Section 42 of The Financial Intelligence Centre Act No 38 of 2001 (“FICA”), as amended by the FIC Amendment Act 1/2017, requires YW Capital to develop, document, maintain and implement a programme for anti-money laundering and counter-terrorist financing risk management and compliance in adherence to the following. This document is called the Risk Management and Compliance Programme (“RMCP”). The RMCP addresses the following laws and regulations in South Africa:

• The Prevention of Organised Crime Act No 121 of 1998, as amended (“POCA”)
• FICA
• The Protection of Constitutional Democracy against Terrorist and Related Activities Act No 33 of 2004 (“POCDATARA”)
• The Prevention and Combating of Corrupt Activities Act No 12 of 2004 (“PRECCA”)

YW Capital’s RMCP approach outlines the following:

• The process and criteria of risk rating any client, target, strategic partner (or any stakeholder in the investment process or related to the Fund’s operation) (herein referred to as an “Affected Party”) regardless of whether a third party is used for this service
• How YW Capital will prevent entering into Business Relationships or Single Transactions with an anonymous or fictitious Affected Party (FICA Client Information Checklist)
• The manner and process followed by YW Capital to identify and verify the information of the Affected Party (FICA Client Information Checklist)
• How YW Capital will determine the consistency or inconsistency of the nature of future transactions in the course of a Business Relationship (FICA Client Information Checklist)
• The manner and process of conducting enhanced Customer Due Diligence checks concerning legal persons, trusts and partnerships
• The manner and process of ongoing Customer Due Diligence and account monitoring of Business Relationships (FICA Client Information Checklist)
• The manner and process of enhanced Customer Due Diligence when YW Capital is not satisfied with the information obtained from the Client, whether a Client is a PEP or for higher-risk Business Relationships (FICA Client Information Checklist)
• The manner of examining complex and unusual transactions, unusual patterns of transactions with no apparent business or lawful purpose and the keeping of written findings (FICA Client Information Checklist)
• The manner and process for terminating a relationship
• How reporting to the FIC will be done
• How will the records of all transactions, customer due diligence, and all of the above be kept? Records may be kept in electronic format and by third parties (FICA Client Information Checklist)
• The manner of implementation in subsidiaries and branches of YW Capital in all countries and to what extent the supervisory body of a foreign branch of YW Capital will permit implementation (The FIC must also be informed of the outcome)
• Any other matter YW Capital wishes to address concerning FICA.

The person or group exercising the highest level of authority in YW Capital’s business must approve the RMCP, which should be reviewed at regular intervals, at least annually. YW Capital must also make all documentation relating to the RMCP available to employees involved in Transactions and, upon request, make the RMCP available to the FIC or a supervisory body performing functions on behalf of YW Capital.

The board of directors or the senior management of YW Capital must ensure compliance with the provisions of this Act and its RMCP. Non-compliance with the measures set out by Section 42 relating to implementing and maintaining the RMCP will subject YW Capital to an administrative sanction.