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Anti-Money Laundering Policy

1. Introduction

Flowmax Ltd is a UK registered company providing fluid handling products. The business of the Company is low risk in relation to money laundering. However, in order to prevent any of our services being used, or potentially used, for any money laundering activity, as well as protecting our staff from exposure, we have put in place the following anti-money laundering policy. This supplements the anti-money laundering training given to all members of staff.

2. Scope of the Policy

The broad definition of money laundering means that potentially anyone could commit a money laundering offence. This includes all employees of the Company, as well as all temporary staff and contractors.

Our policy is to enable the Company to meet its legal and regulatory requirements in a way which is proportionate to the low risk nature of the business, by taking reasonable steps to minimise the likelihood of money laundering occurring. All employees must be familiar with their legal responsibilities.

3. What is Money Laundering?

The principal primary legislation is the Proceeds of Crime Act 2002 (POCA), which consolidated, updated and reformed criminal law with regard to money laundering. This is supplemented by the Terrorism Act 2000 and the Fraud Act 2006. The principal secondary legislation is the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended by the Money Laundering and Terrorist Financing (Amendment) Regulations 2019.

Money laundering can be defined as the process of moving illegally acquired cash through financial systems so that it appears to be from a legitimate source.

Money laundering offences include:

  • Concealing, disguising, converting, transferring criminal property or removing it from the UK (Section 327 POCA).
  • Entering into or becoming concerned in an arrangement which you know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person (Section 328 POCA).
  • Acquiring, using or possessing criminal property (Section 329 POCA).

There are also several secondary offences, including failure to disclose knowledge or suspicion of money laundering to the Money Laundering Reporting Officer (MLRO), failure by the MLRO to disclose to the National Crime Agency, and “tipping off”, where someone informs a person suspected of money laundering in a way that could prejudice an investigation.

Any member of staff could potentially be caught by the money laundering provisions if they suspect money laundering and either become involved or fail to act. This Policy sets out how concerns should be raised.

4. Money Laundering Reporting Officer (MLRO)

The Company will appoint a MLRO to receive disclosures about money laundering activity and to be responsible for anti-money laundering activity within the Company. The officer nominated to do this is the Flowmax Group Finance Director.

The Company will also appoint a deputy MLRO who will act in the absence of the nominated officer. The deputy MLRO is the Flowmax Group Chief Executive Officer.

An anonymous tip off hotline (compliance@sabias.co.za) has been established to ensure that allegations of breaches of regulations or group policies are dealt with responsibly.

The MLRO will ensure that appropriate training and awareness is provided to new and existing employees, and that this is reviewed and updated as required.

The MLRO will also ensure that appropriate anti money laundering systems and processes are in place within the Company.

5. Suspicions of Money Laundering

All employees must, as soon as practicable, report any knowledge or suspicion of suspicious activity to the MLRO in the prescribed form set out in this policy document. Once reported, the employee must follow the directions given and must not make any further enquiries into the matter.

Employees must not voice any suspicions to the person or persons suspected, as this may result in the offence of tipping off. They must not discuss the matter with others or note on file that a report has been made.

6. Consideration of the Disclosure by the MLRO

Once the MLRO has received a report, it must be evaluated promptly to determine whether:

  • There is actual or suspected money laundering taking place.
  • There are reasonable grounds to suspect that this is the case.
  • A Suspicious Activity Report (SAR) should be submitted to the National Crime Agency (NCA).

If there are no reasonable grounds, consent will be given for any ongoing or imminent transactions to proceed.

If consent is required from the NCA, the transaction must not proceed until consent is granted or deemed through the expiration of statutory time limits.

All reports will be retained confidentially by the MLRO for a minimum of five years.

The MLRO will also consider whether additional notifications to other enforcement agencies are required.

7. Customer Identification and Due Diligence

Due diligence is performed on all customers who must provide basic information including full name or business name, address and company registration number.

Enhanced Due Diligence

Enhanced due diligence may be required where a customer or transaction appears to be high risk. This involves a higher level of identity verification. Examples include:

  • A new or unknown customer.
  • Customers in high risk industries or jurisdictions.
  • Unusual or complex transactions.
  • Transactions involving politically exposed persons (PEPs).
  • Lack of face to face interaction where expected.
  • Cash transactions above £100.

Employees must assess the risk level and consult the MLRO where enhanced due diligence may be required.

If carried out, the MLRO must:

  • Obtain additional information on the customer and beneficial owners.
  • Understand the nature of the business relationship.
  • Verify source of funds and wealth.
  • Conduct enhanced monitoring.

This may include verifying information through websites, attending business premises, checking Companies House records, and ensuring payments come from verified accounts.

If satisfactory identification is not obtained, the business relationship must not proceed and the MLRO must consider reporting to the NCA.

8. Ongoing Monitoring

Employees must review customer relationships regularly to ensure information remains accurate and consistent with expected activity. Any suspicious activity must be reported to the MLRO.

9. Data Protection

Customer data must be collected and processed in accordance with the Data Protection Act 2018 for the purposes of preventing money laundering and terrorist financing.

10. Record Keeping

Customer identification records and transaction details must be retained for at least five years after the end of the business relationship.