Flameback Capital

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Anti-Money Laundering (AML) Policy

1. Introduction

This Anti-Money Laundering (AML) Policy establishes the framework by which Flameback Capital USA, Inc. (the “Firm”) will prevent and detect money laundering, terrorist financing, and other illegal activities. This policy is in compliance with applicable U.S. federal laws, including the U.S. Bank Secrecy Act (BSA), the USA PATRIOT Act, and the regulations administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).

2. Policy Statement

The Firm is committed to maintaining the highest standards of compliance with federal laws and regulations to prevent money laundering and terrorist financing. The Firm will not engage in any activities that involve or facilitate money laundering, terrorist financing, or other illegal activities.

3. Scope

This policy applies to all employees, officers, directors, and agents of The Firm. It covers all products, services, and transactions conducted by the Firm, including those involving clients, counterparties, and third-party service providers.

4. Definitions

Money Laundering: The process by which individuals or entities attempt to conceal the origins of illegally obtained money, typically by passing it through a complex sequence of banking transfers or commercial transactions.
Terrorist Financing: The provision of funds or financial support to individual terrorists or non-state terrorist organizations.
Suspicious Activity: Any activity that is inconsistent with a customer’s known legitimate business or personal activities or that lacks an apparent lawful purpose.

5. Designation of AML Officer

The Chief Compliance Officer (CCO) is designated as the AML Officer responsible for implementing and overseeing the Firm’s AML Program. The AML Officer’s responsibilities include:

Ensuring compliance with federal AML laws and regulations.
Reviewing and updating the AML Policy and procedures.
Providing regular training to employees on AML regulations and procedures.
Investigating and reporting suspicious activities.

6. Customer Identification Program (CIP)

The Firm will implement a Customer Identification Program (CIP) that includes the following elements:

Identification and Verification: Before opening an account or engaging in a transaction, the Firm will obtain and verify the customer’s identity using reliable, independent sources of documentation.
Beneficial Ownership: The Firm will identify and verify the identity of the beneficial owners of legal entity customers.
Record Keeping: The Firm will maintain records of all information obtained during the identification and verification process for at least six years after the account is closed.

7. Risk-Based Approach

The Firm will employ a risk-based approach to AML compliance, which includes:

Risk Assessment: Periodically assessing the risk of money laundering and terrorist financing based on the nature of the Firm’s business, products, services, and customer base.
Enhanced Due Diligence (EDD): Applying enhanced due diligence to high-risk customers, particularly those from jurisdictions identified by the Financial Action Task Force (FATF) as having strategic deficiencies in their AML/CFT regimes.

8. Monitoring and Reporting Suspicious Activity

Transaction Monitoring: The Firm will implement systems to monitor customer transactions for unusual or suspicious activity.
Suspicious Activity Reporting (SAR): Employees must promptly report any suspicious activity to the AML Officer. The AML Officer will review the activity and, if necessary, file a Suspicious Activity Report (SAR) with the Financial Crimes Enforcement Network (FinCEN) within 30 days of detecting the activity.
No Tipping Off: Employees are prohibited from disclosing to the customer or any unauthorized party that a SAR has been filed or that their transaction is under review.

9. OFAC Compliance

The Firm will screen all customers and transactions against the OFAC list of Specially Designated Nationals (SDNs) and Blocked Persons, as well as other relevant sanctions lists. The Firm will block or reject transactions and accounts involving sanctioned individuals or entities as required by law.

10. Record Keeping

The Firm will maintain all records related to AML compliance, including CIP, EDD, SARs, and transaction monitoring documentation, for a minimum of six years. These records will be readily accessible to regulatory authorities upon request.

11. Employee Training

All employees will receive ongoing training on AML laws, regulations, and internal procedures. Training will be conducted at least annually and will be tailored to the specific responsibilities of each employee.

12. Independent Testing

The Firm will engage an independent party to conduct periodic testing of the AML Program. The results of these tests will be reported to the Firm’s senior management and used to enhance the AML Program as necessary.

13. Consequences of Non-Compliance

Failure to comply with this AML Policy may result in disciplinary action, including termination of employment. In addition, non-compliance may subject the Firm and its employees to significant legal penalties, including fines and imprisonment.

14. Policy Review

This AML Policy will be reviewed annually and updated as necessary to ensure compliance with applicable laws and regulations.

15. Dependant on Custodian

Flameback Capital USA, INC relies on its affiliates such as Interactive Brokers LLC, the qualified custodian for its client accounts, to perform most aspects of its Anti-Money Laundering Program.

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Flameback Capital USA, INC Anti-Money Laundering (AML) Program

Flameback Capital USA, INC (Flmaeback Capital) is an investment advisor registered with the Securities and Exchange Commission (“SEC”) under the ‘Iinvestment Advisors Act of 1940’. Registration with the SEC does not imply any level of skill or training.

Flameback Capital is committed to maintaining the highest standards of compliance with federal laws and regulations to prevent money laundering and terrorist financing. The Firm will not engage in any activities that involve or facilitate money laundering, terrorist financing, or other illegal activities.

More specifically, the Flameback Capital USA, INC Anti-Money Laundering Program provides for:

A Customer Identification Program, and a system of internal controls to ensure that appropriate due diligence, and when necessary, enhanced due diligence, including obtaining and maintaining proper documentation, is conducted at account opening and updated, as necessary, throughout the course of the customer relationship;
The designation of an Anti-Money Laundering Compliance Officer responsible for coordinating and monitoring day-to-day compliance with the Anti-Money Laundering Program and applicable Bank Secrecy Act (“BSA”) laws, rules, and regulations;
Recordkeeping and reporting practices in accordance with applicable laws, rules, and regulations, including the BSA;
Appropriate methods of monitoring transactions and account relationships to identify potential suspicious activity;
Reporting of suspicious activity to governmental authorities in accordance with applicable BSA laws, rules, and regulations;
Training of specific personnel with regard to anti-money laundering and anti-terrorist financing issues and their responsibilities for compliance; and
An independent review to ensure that the Anti-Money Laundering Program and applicable BSA laws, rules, and regulations have been implemented and continue to be appropriately maintained.

Flameback Capital USA, INC relies on its affiliate, Interactive Brokers LLC, the qualified custodian for its client accounts, to perform most aspects of its Anti-Money Laundering Program.