Protect yourself and your business

WWW.SAFARICOM.CO.KE

A Handy Guide to Anti-MoneyLaundering, Counter Terrorism &Know Your Customer Practice

Anti-moneyLaundering &KYC Booklet

Anti-moneyLaundering &KYC BookletSTAFF

Protect yourself and your business

SAFARICOM AML/CFT/KYC STAFF HANDBOOK

A handy guide to Anti Money Laundering, Counter Terrorism & Know Your Customer practice.

Introduction

Money laundering is a way of converting the proceeds of crime into assets that appear to have a

legitimate origin. This includes handling or controlling these proceeds or engaging in activities designed to

disguise their true origin.

Money laundering is associated with crimes that provide a financial gain. It’s a secondary criminal act

that follows an underlying criminal activity that generates money, which when laundered, results in the

offense of money laundering. Examples of some criminal activities Include:

• fraud, corruption,robbery,bribery

• drug dealing

• Illegal arms sales, smuggling

• computer fraud schemes

• counterfeiting of goods

• embezzlement & insider trading

• stolen goods

• human trafficking and poaching

• being directly involved in any criminal or terrorist property

• any other criminal activity that generates financial gain

MONEY LAUNDERING PROCESS

Criminal activity

Generates illegal money

Placement - the physical disposal of the initial proceeds derived from illegal activity

Layering - hiding the origin of funds by moving it and revolving around financial systems

Intergration - places the laundered proceeds back into the economy

1

2

3

4

5

Protect yourself and your business

Criminal’s access and place the proceeds of their crimes into a financial product, such as M-PESA,

bank accounts, Western Union, forex exchange or can buy property and If undetected, the

funds will look legitimate.

Terrorism Financing

When a person unlawfully and willfully provides or collects funds with the intention that these

funds will be used in full or in part to carry out a terrorist act by terrorists or terrorist organisations.

Terrorist financing process

Terrorism

Cash collected and distributed

Recruitment

Upkeep

Purchase of firearms

Financiers of terror

The supporters of terrorengage in hidden

activity, both criminal orlegal, to generate funds

$

Knowing Your Customer (KYC) Process

All customers intending to register for M-PESA must have registered their SIM cards on the Safaricom

network as per the guidelines issued by the Communications Authority of Kenya (CA).

All Customers wishing to use M-PESA must have their identity verified against acceptable identification

documents which include:

• Kenyan national identity card

• Valid passport (both local and foreign)

Protect yourself and your business

• Military identity card

• Diplomatic identity card

• Alien identity card or Foreigners Certificate

The personal information you collect and record are only used to facilitate the completion of the

transaction. The record book should not be shared, photocopied or given to any other party apart from a

Safaricom appointed agent.

Suspicious Activity Report

Suspicious activity is any activity that is out of the ordinary and gives rise to a suspicion that the person is

trying to hide/conceal an underlying criminal activity.

How to Report a Suspicious Activity

If you suspect that something is not quite as it should be or a customer is engaging in any of the above

activities, then you have a cue for filing a Suspicious Activity Report.

Below are the key steps to follow:-

• Complete a SAR form in soft copy following the guidelines given on the form

• Send the SAR form as an attachment to: - M-pesafraud@safaricom.co.ke.

• The form will automatically be received by the MLRO who will carry out investigations on whether the

suspicions are valid.

• You can also send an Email in confidence to M-pesaAML@safaricom.co.ke or directly to the Money

Laundering Reporting Officer (MLRO)

• After the report is sent the person who has made the report should ensure that they do not display or

communicate any suspicion to the customer or a colleague

Money Laundeing Offences

Fail to report

• You can be found guilty of money laundering if you know that someone is involved in money

laundering and you fail to report suspicion to Safaricom MLRO or directly to Financial

Reporting Center

• Knowingly handling, aiding or processing any proceeds of crime

Tip off

• It is an offence if you know that a report has been made to the Safaricom MLRO or the authorities

and you tell the customer of the suspicion of money laundering. This includes dropping hints to the

customer or a third party. The tipping off offence can even be committed by unintentionally telling a

third party, who then tells the suspect

Penalties

• The penalties for committing these offences range from up to 7 years in prison or fines of up to

2.5 million KES, or both

• Loss of business

• Costly court process