AML Policy

AML Policy

1. General
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The Anti-Money Laundering Procedure is up to date with the last AMLD (6) from January 2020. 

1.1. Policy Statement

It is the policy of Shark 77 Limited that all members of staff shall actively participate in preventing the services of Shark 77 Limited from being exploited by criminals and terrorists for money laundering purposes or used to fund a terrorist activity through screening funds as being winnings obtained through betting on the company’s website. This participation has as its objectives:

  • ensuring Shark 77 Limited’s compliance with all applicable laws, statutory instruments of regulation, and requirements of the relevant supervisory body
  • protecting the company and all its staff as individuals from the risks associated with breaches of the law, regulations, and supervisory requirements
  • preserving the good name of Shark 77 Limited against the risk of reputational damage presented by implication in money laundering and terrorist financing activities
  • making a positive contribution to the fight against crime and terrorism.

 

To achieve these objectives, it is the policy of Shark 77 Limited that:

  • every member of staff shall meet their personal obligations as appropriate to their role and position within the company
  • commercial considerations shall never be permitted to take precedence over the Shark 77 Limited’s anti-money laundering (AML) commitments
  • the company has appointed a Money Laundering Reporting Officer (MLRO), and a designate employee to ensure continuation during his / her absence, and they shall be afforded every assistance and cooperation by all members of staff in carrying out the duties of their appointments. Any reference to MLRO in this document will include that of the designated employee should the MLRO be temporarily absent.

 

 1.2. Definition

Shark 77 Limited believes that prior to implementing its AML Procedures, it is essential for it to identify what is, on the one hand, money laundering, and what, on the other hand, constitutes funding of terrorism.

Money laundering is the movement or concealment of criminal proceeds with the aim of obscuring the link between the crime and the generated funds, so as to be able to avail oneself of the profits of crime. Hence, the ultimate aim is that of obscuring the source of funds.

Funding of terrorism is the process of making funds or other assets available, directly or indirectly, to terrorist groups or individual terrorists to support them in their operations. This may take place through funds deriving from legitimate sources or from a combination of lawful and unlawful sources. Indeed, funding from legal sources is a key difference between terrorist organizations and traditional criminal organizations involved in money laundering operations. Although it would seem logical that funding from legitimate sources would not need to be laundered, there is nevertheless often a need for terrorists to obscure or disguise links between the organization or the individual terrorist and its or his legitimate funding sources. Therefore, funding of terrorism is mostly concerned with obscuring the end recipient of the funds.

2. Business Risk Assessment
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1.1 Risk Factors Taken Into Consideration

Shark 77 Limited adopts a risk-based approach, thereby focusing the company’s efforts where they are most needed and will have the most impact both in the short and long term. This approach allows for flexibility and significant discretion to be exercised by Shark 77 Limited, but also entailing significant responsibility. In this regard, this policy lays out the specific steps which Shark 77 Limited will adopt so as to ensure that its conduct is in line with the Risk Based Approach in respect of considering and identifying those risks that directly impinge on money laundering and funding or terrorism.

Shark 77 Limited’s business risk assessment, which is to be approved by the Board of Directors, takes the following factors into consideration:

  1. Service Risk

Some services/transactions are more vulnerable to criminal exploitation then others. These include, for instance, services that allow the customer to influence the outcome of a game, be it one player alone or in collusion with others.

 

  1. Transaction Risk

Depending on the funding methods made use of, low/medium/high risk will be identified. The more transparency the funding method allows for, the lower the risk that will be identified. Conversely, for instance, the use of pre-paid cards will allow the player to make use of Shark 77 Limited’s service with a degree of or complete anonymity, and therefore the risk, in that case, is high. On the other hand, just by way of example, where a customer transfers funds from a bank account or a card linked to a bank account held in his name with an institution established in a reputable jurisdiction, the risk of money laundering decreases.

 

  1. Interface Risk

This refers to the channel through which Shark 77 Limited establishes a business relationship and/or through which transactions are carried out. Non-face-to-face interactions, such as in respect of Shark 77 Limited’s business interface, are no longer considered as automatically high risk, as long as technological measures and controls to address the heightened risk of identity fraud or impersonation are adopted. Shark 77 Limited will make sure to adopt a good mix of verification methods, so as to counter the mentioned risks. Provision of additional identification documents will provide further proof that Shark 77 Limited was justified in considering that the customer is actually the person he alleges to be.

 

  1. Geographical Risk

This is the risk posed to Shark 77 Limited by the geographical location of the customers, however also the geographical locations of its suppliers and service providers. The element to be considered in respect of this anti-money laundering procedure is primarily that attributable to the customers and the source of funds of the said customers. The nationality, residence, and place of birth of a customer should be taken into account as these might be indicative of heightened geographical risk. Countries that have a weak anti-money laundering and counterfeit terrorism system, countries are known to suffer from a significant level of corruption, and countries subject to international sanctions in connection with terrorism or the proliferation of weapons of mass destruction will be considered as high risk. The opposite is also true and hence may be considered as presenting a medium or low risk.

 

  1. Customer Risk

This relates to the type of customer being provided with the service. The assessment of the risk posed by a natural person is generally based on the person’s economic activity and/or source of wealth. In identifying the level of risk inherent in a relationship, Shark 77 Limited will be assessing what would be the likelihood that a customer would be able to launder proceeds of crime through Shark 77 Limited’s service. A high earning customer who spends a fourth of his monthly wage in betting is not likely to constitute a high risk, even if the amount being bet is large. On the other hand, a minimum wage earner who spends his only wage on betting will more likely constitute a high risk. Furthermore, the individual will be screened so as to determine whether he is a politically exposed person (PEP), or in any way associated with a PEP. PEPs will not be accepted as players on Shark 77 Limited’s platform. Checks will also be carried out to ensure that the individual is not subject to any sanctions or other statutory measures. In order to determine whether the individual is a PEP or subjected to sanctions, Shark 77 Limited will make use of reliable electronic databases, and consult different trustworthy sources such as the sanctions list of the Financial Action Task Force (FATF) and the Office of Foreign Assets Control (OFAC).

Risk assessments are ‘works in progress’. Such assessments are to be constantly re-evaluated as new risks emerge. Risks may emerge due to changes in technology, which may render money laundering or the funding of terrorism attempts easier to carry out. Other examples include the widening of the customer base or the addition of games and payment methods that present a different risk profile from those already offered, which will thus require a revision of the business risk assessment. In the absence of any such changes, Shark 77 Limited will re-assess its business risk assessment at least once a year, so as to evaluate whether any changes thereto are necessary. In determining the level of risk posed by a customer, the accumulation of all of the relevant indicators will be taken into consideration. These together, determine the player’s risk profile contributing to the totality of a player’s risk profile.

 

1.1. Risk rating allocated for each risk

The below table describes the risk rating allocated for each risk:

Risk Factor

Risk Rating

Details

Mitigating Factor/s

Service Risk

Low

The players are not directly able to influence the outcome of the game/event, in respect of the casino games, since these are entirely RNG-based results. In respect of Sportsbetting, there may be a possibility of players colluding together, however, Shark 77 monitors bets placed very closely including which players are placing bets. Furthermore, even IP Addresses are closely monitored thus making it easier to identify possible collusion or the use of multiple accounts by a single player. In addition, there are various checks and controls in place with respect to monitoring of financial transactions being placed. At this stage Shark 77 Limited feels confident that players are closely monitored to reduce such a risk to an acceptable low level.

- Shark 77 monitors all transactions, and anything suspicious will be looked into further detail, however as explained this is not being regarded as any major risk.

Transaction Risk

Low

Bank transfers (with EEA or equivalent safeguards)

  • All the financial institutions which Shark 77 Limited engages with are established in reputable jurisdictions and subject to strict AML regulations Such institutions are themselves obliged to monitor the bank accounts or debit/credit card activities on an ongoing basis, as part of their due diligence (DD) obligations
  • Shark 77 Limited adopts a strict policy of remitting withdrawals to the same account from where the funds originated. It is only in exceptional circumstances and where, there is no additional option, that withdrawals will be processed to a different source, such as the case with the use of Mastercard. In such circumstances, Shark 77 will obtain corroborating documents to ensure that the account belongs to the same individual player. Once that is confirmed Shark 77 will allow the player to receive the funds in the different account
  • Shark 77 Limited verifies the ownership of the bank account/ credit card etc. It adopts this measure to help it ensure that the account belongs to the registered player. Furthermore, Shark 77 traces the source from where the funds were received. Well trained payment and anti- fraud team, with ongoing training provided as and when required and also when there are new developments within the industry
  • Identification of patterns within deposits made by players – a thorough analysis of all the transactions made by the player will then be conducted
  • Identification of players who always seem to just miss the due diligence verification requirements – full KYC procedures will anyway be applied, and in extreme cases the Enhanced Due Diligence (EDD) documents will be requested, to further ensure no specific wrongdoing
  • Identification of players who always process deposits from different sources / different accounts – conducting full due diligence,                          including corroborating that all accounts/ cards used to process deposits are owned by the same person. If there are any further outstanding suspicions after such checks – the source of wealth would also need to be investigated to ensure that it is not a case of a problem gambler using different sources to fund the habit.
  • Effective technological tools in place to monitor and detect suspicious activities

Low                -

Medium

Visa/Mastercard

Medium

EEA-licensed  payment service providers (Wirecard, Neteller, Skrill, ecoPayz)

High

Pre-paid cards/vouchers (AstroPay Card and PaysafeCard)

 

Interface Risk

Low

Shark 77 adopts a remote and automated registration process. The registration happens on Shark 77’s database without any third-party intervention. The AML measures adopted ensure that the high risk brought about by the non-face-to-face interactions are mitigated through the various controls related to KYC and the due diligence process, as well as via the ongoing monitoring. This allows Shark 77 Limited to categorise such risk as a low-level risk.

  • Strict KYC and AML measures are adopted as per this policy and the KYC procedure. This secures the effectiveness of our onboarding procedures, and the control techniques used for monitoring player activity
  • Customer support also plays an important role in the risk mitigation of the interface risk. Even though it is a nonface-to-face relationship, customer support communicates with players via e-mail, but more importantly via telephone communication, and that helps in the creation of a personal, albeit not face-to-face relationship.
  • Adherence to applicable laws and Malta Gaming Authority (MGA) regulations, and effective supervision by the relevant local authorities

Geographical Risk

Low

EEA  Member States, and other reputable jurisdictions.

  • Accepting players only from reputable jurisdictions, as also indicated in the Players’ Terms & Conditions and as including in the Customer Acceptance Policy within this document.
  • Ongoing monitoring and verification ensure that information provided by the player is true and up-to-date. Strict KYC and AML measures are adopted as per the company’s policies and procedures.
  • Monitoring of IP addresses, as a general this allows us to identify that the player is logging in from the same country where he claims to be a resident. There are exceptions to this rule such as when a player uses a proxy server, or when a player is abroad, away from his country of residence, however, such cases would be the exception and not the rule and hence such scenarios would be investigated further to identify why the mismatch- Adherence to applicable laws and MGA regulations, and effective supervision by the relevant local authorities

High

Non-reputable jurisdictions (for instance, those known to have a weak AML/CFT system, and countries known to suffer from a significant level of corruption) and countries subject to international sanctions in connection with terrorism or the proliferation of weapons of mass destruction, as well as countries which are known to have terrorist organisations operating within them, are to be considered as high risk.

Customer Risk

Low to High

Identification of risk generally depends on a person’s economic activity and/or source of wealth.

  • Ongoing monitoring and verification which ensures that information provided by the player is true and up-to-date. Strict AML measures are adopted as per this policy
  • Adherence to applicable laws and MGA regulations, and effective supervision by the relevant local authorities
  • PEPs are automatically considered as a high risk and hence will not be accepted as players as per the Customer Acceptance Policy.
3. AML Procedures
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3. 1 Customer Acceptance Policy

Shark 77 Limited adheres to the following customer acceptance restrictions:

 

1.Jurisdictional Restrictions

Shark 77 Limited will not accept customers from any country which prohibits the offering of online gambling to its residents or to any person within such country. In this respect, Shark 77 Limited will not accept customers from Israel, the United Kingdom, Australia, Sweden, Italy, France, Spain, and any other country which may prohibit the offering of online gambling to its residents or to any person within such country. Shark 77 Limited reserves the right to amend and change this list at its own discretion, and this is based on the developments within the industry. Players will be accordingly informed of any such changes.

 

2. Age Restrictions

As part of its adherence to its social responsibility measures, Shark 77 Limited will only accept individuals aged over eighteen years of age (or any other age as per the specific country legislation – such as 21 years of age for Latvia).

 

3. Problem Gamblers Restrictions

Another social responsibility measure which Shark 77 Limited adopts is that of not providing its services to problem gamblers, once they are identified as such. Problem gamblers are those individuals who cannot control their gambling and continue gambling even if this brings about clear negative consequences. There are various checks that are conducted when a player is ever suspected of being a problem gambler. Furthermore, as per social responsibility requirements in such identified cases, Shark 77 Limited will also assist the player in directing him/her to organisations that may assist.

 

4. PEPS Restrictions

Shark 77 Limited does not accept PEPs, or persons linked thereto, as players. PEPs are persons who are or have been entrusted with significant prominent public functions.

Once it is clear that any of the above factors are present then Shark 77 Limited will not register the individual as a player, or block the account in the case where registration had already been completed. Should it consequently become clear that there was a change in status, or that the individual had not provided correct personal information, Shark 77 Limited will thereby terminate its business relationship with the individual, in line with this Customer Acceptance Policy. In that case, the player’s winnings will be voided and the remaining deposited funds that were not played will be reverted to the player.

 

3.2 Identification and Verification of the Customer

The first step when onboarding a client is that of customer identification. This entails the collection of personal information as detailed in the Player Registration and Know Your Client policy. Once customer identification is complete, player verification will be carried out upon registration. The latter process will also verify whether the individual is a PEP, in which case, the individual will not be accepted as a player. Verification will be carried out again once the player has deposited a cumulative amount of € 2,000, on a 180-day rolling period, or whenever the licensee deems it necessary. The latter takes place particularly when any suspicion of money laundering or fraud arises. Verification consists in confirming the personal details collected for identification purposes through the use of independent data, information, and documentation obtained from reliable sources. To carry out verification, Shark 77 Limited makes use of:

 

i. Documentary sources: Namely Government-issued documents containing photographic images together with the player’s identification details (e.g. passport, identity card, etc). Other documents which may be used for verification including utility bills and bank account statements;

 

ii. Electronic means: such as E-ID, bank-ID, and electronic commercial databases.

The just mentioned due diligence measures will be carried out with regards to all of Shark 77 Limited’s players. Additional measures may be adopted if inconsistencies in the personal information provided by the customer are identified and/or if the risk posed by the player has been identified as high. Such additional identification and verification measures are known as enhanced due diligence (EDD) measures. A more thorough explanation of the various methods of verification is included in the KYC Procedure, as part of the Player Due Diligence Process. The KYC Procedure also enters into detail in respect of the player categorization.

 

3.3 Ongoing Monitoring and termination of the business relationship

Ongoing monitoring ensures that the information collected and verified still reflects the actual customer status. This ultimately entails the monitoring of clients’ transactions, personal details, and changes in their circumstances or betting preferences so as to ensure that they are consistent with the anticipated activity. The latter is based on Shark 77 Limited’s knowledge of the player, his gaming activity, and risk profile. If the two do not coincide, then Shark 77 Limited will question the situation so as to identify why the changes have occurred. The aim is that subjectively unusual large transactions, changes in gaming patterns and other ‘out-of-the-ordinary activities will be identified and analyzed. In this respect, it is important for Shark 77 Limited to ensure that the players’ information is maintained up to date. It will encourage and even bind players by the terms & conditions that they are obliged to inform Shark 77 Limited of any changes and even provide documentation to confirm the same. Through the monitoring process, the risk level will be reviewed and an analysis of whether the previously established risk rating should be amended or not will be carried out. Any inconsistencies in information would need to be justified and Shark 77 Limited reserves the right to request further corroborating evidence.

Ongoing monitoring will also ensure that any individuals who upon registration were not identified as PEP or in any way associated to a PEP, have not had a change in status and therefore became a PEP. In order for Shark 77 Limited to identify this change, it will carry out regular screening of its players’ list. In that case, as per its policy, Shark 77 Limited will terminate its relationship with the individual.

More detail about transaction monitoring and the risks associated with the various payment methods accepted by Shark 77 Limited is included in section 2.2 above.

Whenever Shark 77 Limited asks for further information, it will always take note of its findings so as to evidence its compliance. Should any identified inconsistency persist without it being successfully addressed, Shark 77 Limited will analyze whether any report is to be submitted to the relevant authorities and also make a decision whether it deems it necessary to suspend the player’s account. If the player fails to provide the requested information and/or documentation, which Shark 77 Limited has repeatedly requested of him, Shark 77 Limited will terminate its business relationship with the player. In that event, the player’s winnings will be voided and the remaining deposit funds that were not played will be reverted to the player. Further information concerning payout is specified in the Funds Management Procedure. Shark 77 Limited will also consider whether there are grounds for filing a Suspicious Transaction Report (STR).

 

3.4 B2B relationships

Shark 77 Limited will also conduct due diligence exercises before entering into any business relationships with third parties. These exercises will be carried out by senior management together with the legal advisors when deemed necessary, and the MLRO. Just like due diligence exercises carried out with regards to players, business due diligence (BDD) will seek to identify what risks would emerge should Shark 77 Limited engage in business with the third party. Shark 77 Limited will give a lot of weight to the fact that a supplier is already an approved supplier as per MGA requirements. It is also considered positive if a supplier that is presently not approved seeks approval at the point in time when contracting with Shark 77 Limited. The assessment will also seek to establish whether the third party has business dealings with other third parties which are known not to be reputable, or if the third party conducts its business in or from a non-reputable jurisdiction. In this regard, Shark 77 Limited will ask the third party to provide it with original/certified copies of all the necessary documentation, including, for instance, the certificate of good standing, confirming that the company’s affairs are dealt with in a good manner. Once it has been determined that the third party conducts business in a manner that will not jeopardize Shark 77 Limited’s position, then the parties will agree on the terms of the business relationship and sign the relevant agreements and documentation. As part of the CDD, Shark 77 Limited will conduct ongoing monitoring to ensure that the third party still conducts its business in a diligent manner, based on their own experience of the manner in which the services are provided. Furthermore, Shark 77 Limited also reserves the right to include a Right to Audit clause in the agreement it signs with the third party if this is deemed necessary.

Any anti-money laundering review conducted will be separately noted in the third party’s file. In any case, Shark 77 Limited will always reserve its right to terminate its business relationship with any third party should it feel that in conducting business with the third party, it is putting its compliance with its anti-money laundering and funding of terrorism obligations at risk. Notification to the MGA will be given as per the agreement and as per the requirements of the same Authority. More detailed information concerning the fit and proper procedures and due diligence exercises applied to prospective outsourcing service providers is included in the company’s Outsourcing Policy.

4. Reporting of suspicious money-laundering activities
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4. Reporting of suspicious money-laundering activities

4.1 Appointment of the MLRO

While the detailed description of the responsibilities of the MLRO is laid out in the Human Resources Roles and Responsibilities Policy, the MLRO’s main responsibility is that of considering any internal reports of unusual or suspicious transactions that are raised within the company, and, following up on these reports and also filing an STR with the Financial Intelligence Analysis Unit (FIAU), when this is deemed necessary. The MLRO also acts as the main channel through which any communications with the FIAU will be conducted. The MLRO ensures that Shark 77 Limited is effectively implementing the policies and procedures which it has adopted in order to address its anti-money laundering/countering of funding of terrorism obligations. The MLRO is responsible for monitoring any updates on sanctions lists such as that of the Financial Action Task Force (FATF) and the Office of Foreign Assets Control (OFAC). The MLRO also updates the rest of the staff on any amendments to the sanctions lists and any fundamental changes to the applicable law. Shark 77 Limited will ensure that the individual appointed as MLRO enjoys sufficient seniority and command to be able to act independently of its management.

The MLRO has access to all the necessary information/documentation and company employees to effectively carry out its obligations. Shark 77 Limited has also appointed a designated employee who would be able to act as the MLRO during the MLRO’s period of absences. The MLRO’s as well as the designated employee’s appointments will be made known to the MGA. The MLRO’s details and that of the designated employee have been communicated to the FIAU, in accordance with the applicable FIAU rules. In this manner, the MGA and the FIAU will be able to address queries and requests directly to the relevant individual. Such individuals will therefore act as a contact point between Shark 77 Limited and the relevant authorities in matters related to anti-money laundering/countering of funding of terrorism.

 

4.2 Reporting suspicious activity and transactions

Shark 77 Limited may develop a suspicion or have reasonable ground to suspect that activity on an account is linked to money laundering or funding of terrorism. At that point in time, Shark 77 Limited will ensure that all DD requirements are met, regardless of whether any applicable threshold has been met. It will consequently submit an STR, as soon as possible.

 

4.2.1      Internal Reporting Procedures

As laid out in further detail in section 5 below, all staff communicating with the players, or having access to information about clients’ affairs, will receive anti-money laundering training. In this manner, they would be able to identify which player’s action should reasonably lead them to suspect that money laundering or funding of terrorism activity is being attempted or has been carried out. For instance, they would be expected to realize that if a player attempts to register more than one account with Shark 77 Limited, or if he deposits considerable amounts during a single session by means of multiple pre-paid cards, then such actions should constitute indicators or red flags which should lead them to question the player’s behavior. At that point, the employee may subtly seek explanations from the player, without disclosing his suspicion to the player. This disclosure is forbidden whether directly or indirectly, and hence all members of staff must be astute in this respect. If the officer does not manage to obtain any convincing information, and after full consideration, the officer is still suspicious of foul play, then at that point he shall inform his immediate superior. Prior to reporting to his superior, the employee will have to be satisfied that there is a clear indication of intent to circumvent the safeguard, and that use of the financial system for criminal purposes is present.

There may be instances wherein the manager disagrees with the officer, but the officer still feels he has reasonable grounds to suspect wrongdoing. In such circumstances, the employee is to inform the MLRO anyway of his suspicions. The employee may discuss the matter directly with the MLRO and is in no way obliged to inform or involve his manager. On receipt of the internal report from the employee, the MLRO will acknowledge its receipt in writing, referring to the report by its date and unique file number, without including the name of the person(s) suspected. In this manner, the officer’s legal obligation to report will be considered to have been fulfilled. The employee will only be allowed to discuss the matter internally with management, or with other employees, if at all deemed necessary, after having obtained approval from the MLRO. Any external discussions are prohibited and will be considered as tipping off. If circumstances arise that make it difficult for the employee to communicate with the player without risking any possibility of tipping off, the employee is to seek advice and follow the MLRO’s instructions. This procedure shall constitute Shark 77 Limited’s internal procedure for reporting suspicious activity and transactions.

 

4.2.2 External Reporting Procedures

As already described in the previous section, the MLRO shall receive and evaluate internal suspicion reports. He will open and maintain a log detailing the progress related to each report, noting down any information which needs to be documented so as to ensure that an adequate track record of the reasons leading to his decision is maintained. Such documentation may also be used to assist the Authorities in any analysis or investigation of the suspected money laundering or funding of terrorism when such details are directly requested from the MLRO. This log shall be held by the MLRO and shall only be accessible to him and will not form part of the player’s file. The MLRO shall gather all the necessary information and pose any questions to any of Shark 77 Limited’s employees as part of his investigation. The employees (whether those having submitted the internal report or otherwise) shall provide the MLRO with relevant information. In doing so, they will not be breaching their obligation of client confidentiality. Once the MLRO decides that there are reasonable grounds that warrant the submission of an STR via the FIAU’s online submission system, he shall make this formal disclosure to the same authority on behalf of Shark 77 Limited. No copies of either the internal or external reports will be made. The MLRO will keep such records secure. The MLRO shall, where appropriate, inform the originator of the internal report whether or not a formal disclosure has been made. Following a formal disclosure, the MLRO shall take such actions as required by the Authorities in connection with the disclosure and accordingly follow their instructions.

 

4.2.3 What should give rise to suspicious activity?

For clarity’s sake, STR reporting will cover:

1. Any activity which leads Shark 77 Limited to think that a person is linked to money laundering/funding of terrorism or to any proceeds of crime, or that either of the two is being committed, or maybe committed independently of whether any transactions have taken place or otherwise.

 

2. Any instance wherein objective facts will lead Shark 77 Limited to have reasonable grounds to suspect that money laundering/funding of terrorism or of proceeds of crime may be taking place.

Shark 77 Limited shall be obliged to submit an STR with the FIAU with regards to the activity carried out on the basis of its Maltese license and accordingly notify the MGA, when deemed necessary and as per instructions given by the FIAU.

 

4.2.4 Stopping/continuing work following a suspicion

Due to the nature of the gaming services offered by Shark 77 Limited and the nature of the transactions in question, the latter will not always be in a position to refrain from carrying out a pending transaction prior to the filing of an STR. This is because should Shark 77 Limited refrain from accepting a transaction when it usually does so instantly, the delay in acceptance may trigger the player into knowing that he is being suspected of fraudulent activity. Any delay may prejudice an analysis or investigation of the suspected transaction. Hence, whenever Shark 77 Limited suspects money laundering/funding of terrorism, then Shark 77 Limited will still proceed with executing the suspected transaction. However, Shark 77 Limited will submit an STR to the FIAU immediately after the execution of the transaction.

 

4.2.5 Prohibition of Disclosure

Shark 77 Limited will not disclose any details or information in connection with an STR or a request for information made by the FIAU. This prohibition of disclosure applies to both the suspected player and any other third party, and this is independently of any other regulatory or contractual obligation that Shark 77 Limited may be subjected to. Shark 77 Limited will only make the necessary disclosures to the MGA, as prescribed by the applicable law. It will also be extremely careful when dealing with a player that is the subject of an STR or FIAU inquiry. As explained above, this so as not to prejudice an analysis or investigation. The exceptional cases mentioned under Regulation 16(2) of the Prevention of Money Laundering and Funding of Terrorism Regulations (Subsidiary legislation 373.01), are as follows:

 Disclosures to the supervisory authority, in this case, the MGA;

 Disclosures between subject persons in the same group;

 Disclosures between a subject person undertaking a ‘relevant activity and another person undertaking similar activities and where similar requirements are imposed by the jurisdiction. The persons being within the same legal person or within a larger structure to which they belong which have common, ownership, management;

 Sharing of information based on the same transaction, where the subject persons and the related activity are subject to the same legal obligations and the persons are of the same professional category and hence have similar obligations in respect of professional secrecy and data protection;

 Disclosures by a subject person in the course of proceedings initiated against in respect of delays in carrying out transactions, where the subject person was actually following instructions as per FIAU;

 Disclosure by a subject person to a supervisory authority as per the request made by the supervisory authority, in this respect, the MGA.

Shark 77 Limited will also consider carefully any of the measures which it decides to adopt vis-a-vis the suspected player, consequent to the submission of an STR. So as not to jeopardise any investigation, prior to undertaking any such action, Shark 77 Limited will seek guidance from the FIAU’s analysts. Shark 77 Limited will, as much as possible, consider such actions as a measure of last resort, and not unnecessarily burden the FIAU with every small suspicion. In cases of minor suspicions not warranting reporting, it will instead increase ongoing monitoring and only submit STRs to the FIAU once a suspicion persists or the indicators increase.

5. Training
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It is the policy of Shark 77 Limited that all staff who have client contact, or access to information about clients’ affairs, shall receive anti-money laundering training to ensure that their knowledge and understanding are at an appropriate level. Training will furthermore be provided at least once a year so as to maintain awareness and ensure that the company’s legal obligations are met. Any training given will take into consideration the practicality of assigning different tasks to staff as per their role and all information accessible will be on a need-to-know basis. However, training about the whole process will be provided to employees, so as to ensure that each officer has a holistic understanding of the due diligence, KYC, AML, and funds management procedures, since these are very closely related.

In light of the seriousness of the obligations placed by law and regulations, and the gravity of the possible penalties, the MLRO shall ensure that information about these obligations is available to all members of staff at all times. The MLRO will also ensure that ongoing training is provided, that is, as and when the need arises, even based on direct requests made by employees.

The training programs will include testing to ensure that each individual has achieved the appropriate level of knowledge and understanding. Testing may be conducted in various ways, whether through formal testing, assessment via discussion of case studies, or other means. Special consideration will be given to the training needs of senior management, and of the compliance team, whose knowledge and understanding must be most thorough.

Human Resources (HR) will:

  inform every member of staff of the training programs that they are required to undertake, and the timetable for completion.

 check that every member of staff has completed the training programs assigned to them, issuing reminders to any who have not completed as per the applicable timetable.

 keep records of training completed, including the results of tests or other evaluations demonstrating that each individual has achieved an appropriate level of competence

 update employee personal files with details of training undertaken and results obtained where applicable.

  refer to senior management any cases where members of staff fail to respond or whose results are unsatisfactory, to issue reprimands or provide additional training as per the individual case.

 The MLRO will be provided with full access to all records held by the Human Resources department.

On completion of a training cycle, human resources will ensure the continuity of ongoing training and also obtain updates from the MLRO in respect of changes happening in the field, so that HR may ensure that up-to-date training is organized and provided to all members of staff:

Line managers will also provide feedback to the Human Resources department in respect of:

 the effectiveness of the programs completed.

 make suggestions as to different methods of delivery.

Line managers will supplement the training provided to support staff by giving guidance on a day-to-day basis on:

  the type of client instructions and transactions that count as ‘significant and so should be brought to their attention

  identifying client instructions and transactions which, although not of a nature normally counting as ‘significant’, are in some way unusual or anomalous and should be considered with regard to possible suspicion of money laundering.

The MLRO will determine the training needs for his/her own role, and ensure that he/she undergoes Continued Professional Education (CPE) as required to fulfill his/her legal obligations.

The aim of all training provided is to ensure that staff is capable of identifying any attempted or actual money laundering or funding of terrorism activity exercised by players when using Shark 77 Limited’s services.

6. Keeping Records Of Client Due Diligence Information
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When information is being collected for DD purposes, the responsible service staff will:

  keep records in the client file.

  record instances where information requested has not been forthcoming, or explanations provided have not been satisfactory.

  ensure that all records are kept in a consistent manner so that they are accessible by and comprehensible to other authorised members of staff, including the MLRO.

Transaction records are kept for five years from the date of the transaction and then archived.

Customer records are kept for five years from the date of the end of the business relationship with the customer and then archived. The players have the possibility of accessing transactions from their profile for a period of 6 months, following that time lapse, details about the transactions may be requested through customer support on [email protected]

In the event that a report has been filed about any player, all relevant records will be retained on the live system and not archived, even if the five-year period for archiving has elapsed. Once the inquiry/investigation has been completed and the MLRO has been accordingly informed, then the records will be treated similar to all other information and the same archiving policy will then apply.

7. Monitoring and management of compliance
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Compliance with this policy shall be constantly tested and ensured. The Board of Directors reserves the right to engage external auditors to examine whether the company is complying with the measures laid out in this procedure. The findings of such audits and any appropriate recommendations for action will be reported to the Board of Directors. The latter will then request feedback from management in respect of the suggestions made by the auditors. Based on the recommendations as well as management’s feedback the directors will make a decision of what processes/procedures to amend or introduce. A timeline for implementation will also be discussed and decided upon. Feedback on the implementation of any changes is to be reported back to the directors since they are ultimately responsible for the company’s operations.

The MLRO will obviously be involved and his input will be deemed paramount in respect of this process. He will be tasked to monitor aspects of the company’s DD and anti-money laundering policies and procedures. Any deficiency in these procedures or the compliance thereto, which requires urgent rectification will be dealt with immediately by the MLRO, who will report such incidents to the Board of Directors as appropriate. He will also request the Board to provide him with any needed support.

The MLRO will audit the procedure directly, at least annually. The MLRO will also report his findings to the Board of Directors. This report will include:

 a summary of any changes in the regulatory environment(s) in which Shark 77 Limited operates.

 a summary of AML activities within the company, including the number of internal suspicion reports received by the MLRO and the number of disclosures made to the Authorities.

 details of any compliance deficiencies on which action has already been taken, together with reports of the outcomes.

 details of any compliance deficiencies on which action needs to be taken, together with recommended actions including suggested timeframe and management support required.

 an outline of plans for the continuous development of involved staff, including periodic training and awareness-raising activities for all relevant staff.

Where management action is indicated, the Board of Directors will request management to provide their feedback and timeline of when necessary action will be taken.

This procedure will be reviewed and updated at least every six months, however may be more frequent, if changes in legislation or guidelines are introduced at any point in time.

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