Microfinance

Practices in comply with AML/CFT
Risk management & compliancewww.aeonmicrofinance.com.mm

AEON Microfinance (Myanmar)

Our Goal of Training

1. To understand AML and CFT
2. To find out about our measurement for preventive
action for AML/CFT

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Introduction of ML and FTWhat is MT and FT ?
Money Laundering is the processing of proceeds of crime todisguise their illegal origin and use them in legal economy.

AgainstAntiMoney
Laundering

Financing of Terrorism is the use of funds from legal or illicit
sources to finance future terrorist activities.

AgainstCombating
Finance
Terrorism3 / total pages

AML / CFT Regulation in Myanmar

History of regulation
The Anti-Money Laundering Law was enacted on 14th March 2014 which
repealed The Control on Money Laundering Law (No. 6/2002) but rules anddirectives issued under the old law still apply if those do not contradict thenew law.
(i) Anti-Money Laundering Law, enacted on 14th March 2014;(ii)

AML/CFT directive, issued by Ministry of Planning and Finance (MOPF) on13th Nov 2019(iii) AML/CFT order, published by Office of President on 14th Nov 2019;(iv) Beneficial Ownership directive, issued by DICA on 15th Nov 2019;(v) The meeting of AML/CFT, hold by FRD and CBM respectively.

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Introduction of ML and FTMoney Laundering Cycle

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Know your customer
KYC procedure and process

Constancy to “Know yourcustomer” is fundamental for thesafety and ethical standards of thefinancial services operation. TheCompany is committed to avoid
providing financial services to, takefinancial support from,
communicate and transact with theclients, partners, donors andmembers of the microfinanceinstitution with unidentifiable, undistinguishable, fictious or falsenames or symbols.
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Risk Assessment Management

Overview

Customer
NRC
Residence Proofand so on..
Busines partner
Business License
Certificate ofIncorporationand so on..

Step1

Step2

Risk
identification

Risk
Assessment

Measure of the Risk
& Quantify Risk by
developing andmechanisms

Step3
Managing
The Risk- Build a framework
for controlling- Organization for
Risk management
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Risk Assessment Management

Managing the Risk
Approve to buildRelationshipOn-going risk
management process

Terminate
The Relationship(i) Ongoing monitoring of customer transactions, including
ensuring that documents and information collected;(ii) Reviewing the effectiveness of staff awareness and training;(iii) Monitoring compliance arrangements through internal audit
and external review;(iv) Capturing appropriate management information;(v) Regular communication between compliance officer andsenior management; and(vi) Liaising with law enforcement agencies.

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Risk Assessment Management

Transaction Record & Report
Approve to build
RelationshipOn-going riskmanagement process

Terminate
The Relationship

The Company shall report cash transaction, doubtful transaction and report
information of any person who is or was the Company`s customer as per
the criteria and method required by the Law.
(i) The Company shall report to MFIU (Myanmar Financial Intelligence Unit) for all
the transactions of transfer the cash (or) products/ goods that are equivalent
Myanmar Kyat of equal or over 15,000 USD in any one day.
(ii) Over the threshold amount shall be submitted to MFIU within 3 working daysof the date of the transaction and be submitted on the MFIU Online ReportingSystem or other approved formats, if any.

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Risk Assessment Management

Customer’s Document MaintenanceApprove to build
Relationship

Terminate
The Relationship

Maintain
Customers’ information

KYC/ CCD
Documents

5 years

Keep
Customers’ Information

Maintain andupdate
the customer
information

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Internal Control

Organization Management
Personal recruitment
Process check

AML/CFTTraining

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Internal Control

Code of Conduct of Employees
1. The Company shall make a strong policy to maintainfollowing code of conduct for employees. The Company’semployees;
2. Must not inform/warn the customer about the Anti-Money
Laundering suspicion;
3. Must not talk/disclose with other employees andfamily/friends;
4. Must comply with the instructions of the competent authority
and the Department Head whom had reported;
5. Must assist and cooperate with the competent authorities ininvestigation.

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Thank You
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