CRYPTOART AML AND KYC POLICY
As amended on October13th 2020
THIS DOCUMENT DESCRIBES ANTI-MONEY LAUNDERING AND “KNOW YOUR CUSTOMER” POLICY ONLY DURING THE USAGE OF THE PALTFORM OF THE CRYPTOART OÜ
- General Provisions.
1.1. Cryptoart is strongly committed to preventing the use of its Platform operations for money laundering or any activity which facilitates money laundering, or the funding of terrorist or criminal activities. We define money laundering (hereinafter also referred to as to the “Money Laundering” or “ML”) as any activity that is carried out in an attempt to misrepresent the source of funds actually acquired through illegal processes as funds that were acquired through lawful sources/activities.
1.4. YOU SHALL READ CAREFULLY THIS AML POLICY BEFORE PROCEEDING WITH REGISTERING OF THE USER ACCOUNT. PLEASE BE ADVISED, THAT WE RESERVE THE RIGHT TO CHANGE AML POLICY FROM TIME TO TIME IN OUR SOLE DISCRETION. Your continuing usage of the Platform will be treated as informed consent with such changes.
- VERIFICATION PROCEDURES AND KNOW YOUR CUSTOMER PROCEDURES
2.1. One of the international standards for preventing illegal activity is customer due diligence (“CDD”). According to CDD, Cryptoart establishes its own verification procedures within the standards of anti-money laundering and “Know Your Customer” frameworks (KYC Checks as is mentioned in the Terms or other documents).
2.3. During registration of a User Account You are obliged to provide us with following information:
2.3.1. Login and Email address;
2.3.3. Real Name and Surname.
Company will take steps to confirm the authenticity of documents and information provided by the Users. All legal methods for double-checking identification information will be used and Company reserves the right to investigate certain Users who have been determined to be risky or suspicious.
2.4. In certain cases, (when additional verification by bank or compliance authority is needed according to governmental rules, AML Policy, or if such information is required by Us for KYC purposes or for providing You with a customer support services) We, or our duly authorized KYC-provider, may require You to provide additional documentation, and namely:
2.4.1. Proof of identity information (foreign or internal passports, ID-card, driver license [if such license is issued in accordance with the international standards], refugee certificates, other documents if agreed with the Company);
2.4.2. Bank account statement;
2.4.3. Information on whether You hold a prominent public function and a confirmation of this fact (f.e. sworn statements can be used in such cases or government issues certificates);
2.4.4. Proof of address information (utility bill, bank reference letter, other official document issued by the competent authority [such as extract from home book, certificate issued by the demographic authorities and etc]);
2.4.5. Tax certificate or similar document;
2.4.6. Additional photographs of You;
2.4.7. Confirmation of proceeds sources (for example, additional bank statements, agreements, which can prove the source of proceeds, tax declarations and etc [if agreed with the Company]);
2.4.8. Other information, if required by the Company.
We reserve the right to verify User’s identity in an on-going basis, especially when User’s Personal Data and the identification information has been changed or their activity seemed to be suspicious (unusual for the particular User). In addition, Company reserves the right to request up-to-date documents from the Users, even though they have passed identity verification in the past.
’Recent’ means no longer than 3 months from date of issue.
2.5. If any of the above documents are requested, prior to sending them to us we may require them to be certified as a true copy of the original by a Solicitor or a Lawyer who must use their company stamp. We require the documents to be sent to us in high quality color format. We reserve the right to reject any documents, which do not comply with the above or if we have doubts as to their veracity.
2.6. If the User does not provide Company with the Personal Data as specified earlier, the User may not be able to use the full functionality of the Website and Platform. At that, Company shall not bear any liability for such possible incomplete use.
2.8. Once the User’s identity has been verified, Company is able to remove itself from potential legal liability in a situation where its Services are used to conduct illegal activity.
2.9. Please be advised that We explicitly prohibit persons defined as persons/residents of Prohibited Jurisdictions as is prescribed in the Section 11 and others of Terms. All actions conducted by such persons from Prohibited Jurisdictions will be deemed invalid. We shall not be held liable for any actions of the persons from Prohibited Jurisdictions;
2.10. We also may screen a prospective User to identify whether You fall under certain sanctions lists. They include Office of Foreign Assets Control (OFAC) of the US Department of Treasury Sanctions List, Her Majesty’s Treasury (HMT) Sanctions List, United Nations (UN) Sanctions List, Countering America’s Adversaries Through Sanctions Act (CAATSA) Sanctions List, European Union (EU) Consolidated Financial Sanctions List, Australian Government Department of Foreign Affairs and Trade (DFAT) Consolidated List, and Financial Action Task Force (FATF) Sanctions List among other applicable lists. Decision whether to provide or not to provide such persons with the Services shall be made on the case-by-case basis.
2.11. We also may screen a User to identify whether You fall under the definition of a domestic and/or foreign Politically Exposed Person (“PEP”), Relative & Close Associate (“RCA”), and/or Head of International Organization (“HIO”).
According to FATF Guidance on Politically Exposed Persons (Recommendations 12 and 22), PEP shall be defined as an individual who is or has been entrusted with a prominent public function. The position of PEP can be potentially abused for the purpose of committing Money Laundering, corruption, bribery, terrorism financing, and related unlawful actions. By screening our prospective Users, We implement a risk-based management system to detect such potential abuse if and when it occurs. Besides, We will also screen our Users to identify whether they fall under the category of a “close associate” of a PEP, or are their family member and, therefore, constitute high risk.
- COMPLIANCE OFFICERS
3.1. The Compliance Officers are the persons, duly authorized by Company, whose duty is to ensure the effective implementation and enforcement of the AML Policy. It is the Compliance Officer’s responsibility to supervise all aspects of Cryptoart Anti-Money Laundering and counter-terrorist financing, including but not limited to:
3.1.1. Collecting Users’ identification information;
3.1.2. Establishing and updating internal policies and procedures for the completion, review, submission and retention of all reports and records required under the applicable laws and regulations.
3.1.3. Monitoring transactions and investigating any significant deviations from normal activity;
3.1.4. Implementing a records management system for appropriate storage and retrieval of documents, files, forms and logs;
3.1.5. Updating risk assessment regularly;
3.1.6. Providing law enforcement bodies and other competent authorities with information as required under the applicable laws and regulations.
3.2. The Compliance Officer is entitled to interact with law enforcement, which are involved in prevention of money laundering, terrorist financing and other illegal activity.
- ANTI-MONEY LAUNDERING POLICY
4.1. All Company’s affiliates are obligated to comply with this AML policy and with all applicable AML laws. Failure to comply can result in severe consequences such as criminal penalties and heavy fines.
4.2. Company ensures complete compliance with laws pertaining to AML through its related policy.
4.3. Our AML Policy, briefly, includes:
4.3.1. Identification and verification of Users via KYC;
4.3.2. Establishment and maintenance of the risk-based CDD including enhanced Due Diligence for those Users presenting higher risks;
4.3.3. Transactions monitoring of User’s financial behavior based on risk-based analysis;
4.3.4. Procedures for reporting suspicious activity internally and to the relevant law enforcement authorities;
4.3.5. Periodical AML trainings for Company’s personnel;
4.3.6. Establishing of the reporting system to relevant state officials to report regarding possible AML risks;
4.3.7. Other actions and measures, as defined in the AML Policy.
4.4. Any and all Platform Users acknowledge, undertake and agree to the mentioned in this AML Policy terms regarding their usage of the Platform, Website:
4.4.1. The User will comply (throughout the time as a Cryptoart User) with all relevant statutes pertaining to Money Laundering and proceeds from criminal activities;
4.4.2. The User agrees to lend full cooperation to the Company with respect to Anti-Money Laundering efforts. This involves providing information/Personal Data that Company requests regarding the User’s business details, User Account usage, financial transactions etc, and to help Company perform its duties as dictated by applicable laws regardless of jurisdiction;
4.4.3. Company reserves the right to delay or stop any virtual asset transfer if there is reason to believe that completing such a transaction may result in the violation of any applicable law or is contrary to acceptable practices (and in other cases, which are prescribed in Terms);
4.4.4. Company reserves the right to suspend or terminate any Personal Account or freeze, or (in worse cases) to return the virtual assets to the User there is reason to believe that the Personal Account is being used for activities that are deemed unlawful (including Prohibited Activities as is prescribed in the Section 12 of the Terms) or fraudulent [we will undertake all possible efforts to notify You prior to making such decision];
4.5. Activities that Company considers possible indications of Money Laundering include:
4.5.1. The User showing unusual apprehension or reservations about Company’s AML policies and other related policies;
4.5.2. The User is interested in conducting transactions which are contrary to good business sense or are inconsistent with the User’s occupation / business;
4.5.3. The User failing to provide legitimate sources for virtual assets;
4.5.4. The User providing false information regarding the source of their virtual assets;
4.5.5. The User having a history of being the subject of news that is indicative of civil or criminal violations;
4.5.6. The User seems to be acting as a ‘front man’ for an unrevealed personality or business, and does not satisfactorily respond to requests for identifying this personality or business;
4.5.7. The User is not able to easily describe the nature of his/her industry;
4.5.8. The User frequently makes large transactions;
4.5.9. The User’s previously usually inactive Personal Account/s starts receiving a surge of activity;
The above list is by no means an exhaustive list. We monitor our Users activity in light of several other red flags and takes appropriate measures to prevent money laundering.
4.6. The Company shall also apply all reasonable skill to mitigate money risks during hiring of the new employees / contractors and to train current employs to prevent money laundering.