SAFETY OF FUNDS
Royal Financials treats its clients’ accounts and funds with the utmost level of responsibility. All our clients’ trading accounts are maintained independently of each other and each client trades on a trading account assigned and labeled to him or her. All client funds are held in segregated bank accounts that ensure that funds are completely separated from company operational funds and reserves. Royal Financials will never use any client funds for operational or corporate purposes as dictated by the law.
Due to our regulation with the Capital Markets Authority, Royal Financials maintains risk management systems and internal control functions to make sure company financials consistently meet regulatory requirements and liquidity levels.
Royal Financials abides by all local financial laws and regulations related to the offering of authorized financial products to clients. We also comply with regulation mandates that all internal controls and processes must be sufficient to mitigate risks the firm may be exposed to, hitherto protecting our clients' best interests at the same time. All clients can withdraw any or all of their funds from their trading accounts at anytime without any delay as long as said withdrawals are requested within operating hours.
ANTI-MONEY LAUNDERING (AML)
Royal Financials is committed to practicing a clean business model which includes only accepting clients and funds that adhere to strict Anti-Money Laundering conditions. All clients are cross checked on both an Operations and Compliance level against local and international watch lists prior to account approval. This includes due diligence on the identity of the client, the client’s profession, source of funds and method of deposit.
In addition, our Chief Compliance Officer ensures that all clients are classified with a risk level which serves as an early warning system against any illegal conduct related to money laundering. Furthermore, all financial transactions are periodically and thoroughly screened to identify any suspicious behavior that might pose a risk to the firm and our clients. In the event of any suspicions about the activities of a certain client, additional documentation related to the client's profession and sources of funds are requested to remove any suspicions of wrongdoing.
Aside from our Compliance Unit, Royal Financials has instilled in all its staff members a sense of regulatory responsibility by way of comprehensive training on Board mandated Policies and Procedures that govern daily operations as well as intensive coaching on the Anti-Money Laundering and Combatting Financial Terrorism (AMLCFT) Manual that guides our AML efforts. This allows Royal Financials to reject any account applications that do not meet our high standards of AML, protecting the firm and our clientele from any regulatory transgressions.
US FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)
In line with the implementation of the FATCA by local, regional and international regulatory authorities, Royal Financials is fully committed to the current guidelines of the FATCA, as well as any future modifications or additions, and to all ratified treaties and agreements related to the implementation of the FATCA.
The FATCA stipulates informing the tax authorities of the United States, the Internal Revenue Service (IRS), of all open trading accounts with Royal Financials belonging to clients, either natural or legal entities, that satisfy the following criteria:
- United States of America Citizens
- Green Card Holders from the United States
- Clients born in the United States or maintaining a residential address or local phone number
- Clients subject to tax liabilities whether due to an extended stay in the United States or any other reason
- In the case where a client grants Power of Attorney to a United States Citizen or Resident
- Companies registered in the United States of America
- Companies not registered in the United States but with a FATCA subject natural person owning directly or indirectly, 10% or more of the mentioned company
- The company studies client information against the above criteria and proceeds to categorize clients as follows
- Clients subject to the FATCA
- Clients not subject to the FATCA
Common Reporting Standard (CRS)
In order to respect the integrity of the world-wide tax systems, and to help fight against tax evasion, Royal is required to determine which tax system its Clients fall under. If the Client is considered a tax resident outside the country where their account is being held, then this information may be required to be given to their national tax authority, along with any other information pertaining to the Client’s account(s).
- The company is responsible for informing the IRS periodically of the account balances maintained by clients that are subject to the FATCA according to the information provided by the client at the time the account was opened
The Client understands that Royal S.A.L is required to collect the tax information that will be detailed in its forms by virtue of applicable laws and regulations in Lebanon; including Law 55 of 27/10/2016 regarding the exchange of information for tax purposes and any subsequent regulations, as well as conventions or agreements that implement reporting and due diligence rules consistent with the OECD Common Reporting Standard (CRS).
While applying the law, Royal is required to exchange such information, notwithstanding the Lebanese Banking Secrecy Law of 1956 or any other applicable law, regulation or agreement.
ROYAL may contact its clients in due course to obtain additional information or update the related information if needed.
Royal Financials, through its Board of Directors and Management firmly believes in the principle of strong and capable Corporate Governance in order to sustain the company's growth, in an attempt to provide more and more aspiring investors with exemplary service in the financial markets. This method of governance aims to improve corporate performance on all fronts through the projection of fair business, transparency and ethical dealing in all our activities. This includes the continuous training and education of all our staff and members of management in order to maintain a high level of professionalism in all aspects of our client oriented services.
In addition, all company activities are undertaken under a blanket of internal controls meant to protect the firm from any operational risk that may result and which would jeopardize the firm's ability to continue offering superior financial services. With our sound governance, we hope to inspire our clients with the same confidence that has allowed Royal Financials to grow and place itself at the forefront of the regional financial services industry.