Lakeland Capital Limited is constantly updating policies and procedures to ensure that it is compliant with all regulatory requirements, including, but not limited to, anti-money laundering procedures and fair practice standards. In addition to its own compliance personnel, Lakeland Capital Limited also retains the services of leading outside compliance firms to provide additional monitoring.
ANTI-MONEY LAUNDERING POLICY
Lakeland Capital Limited Anti-Money Laundering Policy
Recent Federal anti-money laundering legislation has caused Lakeland Capital Limited to review and revise our policy for handling of funds. The changes are necessary to ensure we comply with anti-money laundering regulations and not accept payments that expose Lakeland Capital Limited and its members to possible criminal fines and penalties. Money laundering is the act of converting money or other monetary instruments gained from illegal activity into money or investments that appear to be legitimate so that its illegal source cannot be traced. Federal laws make it illegal for Lakeland Capital Limited or its employees or agents to knowingly engage, or attempt to engage in a monetary transaction in criminally derived property. Violations are punishable by up to 10 years in prison or fines up to $500,000.
It is also illegal to transfer, transmit or transport, or attempt to transfer, transport or transmit a monetary instrument or funds in excess of $10,000 either into or out of the United States for the purpose of carrying out an illegal activity, or to avoid reporting requirements. Penalties for violations are up to 20 years in prison and up to $500,000 in fines. Customs Service Regulations require a person to file a "CMIR" Report upon physically transporting, mailing or shipping funds or monetary instruments in an aggregate amount of $10,000 or more, either into or out of the United States.
In addition, Federal Law also requires companies and other trades and businesses, to file an 8300 Form (Report of Cash Payments Over $10,000 Received in a Trade or Business) with the Internal Revenue Service whenever they engage in a transaction or series of related transactions involving cash in excess of $10,000.
Effective immediately, Lakeland Capital Limited will implement the following policy: Agents and employees should always know the source of funds. Funds derived from illegal activities should never be accepted. Cash should never be accepted. Other monetary instruments (cashier's checks, money orders, bank drafts and traveler's checks) should not be accepted or transported into the United States by an agent, unless the agent knows the source of funds is legal, and the Member completes all required disclosure forms (CMIR). Acceptable forms of payment for Lakeland Capital Limited: Personal or business checks drawn on a U.S. bank, or branch of a foreign bank located in the United States, and subject to the Bank Secrecy Act. Third party checks where there is a clear connection of the third party to the underlying transaction. Cashier's checks, money orders, bank drafts and traveler's checks for over $10,000 in a single denomination. Wires that are received and processed through banks located in the United States, and subject to the Bank Secrecy Act.
Unacceptable forms of payment for Lakeland Capital Limited: Cash. Personal or business checks drawn on a foreign bank. Third party checks where there is no clear connection of the third party to the underlying transaction. Checks made payable to individual members or to "cash". Routine payments of cashier's checks, money orders, bank drafts and traveler's checks for $10,000 or less. Payments using these instruments will be evaluated. Member's personal checks or checks drawn on agency bank accounts to pay for clients' transactions. All managers will develop written procedures for their areas of responsibility in order to promote compliance with this policy.
The Compliance Officer for this policy is Tracy Fonger. The responsibility of the Compliance Officer is to ascertain that Company policy is in compliance with the current laws and regulations, and that the policy is communicated to the appropriate agents and employees.
Prior to March 31, 2002 all employees and Members will be provided with a copy of this policy. All new employees and Members will be provided with a copy of this policy at their time of hiring. It will be the responsibility of all managers to provide ongoing training regarding this policy and the procedures for compliance. Internal Audit will complete an audit of compliance with this policy no later than six months after the effective date and at appropriate intervals thereafter.
We appreciate your understanding and full cooperation in implementing this policy. Senior Management approved this policy on March 18, 2002.
