AML POLICY

Anti-Money Laundering Policy

Effective Date: January 11, 2025
Last Updated: January 11, 2025

This Anti-Money Laundering (AML) Policy outlines CycleFund Inc.'s comprehensive global framework for preventing money laundering, terrorist financing, and other financial crimes in compliance with US federal laws (including the Bank Secrecy Act and USA PATRIOT Act), international standards (FATF), and applicable regulations in all jurisdictions where we operate.

Global Regulatory Framework & Compliance

Primary Regulatory Authority (Delaware/US)

  • Bank Secrecy Act (BSA): 31 USC 5311 et seq. - Primary AML framework
  • USA PATRIOT Act: Enhanced due diligence and customer identification
  • FinCEN Regulations: 31 CFR Chapter X - Reporting and recordkeeping
  • OFAC Sanctions: Economic sanctions and prohibited persons screening
  • State MSB Laws: Multi-state licensing and compliance requirements
  • FFIEC Guidelines: Federal Financial Institutions Examination Council standards

African Markets

Ghana
  • • AML Act 2020 (Act 1044)
  • • FIC Act 2016
  • • Bank of Ghana AML/CFT Guidelines
  • • GIABA Standards
Nigeria
  • • BOFIA 2020
  • • AML/CFT Regulations 2022
  • • NFIU Guidelines
  • • CBN AML/CFT Framework

European Markets

United Kingdom
  • • Money Laundering Regulations 2017
  • • Proceeds of Crime Act 2002
  • • FCA Handbook
  • • UK Sanctions Regime
European Union
  • • 6th Anti-Money Laundering Directive
  • • EU Sanctions Framework
  • • EBA Guidelines
  • • Payment Services Directive 2

International Standards

  • • FATF 40 Recommendations
  • • UN Convention Against Corruption
  • • Basel AML Guidelines
  • • Wolfsberg Principles
  • • SWIFT CSP Framework
  • • Egmont Group Standards
    • Global AML Program Components

    Enhanced Customer Identification Program (CIP)

    Identity Verification Requirements

    • Government-issued photo ID (passport, driver's license, national ID)
    • Biometric verification (facial recognition, document authentication)
    • Proof of address (utility bill, bank statement, government document)
    • Social Security Number (US), National ID Number (other jurisdictions)
    • Date of birth and nationality verification
    • Phone number and email verification

    Enhanced Due Diligence (EDD)

    • Politically Exposed Persons (PEP) screening across all jurisdictions
    • High-risk jurisdiction customer assessment
    • Large transaction amount threshold monitoring
    • Source of wealth and funds verification
    • Beneficial ownership identification (25% threshold)
    • Ongoing monitoring and profile updates

    Transaction Monitoring & Reporting

    Automated Global Monitoring Systems

    • Real-time Screening: All transactions screened against global sanctions lists (OFAC, UN, EU, HMT)
    • Threshold Monitoring: Automated alerts for transactions exceeding jurisdiction-specific thresholds
    • Pattern Recognition: AI-powered detection of unusual activity patterns and behavioral analysis
    • Cross-border Monitoring: Enhanced scrutiny for international transactions
    • Velocity Checks: Multiple transactions analysis across time periods and geographies
    • Network Analysis: Relationship mapping and connected party monitoring

    Jurisdiction-Specific Reporting Requirements

    United States
    • SAR Filing: Suspicious Activity Reports within 30 days
    • CTR Filing: Currency Transaction Reports for $10,000+
    • BSA E-Filing: Electronic filing through FinCEN
    • Record Retention: 5-year minimum requirement
    Ghana
    • STR Filing: Suspicious Transaction Reports to FIC
    • CTR Filing: Cash transactions exceeding GHS 50,000
    • goAML System: Electronic reporting platform
    • Record Retention: 6-year minimum requirement
    UK/EU
    • SAR Filing: Suspicious Activity Reports to NCA/FIU
    • Large Transaction Reports: €15,000+ threshold
    • Breach Reporting: Data protection authority notifications
    • Record Retention: 5-year minimum requirement

    Sanctions Screening & Compliance

    Prohibited Persons Lists

    • US OFAC (SDN, SSI, NS-PLC, and sectoral sanctions)
    • UN Security Council Consolidated List
    • EU Consolidated List
    • UK HMT Sanctions List
    • Canadian SEMA Listed Persons
    • Other jurisdiction-specific sanctions lists

    Restricted Jurisdictions

    • US OFAC Sanctioned Countries
    • UN Sanctioned Territories
    • EU Sanctioned Regions
    • FATF High-Risk Jurisdictions
    • Jurisdictions with strategic AML/CFT deficiencies
    • Jurisdictions without adequate legal frameworks
    AML Governance & Training

    Organizational Structure

    • Board-level AML oversight and accountability
    • Global Chief AML Officer (CAMLO)
    • Regional AML Officers in key jurisdictions
    • Independent AML audit and review function
    • Cross-functional AML committee structure
    • External AML consulting and advisory services

    Training & Awareness

    • Mandatory AML training for all employees
    • Role-specific training programs
    • Annual certification and testing
    • Emerging threats and typologies briefings
    • Regulatory update communications
    • Third-party vendor AML requirements
    Global AML Compliance Contact

    Global Chief AML Officer

    Sarah Johnson, Esq., CAMS

    Chief Anti-Money Laundering Officer

    CycleFund Inc.

    251 Little Falls Drive, Wilmington, DE 19808

    Email: aml@cyclefund.com

    Secure Line: +1 (302) 555-0199

    Emergency Hotline: Available 24/7

    Ghana Region

    Kwame Mensah, ACAMS

    Regional AML Officer

    Ridge Towers, Suite 15

    West Ridge, Accra, Ghana

    Email: aml.gh@cyclefund.com

    Phone: +233 30 555 0123

    UK/EU Region

    Emma Thompson, ACAMS

    Regional AML Officer

    25 Canada Square

    London E14 5LQ, UK

    Email: aml.uk@cyclefund.com

    Phone: +44 20 7946 0958

    Nigeria Region

    Adebayo Okonkwo, CFE

    Regional AML Officer

    Plot 1391 Tiamiyu Savage

    Victoria Island, Lagos, Nigeria

    Email: aml.ng@cyclefund.com

    Phone: +234 1 460 5555