AML policy

Policy Statement

Borderless is committed to preventing and combating all forms of financial crime within its operations and supply chain. As such, we are committed to complying with all applicable anti-money laundering laws and regulations in the United Kingdom, including but not limited to the Money Laundering Regulations 2017 (as amended) and the Criminal Finances Act 2017.

As such, the following policy sets out the steps we take to protect ourselves and our clients against liability.

Scope

This Anti-Money Laundering Policy (the "Policy") applies to all employees, officers, directors, agents, contractors, and other stakeholders of the Company. It covers all aspects of our business operations and includes guidelines for identifying, reporting, and preventing money laundering activities. We are dedicated to upholding the strictest compliance within our business and will not tolerate any form of breach in our business or associated partners in our supply chain.

Legal Framework

Applicable Laws and Regulations

The Company shall fully comply with all relevant UK anti-money laundering laws and regulations, including but not limited to:

The Terrorism Act 2000
The Money Laundering Regulations 2017 (as amended)
The Proceeds of Crime Act 2002
Criminal Finances Act 2017

Anti-Money Laundering Program

Designated Money Laundering Reporting Officer (MLRO)

The Company shall appoint a designated Money Laundering Reporting Officer (MLRO) who is responsible for overseeing the AML program, ensuring compliance with AML laws, and acting as the primary point of contact with relevant authorities.

Where specific risks are identified, either in relation to the framework of controls or to a particular business relationship, Compliance will periodically escalate such matters to the board of directors.

Risk Assessment

The Company shall conduct regular risk assessments to identify and evaluate money laundering risks associated with its products, services, customers, and geographic locations. These assessments will inform the development and adjustment of our AML procedures.

Client Due Diligence (KYC)

The Company shall establish and implement risk-based Customer Due Diligence (KYC) procedures to verify the identity of customers, assess their risk profiles, and understand the source of funds. KYC measures shall include, but not be limited to:

Obtain proof of operating address
Obtaining customer identification documents
Conducting ongoing monitoring of customer transactions
Identifying beneficial owners

Supplier Due Diligence (SKYC)

The Company shall establish and implement risk-based Due Diligence (SKYC) procedures to verify the identity of all suppliers and employers of record used by Borderless. The Company will assess their risk profiles and beneficial owners and confirm they maintain full compliance in accordance with our set Code of Conduct policy.

SKYC measures during the partner onboarding include, but are not limited to:

Obtaining director identification documents
Identifying beneficial owners
Proof of operating address
Conducting ongoing monitoring of customer transactions
Proof of the current VAT and Employment Tax position
Search the director on companies house and enquire about any other companies they have been an officer for previously, particularly any which have had an insolvency event
Check website presence and also all social presence

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Weekly checks

Confirm that the company name, number, and VAT number on the invoice are the same as those on the invoice you conducted due diligence on at the outset.
Examine a random sample of payslips to confirm that expected deductions for costs and holiday compensation are made. It is advised that you keep a weekly log of these payslips you have verified and the results reported.

Monthly checks

Conduct a live VAT check on the company. Print the screen and keep a record.
Search Company's house to ensure that the company is up-to-date with its reporting obligations (Confirmation statement and Accounts)
Employment Intermediary reporting should be provided monthly where required, and these reports can be cross-referenced against your internal records.

Suspicious Activity Reporting

All employees and stakeholders must promptly report any suspicious activities or transactions related to money laundering to the MLRO. Reports will be treated confidentially, and no retaliation will be tolerated against those making legitimate reports.

Record Keeping

The Company shall maintain accurate and up-to-date records of customer transactions, CDD documentation, and AML-related reports. These records will be retained for the period required by UK AML laws and regulations.

Employee Training

The Company shall provide regular AML training to all employees to ensure they understand their responsibilities and can recognize suspicious activities. Training programs will be updated to reflect changes in AML laws and regulations.

Independent Audits

Periodic independent audits of the Company's AML program shall be conducted to assess its effectiveness and compliance with applicable UK AML laws and regulations.

Penalties for Non-Compliance

Non-compliance with this AML Policy or relevant UK AML laws and regulations may result in disciplinary actions, including but not limited to termination of employment or contractual relationships. It may also lead to civil or criminal penalties for individuals or the Company.

Conclusion

Borderless is fully dedicated to preventing money laundering and is committed to adhering to all anti-money laundering laws and regulations in the United Kingdom. This Policy is subject to regular review and updates to ensure its continued effectiveness.

Borderless Payroll [August 2023]