There is a wide-range of legislation and regulations which as a financial services firm, we must comply with. In all cases not specified in this policy, CryptoMerx OÜ follows the guidelines set by the Money-Laundering and Terrorist Financing Prevention Act (passed 26.10.2017).
Estonian Cryptocurrency Exchanges are defined in the Estonian law as Providers of Alternative Means of Payment, licensed as an Estonian Financial Institution by holding a Financial Activity License from the Estonian Financial Intelligence Unit (FIU), which is the Anti-Money Laundering (AML) authority in Estonia with the ability to grant, revoke and supervise financial activity licenses. The AML and KYC requirements of the service providers are subject to are set forth in the Estonian Money-Laundering and Terrorist Financing Act and other legal guidelines given by the Estonian Minister of Finance. Any breach of our procedures relating to the prevention of money-laundering and the combating of terrorist financing will be dealt with severely and may be treated as gross misconduct. No financial sector business can consider itself immune from the possibility of being used to further financial crime and we must carefully consider risks to our business and devise appropriate procedures with due regard to these risks. Such procedures will enable us to comply with the applicable legislative and regulatory requirements. CryptoMerx OÜ complies with the highest standards of legislation of the Republic of Estonia in the field of Anti-money laundering and countering the financing of terrorism politics. In order to establish business relations within the framework of Cryptocurrencies acquiring cooperation, all customers must be verified using AML & KYC procedures.
SIMPLIFIED DUE DILIGENCE
– Obtaining fewer elements of Customer’s identification data, seeking less robust verification of the customer identity.
– Not collecting specific information or carrying out specific measures to understand the purpose and intended nature of the business relationship, inferring the purpose and nature from the type of transactions or business relationship established.
– Verifying the identity of the customer and the beneficial owner after the establishment of the business relationship (e.g. if transaction values rise above a defined monetary threshold).
– Reducing the frequency of customer identification updates in case of business relationship.
– Reducing the degree and extent of on- going monitoring and scrutiny of transactions, based on a reasonable monetary threshold.
ENHANCED DUE DILIGENCE
Risk level of a Customer will be considered higher should one of the following be true:
– The Customer is a person associated with a PEP.
– The Customer is a PEP or a local PEP.
– The Customer is suspected to be or to have been linked with a financial offence or other suspicious activities.
– The Customer is a non-resident individual, whose place of residence or activities is in a country, which is listed in the list of risk countries.
– When suspicion arises regarding the truthfulness of the provided data and/or of authenticity of the identification documents of the Customer or its Beneficial Owners.
– When suspicion arises of a situation with higher risk of Money-Laundering and terrorists financing.
– The Customer is a Cooperate or Institution, using a nominee shareholders or shares in bearer form.
Obtaining and corroborating additional identifying information from a wider variety or more robust sources and using the information to inform the individual customer risk profiling. Carrying out additional searches (e.g. verifiable adverse internet searches) to better inform the individual customer risk profiling. Where appropriate, undertaking further verification procedures on the customer or beneficial owner to better understand the risk that the customer or beneficial owner may be involved in criminal activity. Verifying the source of funds or wealth involved in the transaction or business relationship to be satisfied that they do not constitute the proceeds from crime. Evaluating the information provided with regards to the destination of funds and the reasons for transaction. Seeking and verifying additional information from the customer about the purpose and intended nature of the transaction or the business relationship. Steps to identify customers and check whether they are who they say they are. Request and obtain the following:
– Full Name
– Date of Birth
– Phone Number
– Transaction exceeds 15,000 euro. Customer will have to verify the Source Of Funds (SOF)
– Transaction exceeds 50,000 EUR. Customer will have to verify identity with additional Liveness check or Selfie
– Full name or business name of the legal person
– Identifying all beneficial owners, where applicable, and taking reasonable measures to verify their identity.
– Obtaining information on the purpose and intended nature of the business relationship.
– Registry code or registration number and the date of registration.
– Names of the director, members of the management board or other body replacing the management board, and their authorization in representing the legal person.
– Details of the telecommunications of the legal person
– Detailed description of business processes
– Registry card of the relevant register
Depending on the results of due diligence, the list of documents may be changed by discretion of CryptoMerx OÜ.
Ongoing monitoring on a risk basis means the scrutiny of transactions to determine whether those transactions are consistent with the MVTS provider’s information about the customer and the nature and purpose of the business relationship, wherever appropriate. Monitoring also involves identifying changes to the customer profile (for example, their behavior, use of products and the amount of money involved), and keeping it up to date, which may require the application of enhanced CDD measures. Monitoring transactions is an essential component in identifying transactions that are potentially suspicious. Transactions that do not fit the behavior expected from a customer profile, or that deviate from the usual pattern of transactions, may be potentially suspicious.
CryptoMerx OÜ using the most advanced tools to evaluate of financial transactions on the Internet for suspicion from the point of fraud and offering recommendations for their further processing. All Bank Cards transactions go thru 3D Security and starting from Aug. 2020 working on Pre-Authorization that will only be Cleared after 12-hours. CryptoMerx OÜ is guided by the following standards:
– Establishing and maintaining a risk-based Approach towards assessing and managing the money laundering and terrorist financing risks to the company.- Establishing and maintaining risk-based customer due diligence, identification, verification and know your customer procedures, including enhanced due diligence.
– Establishing and maintaining risk-based systems and procedures to monitor on-going customer activity.
– Procedures for reporting suspicious activity internally and to the relevant law enforcement authorities as appropriate.
– Maintenance of appropriate records for the minimum prescribed periods.
– Training and awareness for all relevant employees.
CryptoMerx OÜ is obliged to report to the Financial Intelligence Unit in the event of suspicion of money laundering or terrorist financing.
CryptoMerx OÜ plans to contract with independent audit service to test the AML/CFT program with a view to establishing the effectiveness of its AML/CFT policies and processes and the quality of its risk management across its operations, departments, branches and subsidiaries, both domestically and, where relevant, abroad.
Responsibility for the consistency and effectiveness of AML/CFT controls is clearly allocated to an individual of sufficient seniority within the MVTS provider to signal the importance of ML/TF risk
management and compliance, and that ML/TF issues are brought to senior management’s attention.
This includes the appointment of a skilled compliance officer at management level.
All Employees are expected to be fully aware of the CryptoMerx OÜ anti-money laundering policies and procedures.
To ensure the continued adherence to CryptoMerx OÜ anti-money laundering policies and procedures, all Employees are required to reconfirm their awareness of the contents of this Compliance Manual by signing the acknowledgement form annually, or more frequently, as required by the Compliance Officer.