Anti-Money Laundering Policy Brief

Policy Statement

Funded Guru Services - FZCO is wholly dedicated to preventing money laundering, the financing of terrorism, and any circumvention of sanctions. Consistent compliance with all applicable laws and regulations is essential to protect Funded Guru Services - FZCO's reputation and to maintain public confidence in Funded Guru Services - FZCO.

Accordingly, it is appropriate for Funded Guru Services - FZCO to put in place an anti-money laundering (AML) policy that clearly sets out the required measures to be followed, with the aim of ensuring the effective implementation of procedures that support the achievement of the company's broader objectives, while also ensuring compliance with the regulatory framework applicable to designated non-financial businesses and professions (DNFBP) within the United Arab Emirates (UAE). The AML policy's scope shall extend to all entities in which Funded Guru Services - FZCO holds an ownership interest.

Policy Objectives

• To set out clear and specific policies for Funded Guru Services - FZCO on the subjects of money laundering, terrorist financing, and the circumvention of sanctions.
• To explain, in straightforward terms, the compliance duties that every employee is required to meet.
• To guide employees in carrying out their daily business activities in a manner consistent with legal requirements.
• To cultivate a working environment that sustains a culture of legal and regulatory compliance in how employees perform their roles.

Definition of Money Laundering

In line with Article 2 of the Anti-Money Laundering (AML) Law, the offence of money laundering is defined as participating in any of the following actions while knowing that the funds concerned originate from a criminal act:

• Transferring or relocating the proceeds, or disposing of the funds/proceeds, with the intention of hiding or disguising their origin.
• Hiding or disguising the true nature, source, or whereabouts of the proceeds, including how they are disposed of.
• Acquiring, holding, or making use of the proceeds upon receiving them.
• Helping the individual who committed the felony or misdemeanour to avoid punishment.

It should be emphasised that money laundering is always a deliberate act and cannot arise from mere carelessness. Nevertheless, Funded Guru Services - FZCO recognises that conduct amounting to gross negligence — in particular, the failure to report suspected criminality to the Financial Intelligence Unit (FIU) — may give rise to criminal liability.

Laws and Regulations

The laws to which Funded Guru Services - FZCO is subject and with which Funded Guru Services - FZCO complies are:

• UAE Federal Law No. 20 of 2018: Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations (AML Law).
• Cabinet Resolution No. 10 of 2019: Implementing Regulations of Federal Law No. 20 of 2018 (AML Regulations).
• UAE Federal Law No. 7 of 2014: Combating Terrorism Crimes.
• UAE Federal Penal Law No. 3 of 1987 as amended (Penal Code).
• UAE Federal Penal Procedures Law No. 35 of 1992 as amended (Penal Procedures Law).
• UAE Federal Penal Law No. 3 of 1987 as amended (Penal Code); UAE Federal Law No. 5 of 2012: Combating Cyber Crimes.
• UAE Federal Law No. 5 of 2012: Combating Cyber Crimes.
• SCA Decision (17/R) of 2010 Concerning Anti-Money Laundering and Terrorism Finance Combating Procedures.
• UAE Central Bank Regulations Concerning Procedures for Anti-Money Laundering, particularly Circular No. 24/2000 and its amendments under Notices No. 1045/2004 and 2922/2008.
• Any United Nations sanctions that apply through ratification by the UAE (individually and together, the Regulation and Regulations).

In accordance with the Regulations, financial institutions operating in the United Arab Emirates (UAE) are required to adopt a risk-based approach to meet their legal obligations. This requirement extends to activities such as onboarding customers and performing recurring anti-money laundering (AML) assessments throughout the life of the business relationship. Funded Guru Services - FZCO is fully dedicated to operating a strong and thorough risk-based compliance program, in full conformity with both legal requirements and leading industry practice.

Investigatory Powers and Criminal Enforcement

Responsibility for reporting and investigating suspected illicit financial activity in the United Arab Emirates (UAE) rests with the Financial Intelligence Unit (FIU) operating under the UAE Central Bank. The authority to bring legal proceedings in respect of these offences lies with the Public Prosecution, with such cases being heard before the criminal courts.

Defenses

The Regulations do not set out any statutory defences that are specific to money laundering charges. The defences available under United Arab Emirates (UAE) law in respect of money laundering charges are the same as those available for any other criminal offence.

It should be noted that criminal proceedings arising from money laundering cannot be concluded by way of settlement or plea agreement. Once the Public Prosecutor forms the view that the conduct in question constitutes a money laundering offence, there is no room for prosecutorial discretion, and the Public Prosecutor is required to refer the matter to the criminal courts.

Detection of Unusual/Suspicious Transactions

As a business operating within the retail business-to-consumer (B2C) model, Funded Guru Services - FZCO's transactions are predominantly made up of individual payments ranging from $9 to $999. In line with its legal obligations, a careful manual approval process is consistently applied to every transaction, following due diligence principles. This thorough approach is designed to identify any transaction that may appear unusual, irregular, or potentially indicative of suspicious behaviour. Through the deliberate review and individual approval of every transaction, Funded Guru Services - FZCO seeks to protect its business operations and to remain in compliance with the relevant regulations and standards aimed at preventing money laundering, terrorist financing, and other illegal activity.

Even though Funded Guru Services - FZCO is still in the early phase of its operational life, a disciplined and careful approach to record retention has been put in place. As a result, all relevant records and documents will be retained securely for no less than five years, consistent with legal and regulatory requirements. This practice ensures that the necessary information remains available for future reference, compliance audits, potential legal proceedings, or any other legitimate purpose within the prescribed period.

Risk Rating

Funded Guru Services - FZCO has a separate and dedicated risk management function, responsible for the careful manual review of individual client profiles. With a focus on thorough risk assessment, due diligence is performed on customers in detail once their risk rating has been determined. This allows Funded Guru Services - FZCO to properly assess and mitigate the potential risks associated with its clientele, in line with the applicable legal and regulatory frameworks.

Resolutions and Sanctions

Where the established standards are not complied with, the Regulations provide for administrative sanctions to secure the proper application of the regulatory framework. Such sanctions may take a variety of forms, including warnings, financial penalties, restrictions or suspension of business activities, the removal of board members and senior management who bear responsibility for the breach, as well as curbs on the authority of the board and senior management through the appointment of a temporary observer.

Where a conviction for a money laundering offence is obtained, the Anti-Money Laundering (AML) Law sets out punitive measures that include financial penalties ranging from AED 100,000 to AED 10 million, together with the potential for imprisonment for a term of up to 10 years.

Funded Guru Services - FZCO's Obligations

• Identify the potential risks of criminal activity that may arise in the course of its operations.
• Carry out continuous assessments of the risks that have been identified.
• Put in place internal controls and policies that enable effective management of the identified risks.
• Apply suitable due diligence procedures, as further described below.
• Observe and implement any United Nations (UN) directives concerning the prevention of terrorism financing and the proliferation of weapons of mass destruction.

Avoiding Shell Bank / Organization

Funded Guru Services - FZCO carries out a careful manual review and approval of every transaction, applying due diligence principles. This strict procedure acts as a safeguard against forming business relationships with shell banks or shell organisations.

Employees at Funded Guru Services - FZCO should receive AML/CFT training on an annual basis. The training covers:

• How to identify and report transactions that must be notified to the government authorities.
• Examples of the various forms that money laundering and terrorist financing may take in connection with our products and services.
• Details of internal policies designed to prevent money laundering and terrorist financing, and the procedures for escalating suspicious activity and red flags.

Funded Guru Services - FZCO should keep records of its training activities, which may include attendance registers and copies of the relevant instructional material. The company should make sure that any newly introduced or amended anti-money laundering / counter-terrorism financing (AML/CFT) legislation, together with updates to its own AML/CFT policies or practices, is communicated to the relevant members of staff.

Designated Compliance Team

The Risk Management team should carry out regular compliance testing to confirm that legal requirements are being met. A Designated Compliance Officer should be accountable for the overall Anti-Money Laundering / Combating the Financing of Terrorism (AML/CFT) program, including the coordination and oversight of its day-to-day operation.