1. OBJECTIVE
The Prevention of Money Laundering and Terrorist Financing ("Policy") aims to define the guidelines and rules to be followed by all partners, employees, partners and service providers of DXA Investments ("DXA"), in order to promote compliance of DXA's operational activities with legal and regulatory requirements1 as well as with international best practices and to mitigate the risk to which DXA is exposed as a result of the exercise of its activities.
2. INTRODUCTION
In Brazil, the fight against and prevention of money laundering is based on Federal Law no. 9,613/1998 ("Money Laundering Prevention Law"), later amended by Federal Law no. 12,683/2012. The crime of money laundering is characterized as an economic crime, since it harms goods or interests covered by the economic order; the protected legal good is, therefore, the economic-financial system.
According to the Prevention of Money Laundering Law, the crime of money laundering consists of "concealing or disguising the nature, origin, location, disposition, movement or ownership of assets, rights or amounts arising directly or indirectly from a criminal offense. The penalty for this crime is imprisonment from 3 to 10 years and a fine2.
The same penalty is applied to anyone who, in order to conceal or disguise the use of assets, rights or values resulting from a criminal infraction: (i) converts them into licit assets; (ii) acquires, receives, exchanges, trades, gives or receives in guarantee, keeps, holds in deposit, moves or transfers them; (iii) imports or exports goods with values not corresponding to the true ones; (iv) uses, in the economic or financial activity, goods, rights or amounts derived from criminal infraction; and (v) participates in a group, association or office having knowledge that its main or secondary activity is directed to the practice of crimes provided in the Prevention of Money Laundering Law3.
The conduct will only be punished for malice, that is, when there is an intention to practice the act, because the agents involved must be aware of the eventual illicit origin of the capital.
The Prevention of Money Laundering Law also foresees, (i) the loss, in favor of the Union or the State, as the case may be, of the goods, rights and values object of the laundering in relation to which the defendant was convicted, safeguarding the right of the injured party or of a third party in good faith, and (ii) the prohibition of the convicted party to exercise public office or function of any nature and of director, member of the board of directors or manager of financial institutions, for twice the time of the imposed liberty penalty.
The statute of limitations for the crime of Money Laundering, in abstract, varies from 8 to 16 years, and in the case of an increased penalty, the statute of limitations can reach up to 20 years, as of the knowledge of the fact by the authorities.
The crime of Money Laundering has, as a rule, three phases or stages, which are briefly explained below:
Placement: is the introduction of money into the Financial System. As a rule, this insertion is done in a pulverized way, through deposits, purchase of negotiable instruments or purchase of goods, with the objective of making it difficult to identify the origin of the money.
Concealment: consists in moving the amounts, transferring them several times, with the objective of making it difficult to trace the illicit resources and disassociating them from the agent.
Integration: this is when the values are definitively introduced into the formal economy. From this moment on, money has a lytic appearance.
3. BACKGROUND
Due to the management activities of third-party resources, under the terms of CVM Instruction No. 558/2015, "client", for purposes of application of this Money Laundering Policy, shall be understood as the counterparties of investment transactions, which will also be subject to the money laundering prevention procedures adopted by DXA. This process is intended to prevent the counterparty from using DXA and its investment vehicles to engage in illegal or improper activities.
4. USE OF THIRD-PARTY SYSTEMS AND SEARCH ENGINES
DXA is responsible for registering and identifying clients in the internal systems, on forms or spreadsheets, as well as for monitoring them.
Additionally, in relation to the Investment Funds of which it is the manager, DXA will rely on the efforts of the managers, custodians and distributors to (i) identify new and existing clients; (ii) prevent and report any suspicious transactions.
5. KNOW YOUR CLIENT AND ANTI-MONEY LAUNDERING PROCEDURE
DXA has adopted the following internal procedures that seek to give effect to this Policy as well as minimize the risk of conflicts and violations of anti-corruption laws in Brazil and other jurisdictions that may be applicable:
a) Client identification - adoption of procedures that aim to ensure the real identity of the client, where it is verified that the client has an identification number;
b) Customer registration - a procedure in which minimum information about the customer is gathered, under the terms of the applicable regulation;
c) Due diligence - a set of additional measures, adopted based on the risk classification adopted by DXA, which aims to collect additional information in order to reinforce the comfort about the veracity of the registration information previously obtained, as well as enabling a better risk classification of the business relationship with the customer;
d) Identifying the ultimate beneficiary - the process of identifying the natural person(s) who directly or indirectly has control or significant influence over a customer on whose behalf the transaction was made or who benefits from it;
e) Availability of a channel for denunciations - availability of a channel for denunciations in which the information is immediately directed to the Compliance Officer;
f) Training program - periodic performance of training programs with DXA's employees;
g) Adoption of efforts to include an anti-corruption clause in contracts with service providers;
h) Maintenance of a high standard of governance in the commercial relations maintained with contracted third parties or any others with whom the Management Company may have a relationship;
i) Implementation of a procedure for verification of infractions and application of sanctions; and
j) Communication to the Financial Activities Control Council ("COAF") of atypical or suspicious financial operations.
6. MONITORING OF ATYPICAL SITUATIONS AND COMMUNICATION TO COAF
The control mechanisms will be used to monitor atypical transactions and situations, in particular transactions carried out with the aim of generating loss or gain, for which there is objectively no economic basis. In this case, any member of DXA, upon identifying an atypical or suspicious operation, should immediately communicate it to the Compliance area, so that the measures for notifying the government authorities may be taken.
If DXA has not identified any atypical financial operation that must be reported to COAF in a given calendar year, the Compliance area must make a negative communication through SISCOAF by the end of January of the following year.
7. SANCTIONS
This Policy, together with the other DXA policies, is an integral part of the rules that govern the corporate or employment relationship of employees, as the case may be, who, by signing the Term of Commitment with adherence to all DXA Policies, are expressly consenting to the principles and rules established therein.
The infraction of the rules described herein shall be considered an infraction, subjecting its author to the applicable sanctions proportional to the infraction. If DXA is held responsible or suffers any damages, regardless of nature, due to acts of its employees or partners, it may exercise the right of recourse against those responsible.
The penalties resulting from the non-compliance with the rules established in this Policy will be recommended by the PLD Management in a Compliance Report, which must be sent to the Compliance Committee for discussion and deliberation regarding the measures pointed out in the report, in order to define the best posture to be taken.
The non-compliance with legal and regulatory standards, subjects employees, partners and service providers, to penalties ranging from administrative to criminal sanctions, for Money Laundering, Terrorism Financing and Fraud. In addition to the above, negligence and voluntary noncompliance with the rules set forth in this Prevention of Money Laundering Policy are subject to warning, termination or dismissal for cause, without prejudice to DXA's right to claim compensation for the losses incurred, through the adoption of appropriate legal measures.
8. COMPLIANCE AND PLD DIRECTORATE
Daniela Maluf Pfeiffer is the officer responsible for Compliance at DXA, pursuant to article 4 of CVM Instruction 558/15. Among her responsibilities are the implementation and fulfillment of rules, policies, procedures and internal controls established in the aforementioned Instruction and in other applicable rules and regulations.
Reporting directly to the Executive Committee, she has full authority over the implementation of DXA's Compliance Program and is familiar with capital markets legislation and regulations.
1Specially Laws 9.613/98 and subsequent amendments and CVM Instruction #301/99 and amendments.
2Redaction of article 1 of Law 9.613/98.
3Redaction of paragraphs 1 and 2 of article 1 of Law 9.613/98.
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