1.1. These rules of procedure for prevention of money laundering and terrorist financing, and compliance with international sanctions (hereinafter Rules) laydown requirements for screening the Clients (as defined in section 2.3) and Transactions (as defined in section 2.7) in order to prevent entering into deals involving suspected Money Laundering and Terrorist Financing, and to ensure identification and reporting of such.
1.2. The obligation to observe the Rules rests with Management Board members and employees of the Provider of service, including temporary staff, agents of the Provider of service who initiate or establish Business Relationship (as defined in section 2.6) (hereinafter all together called the Representative). Every Representative must confirm awareness of the Rules with the signature.
1.3. The Rules are primarily based on the regulations of Money Laundering and Terrorist Financing Prevention Act (hereinafter the Act) and DIRECTIVE (EU) 2018/343 (hereinafter 5TH AML Directive).
2.1. Money Laundering - is a set of activities with the property derived from criminal activity
or property obtained instead of such property with the purpose to:
i. conceal or disguise the true nature, source, location, disposition, movement, right of
ownership or other rights related to such property;
ii. convert, transfer, acquire, possess or use such property for the purpose of concealing or
disguising the illicit origin of property or of assisting a person who is involved in criminal
activity to evade the legal consequences of his or her action;
iii. participation in, association to commit, attempts to commit and aiding, abetting,
facilitating and counselling the commission of any of the actions referred to subsections 2.1.i
and 2.1.ii.
2.2. Terrorist Financing - the provision or collection of funds, by any means, directly or indirectly, with the intention that they be used or in the knowledge that they are to be used, in full or in part, in order to carry out any of the offences within the meaning of Articles 1 to 4 of Council Framework Decision 2002/475/JHA.
2.3. International Sanctions - list of non-military measures decided by the European Union, the United Nations, another international organization aimed to maintain or restore peace, prevent conflicts and restore international security, supportand reinforce democracy, follow the rule of law, human rights and international law and achieve other objectives of the common foreign and security policy of the European Union.
2.4. Compliance Officer or CO - representative appointed by the Management Board responsible for the effectiveness of the Rules, conducting compliance over the adherence to the Rules and serving as contact person of the FIU.
3.1 The Service Provider offers software integration for merchants with payment providers.
3.2 The Service Provider is not a subject of any license.
4.1 The MB shall appoint a CO whose principal tasks are to:
4.1.1 monitor the compliance of the Rules with the relevant laws and compliance of the activity of the Representatives with the procedures established by the Rules;
4.1.2 compile and keep updated the data regarding countries with low tax risk, high and low risk of Money Laundering and Terrorist Financing and economical activities with great exposure to Money Laundering and Terrorist Financing;
4.1.3 carry out training, instruct and update the Representatives on matters pertaining to procedures for prevention of Money Laundering and Terrorist Financing;
4.1.4 report to the MB once a year (or more frequently, if necessary) on compliance with the Rules, and on Transactions with a suspicion of Money Laundering or Terrorist Financing;
4.1.5 collect, process and analyze the data received from the Representatives or Clients concerning suspicious and unusual activities;
4.1.6 collaborate with and report to the FIU on events of suspected Money Laundering or Terrorist Financing, and respond to enquiries of the Fill;
4.1.7 make proposals on remedying any deficiencies identified in the course of checks.
4.2 The CO must meet all the requirements, prescribed by the Act, and appointment of the CO shall be coordinated with the Fill. If, as a result of a background check carried out by the Fill, it becomes evident that the CO's credibility is under suspicion due to their previous acts or omissions, the Provider of service may extraordinarily terminate the CO's employment contract due to the loss of credibility.
4.3 Tasks of the CO can be performed by a department, therefore provisions of section 4.2 will apply accordingly
5.1 The Service Provider shall determine and take due diligence (hereinafter DD) measures using results of conducted risk assessment (see Section 11), and provisions of national risk assessment, published on official channels of the European Banking Authority, Europol and according to the 4TH AML Directive.
5.2 The Representatives shall pay special attention to the activities of Clients participating in a Transaction and to circumstances that refer to Money Laundering or Terrorist Financing, including to complex, high-value or unusual Transactions which do not have any reasonable economic purpose.
5.3 Depending on the level of the risk of the Client and/or Transaction and depending on the fact whether the Business Relationship is an existing one or it is about to be established, the Provider of service shall apply enhanced DD measures The Provider of service shall also apply continuous DD measures to ensure ongoing monitoring of Business Relationships.
5.4 DD measures shall include the following procedures:
i. Identifying the Client and verifying its identity using reliable, independent sources, documents or data, including e-identifying;
ii. Identifying and verifying of the representative of the Client and the right of representation;
iii. Identifying the Client's Beneficial Owner;
iv. Assessing and, as appropriate, obtaining information on the purpose of the Business Relationship and the Transaction;
v. Conducting ongoing DD on the Client's business to ensure the Transactions being carried out are consistent with the Provider of service's knowledge of the Client and its source of funds;
vi. Obtaining information whether the Client is a PEP or PEP's family member or PEP's close associate.
5.5 The Provider of service shall establish the source of wealth of the Client, where appropriate.
6.1 Upon implementing DD measures the following person shall be identified:
i. Client - a natural or legal person;
ii. Representative of the Client - an individual who is authorized to act on behalf of the Client;
iii. Beneficial Owner of the Client;
iv. PEP - if the PEP is the Client or a person connected with the Client (see Section 2.10).
6.2 Upon establishing the relationship with the Client and when carrying out a Transaction, the Provider of service shall identify and verify the Client while being present at the same place as the Client or by using information technology means.
6.3 For identification of a Client and verification of the identity of a Client by using information technology means, the Provider of service shall use:
6.3.1 a document issued by a Member State of the EU for the purpose of digital identification;
6.3.2 another electronic identification system within the meaning of the REGULATION (EU) 910/20144 If the Client is a foreign national, the identity document issued by the competent authority of the foreign country is also used simultaneously.