AML Policy

Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) Policy

SKILLHARVEST LIMITED

Policy Effective Date: [June 08, 2025] Review Date: Annually, or as regulatory changes occur.

1. Introduction and Policy Statement

SKILLHARVEST LIMITED (“SKILLHARVEST,” “the Company,” “we,” “us”) is committed to combating money laundering, terrorism financing, and other illicit financial activities. This Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) Policy outlines the measures SKILLHARVEST takes to prevent its services from being exploited for such purposes, in compliance with the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), 2009 (Kenya), its regulations, and international best practices, including recommendations from the Financial Action Task Force (FATF).

Our commitment extends to protecting our reputation, maintaining the integrity of the recruitment industry, and supporting global efforts to prevent financial crime.

2. Scope and Application

This Policy applies to all employees, directors, agents, and contractors of SKILLHARVEST LIMITED, and to all services offered by the Company, irrespective of geographical location (Kenya and global operations).

While recruitment agencies are generally not designated as “reporting institutions” under POCAMLA in the same way financial institutions are, we recognize our responsibility to mitigate risks inherent in our business. This policy implements a risk-based approach to identify, assess, manage, and mitigate potential money laundering and terrorism financing risks.

 

3. Key AML/CFT Principles

SKILLHARVEST adheres to the following core principles:

  • Risk-Based Approach: We assess and manage ML/TF risks based on the nature of our business, clients, candidates, and geographic areas of operation.

  • Customer/Candidate Due Diligence (CDD/CCD): We implement measures to identify and verify the identity of our Clients and Candidates.

  • Ongoing Monitoring: We continuously monitor our relationships for suspicious activities.

  • Record-Keeping: We maintain accurate and comprehensive records of our CDD/CCD processes and transactions.

  • Suspicious Activity Reporting (SAR): We report any suspicious transactions or activities to the Financial Reporting Centre (FRC) of Kenya.

  • Internal Controls: We establish and maintain internal policies, procedures, and controls to ensure compliance.

  • Training: We provide regular training to our staff on AML/CFT regulations and best practices.

4. Risk Assessment

SKILLHARVEST conducts regular risk assessments to identify, understand, and mitigate the ML/TF risks associated with our business. This assessment considers factors such as:

  • Geographic Risk: Countries/regions known for high levels of corruption, terrorism, or weak AML/CFT regimes.

  • Client Risk: Type of client (e.g., shell companies, clients in high-risk sectors, Politically Exposed Persons – PEPs).

  • Candidate Risk: Candidates from high-risk jurisdictions, those with unusual employment histories, or those seeking roles in sensitive industries.

  • Service Risk: Potential for our recruitment services (e.g., high-value placements, facilitating international payments) to be misused.

5. Customer/Candidate Due Diligence (CDD/CCD) Procedures

SKILLHARVEST implements CDD/CCD measures for both Clients (Employers) and Candidates.

5.1. For Clients (Employers):

  • Identity Verification:

    • Companies/Organizations: Obtain certified copies of incorporation documents, business registration certificates, tax registration, and identify beneficial owners where applicable.

    • Individuals (Sole Proprietors): Obtain national ID/passport, proof of address.

  • Nature of Business: Understand the client’s business activities and purpose.

  • Reputational Checks: Conduct basic online checks to assess the client’s reputation and any adverse media.

  • Sanctions Screening: Screen clients against relevant national and international sanctions lists (e.g., UN, OFAC, EU).

5.2. For Candidates:

  • Identity Verification:

    • Obtain and verify copies of national ID/passport and other government-issued identification.

    • Verify proof of address (e.g., utility bill).

  • Employment History Verification: Conduct checks on employment history, qualifications, and references, noting any unusual gaps or inconsistencies.

  • Sanctions Screening: Screen candidates against relevant national and international sanctions lists.

  • Politically Exposed Persons (PEPs) Identification: Implement enhanced due diligence for individuals identified as PEPs or those closely associated with them, requiring senior management approval for engagement.

5.3. Enhanced Due Diligence (EDD): EDD will be applied in situations deemed higher risk, including:

  • Relationships with PEPs.

  • Clients or Candidates from high-risk jurisdictions.

  • Situations where the information obtained during standard CDD is suspicious or incomplete.

  • Any other circumstances identified during the risk assessment as requiring greater scrutiny. EDD measures may include: obtaining additional identification documents, verifying sources of funds (if relevant to the placement process), seeking additional information about the purpose of the engagement, and increasing ongoing monitoring.

6. Ongoing Monitoring

SKILLHARVEST will conduct ongoing monitoring of its Client and Candidate relationships to ensure that:

  • The information held is up-to-date and relevant.

  • Any transactions or activities are consistent with the known business activities and risk profiles of the Client/Candidate.

  • Any changes in risk factors are identified and addressed.

7. Record-Keeping

SKILLHARVEST maintains all records related to CDD/CCD, transactions, and suspicious activity reports for a minimum period of five (5) years from the date of the last transaction or termination of the business relationship, in accordance with POCAMLA and other applicable laws. Records will be readily accessible for inspection by regulatory authorities if required.

8. Suspicious Activity Reporting (SAR)

8.1. Reporting Officer (MLRO): SKILLHARVEST LIMITED will designate a Money Laundering Reporting Officer (MLRO) who will be responsible for: * Receiving internal suspicious activity reports from employees. * Assessing reported suspicions. * Deciding whether to file a Suspicious Transaction Report (STR) or Suspicious Activity Report (SAR) with the Financial Reporting Centre (FRC). * Acting as the primary liaison with the FRC and other relevant authorities. * Overseeing AML/CFT compliance within the Company.

8.2. Reporting Procedure: * All employees must be vigilant and report any activity they suspect might be related to money laundering or terrorism financing to the MLRO immediately. * Reports should be made in writing, detailing the nature of the suspicion, parties involved, and any relevant facts. * Employees must not “tip off” the Client or Candidate that a report has been made or that they are under suspicion.

8.3. Reporting to FRC: The MLRO will, if satisfied that there are reasonable grounds for suspicion, promptly submit an STR/SAR to the FRC.

9. Internal Controls and Compliance

9.1. Internal Policies and Procedures: This policy will be supported by detailed internal procedures that outline how CDD/CCD is conducted, records are kept, and suspicions are reported. 9.2. Compliance Monitoring: The MLRO will regularly monitor the effectiveness of this policy and related procedures and recommend improvements. 9.3. Independent Audit: SKILLHARVEST may, periodically, engage independent auditors to assess the effectiveness of its AML/CFT framework.

 

10. Training and Awareness

All relevant employees of SKILLHARVEST LIMITED will receive regular training on:

  • The legal and regulatory requirements concerning AML/CFT.

  • The typologies and methods used for money laundering and terrorism financing relevant to the recruitment sector.

  • SKILLHARVEST’s internal AML/CFT policies and procedures.

  • Their individual responsibilities in combating financial crime, particularly regarding CDD/CCD and suspicious activity reporting.

11. Consequences of Non-Compliance

Any employee who fails to comply with this AML/CFT Policy or related procedures may face disciplinary action, up to and including termination of employment. Non-compliance with national and international AML/CFT laws carries severe penalties for both individuals and the Company, including significant fines and imprisonment.

 

12. Policy Review

This Policy will be reviewed and updated by SKILLHARVEST LIMITED annually, or more frequently if there are changes in legislation, regulatory guidance, or the Company’s business operations and risk profile.