Waystone Takes Proactive Approach to Financial Crime Risk Management

Luxembourg-based asset management company, Waystone, has announced its commitment to identifying, preventing, and managing potential or actual financial crime risks associated with its business activities. In this approach, the company emphasizes transparency and a business-oriented mindset in managing its exposure to financial crime.

Initial Assessment of AML/KYC Risks

Waystone performs an initial assessment of potential AML/KYC (Anti-Money Laundering/Know Your Customer) risks related to new clients before entering into a business relationship. This assessment is based on practical aspects and relies on an approach adopted at the ManCo level, taking into account potential AML/KYC risks associated with asset classes held in the portfolio of investment funds or Special Purpose Vehicles (SPVs).

Categorization of Companies Domiciled

Waystone’s categorization of companies domiciled includes regulated and unregulated entities, which are subject to different levels of scrutiny. Regulated entities are generally considered low-risk, while unregulated entities may present a higher risk.

Measures Implemented to Mitigate Financial Crime Risks

• Conducting regular due diligence and ongoing monitoring of clients
• Performing preliminary screening and ongoing transaction monitoring within the group
• Raising questions about vigilance on asset classes at initial and ongoing due diligence stages
• Verifying transactions on a regular basis to ensure they are in line with corporate objects and services provided

“Know Your Transaction” Framework

Waystone has an internal working group focused on “Know Your Transaction,” which aims to establish a framework for conducting checks on illiquid asset classes.

Financial Crime Policy

The company’s commitment to financial crime risk management is reflected in its financial crime policy, which outlines its approach to identifying, preventing, and managing potential or actual financial crime risks. This includes reliance on the practical compliance framework established by the group, as well as recourse to the Risk Committee and Compliance Function whenever necessary.

Whistleblowing and Reporting Suspicious Activity

Waystone encourages whistleblowing and has a process in place for reporting suspicious activity. The company’s approach is designed to balance the need to prevent financial crime with the need to maintain a business-oriented approach to customer relationships.

CEO’s Statement

“We are committed to identifying, preventing, and managing any potential or actual financial crime risk to which we and/or our customers may be exposed,” said [Name], CEO of Waystone. “Our approach is designed to ensure that we maintain a strong reputation while also protecting the integrity of our business activities.”