Anti-Money Laundering
Updated 11th July 2024
The Ark App is fully committed to complying with all applicable Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations. We recognize the importance of preventing illegal activities such as money laundering and terrorist financing within our platform. To this end, we have implemented robust policies and procedures designed to detect, prevent, and report any suspicious activities in accordance with local and international laws. Our dedication to maintaining a secure and compliant environment underscores our commitment to the safety and integrity of our users. By adhering to these aspects, The Ark App aims to strengthen its integrity and effectively combat the threat of money laundering and terrorism.
Purpose
The purpose of this AML and CTF policy is to establish a comprehensive framework to protect and prevent our user community from money laundering and terrorist financing activities within the app. This policy outlines the procedures and controls we have put in place to ensure compliance with relevant AML and CTF laws and regulations. By adhering to this policy, we aim to protect our users, our platform, and the broader financial system from the risks associated with money laundering and terrorist financing. This policy also serves to educate our users and staff on the importance of AML and CTF measures while fostering a culture of vigilance and responsibility.
Legal and Regulatory Framework
As a mobile platform, The Ark App is subject to various technological risks. Software bugs can disrupt functionality, causing unexpected behavior or crashes that hinder user experience. Hardware failures, whether on user devices or our servers, can result in data loss or temporary unavailability of the app.Despite robust security measures, The Ark App is not immune to hacking, phishing, or other unauthorized access attempts, which could compromise user data and privacy. Users are advised to take additional precautions, such as enabling two-factor authentication and using strong passwords, to protect their accounts. Users are also responsible for safeguarding their account credentials. The app may undergo updates or changes that could impact its functionality. Users should stay informed about any modifications that might affect their experience.
The app may also experience service interruptions due to maintenance, network issues, or unforeseen technical problems. These risks are inherent in any digital platform and may impact the reliability and security of The Ark App.
Legal and Regulatory Framework
The Ark App adheres to both local and international AML and CTF laws and regulations, including but not limited to:
- Central Bank of Nigeria (CBN) AML/CTF Regulations.
- Money Laundering (Prohibition) Act 2011 (as amended). This Act provides the legal basis for AML efforts in Nigeria, outlining various offenses related to money laundering and prescribing penalties.
- Terrorism (Prevention) Act 2011 (as amended): This Act provides the legal framework for combating terrorism financing.
- Financial Action Task Force (FATF) Guidelines and Recommendations.
- Any other relevant local regulations in the jurisdictions where The Ark App operates.
Regulatory Authorities
The following regulatory authorities oversee AML and CTF compliance for The Ark App:
- Central Bank of Nigeria (CBN)
- Financial Intelligence Unit (FIU) of Nigeria
- Financial Action Task Force (FATF)
- Local financial regulatory bodies in the jurisdictions of operation
- Economic and Financial Crimes Commission (EFCC): The primary enforcement agency for AML laws in Nigeria.
- Nigerian Financial Intelligence Unit (NFIU): Responsible for receiving, analyzing, and disseminating financial intelligence to combat money laundering and terrorism financing.
- The Special Control Unit Against Money Laundering (SCUML): Oversees and regulates the activities of Designated Non-Financial Businesses and Professions (DNFBPs) in compliance with AML and CTF regulations.
Legal Requirements
While The Ark App strive to maintain a respectful and supportive community for Christians, there is a risk of encountering inappropriate or harmful content because of the human nature. Users may face cyberbullying or harassment from other community members. This also encompasses the risk of users exploiting and probing into other users' shared privileged information for malicious purposes. We encourage reporting any such incidents to our support team and reframing from publishing sensitive information especially in any of our community platforms.
Risk Assessment:
The Ark App identifies potential risks related to money laundering and terrorist financing by analyzing the app’s features, user demographics, transaction types, and patterns. Potential risks include:
- Anonymous transactions
- High-volume transactions
- Cross-border transactions
- Unusual transaction patterns that deviate from normal behavior
Risk Mitigation
To mitigate these risks, The Ark App employs the following strategies:
- User Verification Processes: Implementing rigorous Know Your Customer (KYC) procedures to verify user identities.
- Transaction Monitoring: Using automated systems to monitor transactions for suspicious patterns and flagging high-risk activities.
- Enhanced Due Diligence (EDD): Applying additional scrutiny to high-risk users and transactions.
It is important to note that The Ark App will always notify the user of these risks before approving these transactions.
Know Your Customer (KYC) Requirements
The Ark App is required by law to perform due diligence on our users, including verifying identities and monitoring transactions for suspicious activity. This involves processing our users' personal data to enhance due diligence, which is required by law for high-risk customers, such as politically exposed persons (PEPs).
User Onboarding and Verification
The detailed steps for user onboarding on The Ark App include:
- Collecting and verifying identification documents
- Conducting background checks
- Ensuring compliance with KYC requirements
The Ark App may require users to periodically re-verify their information to ensure ongoing compliance, regularly updating user information, and conducting periodic reviews of user accounts.
Enhanced Due Diligence (EDD)
For high-risk users or transactions, The Ark App performs additional checks, including detailed background checks, verification of the source of funds, and continuous monitoring of user activities related to the app. Continuous monitoring of user activities and transactions is conducted to detect suspicious behavior if deemed necessary for the safety of our user community. This may involve real-time transaction monitoring, periodic reviews of user accounts and transaction histories, and investigating unusual activities.
Record Keeping
The Ark App maintains detailed records of user identification, transactions, and due diligence measures, including: a) Copies of identification documents b) Details of transactions including date, time, and type of transactions c) Records of due diligence checks and investigations.
The Ark App retains all records in accordance with prescribed laws and regulations.
Reporting and Escalation
The Ark App fulfills its responsibility of reporting suspicious activities and has procedures in place for identifying and reporting suspicious activities to relevant authorities, including:
- Internal Reporting: The Ark App employees are provided with channels for the timely submission of reports on suspicious activities within the platform, ensuring confidentiality and protection against retaliation.
- Reporting and cooperation with regulatory investigations on suspicious activities to the Financial Intelligence Unit (FIU) and other relevant authorities.
Internal Controls and Procedures
The Ark App has mechanisms within the platform to ensure compliance with relevant regulations and mitigate associated risks in the AML/CTF policy. These measures include but are not limited to:
- Using both automated systems and manual procedures to monitor transactions for compliance with AML/CTF policies.
- Conducting regular checks to ensure adherence to AML/CTF policies, including internal audits and compliance reviews.
- Screening third parties and partners to ensure they comply with AML/CTF regulations.
Compliance Strategies
The Ark App’s employees undergo regular training programs required by AML and CTF laws, regulations, and internal procedures. This includes initial training during onboarding, periodic refresher courses, and specialized training for high-risk areas depending on their job functions and positions. The Ark App has established and maintained effective AML/CTF compliance strategies, including internal policies, procedures, and controls designed to detect and prevent money laundering and terrorism financing, as required by law.
User Education and Awareness
The Ark App provides users with sufficient information and resources to educate them about AML and CTF measures, including guidance on recognizing and reporting suspicious activities and best practices for securing their accounts. The Ark App will periodically send notices to users informing and educating them on AML and CTF activities.
Independent Audit
The Ark App regularly conducts internal independent audits to assess the effectiveness of AML and CTF controls and procedures. This involves evaluating the adequacy of internal controls, testing the effectiveness of transaction monitoring systems, and reviewing compliance with regulatory requirements. Audit findings are reported to senior management, and corrective actions are implemented to address any identified weaknesses.
Policy Review and Updates
The Ark App conducts regular reviews of the AML and CTF policy to reflect changes in regulations and business practices. This is implemented through annual reviews and ad-hoc reviews in response to regulatory changes or significant events. Policy changes are approved by senior management and the board, ensuring oversight of implementation and compliance.
Data Protection and Privacy
The Ark App ensures the confidentiality and protection of users' data in compliance with data protection laws. Measures include implementing data encryption, secure storage solutions, and restricting access to sensitive information. Sensitive information shared by users is stored securely to prevent unauthorized access, using secure servers and databases, and regularly updating security protocols.
Sanctions Compliance
The Ark App has procedures in place to screen users and transactions against sanctions lists. This includes regularly updating sanction lists from relevant authorities and blocking transactions involving sanctioned individuals or entities. The Ark App complies with the prohibited transactions guidelines provided for handling transactions involving sanctioned individuals or entities, ensuring compliance with international sanctions.
Governance and Accountability
The Ark App ensures that a designated officer is appointed to oversee compliance, responsible for implementing AML/CTF policies, coordinating training and awareness programs, and ensuring regulatory reporting and audits.
Management Accountability
The roles and responsibilities of management in AML/CTF compliance are clearly defined, ensuring accountability and oversight. This includes regular reporting to The Ark App management and ensuring sufficient resources and support for AML/CTF activities. The Ark App implements these components to ensure a comprehensive AML and CTF policy, helping the app prevent illegal activities and comply with relevant regulations.
Sanctions and Penalties
The Ark App recognizes that non-compliance with AML/CTF regulations can result in severe penalties, including fines. Hence, we have ensures necessary measures are in place to implement compliance, including educating users on their roles and responsibilities.
Effective: July 11, 2024
