In addition to the information we must collect under FINRA Rules 2090 (Know Your
Customer) and 2111 (Suitability) and the 4510 Series (Books and Records
Requirements), and Securities Exchange Act of 1934 (Exchange Act) Rules
17a-3(a)(9)
(Beneficial Ownership regarding Cash and Margin Accounts), 17a-3(a)(17)
(Customer
Accounts) and Regulation Best Interest, we have established, documented and
maintained
a written Customer Identification Program (CIP). We will collect certain minimum
customer identification information from each customer who opens an account;
utilize
risk-based measures to verify the identity of each customer who opens an
account; record
customer identification information and the verification methods and results;
provide the
required adequate CIP notice to customers that we will seek identification
information to
verify their identities; and compare customer identification information with
government-provided lists of suspected terrorists, once such lists have been
issued by the
government. See Section 5.g. (Notice to Customers) for additional information.
a. Required Customer Information
Prior to opening an account, Wilfried Kouadio will collect the following
information for
all accounts, if applicable, for any person, entity or organization that is
opening a new
account and whose name is on the account:
(1) the name;
(2) date of birth (for an individual);
(3) an address, which will be a residential or business street address (for an
individual), an Army Post Office (APO) or Fleet Post Office (FPO) box number,
or residential or business street address of next of kin or another contact
individual (for an individual who does not have a residential or business street
address), or a principal place of business, local office, or other physical
location
(for a person other than an individual); and
(4) an identification number, which will be a taxpayer identification number
(for U.S.
persons), or one or more of the following: a taxpayer identification number,
passport number and country of issuance, alien identification card number, or
number and country of issuance of any other government-issued document
evidencing nationality or residence and bearing a photograph or other similar
safeguard (for non-U.S. persons).
In the event that a customer has applied for, but has not received, a taxpayer
identification number, we will confirm that the application was filed before the
customer
opens the account and to obtain the taxpayer identification number within a
reasonable
period of time after the account is opened.
When opening an account for a foreign business or enterprise that does not have
an
identification number, we will request alternative government-issued
documentation
certifying the existence of the business or enterprise.
b. Customers Who Refuse to Provide
Information
If a potential or existing customer either refuses to provide the information
described
above when requested, or appears to have intentionally provided misleading
information,
our firm will not open a new account and, after considering the risks involved,
consider
closing any existing account. In either case, our AML Compliance Person will be
notified
so that we can determine whether we should report the situation to FinCEN on a
SAR.
c. Verifying Information
Based on the risk, and to the extent reasonable and practicable, we will ensure
that we
have a reasonable belief that we know the true identity of our customers by
using
risk-based procedures to verify and document the accuracy of the information we
get
about our customers. Wilfried Kouadio will analyze the information we obtain to
determine whether the information is sufficient to form a reasonable belief that
we know
the true identity of the customer (e.g., whether the information is logical or
contains
inconsistencies).
We will verify customer identity through documentary means, non-documentary
means
or both. We will use documents to verify customer identity when appropriate
documents
are available. In light of the increased instances of identity fraud, we will
supplement the
use of documentary evidence by using the non-documentary means described below
whenever necessary. We may also use non-documentary means, if we are still
uncertain
about whether we know the true identity of the customer. In verifying the
information, we
will consider whether the identifying information that we receive, such as the
customer’s
name, street address, zip code, telephone number (if provided), date of birth
and Social
Security number, allow us to determine that we have a reasonable belief that we
know the
true identity of the customer (e.g., whether the information is logical or
contains
inconsistencies).
Appropriate documents for verifying the identity of customers include the
following:
● For an individual, an unexpired government-issued identification evidencing
nationality or residence and bearing a photograph or similar safeguard, such as
a
driver’s license or passport; and
● For a person other than an individual, documents showing the existence of the
entity, such as certified articles of incorporation, a government-issued
business
license, a partnership agreement or a trust instrument.
We understand that we are not required to take steps to determine whether the
document
that the customer has provided to us for identity verification has been validly
issued and
that we may rely on a government-issued identification as verification of a
customer’s
identity. If, however, we note that the document shows some obvious form of
fraud, we
must consider that factor in determining whether we can form a reasonable belief
that we
know the customer’s true identity.
We will use the following non-documentary methods of verifying identity:
● Independently verifying the customer’s identity through the comparison of
information provided by the customer with information obtained from a consumer
reporting agency, public database or other;
● Checking references with other financial institutions; or
● Obtaining a financial statement.
We will use non-documentary methods of verification when:
(1) the customer is unable to present an unexpired government-issued
identification
document with a photograph or other similar safeguard;
(2) ORIO is unfamiliar with the documents the customer presents for
identification
verification;
(3) the customer and firm do not have face-to-face contact; and
(4) there are other circumstances that increase the risk that ORIO will be
unable to
verify the true identity of the customer through documentary means.
We will verify the information within a reasonable time before or after the
account is
opened. Depending on the nature of the account and requested transactions, we
may
refuse to complete a transaction before we have verified the information, or in
some
instances when we need more time, we may, pending verification, restrict the
types of
transactions or dollar amount of transactions. If we find suspicious information
that
indicates possible money laundering, terrorist financing activity, or other
suspicious
activity, we will, after internal consultation with ORIO's AML Compliance
Person, file a
SAR in accordance with applicable laws and regulations.
We recognize that the risk that we may not know the customer’s true identity may
be
heightened for certain types of accounts, such as an account opened in the name
of a
corporation, partnership or trust that is created or conducts substantial
business in a
jurisdiction that has been designated by the U.S. as a primary money laundering
jurisdiction, a terrorist concern, or has been designated as a non-cooperative
country or
territory. We will identify customers that pose a heightened risk of not being
properly
identified.
d. Lack of Verification
When we cannot form a reasonable belief that we know the true identity of a
customer, we will do the following: (1) not open an account; (2) impose terms
under which a customer may conduct transactions while we attempt to verify the
customer’s identity; (3) close an account after attempts to verify a customer’s
identity fail; and (4) determine whether it is necessary to file a SAR in
accordance
with applicable laws and regulations.
e. Recordkeeping
We will document our verification, including all identifying information
provided by a
customer, the methods used and results of verification, and the resolution of
any
discrepancies identified in the verification process. We will keep records
containing a
description of any document that we relied on to verify a customer’s identity,
noting the
type of document, any identification number contained in the document, the place
of
issuance, and if any, the date of issuance and expiration date. With respect to
non-documentary verification, we will retain documents that describe the methods
and
the results of any measures we took to verify the identity of a customer. We
will also
keep records containing a description of the resolution of each substantive
discrepancy
discovered when verifying the identifying information obtained. We will retain
records of
all identification information for five years after the account has been closed;
we will
retain records made about verification of the customer's identity for five years
after the
record is made.
f. Comparison with Government-Provided
Lists of Terrorists
At such time as we receive notice that a federal government agency has issued a
list of
known or suspected terrorists and identified the list as a list for CIP
purposes, we will,
within a reasonable period of time after an account is opened (or earlier, if
required by
another federal law or regulation or federal directive issued in connection with
an
applicable list), determine whether a customer appears on any such list of known
or
suspected terrorists or terrorist organizations issued by any federal government
agency
and designated as such by Treasury in consultation with the federal functional
regulators.
We will follow all federal directives issued in connection with such lists.
We will continue to comply separately with OFAC rules prohibiting transactions
with
certain foreign countries or their nationals.
g. Notice to Customers
We will provide notice to customers that ORIO is requesting information from
them to
verify their identities, as required by federal law.
Important Information About Procedures
for Opening a New
Account
To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial institutions to
obtain, verify, and record information that identifies each person who
opens an account.
What this means for you: When
you open an account, we will ask for your name, address, date of birth
and other information that will allow us to identify you. We may also
ask to see your driver’s license or other identifying documents.
h. Reliance on Another Financial
Institution for Identity
Verification
We may, under the following circumstances, rely on the performance by another
financial
institution (including an affiliate) of some or all of the elements of our CIP
with respect
to any customer that is opening an account or has established an account or
similar
business relationship with the other financial institution to provide or engage
in services,
dealings or other financial transactions:
● when such reliance is reasonable under the circumstances;
● when the other financial institution is subject to a rule implementing the
anti-money laundering compliance program requirements of 31 U.S.C.
§ 5318(h), and is regulated by a federal functional regulator; and
● when the other financial institution has entered into a contract with our
firm requiring it to certify annually to us that it has implemented its
anti-money laundering program and that it will perform (or its agent will
perform) specified requirements of the customer identification program.