BTCNextExchange OÜ ANTI MONEY LAUNDERING ("AML")
AND COUNTER TERRORIST FINANCING ("CTF") POLICY
Money laundering is defined as the process where the identity of the proceeds of crime is so disguised that it gives an impression of legitimate income. Criminals specifically target financial services firms through which they attempt to launder criminal proceeds without the firms’ knowledge or suspicion.
In response to the scale and effect of money laundering, the European Union has passed Directives in particular, the 5th Anti-Money Laundering Directive and the 6th Anti-Money Laundering Directive designed to combat money laundering and terrorism. These Directives, together with regulations, rules and industry guidance as well as international standards form the cornerstone of our AML/CTF obligations and outline the offenses and penalties for failing to comply.
ANTI-MONEY LAUNDERING (AML) POLICY:
The BTCNextExchange OÜ Policy is designed to prevent money laundering by meeting the European and international standards on combating money laundering and terrorism financing, including the need to have adequate systems and controls in place to mitigate the risk of the firm being used to facilitate financial crime. This AML Policy sets out the minimum standards which must be complied with and includes:
Appointing a Compliance Officer (CO) who has a sufficient level of seniority and independence, and who has responsibility for oversight of compliance with the relevant legislation, regulations, rules and industry guidance;
Establishing and maintaining a Risk-Based Approach (RBA) to the assessment and management of money laundering and terrorist financing risks faced by the firm;
Establishing and maintaining risk-based Customer Due Diligence (CDD), identification, verification and Know Your Customer (KYC) procedures, including enhanced due diligence for customers presenting a higher risk, such as Politically Exposed Persons (PEPs);
Establishing and maintaining risk-based systems and procedures for the monitoring of on-going customer activity;
Establishing procedures for reporting suspicious activity internally and to the relevant law enforcement authorities as appropriate;
Maintaining appropriate records for the minimum prescribed periods;
Providing training for and raising awareness among all relevant employees.
Anti-money laundering and know your customer policy (AML&KYC)
In order to protect Assets of our customers and to ensure the compliance with international trade standards we operate exclusively in accordance with the legislation on combating illicit money laundering and countering the terrorism financing. To monitor the accordance with legal requirements and recommendations of the FATF, we have established a Compliance department developing Anti-money laundering and Know your customer (AML / KYC) procedures, obligatory for all employees and determining the policy of engagement with any person which have registered on the website
The Compliance Department monitors Clients' transactions on a daily basis to determine if they should be reported and treated as suspicious.
The Compliance Department is intended to ensure that all the operations of the Company are consistent with the international standards to combat money laundering and all the documents provided by the Customer are up-to-date and comply with relevant legal requirements.
By performing the registration on our Website the Customer makes complete and unconditional acceptance of the policy conditions, agrees with the following rules and undertakes to observe them:
1. All clients of the BTCNEXTExchange OÜ are treated in the same manner, therefore the AML (Anti Money Laundering) requirements are the same. The only difference may be leveling (Tiers) for requesting additional information from clients trading the only crypto and from clients trading both, crypto and fiat.
2. If you successfully pass the KYC which is associated with the relevant tier, you will obtain all benefits foreseen for this Tier. Usually, we try to perform KYC procedures as soon as possible, however, in separate circumstances, it may take several days. When establishing the risk category of a Client being a natural person, the country of residence of the Client, the beneficiaries of the Transaction, the region where the Client operates, and status of Politically Exposed Person shall be taken into account.When establishing the risk category of a legal person, assessment shall be based on the country of location of the legal person, its area of activity, the transparency of ownership structure and the management.
3. Corporate and institutional customers are recognized as customers with Tier 3 from the beginning, however, they are subject to enhanced KYC measures from the beginning. If you are a corporate or institutional customer please provide the documents required by this AML&KYC policy;
4. Upon the request of the Company, the additional documents and information should be provided by the Customer. Filling of respective KYC questionnaires may also be an obligatory requirement under the Company’s sole decision.
The Company reserves the right to verify the Customer’s identity in an on-going basis, especially when their identification information has been changed or their activity seemed to be suspicious (unusual for the particular Customer).
In addition, the Company reserves the right to request up-to-date documents from the Customers, even though they have passed identity verification in the past.
With regard to the AML/KYC Policy, the Company will monitor all transactions and it reserves the right to:
request the User to provide any additional information and documents (tax return forms, proof of legality of funds) in case of suspicious transactions;
suspend or terminate Customer’s Account when the Company has suspicion that such User engaged in illegal activity.
The Customer agrees with such requirements of the Company and agrees to follow them;
5. The withdrawal of Assets is carried out only to the account that belongs to a person identified as a Customer of the Company (the owner of a Trading Room). The withdrawal of Assets to third parties is prohibited. Internal transfers between the Company’s customers are also forbidden.
6. The Company is obliged and has the right without obtaining prior consent to share with financial institutions and law enforcement agencies any information about the Customer, as required by applicable law, and the Customer gives the Company its consent to these actions. In order to comply with this paragraph, the Company holds records about Customer transactions for five years at least.
7. The Customer undertakes to follow the legislation, including the international one, aiming to combat illicit trafficking, financial fraud, money laundering and legalization of funds obtained by illegal means. The Customer undertakes to use its best effort to avoid direct or indirect participation in illegal financial activities and any illegal transactions using the Company’s Website and Services.
8. The Customer guarantees the legal origin, legal ownership and the right to use the Assets transferred to its account.
9. In case of the evidence of suspicious transactions at the Customer’s account, cash replenishments from untrusted sources (for example, the data of Assets’ sender and Trading Room’s owner is different) and / or any actions with attributes of fraud (including any refunds or cancellation of payments), the Company reserves the right to conduct an internal investigation, to block or close the Customer’s Trading Room or any Account, cancel any payment or trading order and to suspend operations on the Accounts before the end of the official investigation. When making the decision the Company is guided by the provisions of the applicable law, the FATF recommendations or by common practice.
10. The Company has the right to request additional information about the Customer if there are doubts about the legality of the transaction. The Company also reserves the right to block the Customer’s Trading Room or any Account until the end of the investigation.
11. In the course of the investigation, the Company has the right to request additional copies of documents confirming the identity of the Customer, correct permanent residential address, and postal address, personal identification code, as well as copies of bank cards used to replenish the account, payment documents and other documents confirming the lawful possession and legal origin of funds. The Company also has the right to demand the provision of original documents for review in case of any doubts from the Company’s side.
12. The Company does not provide services to the persons who are residents of jurisdictions that are identified by the FATF as high risk and non-cooperative jurisdictions having strategic AML/CFT deficiencies, namely North Korea and Iran;
13. The Company doesn’t provide services to citizens and residents of the U.S.A.;
14. The Company’s refusal to perform the operations that from Company’s point of view are considered to be a suspicious, using of preventive measures (such as blocking or closing of a Customer’s Trading Room or any Account) is not the reason for civil liability of the Company for failure to fulfill obligations to the Customer.
15. The Company is prohibited to inform the Customer or other persons about the measures taken to fulfill the AML/CFT legislation. Also, the Company is prohibited to inform Customers or other persons about any suspicions, about the reasons for the refuse of execution of a Customer’s trading order, or refuse to open the Account, need for providing Customer’s documents, etc.
Verification measures for corporate and institutional customers
This policy is applied to the corporate and institutional Customers only. For this category of Customers, we allow to apply tier 3 from the beginning, but they have to go through the obligatory enhanced verification process.
We reserve the right to refuse You in the provision of services if, during the process of verification, it is discovered that You do not correspond with our KYC requirements. Also, we have a right to terminate our existing relationships with You at any time in case if You are considered to be violating our KYC requirements.
Upon our request, any additional documents and information should be provided by You, and if You refuse to provide such documents or information this also may lead to our refuse or termination of the provision of services.
To open a Trading Room as a corporate or institutional Customer, please follow the link on the website and fill the expanded questionnaire. Please be advised that you should have the necessary powers from your company in order to fill the questionnaire. Also please upload listed below corporate documents in Your Trading Room profile. Then You should wait for the following instructions from the manager.
The following supporting documentation must accompany the Customer’s completed questionnaire by the request of the Company:
Memorandum and Articles of Association;
Certificate of Incorporation;
Certificate of Incumbency (dated within the last 3 months);
Financial statements for the last two years, or company bank statements for the last three months;
Copy of Register of Shareholders;
Copy of Register of Directors;
Proof of Registered Address (original utility bill or bank statement displaying the company’s name and registered address dated within the last three months);
Proof of Operating Address (original utility bill of bank statement displaying the company’s name and operating address dated within the last three months);
Individual verification of Authorized Representative (copy of passport verified by a notary);
Individual verification of all active Directors (copy of passport verified by notary and a residential utility bill not older than 3 months);
Individual verification of Shareholders/Beneficial Owners with a holding of 25% or more:
- Individual shareholders (copy of passport verified by a notary and a residential utility bill not older than 3 months);
Corporate shareholders (a complete list of supporting documentation for each company as listed above);
Tax Return Forms;
Confirmation of source of funds. For corporate clients audited bank accounts are a priority.
We are prohibited from transacting with individuals, companies, and countries that are on prescribed Sanctions lists. We will, therefore, screen against the United Nations, European Union, UK Treasury and US Office of Foreign Assets Control (OFAC) sanctions lists in all jurisdictions in which we operate.