Anti-Money Laundering Policy

Introduction and Purpose

The AML policy of PariPulse India aims to prevent money laundering, terrorist financing, and other illicit activities. It underscores the commitment to adhering to the guidelines issued by international bodies such as the Financial Action Task Force (FATF) and complying with the Prevention of Money Laundering Act (PMLA) in India.

Scope

This policy applies to all users, employees, and affiliates of PariPulse India. Every individual interacting with the platform must follow the AML measures to prevent illegal financial activities.

Key Definitions

• Money Laundering: The process of making illegally obtained money appear legitimate through financial systems.
• Terrorist Financing: The provision of funds to support terrorist activities.
• Customer Due Diligence (CDD): Procedures to verify the identity of customers and assess risks.

Compliance Officer

PariPulse India appoints a dedicated AML Compliance Officer who is responsible for ensuring that the platform adheres to all regulatory requirements. The officer’s tasks include monitoring transactions, reporting suspicious activities, and overseeing staff training.

Know Your Customer (KYC)

A robust KYC process is the cornerstone of AML efforts. PariPulse India requires customers to submit personal identification documents like a passport, Aadhaar card, or voter ID to ensure their identity is genuine. This process includes:

• Verifying the customer’s identity.
• Collecting information regarding their financial background.
• Conducting background checks to ensure no connections to criminal activities.

Risk-Based Approach

PariPulse India follows a risk-based approach (RBA) to evaluate each customer’s risk profile. Customers are categorized into low, medium, and high-risk tiers based on factors like transaction patterns, geographical location, and the source of funds.

• High-Risk Customers: Subject to enhanced due diligence (EDD), where further investigation is done to mitigate risks.
• Low-Risk Customers: Basic KYC is sufficient, though regular checks are still conducted.

Monitoring and Reporting

Transaction monitoring is essential in detecting unusual or suspicious activities. PariPulse India uses automated systems to:

• Flag large or unusual transactions.
• Identify patterns consistent with money laundering.
• Track transactions involving jurisdictions known for lax AML controls.

Suspicious Transaction Reports (STRs) are filed with the appropriate regulatory bodies, such as the Financial Intelligence Unit of India (FIU-IND). The platform is legally obligated to report any activity that may indicate money laundering or terrorist financing.

Record Keeping

PariPulse India is required to maintain records of all transactions and customer details for a minimum of five years. This ensures that the platform can provide comprehensive documentation if required by authorities for investigation.

Employee Training

The platform ensures that employees are well-informed about AML protocols. Regular training sessions are conducted to keep staff updated on:

• How to identify and report suspicious activity.
• Current trends in money laundering and terrorist financing.
• Internal policies and procedures for AML compliance.

Prohibited Transactions

PariPulse India strictly prohibits:

• Transactions involving anonymous accounts.
• Payments from entities in countries with weak AML regulations.
• Transactions that don’t comply with Indian laws and international AML standards.

Sanctions and Penalties

Non-compliance with the AML policy can result in serious consequences, including:

• Account suspension or termination.
• Reporting to local and international law enforcement agencies.
• Legal penalties and fines imposed by regulators.

Customers found guilty of participating in money laundering activities face severe legal action, including freezing of assets and criminal prosecution.

Customer Awareness

PariPulse India takes steps to educate its customers on the importance of complying with AML rules. Customers are made aware of:

• The risks of engaging in illegal financial activities.
• How to ensure their account is used for legitimate purposes.
• The consequences of violating AML regulations.

Conclusion

The AML policy of PariPulse India plays a critical role in ensuring the platform’s integrity and compliance with financial laws. It emphasizes the importance of transparency, accountability, and collaboration with regulatory bodies to mitigate the risks associated with money laundering and terrorist financing.

PariPulse India remains committed to maintaining the highest ethical standards and continues to evolve its policies to adapt to changing regulatory requirements and threats in the financial sector.