Effective date - 01.12.2019
This is the Anti-Money Laundering Policy (hereinafter, "Policy", "AML Policy") adopted by the BTCNextExchange OÜ ("Company", "We"), a company registered in accordance with legislation of Estonia with the registered address at Punane tn 68-170, Lasnamäe linnaosa, Tallinn, Harju maakond, 13619. The purpose of this Policy is to reasonably prevent our services from being used to facilitate money laundering and the financing of terrorist activities. Our Company uses automated data processing systems, and our AML Policies are integrated therein.
It is strictly forbidden by this Policy and the applicable international and national law to use our services for the purposes of money laundering and/ or financing of terrorist activities.
For the purposes of this Policy, the following definitions have been adopted:"Money Laundering":
(a) the conversion or transfer of property, knowing that such property is derived from criminal activity or from an act of participation in such activity, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the commission of such an activity to evade the legal consequences of that person's action;
(b) the concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or ownership of, property, knowing that such property is derived from criminal activity or from an act of participation in such an activity;
(c) the acquisition, possession or use of property, knowing, at the time of receipt, that such property was derived from criminal activity or from an act of participation in such an activity;
(d) participation in, association to commit, attempts to commit and aiding, abetting, facilitating and counselling the commission of any of the actions referred to in points (a), (b) and (c).
"Terrorist financing": the provision or collection of funds, by any means, directly or indirectly, with the intention that they be used or in the knowledge that they are to be used, in full or in part, in order to carry out terrorist activities as defined in international and applicable national law.
We have designated a Compliance and Reporting Officer responsible for assuring day to day compliance with the Policy and applicable law in accordance with our internal documents.
The responsibilities of the Compliance Officer include assuring that:
(a) The Company properly files reports, and creates and retains records, in accordance with the requirements of the applicable law;
(b) The AML Policy is updated as necessary to reflect current requirements of the applicable law, and related guidance issued by respective government regulators; and
(c) The Company provides appropriate training and education in accordance with this Policy;
(d) The Company in good faith reports suspicious activities and cooperates with regulatory authorities within the scope outlined in this Policy and under the procedures established by the applicable law.
The identity of our customers (and that of their beneficial owners, of applicable) is verified on other websites of our services by the provision of evidence in the following cases:
(a) upon registration;
(b) upon entering into contractual relations (e.g., by entering into a safe custody agreement);
(c) anytime we suspect money laundering or terrorist financing;
(d) when we have doubts about the veracity or adequacy of previously obtained customer identification data.
The following is a non-exhaustive list of factors that we shall consider when deciding on the suspicious character of a transaction:
(a) Transactions or business relationships with countries known to have weak AML/CFT controls, as narcotic source countries, or countries known for highly secretive banking and corporate laws (high-risk countries), especially if transactions are complex and involve intermediaries;
(b) Transactions, business activity, or frequent international travel not consistent with customer profile or known legitimate sources of income/wealth;
(c) Unusually/unnecessarily complex or "layered‟ movement of funds;
(d) Transactions involving suspected "shell‟ entities (corporations with no legitimate reason for existence);
(e) Large one-off cash transactions without proof of origin of funds;
(f) Frequent and large international money transfers without clear economic reason;
(g) Sudden changes in volume or nature of business activity;
(h) Services or transactions for the benefit of persons suspected to be criminals, or persons related to or closely associated with them;
(i) Uncharacteristically large transactions or deposits by family members or associates of public officials (PEPs);
(j) Client or customer maintains an inordinately large or complex network of accounts / business entities for the type of business purportedly being conducted;
(k) Business client cannot be identified online or in official registers;
(l) Use of undisclosed intermediaries/agents/nominees.
For the purposes of this Policy, a "Politically Exposed Person" ("PEP") means an individual entrusted with a prominent public function anywhere in the world in the last three (3) years, and includes any immediate family member or close associate of such an individual.
We shall have a risk management system in place to reasonably determine if prospective clients and prospective or existing customers are PEPs.
Once a PEP has been identified, a business relationship can only be established with the approval of senior management, and the reporting entity must take adequate measures to establish the source of wealth and the source of funds involved in any proposed relationship or transaction.
Where we identify a potentially suspicious transaction or service, the Compliance and Reporting Officer shall examine the relevant records to confirm whether there are reasonable grounds to suspect that the service or transaction may be related, directly or indirectly, to the commission of serious criminal conduct (including money laundering or terrorist financing).
We shall, on our own initiative, report any fact which might be an indication of money laundering, to any respective regulatory authorities.
We maintain records, which can be used in law enforcement investigations in case of well-founded suspicion of money laundering or terrorist financing activities. The retained record include:
(a) in the case of customer identification, a copy or the references of the evidence required, for a period of at least seven years after the relationship with their customer has ended;
(b) in the case of transactions, the supporting evidence and records, consisting of the original documents or copies admissible in court proceedings under the applicable legislation for a period of at least seven years following execution of the transactions.
The Company provides to its employees directly involved in maintaining the Company's services the necessary training and education about the requirements of this Policy and the applicable law countering terrorism financing and money laundering, including training in the detection of suspicious transactions to help them recognize operations which may be related to money laundering as well as to instruct them as to how to proceed in such cases.
We are willing to cooperate with law enforcement authorities in cases of reasonable and well-founded suspicions of any criminal activity prohibited under this AML Policy by furnishing those authorities, at their request, with all necessary information, in accordance with the procedures established by the applicable legislation. Information supplied to the authorities in accordance with this section may be used only in connection with the combating of money laundering.
To contact us with regard to any suspected violation of the present AML Policy and the corresponding applicable law, please contact us via [email protected].
The disclosure in good faith to the authorities responsible for combating money laundering by an employee or director of our Company of the information referred to in this Policy shall not constitute a breach of any restriction on disclosure of information imposed by contract or by any legislative, regulatory or administrative provision, and shall not involve the Company, its directors or employees in liability of any kind.
Our adoption of this AML Policy is voluntary and does not constitute an assumption of being subject to any national AML laws.
We conduct reasonable independent review to monitor and maintain an adequate AML Policy. The scope and frequency of the review shall correspond to the risk of the services provided by us. Such review may be conducted by an officer or employee that is not the Compliance and Reporting Officer.