Anti-Money Laundering (AML) Policy

Anti-Money Laundering (AML) Policy

The Foundation (Tender Heart Helpers Foundation) is dedicated to adhering to all relevant laws and regulations designed to prevent money laundering, terrorist financing, and other illegal financial activities. This Anti-Money Laundering (AML) Policy sets forth the Foundation’s commitment to ensuring that our resources and activities are not used for illegal purposes, including but not limited to money laundering and the financing of terrorism.

1. Purpose

The purpose of this AML Policy is to:

• Comply with national and international regulations aimed at preventing money laundering and the financing of terrorism.
• Establish procedures to detect, prevent, and report any suspicious activities.
• Ensure that all employees, volunteers, donors, and partners understand their responsibilities in preventing money laundering.

2. Scope

This policy applies to:

• All employees, board members, and volunteers of the Foundation.
• Donors, partners, and contractors who are involved in financial transactions with the Foundation.
• All financial transactions, including but not limited to donations, grants, fund transfers, and any other financial or in-kind support.

3. Legal Framework

Tender Heart Helpers Foundation operates in compliance with the following:

• The Money Laundering (Prohibition) Act, 2011 as amended in 2012 (Nigeria).
• Financial Action Task Force (FATF) Recommendations on combating money laundering and terrorist financing.
• Any other relevant local or international regulations applicable to charitable organizations and NGOs.

4. Key Definitions

• Money Laundering: The process of disguising the origins of illegally obtained money to make it appear legitimate.
• Terrorist Financing: Providing funds for terrorist activities, whether derived from legitimate or criminal sources.
• Suspicious Activity: Any financial transaction or behavior that does not appear to be legitimate and may involve money laundering or terrorist financing.

5. Risk-Based Approach

The Foundation adopts a risk-based approach to AML compliance. This involves:

• Identifying and assessing risks related to the nature of the Foundation’s work, particularly in areas prone to financial crimes.
• Implementing proportionate measures to mitigate these risks, such as screening donors, partners, and funding sources.

6. Customer Due Diligence (CDD)

We perform due diligence on all significant donors, partners, and beneficiaries to ensure that funds are obtained and used legally. This includes:

• Identification: Collecting and verifying the identity of donors, partners, and beneficiaries, including legal entities.
• Background checks: Conducting checks on individuals and organizations to ensure they are not involved in criminal activities.
• Monitoring of transactions: Reviewing transactions on an ongoing basis to detect any irregularities or suspicious activities.

For large or significant donations, the Foundation reserves the right to request further information from donors to confirm the legitimacy of the funds.

7. Record-Keeping

The Foundation is committed to maintaining proper records for all financial transactions and donor details for at least five years from the date of the transaction. These records include:

• The identity of the donor (where applicable)
• Nature and amount of the transaction
• Purpose of the funds
• Any reports of suspicious activities

This enables us to track the source and use of funds effectively and to cooperate with authorities if needed.

8. Reporting of Suspicious Activities

Employees, volunteers, and partners are required to report any suspicious transactions or activities that may be linked to money laundering or terrorist financing. The Foundation has appointed an AML Compliance Officer who is responsible for receiving and investigating such reports. In cases of confirmed suspicion, the Foundation will report to the appropriate regulatory authorities, such as:

• Nigeria Financial Intelligence Unit (NFIU)
• Economic and Financial Crimes Commission (EFCC)
• Nigeria Police Force

The Foundation commits to non-retaliation and confidentiality in handling reports of suspicious activities.

9. Training and Awareness

All employees and volunteers will receive regular training on the AML policy, procedures, and their individual responsibilities. The Foundation will ensure that staff understand the signs of money laundering and terrorist financing, how to identify suspicious activity, and the steps to report concerns.

10. Donor Transparency

Tender Heart Helpers Foundation is committed to transparency with its donors. We ensure that:

• Donor identities are clearly documented and verified.
• Donations are used solely for the purposes outlined in our programs and initiatives.
• Reports are provided to donors on how their funds have been allocated and spent.

We reserve the right to reject donations that do not meet our legal and ethical standards or that raise concerns about the source of the funds.

11. Responsibilities

• Board of Trustees: Responsible for oversight and ensuring compliance with AML laws.
• AML Compliance Officer: Ensures the implementation of the AML Policy, conducts risk assessments, and investigates suspicious activities.
• Employees and Volunteers: All staff are responsible for adhering to the policy, attending training, and reporting any suspicious activity.

12. Penalties for Non-Compliance

Failure to comply with this policy may result in:

• Disciplinary action, up to and including termination of employment or volunteer status.
• Reporting of individuals or activities to law enforcement agencies.
• Reputational damage and legal penalties for the Foundation.

13. Review of Policy

This AML Policy will be reviewed annually to ensure it remains relevant and compliant with any changes in regulations or operational risks. Updates to this policy will be communicated to all relevant parties.

14. Contact Information

For any questions or concerns regarding this AML Policy or to report suspicious activity, please contact:

AML Compliance Officer
Tender Heart Helpers Foundation
97/101 Allen Avenue, Ikeja, Lagos, Nigeria
Email: info@tenderhhf.org
Phone: +2348033378270

NOTE: This policy ensures that the Foundation operates in compliance with legal requirements while protecting against illegal financial activities.