Compliance and legal

Purpose

 

This policy statement outlines Windhorse Investment Holdings, Inc.'s commitment to comply with all relevant laws and regulations of the United States concerning anti-money laundering (AML), sanctions lists, and anti-terrorism. Ensuring robust, proactive and vigorous compliance is critical to maintaining the integrity and reputation of our company, protecting all of our stakeholders, and contributing to national and global security.

​

Scope

​

This policy applies to all employees, officers, directors, and agents of Windhorse Investment Holdings, Inc., as well as any third parties acting on behalf of the company. It encompasses any and all activities conducted by the company, domestically and internationally with regards to our business operations, transactions and every deal and trade we do.

​

Policy

1.Anti-Money Laundering (AML) Compliance:

​

Windhorse Investment Holdings, Inc. is committed to preventing, detecting, and reporting any activities related to money laundering.

All employees must adhere to the company's AML procedures, including customer due diligence (CDD), enhanced due diligence (EDD), and ongoing monitoring of transactions.

​

Training programs will be conducted regularly to ensure that all relevant personnel are informed about AML laws and the company's AML procedures.

​

2.Sanctions Compliance:

​

Windhorse Investment Holdings, Inc. complies with all sanctions imposed by the United States government, including those administered by the Office of Foreign Assets Control (OFAC).

​

The company will not engage in any business activities with individuals, entities, or countries subject to U.S. sanctions.

Regular screening of customers, vendors, and business partners against the latest sanctions lists is continuously conducted to ensure compliance. In addition to our own detailed screening, Windhorse Investment Holdings, Inc. also engages the services of professional third-party industry standard compliance screening entities in addition to its own professional legal council to ensure due diligence that provides optimal compliance and peace of mind in an ever-changing international landscape.

​

3.Anti-Terrorism Compliance:

​

Windhorse Investment Holdings, Inc. will not support, directly or indirectly, any activities or individuals associated with terrorism.

The company will conduct thorough due diligence to ensure that funds or resources do not inadvertently benefit terrorist organizations or activities.

​

Any suspicious activities related to terrorism will be reported to the appropriate authorities in a timely manner.

 

Responsibilities

​

• Compliance Officer: The Compliance Officer is responsible for overseeing the implementation and enforcement of this policy, ensuring that the company adheres to all relevant laws and regulations.

​

• Employees: All employees must understand and comply with this policy. They are responsible for reporting any suspicious activities or potential violations of this policy to the Compliance Officer.

​

• Management: Management must support compliance efforts by providing adequate resources and ensuring that employees receive the necessary training and support.

​

Reporting and Record-Keeping

​

Windhorse Investment Holdings, Inc. will maintain detailed records of all transactions, customer due diligence, and reports of suspicious activities.

All records will be kept in accordance with U.S. legal requirements and company policy, and will be available for review by regulatory authorities as required.

​

Training

Windhorse Investment Holdings, Inc. will provide regular training programs to ensure that all employees are knowledgeable about AML, sanctions, and anti-terrorism laws and the company's compliance procedures.

       

Specialised training will be provided to employees in roles with heightened risk exposure to ensure they have the necessary expertise to identify and manage potential compliance issues.

 

Audits and Reviews

Windhorse Investment Holdings, Inc. will conduct regular audits and reviews of its compliance programs to ensure effectiveness and adherence to legal requirements.

​

The results of these audits and reviews will be reported to senior management and used to improve the company's compliance efforts.

​

Enforcement and Discipline

​

Any employee found to be in violation of this policy will be subject to disciplinary action, up to and including termination of employment.

Windhorse Investment Holdings, Inc. will cooperate fully with law enforcement and regulatory authorities in the investigation and prosecution of any violations.

​

By adhering to this policy, Windhorse Investment Holdings, Inc. reaffirms its commitment to lawful and ethical business practices, contributing to the fight against money laundering, terrorism, and compliance with U.S. sanctions.

​

Review and Amendments

​

This policy will be reviewed annually and amended as necessary to ensure continued compliance with U.S. laws and regulations.

​

............................

​

Windhorse Investment Holdings, Inc. Comprehensive corporate Policy on Vetting and Choosing Buyers and Sellers:

​

Purpose: This policy outlines the procedures and guidelines our international commodity trading company follows to vet and choose buyers and sellers. The goal is to ensure maximum compliance with all relevant regulations, including OFAC compliance, anti-money laundering (AML), and anti-terrorism measures, as well as to evaluate the financial and business stability of potential trading partners.

​

Scope: This policy applies to all employees, contractors, and agents involved in the process of vetting and selecting buyers and sellers for our company's commodity trading activities.

​

1. Screening for Regulatory Compliance

​

A. OFAC Compliance

​

1. List Screening:​

   • This process utilizes official US government agency screening tools and protocols that are constantly updated and enhanced on an on-going basis. We also engage an independent professional third-party screening and monitoring service to provide an additional and deeper level of scrutiny on an ongoing basis. 

2. All potential buyers and sellers are carefully screened against the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list and other relevant sanctions lists. 

3. Documentation Review:

   • Collect and review identification documents from potential buyers and sellers to verify their identity.

   • Ensure that no individual or entity appears on the OFAC sanctions lists or any other relevant international sanctions lists.

   • Engage the services of professional legal counsel that provides ongoing deep industry specific experience and depth to augment our careful review process.

4. Ongoing Monitoring:

   • Regularly update and rescreen on a monthly basis existing partners to ensure continued compliance with OFAC regulations that is always up to date.

   • Implement a system for immediate re-screening if any new information arises.

 

B. Anti-Money Laundering (AML) Compliance

​

1. Customer Due Diligence (CDD):

   • Conduct thorough due diligence on all potential buyers and sellers, including collecting information on their ownership structure, source of funds, and business activities.

   • We use a risk-based approach to determine the level of due diligence required.

2. Enhanced Due Diligence (EDD):

   • For higher-risk partners, we perform enhanced due diligence which includes more detailed background checks and additional verification steps.

   • Require additional documentation and verification for entities located in jurisdictions with high AML risks.

3. Transaction Monitoring:

   • Monitor each and every transaction we do business in for any suspicious activity that might indicate money laundering.

   • Report any suspicious transactions to the relevant authorities in compliance with applicable AML regulations.

 

C. Anti-Terrorism Measures

​

1. Terrorist Financing Screening:

   • Screen potential buyers and sellers against lists of known or suspected terrorists and terrorist organizations on a monthly basis.

   • We use government-provided and other reputable databases for screening purposes.

2. Reporting and Cooperation:

   • Report any suspicious activities or red flags related to potential terrorist financing to the appropriate authorities.

   • Cooperate fully with law enforcement and regulatory agencies in their investigations.

 

2. Evaluating Financial and Business Stability

 

A. Financial Assessment

​

1. Financial Statements:

   • We require potential buyers and sellers to provide audited financial statements for the past three years as needed.

   • We analyze the financial health, including liquidity, solvency, and profitability ratios.

2. Credit Reports:

   • We obtain and review credit reports from reputable credit rating agencies as needed.

   • Assess creditworthiness and any history of defaults or bankruptcies.

3. Bank References:

   • We request and review bank references to evaluate the financial stability and reliability of potential partners on a continuous basis. This is done for each and ever transaction.

 

B. Business Stability

​

1. Business History:

   • We review the business history and track record of potential buyers and sellers.

   • Verify the length of time they have been in operation and their reputation in the industry.

2. Operational Capacity:

   • We assess the operational capacity of potential partners to fulfill their commodity trade obligations.

   • Evaluate their infrastructure, workforce, and logistical capabilities.

3. Compliance History:

   • We review any past compliance issues or legal disputes involving potential partners.

   • Consider the impact of any past issues on their ability to conduct business reliably and ethically.

 

3. Approval Process

​

1. Initial Review:

   • Conduct an initial review of all collected information by the compliance and risk management teams.

   • Identify any potential red flags or areas needing further investigation.

2. Risk Assessment:

   • Perform a comprehensive risk assessment based on compliance, financial, and business stability evaluations.

   • Assign a risk rating to each potential partner.

3. Final Approval:

   • Present the findings and risk assessment to the executive management team for final approval.

   • Require unanimous consent from the executive team before onboarding new buyers or sellers.

 

4. Continuous Monitoring and Reassessment

​

1. Periodic Reviews:

   • Conduct monthly reviews of existing buyers and sellers to ensure ongoing compliance and stability.

   • Update risk assessments and take action as necessary based on any changes.

2. Incident Reporting:

   • Establish a system for real-time reporting of any incidents or concerns related to current trading partners.

   • Investigate and address any reported issues promptly and thoroughly.

3. Training and Awareness:

   • Provide regular training for employees on compliance requirements, risk assessment procedures, and incident reporting.

   • Foster a culture of compliance and due diligence within the company.

 

5. Documentation and Record Keeping

​

1. Documentation:

   • Maintain comprehensive records of all vetting and approval processes.

   • Ensure that all documentation is stored securely and is readily accessible for audit and review purposes.

2. Record Retention:

   • Retain records for a minimum of seven years or as required by applicable regulations.

   • Regularly review and update record retention policies to ensure compliance with legal and regulatory requirements.

 

By following these detailed procedures and guidelines, our company ensures that we carefully vet and choose buyers and sellers who meet our stringent standards for regulatory compliance, financial health, and business stability. This commitment helps us to mitigate risks and uphold the highest possible standards of integrity in our commodity trading activities.

 

Updated: June 20, 2024