Anti-Money Laundering and Combating The Financing of Terrorism Policies
|Version:||Date of Review:||History:|
|04/17/2019||Pursuant to the Rule of Normative Instruments, the Company reviewed the Policy and did not identify the need to make adjustments.|
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, in brands rules, in Law No. 9.613 of 1998, and directions of Cielo’s Code of Ethical Conduct.
All Management (statutory officers, members of the Board of Directors, members of the Fiscal Council, members of the advisory committees of the Board of Directors) and employees of Cielo S.A.
This document is not addressed to other affiliates and holding companies. They shall define their direction independently, considering their specific needs, the 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. prevents the practices of money laundering and financing of terrorism when conducting businesses in Brazil’s territory, pursuant to Brazilian laws.
1.3. uses, by means of automated internal systems of transactions monitoring, which through rules and parameters, identifies the cases considered as money laundering or financing of terrorism.
1.4. 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.
1.5. adopts procedures to identify customers, who eventually may be included in the PEP and OFAC lists.
1.6. immediately informs the identification of customers connected with OFAC list to the appropriate authority.
1.7. adopts procedures for development of products and services in order to prevent their utilization in practices of money laundering and financing of terrorism.
1.8. certifies that financial transactions are conducted only to current accounts/savings accounts of customers affiliated at Cielo whose identity and accuracy are confirmed as compatible by the current account bank.
1.9. adopts due diligence procedures to mitigate risks of money laundering and financing of terrorism, according to the activity, jurisdiction and the parties involved.
1.10. adopts restrictive measures as to the conduction and businesses and the maintenance of relationship with customers, suppliers and partners when circumstances indicate evidence of involvement in acts connected with money laundering and financing of terrorism, pursuant to prevailing laws.
1.11. considers, when contracting and maintaining business relations with partners and suppliers if they have mechanics to combat money laundering and financing of terrorism.
1.12. 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, pursuant to prevailing laws.
1.13. confidentially conducts the processes of registration, analysis and communication of operations indicating money laundering or financing of terrorism to the appropriate authorities.
1.14. informs the appropriate authorities on the operations or operations proposed, which pursuant to prevailing laws, may characterize money laundering and financing of terrorism.
1.15. devotes special attention to operations or operations proposed involving a Politically Exposed Person, or 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.
1.16. cooperates with public authorities in investigations referring to harmful acts to the public administration resulting from its activities, pursuant to prevailing laws.
1.17. adopts criteria concerning hiring and conduct of its employees, focused on prevention and combat of money laundering and financing of terrorism.
1.18. maintains an annual specific training program for employees on prevention and combat of money laundering and financing of terrorism.
1.19. 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.
1.20. any suspicious fact or indication of direct or indirect connection with criminal infringement, regardless if purpose of the situations mentioned above, shall be reported to the Compliance and PLD areas. It is worth mentioning that the duty of confidentiality of analyses shall be restricted to the internal and public data and information, forbidding questions to third parties on the transactions made by our customers.
IV. Outcome Management
Employees, suppliers or other stakeholders who notice any deviation to this Policy’s guidelines, may report the fact to the Ethics Channel (www.canalconfidencial.com.br/cielo or 0800 775 0808), anonymously or not.
Internally, the failure to comply 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.
- Prevention and Safety Executive Board: From this policy’s guidelines, comply with the requirements of Laws and Circular Letters, besides maintaining the content updated and adherent to the laws.
- Legal Executive Board: Inform the Prevention and Safety Executive Board on any amendment to the legal provisions.
- Risk Management and Compliance Executive Board: Monitor the compliance with the rules and controls established by Prevention and Safety Executive Board.
- Human Resources Expertise Center Executive Board: Support training courses.
- Management and employees: Comply with and oversee the compliance with this Policy, and whenever necessary, prompt the Prevention and Safety Executive Board for consultation on situations involving conflict with this Policy or the occurrence of the situations described therein.
VI. Additional Documentation
- Circular No. 3.461 of 07/24/2009 issued by the Brazilian Central Bank: it consolidates the rules on the procedures to be adopted to prevent and combat the crimes provided for by Law No. 9.613 of March 3, 1998; and
- Law No. 9.613 of 1998;
- Resolution No. 29 of December 7, 2017 – Council for Financial Activities Control: it provides for the procedures to be observed by persons regulated by COAF, pursuant to Paragraph 1, Article 14 of Law No. 9.613 of March 3, 1998, referring to the politically exposed persons.
- Cielo’s Code of Ethical Conduct
VII. Concepts and Acronyms
- COAF (Council for Financial Activities Control): A council created within the scope of the Ministry of Finance for the purpose of regulating, applying administrative sanctions, receiving pertinent information, examining and identifying suspicious occurrences of illicit activities provided for in Law No. 9.613/1998, without prejudice of competence of other bodies and entities.
- 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): Public agents who perform or performed over the last five (5) years in Brazil or in countries, territories and foreign premises, relevant public titles or positions. In case of Brazilian customers, the following: (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 independent government agencies, government foundations, government entities or mixed capital companies; 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 the State and Federal District, State and District Deputies, presidents or similar of entities of the state and district indirect public administration and justices of the appellate courts, military court, accounting courts or similar of the State and Federal District, the speakers of legislative assembly and chamber; (VIII) mayors and chairmen of the municipal chamber of cities capital, city councilmen, chief justice of accounting courts or similar in 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.
It shall be incumbent upon the Company’s Board of Directors to amend this Policy whenever necessary.
This Policy takes effect on the date of its approval by the Board of Directors and revokes any contrary rules and procedures.