📒 Policy Statement

This statement sets out Tiny Supercomputer Management Company (UK) Limited’s (”TSMC”) policy in relation to money laundering.

TSMC advocates strict adherence to its anti-fraud framework and associated policies. Whilst individual circumstances of each case will be carefully considered, in all cases there will be a zero tolerance approach to fraud and corruption (including bribery and money laundering) in all of its forms. TSMC will not tolerate fraud or corruption by its employees, suppliers, investors, portfolio companies, founders, partners or service users and will take all necessary steps to investigate all allegations of fraud or corruption and pursue sanctions available in each case, including removal from office (as applicable), disciplinary action, dismissal, loss recovery and referral to the police and other agencies. TSMC’s general belief and expectation is that those associated with it will act with honesty and integrity.

📒 Introduction

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the “MLR 2017”) came into force in June 2017 and, for any offences committed after 26 June 2017, replace the Money Laundering Regulations 2007.

A key difference is that relevant persons are obliged to adopt a more risk-based approach towards anti-money laundering, in particular in how they conduct due diligence. Determining the appropriate level of due diligence requires analysis of risk factors based on the EU Directive and which are set out in the MLR 2017.

TSMC is alert to the possibility of being the target of money laundering and terrorism financing crimes when it undertakes transactions or enters into business relationships in respect of itself and/or any funds or investments that it manages. All TSMC staff must be alert to the possibility that funds being processed via TSMC may be the proceeds of such crimes and remain vigilant.

📒 What is money-laundering?

Money laundering is the term used for a number of offences involving the proceeds of crime or terrorism funds. The following constitute the act of money laundering:

• concealing, disguising, converting, transferring criminal property or removing it from the UK (section 327 of The Proceeds of Crime Act 2002 (as amended by the Serious Organised Crime and Police Act 2005) (the “POCA”));
• entering into or becoming concerned in an arrangement which you know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person (section 328 of POCA);
• acquiring, using or possessing criminal property (section 329 of POCA); and/or
• becoming concerned in an arrangement facilitating concealment, removal from the jurisdiction, transfer to nominees or any other retention or control of terrorist property (section 18 of the Terrorism Act 2000);

These are the primary money laundering offences and thus prohibited acts under the legislation. A person guilty of one of the above offence will be subject to a fine or up to 14 years imprisonment or both.

There are also secondary offences: failure to disclose any of the primary offences and tipping off.

• Failure to disclose, s330 of POCA: is when you have knowledge or suspicion of money laundering and fail to inform the Money Laundering Reporting Officer (the “MLRO”) of your concerns. The offence applies not only to serious proceedings, but to dealings with proceeds of all crimes. There is a separate offence if the MLRO fails to disclose an offence he has been made aware of, s331 of POCA. A person guilty of either of these offences will be subject to a fine or up to 5 years imprisonment or both.

• Tipping off, s333 of POCA: is where someone informs a person or people who are, or are suspected of being involved in money laundering, in such a way as to reduce the likelihood of their being investigated or prejudicing an investigation. A person guilty of this offence is subject to a fine or up to 5 years imprisonment or both.

• Failure to report or disclose: ****It is an offence for any person within TSMC to fail to report knowledge or suspicion or reasonable grounds for having knowledge or suspicion of money laundering activity to the TSMC MLRO. Under the Anti-Terrorism, Crime and Security Act 2001, any person working in the regulated sector who obtains information in the course of financial business, as a result of which that person knows or suspects or has reasonable grounds to know or suspect that another person is engaged in terrorism-related offences, is required to report that information to NCA, via the TSMC MLRO, as soon as reasonably practicable.

  The test for criminal liability for failure to disclose knowledge or suspicion is set objectively. Therefore, it will not be a defence to say that one did not have all the relevant information if a hypothetical person occupying the same professional position in possession of the same facts ought to have reasonably known or suspected that another person was engaged in money laundering.

Potentially any member of staff could be caught by the money laundering provisions if they suspect money laundering and either become involved with it in some way or do nothing about it. This policy sets out how any concerns should be raised.

Money laundering is the process of channeling ‘bad’ money into ‘good ‘money in order to hide the fact the money originated from criminal activity. Money laundering often occurs in 3 steps: first, cash is introduced into the financial system by some means ('placement'), the second involves a financial transaction in order to camouflage the illegal source ('layering'), and the final step entails acquiring wealth generated from the transactions of the illicit funds ('integration').