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KNOW YOUR CUSTOMER & ANTI-MONEY LAUNDERING POLICY

Last review date:    30 January 2019

Prepared by:           InshalM

 

POLICY STATEMENT

These are the Anti-Money Laundering (AML) Policy and Procedures adopted by OTC CRYPTO in compliance with The Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR). As used in this AML Policy, "OTC Crypto", "we", "us" or "our" refers to IT Expertise Limited, registered within the England and Wales Companies Registrar under the number 10264146, with its registered address at 71-75 Shelton Street, Covent Garden, London, United Kingdom, WC2H 9JQ. IT Expertise Limited is a data controller under this AML Policy, which sets out the manner in which the company, as data controller, may use your Personal Data. The business will actively prevent and take measures to guard against being used as a medium for money laundering activities and terrorism financing activities and any other activity that facilitates money laundering or the funding of terrorist or criminal activities.

To these ends:

•             The identities of all new and existing clients will be verified to a reasonable level of certainty

•             A risk-based approach will be taken to the monitoring of client Buying & Selling Crypto Currency affairs

•             Any suspicious activity will be reported, and all AML activities recorded

•             InshalM (mlro@otccrypto.co.uk) will act as the Money Laundering Reporting Officer (MLRO) to coordinate the AML policies and procedures of the business.

•             All staff that meet or contact clients and potential clients of this firm are required to acknowledge that the policy and procedures have been read and understood before meeting or contacting clients.

 

ANTI-MONEY LAUNDERING PROCEDURES FOR BUYING & SELLING CRYPTOCURRENCY IN UK

1.         CUSTOMER DUE DILIGENCE

The business has established a Know-Your-Client (KYC) policy to ensure that the identities of all new and existing clients are verified to a reasonable level of certainty. This will include all individual clients, all directors and shareholders with a stake holding of 25% or more of client companies, all partners of client partnerships, and every board member of client charities.

Proof of Identity showing First & last name, Date of Birth, Date of issue & Expiry, and Document number (list of acceptable documents below):

•             Current Valid Passport (Top and Bottom page)

•             Current Valid UK/EU Driving License (Front and Back side)

•             Current valid government issued identity card such as British Resident Permit (Front and Back side)

Electoral ID cards are not accepted

 

Proof of Address showing First & last name, Address, and Date of issue (list of acceptable documents below):

•             Bank, credit card or mortgage statement dated within the previous three calendar months (either hard copy or electronic statements are acceptable)

Statement may be in the joint name of the buyer and his/her partner.

•             Utility (water, gas or electricity), telephone landline, broadband or TV license bill dated within the previous three calendar months (either hard copy or electronic statements are acceptable)

•             Council Tax bill dated within the previous six calendar months (either hard copy or electronic statements are acceptable)

•             HMRC Documentation dated within the previous three calendar months (PAYE Coding Notice / Tax Notification / Self-Assessment / Statement of Accounts / NI contributions bill)

 

Bank Account Verification (list of acceptable documents below):

•             For Personal Bank Account

I.     Bank statement showing Name, Account Number and Sort Code (either hard copy or electronic statements are acceptable)

 

•             For Limited/LTD Business Bank Account

I.            Company Name & Number that can be verified with the company house

II.           Director or Owner listed with the company house

III.          Bank statement showing Name, Account Number and Sort Code (either hard copy or electronic statements are acceptable)

 

•             For Sole Trader Business Bank Account

I.             Business Bank statement dated within the previous three calendar months showing the Business Name they are “Trading as” (either hard copy or electronic statements are acceptable)

               Or

               HMRC Documentation under the Business name dated within the previous three calendar months

 

2.         RISK ASSESSMENT AND ONGOING MONITORING

The business shall take a risk-based approach in monitoring the financial activities of its clients. This will be carried out whilst preparing the accounts or tax returns, or conducting any other business with the client. 

The business will actively not accept high-risk clients that are identified as follows:

•             Clients with businesses that handle large amount of cash (i.e. involving €15,000 euros or more, or the sterling equivalent) or complex unusually large transactions.

•             Clients with larger one-off transactions, or a number of transactions carried out by the same customer within a short space of time.

•             Clients with complex business ownership structures with the potential to conceal underlying beneficiaries.

•             Clients based in or conducting business in or through, a high-risk jurisdiction, or a jurisdiction with known higher levels of corruption, organised crime or drug production/distribution.

•             Situations where the source of funds cannot be easily verified.

•             Unusual patterns of transactions that have no apparent economic or visible lawful purpose.

•             Money sent to or received from areas known to have high levels of criminality or terrorist activity.

The business will conduct ongoing monitoring of business relationships with customers, to ensure that the documents, date or information held evidencing the customer’s identity are kept up to date.

The following are examples of changes in a client’s situation that may be considered suspicious:

•             A sudden increase in business from an existing customer;

•             Uncharacteristic transactions which are not in keeping with the customer’s known activities;

•             Peaks of activity at particular locations or at particular times;

•             Unfamiliar or untypical types of customer or transaction.

Whenever there is cause for suspicion, the client will be asked to identify and verify the source or destination of the transactions, whether they be individuals or company beneficial owners.

No action need be taken if there is no cause for suspicion.

 

3.         INTERNAL CONTROLS AND COMMUNICATION

Internal controls and Communication are not applicable as the business only has one employee (InshalM) involved in client compliance and they are also the MLRO(mlro@otccrypto.co.uk). 

 

4.         TRANSACTION MONITORING AND MANAGING COMPLIANCE

The MLRO will regularly monitor the following procedures to ensure they are being carried out in accordance with the AML policies and procedures of the business:

•             client identity verification;

•             reporting suspicious transactions;

•             record keeping.

The MLRO will also monitor any developments in the MLR and the requirements of the MLR supervisory body. Changes will be made to the AML policies and procedures of the business when appropriate to ensure compliance.

 

5.         SUSPICIOUS ACTIVITY REPORTING

A Suspicious Activity Report (SAR) will be made to the National Crime Agency (NCA) as soon as the knowledge or suspicion that criminal proceeds exist arises.

The MLRO will be responsible for deciding whether or not the suspicion of illegal activity is great enough to justify the submission of a SAR.

Further details on NCA and SARS can be found at http://www.nationalcrimeagency.gov.uk

 

6.         RECORD-KEEPING

Records of all identity checks will be maintained for up to 5 years after the termination of the business relationship or 5 years from the date when the transaction was completed. The business will ensure that all documents, data or information held in evidence of customer identity are kept up to date.

Copies of any SAR, together with any supporting documentation filed will be maintained for 5 years from the date of tiling the SAR.

All records will be handled in confidence, stored securely, and will be capable of being retrieved without undue delay.

 

7.         TRAINING

The training of staff is not applicable as the business only has one employee involved in ML compliance who is also the MLRO.

All affected employees are provided with training that explains The Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017, The Proceeds of Crime Act 2002 and section 18 and 21A Terrorism Act 2000, and they these affect the firm, its clients and its employees.

All affected employees are trained on their responsibilities in relation to money laundering legislation, and are aware of how to identify and deal with transactions that may involve money laundering.

 

8.         SANCTION MONITORING

OTC CRYPTO is prohibited from transacting with individuals, companies and countries that are on prescribed sanctions lists. OTC CRYPTO will therefore screen against United Nations, European Union, UK Treasury and US Office of Foreign Assets Control (OFAC) sanctions lists.

 

9.         PEPs AND ENHANCED DUE DILLIGENCE CHECKS

“Politically exposed persons” means natural persons ‘...who is or has, at any time in the preceding year been entrusted with a prominent public function by a state other than the United Kingdom, a community institution or an international body’ or a family member or known close associate of such a person.’

Individuals who have, or have had, a high political profile, or hold, or have held, public office, can pose a higher money laundering risk to OTC CRYPTO as their position makes them vulnerable to corruption. This risk also extends to members of their immediate families and to known close associates. PEP status itself does not, of course, incriminate individuals or entities. It may, however, put a customer into a higher risk category.

An individual is not considered to be a PEP, after he has left office for one year

Enhanced Due Diligence Checks have been specifically designed for dealing with Politically Exposed Persons, high-risk or high-net worth customers and large transactions

They take into consideration all relevant adverse information. Whether an official document or something posted publicly on the Internet, any information that pertains to money laundering is thoroughly considered.

The following are examples

When user is Buying Cryptocurrency:

•             Recorded Video Verification Using Skype or WhatsApp

•             Source of Funds: Bank statement dated within the previous three calendar months showing where the funds originated from (either hard copy or electronic statements are acceptable)

 

When user is Selling Cryptocurrency: 

•             Documents/Screenshots proving Source of their Crypto currency.

 

10.         CONCTACT US

 

Please contact us with questions, comments, or concerns regarding our AML/KYC Policy at mlro@otccrypto.co.uk