1. General provisions KYC and AML
1.1. These rules of KYC (know your customer) and AML (anti money laundering) procedures establish internal security measures to conduct due diligence and identify suspicious and unusual transactions in all areas of RubiconFX activity.
1.2. All relevant company employees and their clients should be aware of and strictly comply with the requirements set forth in the Law on the Prevention of Money Laundering and the Financing of Terrorism, guidelines regarding the characteristics of suspicious transactions possibly related to money laundering and the financing of terrorism, as well as other guidelines on compliance with the provisions prevention of money laundering and terrorist financing. The law (MLTFPA) regarding the company's activities, as well as these Rules of Procedure, and to be aware of any changes in legislation and other legal acts published on the website of the Financial Intelligence Unit (PFR) at https://www2.politsei.ee/ en / organisatsioon / rahapesu-andmeburoo. /.
2.1. What is money laundering?
2.1.1. Conversion or transfer of property obtained as a result of criminal activity, or property obtained in place of such property, knowing that such property is the result of criminal activity or an act of participation in such activity, in order to conceal or conceal the illegal origin of the property or to assist any person involved to commit such activities, to avoid the legal consequences of the actions of this person.
2.1.2. The acquisition, possession or use of property obtained as a result of criminal activity, or property obtained instead of such property, knowing, at the time of receipt, that such property was obtained as a result of criminal activity or an act of participation in it.
2.1.3. Concealment or disguise of the true nature, source, location, location, movement, rights in relation to or ownership of property derived from criminal activity, or property obtained in lieu of such property, knowing that such property is derived from criminal activity or from an act of participation in such an activity.
2.2. What is the financing of terrorism? Allocation or collection of funds for planning or committing acts that are considered acts of terrorism or for financing the operations of terrorist organizations, or on condition that the funds allocated or collected will be used for the aforementioned purposes.
2.3. What is a country of risk? Countries of interest or regions where there is a high risk of money laundering or terrorism. Country of risk is a country or jurisdiction that:
2.3.1. According to reliable sources, such as peer assessments, detailed appraisal reports or published follow-up reports, effective anti-money laundering and terrorist financing (AML / CFT) systems were not established.
2.3.2. According to reliable sources, it has significant levels of corruption or other criminal activity.
2.3.3. Subject to sanctions, embargoes or similar measures taken, for example, by the European Union or the United Nations.
2.3.4. Provides funding or support for terrorist activities or designated terrorist organizations operating in their country, as defined by the European Union or the United Nations.
2.4. What is a high risk country?
The country referred to in the delegated act adopted on the basis of Article 9 (2) of Directive (EU) 2015/849 of the European Parliament and of the Council on preventing the use of the financial system for the purposes of money laundering or financing of terrorism. The current list is available here: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2016.254.01.0001.01.ENG
2.5. Who is a politically significant person (PCP)? An individual who performs or has performed outstanding public functions, as well as their family members and close partners. Persons who, at the date of the transaction, did not perform any outstanding public functions for at least one year, as well as their family members or close partners, are not considered politically significant persons.
2.3.1. For the purposes of these Rules of Procedure, persons performing outstanding public functions are the following:
a) the state, the head of government, the minister and the deputy or assistant minister;
b) a member of parliament or a similar legislative body, a member of the governing body of a political party, a member of the supreme court, a member of the auditing court or the board of the central bank;
c) ambassador, chargé d'affaires, or high-ranking officer in the armed forces;
d) a member of the administrative, managerial or supervisory body of a state enterprise;
(e) A director, deputy director or member of the board or similar function of an international organization, with the exception of officials of middle age or earlier.
2.3.2. The following persons are considered members of the family of a person performing outstanding public functions:
a) a spouse or person deemed to be of equal value to the spouse, a person who has been politically affected, or a local person who has been politically affected;
b) a child and his spouse or person considered equivalent to the spouse of a politically exposed person or a local politically exposed person;
c) the parent of a politically significant person or a local politically significant person.
2.3.3. The following persons are considered close partners of a person performing important public functions:
a) an individual who is known to be the beneficial owner or has joint beneficial ownership of the legal entity or legal agreement, or any other close business relationship, with a politically significant person or local a politically significant person;
b) an individual who has sole beneficial ownership of a legal entity or legal agreement that is known to have been created for the actual benefit of a politically significant person or a local politically significant person.
2.3.4. The company checks a suspicious customer to see if it is a PEP: using the full name of the potential customer. In case there are several similar results, use a different identifier (date of birth, etc.) to make sure that the result found matches the potential client. For example, an appropriate company employee can check the PEP status of a potential customer using the NameScan database available at https://namescan.io/FreePEPCheck.aspx
2.4. What is MLTFPA?
A legal act that regulates the activities of credit and financial institutions, other enterprises and institutions specified in the Law on the Prevention of Money Laundering and the Financing of Terrorism, and the Financial Intelligence Unit, which provide for the prevention of money laundering and the financing of terrorism.
2.5. What is a customer? An individual or legal entity that uses or uses one or more of the services offered by our company.
3.1. The company identifies all customers who want to use the services of our company, based on an identity document, and must record identification data and transaction data, regardless of whether the customer is a regular customer or not.
3.2. Person must be identified:
a) until the establishment of a business relationship;
b) in case of suspicious behavior of the client;
c) when checking information or in case of doubts about the sufficiency or reliability of documents or data collected in advance when updating relevant data.
3.3. If the customer is an individual, he or she must provide:
a) your full name;
b) their personal identification code or, if any, the date and place of birth and place of residence;
c) if the client actually represents another private person who is a real client (by proxy, or in the case of inheritance, or in any other way), information on the identification and verification of the right of presentation and its scope and if the right of representation does not follow the law, the name the document that serves as the basis for the right of representation, the date of issue and the name of the issuer;
d) whether the client is a politically exposed person (PEP), a member of the PEP family or a person who is known to be a close relative of the PEP.
3.4. The following valid documents serve as the basis for identification:
a) identity card;
c) diplomatic passport;
d) an identity card of a citizen of the European Union or another country;
e) a driver’s license if the document contains the name, photo or image of the person, a signature or image of the signature and date of birth or personal identification code of its owner.
3.5. When identifying a client, the company checks the validity of an identity document, makes sure that it corresponds to the information contained in the document, and check the age of this person. In case of doubts about the identity of the person, the relevant employee is obliged to request additional information about the person, as well as request a link to profiles in social networks or other supporting information at the discretion of the company. If the document does not correspond to this person or is invalid, the company may refuse to provide the service to the client. If at the moment the client is already using the services of the company, then at its own discretion, the company has the right to refuse the client to continue to provide the service and suspend any activity until the client provides the requested information.
3.6. The relevant employee of the company verifies the accuracy of customer data, using information obtained from a reliable and independent source. If the identified person has a valid document specified in section 3.4, or an equivalent document, this person is identified, and the person’s identity is verified on the basis of the document or using electronic identification tools and trust services for electronic transactions, as well as the validity of the document from the document or can be identified using electronic identification tools and trust services for electronic transactions.
3.6.1. If identification is difficult for other reasons, the Company may request from the client any other legal document confirming his identity, location, legal income, and so on. The document confirming identification and the legality of income by the client must be no older than 1 month.
3.6.2. The company may request additional information about the client in case of any suspicions regarding the client's identification information or its behavior. Such additional information.
The questioner should be related to increased risks, which, if received, can prove that the risks are in fact explainable.
4.1. The company does not apply the simplified due diligence procedure in its activities.
4.2. The relevant officer must conduct an enhanced legal due diligence (EDD) if there is a higher risk of money laundering or terrorist financing, for example:
a) there are doubts about the accuracy of the submitted data, the authenticity of the documents or the identification of the beneficial owner;
b) the client is a politically significant person (with the exception of a local politically significant person, members of their families or close partners);
c) the customer is located in a third country with a high level of risk, or his place of residence or location or location of the payment service provider of the payee is in a third country with a high level of risk;
d) the client is located in a country of risk or from a territory that is considered a territory with a low tax rate.
4.3. Other factors that relate to higher risk attributable to the customer:
a) when there are unusual factors in connecting a client or when there are unusual transaction schemes without a clear economic or legal purpose;
5.1. Our company is required to keep all records of our clients and the behavior of our clients so that they can always be presented to inspectors who check the registered transactions.
5.2. Customer personal data, customer transactions and other relevant information must be kept for at least 5 years after the termination of the business relationship.
5.3. If the client does not provide all the necessary documents and relevant information, or if, on the basis of the documents submitted, the relevant employee suspects money laundering or terrorist financing, the relevant employee should not make transactions with this client. and immediately inform the compliance officer and record as much of the customer data as possible, which will subsequently help identify the customer. All activities of the client and any financial relationship with him should be stopped until the necessary documents are provided to them and the KYC and AML checks are repeated.
6.1. The company can always contact the client to clarify the information provided or to request additional information that is necessary to identify the client, or to eliminate risks in the case.
7.1. During the monitoring of business, the company must collect enough evidence to reduce the risks in question. For this reason, the Company has the right to request, and the client must provide the following information:
a) The source of wealth or source of financing of the transaction (employment status, position or position in the company, employer, approximate salary, additional source of income, industry type, etc.);
b) the age of the client;
c) the location of the client and its counterparties;
d) history of client operations;
e) type of transaction;
e) any negative information related to the client;
g) Any factors that cause the client a high risk;
h) the relationship between the client and the client’s counterparty; i) Relationship between the client and the client’s place of residence.
j) Other information that helps to understand the client, the activities of the client and his counterparties.
7.2. The company keeps records and records each virtual currency wallet address, which is either used for replenishment or withdrawal from the system. In the event of suspicion of a client’s action, the company, without giving a reason, may request the client to confirm that the virtual currency wallet, credit card or other payment method belongs to him, and not to a third party. The client is obliged to provide this information immediately.
8.1. The company may refuse to register on the client’s board or, if the account is already open, block the account, suspend the financial relationship with the client and inform the compliance officer if the relevant employee of the company finds out that:
a) the customer accesses the service from a high-risk country;
b) the client is under sanctions in the European Union or the USA;
c) it is known that the client is accused of money laundering or terrorist financing;
d) Providing false, suspicious or not timely information counter policies of KYC and AML.
c) And also in other cases, if the client is suspected of fraudulent actions.
9.1. The company has the right not to notify the client that it is being investigated in relation to the AML and KYC policy.