Anti-Money Laundering and Combating The Financing of Terrorism Policy
|Version:||Date of Review:||History:|
|2||05/09/2019||In compliance with the Company’s Standard of Normative Instruments, the policy was reviewed, according to the rules set forth in said standard, and no changes were identified in the content. In this regard, the Board of Executive Officers acknowledged the review and since this policy was not amended, there is no need to submit it to the Board of Directors.|
|3||04/23/2020||Annual review with the due changes to adjust the processes, in line with market changes and current regulations.|
Set forth the guidelines to prevent and combat the crimes of money laundering and financing of terrorism, besides other crimes involving the simulation or concealment of financial resources, as provided for in the Brazilian Central Bank’s regulations (“Bacen”), in rules of the payment arrangement institutions (“Brands”), in Law 9613/1998, and directions of Cielo’s Code of Ethical Conduct*.
All members of the Management (officers, members of the Board of Directors and members of the Advisory Committees), members of the Fiscal Council and employees of the companies Servinet Serviços Ltda., Braspag Tecnologia em Pagamentos Ltda., Aliança Pagamentos e Participações Ltda. and Stelo S.A., hereinafter (“Cielo” or “Company”), partners, and outsourced service providers.
All the Company’s Subsidiaries must establish their directives based on the guidance provided in this Policy, considering the specific needs and legal and regulatory aspects to which they are subject.
Regarding the Affiliated Companies, the Company’s representatives working in the Management of Affiliated Companies should make efforts to set their directives based on the guidance provided for in this Policy, considering the specific needs and legal and regulatory aspects to which they are subject.
1.1. Repudiates any act of money laundering, financing of terrorism or any criminal activity involving the simulation or concealment of financial resources.
1.2. Adopts procedures to carry out an internal assessment to identify and measure the risk of (i) using its products and services and (ii) conducting business in Brazil’s territory in the practice of money laundering and terrorist financing, under Brazilian laws.
1.3. Adopts a governance structure focused on complying with the obligations to prevent money laundering and terrorism financing, as set out in Law 9613/1998 and Bacen’s rules, through the institution of the Executive Working Group to Prevent Money Laundering (“PLD WG”), managed by the officer responsible for fulfilling the obligations on the subject before Bacen.
1.4. Uses, employing automated internal systems of transaction monitoring, which through rules and parameters, identifies the cases considered as money laundering or financing of terrorism.
1.5. Assesses, when analyzing the transactions, the solution of capture applied, the payment conditions, the frequency, the parties and the amounts involved, the standard of transactions, the economic activity and any other indication of irregularity or illegality involving customer or his operations, aiming at detecting any indication of money laundering and financing of terrorism.
1.6. Adopts procedures to identify and approve the maintenance of the business relationship with clients that eventually may be included in lists of Politically Exposed Persons (“PEP”) and OFAC, among other restrictive lists, according to risk assessment and rating, established in the internal rule.
1.7. Adopts procedures to identify partners and outsourced service providers who eventually may be included in the PEP and OFAC lists, among other restrictive lists, according to risk assessment and rating, established in the internal rule.
1.8. Immediately informs the identification of customers connected with the OFAC list to the appropriate authority.
1.9. Adopts procedures in the development of new products and services, as well as the use of new technologies, to inhibit and assess the risk of their use in practices related to money laundering and terrorism financing, according to the guidelines of the Policy of Corporate Risk Management and Internal Controls and attributions defined in internal rules.
1.10. Adopts controls to certify that the movements of financial amounts are carried out to checking accounts, savings accounts, prepaid cards and payment accounts (“digital wallet”) of customers affiliated with Cielo, whose identity and veracity have been previously confirmed, either by the home institution, by the partner responsible for the digital wallet or by Cielo itself.
1.11. Adopts due diligence procedures Know Your Customer, Know Your Supplier, Know Your Partner and Know Your Employee to mitigate risks of money laundering and financing of terrorism, according to the activity, jurisdiction and the parties involved, including the collection, verification, validation, and updating of registration data, as defined in internal rules.
1.12. Adopts restrictive measures as to the conduction and businesses and the maintenance of the relationship with customers, suppliers, and partners when circumstances indicate evidence of involvement in acts connected with money laundering and financing of terrorism, according to prevailing laws.
1.13. Considers, when contracting and maintaining business relations with partners and suppliers if they have mechanics to combat money laundering and financing of terrorism.
1.14. Analyzes indications and complaints of practices connected with suspicious money laundering and financing of terrorism by direct agents or third parties against Cielo’s assets, according to prevailing laws.
1.15. Confidentially conducts the processes of registration, analysis, and communication of operations, indicating money laundering or financing of terrorism to the appropriate authorities.
1.16. Informs the appropriate authorities on the operations or operations proposed, which according to prevailing laws, may characterize money laundering and financing of terrorism.
1.17. Devotes special attention to operations or operations proposed involving a PEP, as well as family members, employees, or legal entities participating therein. The notification of cases indicating money laundering, deriving from customers classified as PEP, will be identified in related notices to the appropriate authority.
1.18. Cooperates with public authorities in investigations referring to harmful acts to the public administration resulting from its activities, according to prevailing laws.
1.19. Adopts practices to promote an organizational culture to prevent money laundering and terrorism financing and maintains an annual specific training program for employees on prevention and combat of money laundering and financing of terrorism.
1.20. Maintains specific channels to receive complaints, also anonymous, as well as repudiates any acts of retaliation against the good-faith denouncers who opted to identify themselves.
1.21. Defines any suspicious fact or indication of a direct or indirect connection with criminal infringement, regardless of the purpose of the situations mentioned above, shall be reported to the Compliance and Money Laundering Prevention areas.
1.22. Reviews the guidelines defined in this policy annually or whenever there are changes in the process that impact or justify its review.
1.23. Periodically assesses the compliance and effectiveness of this policy, procedures, and internal controls regarding the prevention of money laundering and the financing of terrorism.
IV. Outcome Management
Employees, suppliers, or other stakeholders who notice any deviations to this Policy’s guidelines may report the fact to the Ethics Channel, through the channels below, anonymously or not.
• Telephone, toll-free: 0800 775 0808
Internally, non-compliance with this Policy’s guidelines implies the application of measures for agents’ liability who fail to comply therewith, according to the respective seriousness of such non-compliance, and pursuant to internal rules.
- Management and Employees: Comply with and oversee the compliance with this Policy, and whenever necessary, prompt the Risk, Compliance and Prevention Board for consultation on situations involving conflict with this Policy or the occurrence of the situations described therein.
- Internal Audit: Conduct an independent and objective assessment of the quality and effectiveness of the policy, procedures, and internal controls to prevent and fight the crimes of money laundering and financing of terrorism.
- Service Management Board: Support in training and cultural actions, as well as the adoption of criteria concerning hiring and conduct of its employees, focused on prevention and combat of money laundering and financing of terrorism.
- Budget, Performance and Procurement Board: Support in the application of the stipulated criteria, as provided for in internal rules, to contract and maintain business relationships with suppliers, focused on preventing money laundering and financing of terrorism.
- Risk Management, Compliance, and Prevention Board: Ensure compliance, based on this policy’s guidelines, with the requirements of Laws and Circular Letters, besides maintaining the content updated and adherent to the laws, as well as assess its effectiveness and compliance.
- Legal Board: Inform the Risk, Compliance and Prevention Board of any updates to legal provisions, and other attributions, according to the Legal Services Standard (NRM_068).
- Executive Working Group to Prevent Money Laundering (“PLD WG”): Ensure the compliance with the guidelines of this policy and the obligations referred to in Law 9613/1998 and Bacen’s regulations, as well as resolve on aspects related to the prevention of money laundering and the financing of terrorism.
VI. Additional Documentation
- BACEN Circular 3.978/2020;
- Bacen Circular Letter 4.001/20
- Cielo’s Code of Conduct/Ethics*;
- Law 9.613/1998;
- COAF Resolution 29/2017.
VII. Concepts and Acronyms
- Home Institution: Institution where the commercial establishment settles its receivables transacted with Cielo.
- COAF (Council for Financial Activities Control): A council created within the scope of the Ministry of Finance to regulate, apply administrative sanctions, receive pertinent information, exam and identify suspicious occurrences of illicit activities provided for in Law No. 9.613/1998, without prejudice of competence of other bodies and entities.
- PLD WG: Executive Working Group to Prevent Money Laundering, responsible for the governance of the prevention of money laundering and financing of terrorism, including the Executive Officer of Risks, Compliance, and Prevention, the Manager of Prevention of Fraud and Money Laundering and the Coordinator of Prevention of Money Laundering.
- OFAC List (Office of Foreign Assets Control): A list regularly issued and updated by the US Treasury, including names and associations of persons and companies blocked due to connection with illicit activities, such as narcotics traffic, money laundering, terrorism, amongst others.
- PEP (Politically Exposed Persons): PEP refers to people who in the past five (5) years met the following conditions: (I) those with electoral mandate from federal government’s executive and legislative branches; (II) those holding position, at the executive branch, State Ministry or related, Special Nature or similar; (III) president, vice president and officer, or similar at indirect government agencies; and (IV) Senior Management and Advisory Group – DAS, level 6, or related; (III) members of the National Council of Justice, Federal Supreme Court, Higher Courts and Federal Regional Courts, Labor and Electoral Courts, Higher Council of the Labor Court and the Federal Court Council; (IV) members of the National Council of the Public Prosecution Office, Federal Attorney General, Vice Federal Attorney General, Labor Attorney General, Military Attorney General, Deputy Federal Attorney General and Deputy Attorney General of the State and Federal District; (V) members of the Federal Accounting Court and the Attorney General of the Public Prosecution Office jointly with Federal Accounting Court; (VI) presidents or treasurers or similar of political parties; (VII) governors and secretaries of State and of the Federal District, State and District Deputies, the presidents, or equivalent, of entities of the state and district indirect government entities and presidents of Courts of Justice, Military, Accounts or equivalent of State and the Federal District; (VIII) Mayors, City Counselors, Municipal Secretaries, presidents, or equivalents, of entities of the municipal indirect public administration and presidents of Courts of Accounts, or equivalent, of the Municipalities. Politically exposed persons are also those who abroad are: (I) heads of state or government; (II) high-ranking politicians; (III) those holding high-ranking positions in the government; (IV) official generals and members of the judiciary, legislative branches or military high ranking; (V) top-level executives in state-owned companies; or (VI) leaders of political parties and leaders of state-owned companies (VII) leaders of high-ranking public or private international law entities.
- Stakeholders: They represent all relevant stakeholders of the Company, or also, individuals or entities undertaking any type of direct or indirect risk with the company. Amongst others, we point out: shareholders, investors, employees, society, customers, suppliers, creditors, governments and regulatory agencies, competitors, press, professional associations and entities, users of electronic means of payment, and non-governmental organizations.
- Payment account (“digital wallet”): Account that can be used to make withdrawals, pay bills and pay transactions made by debit or credit cards, or to make transfers between accounts held at the same institution and in other payment institutions or financial institutions (TED and DOC), as well as settle receivables transacted with Cielo.
The Company’s Board of Directors is responsible for changing this Policy whenever necessary.
This Policy takes effect on the date of its approval by the Board of Directors and revokes any rules and procedures to the contrary.