aware of any suspicious operation or reasonably suspects that money laundering or terrorism financing may occur, the Compliance Officer/Sagility will immediately report it to the Designated Officer within Sagility and such Designated Officer shall take appropriate steps as provided under law.

 

Whenever a Suspicious Transaction or activity is to be communicated to the management of Sagility or the competent authorities for appropriate investigation, Sagility will not disclose information about the issue to the person to whom the suspicion refers to, another person or organization.

 

Sagility will cooperate with the national and international anti-money laundering competent authorities or its supporting bodies, facilitating at all times, in accordance with current applicable legal provisions in each jurisdiction, the documentation and information required by such authorities.

 

In the event the Suspicious Transactions are abandoned or aborted by clients on being asked to give some details or to provide documents, Sagility will report all such attempted transactions in the Suspicious Transaction Report, even if not completed by clients, irrespective of the amount of the transaction.

 

 

MAINTENANCE AND PRESERVATION OF RECORDS

Sagility shall preserve the records pertaining to (i) the identification of the Customers and their addresses (e.g., copies of documents like passports, identity cards, driving licenses, PAN, utility bills etc.) obtained during the course of business relationship, and (ii) information relating to the nature of the transactions, amount of the transaction, date on which the transaction was conducted, parties to the transaction and all Suspicious Transactions, whether or not made in cash, for at least five (5) years after the business relationship is ended.
Sagility shall take appropriate steps to evolve a system for proper maintenance and preservation of account information in a manner that allows data to be retrieved easily and quickly whenever required or when requested by the competent authorities.

 

Such records must be sufficiently reliable to permit reconstruction of individual transactions and to satisfy within a reasonable time any inquiries or orders from the relevant regulatory authorities as to the disclosure of information.

 

 

MONITORING

Sagility shall conduct regular monitoring of transactions in order to ensure the effectiveness of the procedures designed to prevent money laundering. Through the use of either internal or external auditors.

Sagility will pay special attention to all complex unusually large transactions/patterns which appear to have no economic purpose. Sagility may specify internal threshold limits for each class of client accounts and pay special attention to such transactions which exceed such limits.

Sagility reserves the right to randomly examine any transaction undertaken by clients to check if such transaction falls in the category of Suspicious Transactions or not.

 

 

COMMUNICATION & TRAINING

Sagility shall conduct periodic comprehensive employee training programs, at least once a year, so that members of staff are adequately trained in the procedures detailed under this Policy, procedures specific to the healthcare context and the requirements as per the Applicable Laws. Sagility shall regularly update training materials to reflect changes in legislation and operational practices.

 

 

REVIEW / AMENDMENTS

Sagility shall regularly review and update this Policy to adapt to new AML regulations and changes in the healthcare industry and financial regulations to ensure ongoing compliance and effectiveness. This Policy must be reviewed no less than annually.
Sagility reserves the right to amend or modify this Policy in whole or in part at any time without assigning any reason whatsoever. Any such amendment will be made only after obtaining the requisite approvals of the board of directors of Sagility.

 

 

EXCEPTIONS TO POLICY

There are no exceptions to this Policy.

 

PENALTIES FOR NON-COMPLIANCE

Non-compliance with this Policy can lead to disciplinary actions, including and up to termination, and may involve legal consequences depending on the severity of the infraction.

 

CONCLUSION

Sagility takes its responsibilities under AML regulations seriously and is committed to maintaining the highest standards of ethical conduct and legal compliance. This Policy forms a central part of our commitment to lawful and ethical business practices.

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