Betatransfer company (the "Company") implements the AML and KYC Policy (the "Policy"). The goal is to prevent illegal activities in the financial sphere and to promote compliance with the norms of international agreements adopted in recent years. The Policy implementation goes through a procedure designed to identify the Client.
The AML provision and KYC policies are posted on the pages of this resource and are contained in other agreements with the Client. They take effect with the adoption of the General Agreement.
- Terminology is used when explaining the Policy.
- The Policy has the following terms:
The Policy is a set of measures aimed at preventing the legalization of income obtained illegally (through participation in criminal activities, shadow economy) to prevent or at least reduce the possible risks that the Company will become involved in this type of activity. Globally, the Policy is a powerful interstate mechanism. It is not only preventing the operation of financial "laundries" but also increasing barriers that will prevent the support of terrorists and the creation of weapons capable of mass harm to the population.
KYC is a procedure requiring financial institutions to find out who their customers are. Legally compliant institutions, acting solely within the legal framework, are instructed not to conduct transactions unless the persons involved are identified.
CIP is a program administered under the auspices of the U.S. Department of Justice. The terms of the CIP require the financial companies to identify the person interested in cooperating before offering their services.
A client is an individual or entity who intends to receive, uses, has used, has previously used, or is involved in any way with the Company's services as a family member, a beneficial owner (ultimate beneficiary), employee, the officer of the Client's company, etc.
Prohibited conduct is unlawful that shows signs of acts in the financial sphere that the legislation recognizes as illegal.
Fraud is deception with selfish purposes and abuse of trust which causes damage to other persons and the Company.
Corruption is the actions of an employee or official manifesting in unlawful offers, extortion, and various forms of pressure on another party to obtain certain privileges or access to something of value.
Money laundering is carrying out financial transactions with money, or property that has an illegal origin with the purpose to hide the identity of the owner, source, or recipient of the money to make them look lawful.
Collusion is a secret agreement to gain an advantage by exerting undue influence and infringing upon the rights and interests of third parties, including the Company.
Terrorism Financing is the support, in one way or another, that facilitates terrorist activity in various forms.
Criminal behavior is knowingly unlawful behavior that poses a threat to society.
An Authorized Fraud Control Officer (hereinafter referred to as the "Authorized Person") is a person with the authority to monitor and prevent fraud and to conduct investigations, if necessary, to detect Prohibited Conduct. The Authorized Person is directly responsible for ensuring that actions against persons suspected of fraudulent, unlawful conduct are properly enforced.
- The terms cited are also used in third-party links on the Betatransfer website.
- The meaning of terms not cited in the Policy is disclosed in the General Agreement.
- The Policy is implemented by the Company and its representatives.
- When stating the Policy, the Company may use references to its services and other resources in which its intellectual property is invested.
2. LEGAL BASIS
2.1. The legal basis for the Policy is the regulations that have been enacted by the UK and FATF recommendations, including:
2.1.1. The UK Money Laundering and Terrorist Financing Prevention Act. The Act was based on Directives 2005/60/EC and 2006/70/EC, which were adopted by the European Union. The requirements of the directives have been reviewed and adapted to fit the national legislation, supplemented by provisions adapted to the particularities of national law. The law regulates how to prevent attempts to legalize funds acquired in circumvention of applicable law to finance terrorist activities. It is defined the subjects of the law and what duties, rights, and responsibilities the subjects have.
2.1.2. "Regulatory Rules for Customer Due Diligence" approved by the Financial and Capital Market Commission of Great Britain in 2008 under No. 125. They were adopted to apply the above-mentioned law. The Rules define the cases when financial institutions are supposed to take measures to obtain additional information about their clients. It is established in what order and with what minimum requirements such procedures are to be carried out. The categories of risk that arise when funds obtained by illegal means are legalized, and terrorism is financially supported are highlighted. The risk attributes for each of the categories, the special measures to obtain a better understanding of the customers, and the procedures to apply enhanced supervision, which is also to be applied to the customers' transactions, are specified.
2.1.3. Directive (EU) 2015/849. It was adopted in 2015 by the European Parliament and the Council of Europe to prevent European financial institutions and the financial system from being used by money launderers and terrorist financiers.
2.1.4. The 1999 International Convention for the Suppression of the Financing of Terrorism.
2.1.5. The 40 Recommendations of the FATF.
2.1.6. Other international instruments and agreements set forth regulatory measures aimed at preventing money laundering and the financial support of terrorists.
2.2. A Client who has accepted and follows this Policy is deemed to have agreed to comply with the aforementioned regulations.
3. KYC PROCEDURE
3.1. This procedure is designed to apply practically what is recommended by the FATF: the person who intends to carry out a financial transaction is obliged to prove the identity.
3.2. KYC is supposed to establish and verify the Client's identity. Information obtained about the Customer allows the Company to verify that the person who has requested its services resides at the given address, is not under trial for committing a crime, and is not involved in any way in activities that raise doubts about the funds' origin legality the person intends to dispose of.
3.3. To identify the Client, a CIP procedure may be carried out. It provides that the following data will be checked:
3.3.1. For the Client's company:
- registration number (through the register in which it is customary for legal persons in the country to be registered);
- name;
- the registered and registered office of the Client's company; the name; the legal and physical address at which the Client's activity is carried out;
- list of authorized representatives;
- structure;
- information relating to counterparties, intended transactions, and contracts;
- information on the owners and ultimate beneficiaries (UBO). To assess the risks of money laundering by the Client, the Company checks how they pass the KYC/AML procedures.
3.3.2. As for physical persons - employees of the Client's company:
- surname, first name, patronymic;
- date, place of birth;
- residence address;
- Taxpayer Identification Number (TIN).
3.4. The Client provides the Company with the following list of documents designed to confirm the accuracy of information about himself:
- Passport (internal, foreign);
- Proof of address of residence, registration;
- Telephone bills;
- Bank statements;
- Copies of receipts for utility bills, etc.
It will allow the Client to pass the identification procedure successfully.
3.5. The Company has the right to request additional documents if it considers it necessary to identify the Client.
4. CLIENT IDENTIFICATION
4.1. The Company has the right to request identification information if it suspects that the Client has engaged in Prohibited behavior. It prevents money laundering, financial support of terrorists, and other illegal activities.
4.2. The Company conducts Clients verification, reasonably suspected of engaging in activities not permitted by law.
4.3. The Company may request additional confirmations for identification if there are suspicions that the Client's activities are illegal.
4.4. The Company shall have the right, without sending a warning in advance, to block an account if the activities of a person associated with it come under suspicion. In this case, the account holder shall be obliged to be verified according to the KYC procedure.
5. USE AND PROCESSING OF PERSONAL INFORMATION
5.1. The Company shall use the Client's personal information strictly according to its Policies.
6. TRANSACTION TRACKING
6.1. If it is suspected that the Client is carrying out fraud or other actions with signs of illegality, the Company will monitor all of its transactions. The Client will be required to verify as prescribed by the KYC procedure. If the Client refused or ignored the Company's request, it will mean that the Company has the right to block the Client's account until the conflict situation is resolved.
7. CHANGES AND AMENDMENTS
7.1. The provisions of this Policy shall be changed, amended, and supplemented at the Company's discretion. The Clients shall keep track of the relevant notifications and check the amendments they made.
7.2. If the Clients refuse to accept the Policy because it has been amended, they lose the right to receive the Company's services. If the Client continues to use the services and products of the Company, it is acknowledged that he has automatically agreed to abide by the Policy as amended.
8. COUNTERACTION TO FRAUD
8.1. The Company's General Agreement considers fraud prevention to be an integral part of its Policies. The Company strives to prevent fraud and other unlawful actions, unlawful deeds that impede its activity and harm the sphere of financial circulation, economy, and political stability as a whole.
8.2. The Company carries out activity, strictly observing business, ethical, and legal standards. It gives Clients and partners of the Company the right to expect that it will protect their interests without exposing them to dangers arising owing to actions of the illegal character from whom they would come.
8.3. The policy is fully compliant with the norms of international law and UK legislation.
9. FRAUD INVESTIGATION
9.1. The Company has the right to conduct its investigation if it knows a person suspected of being directly or indirectly involved in terrorism, financing, money laundering, or fraud. The investigation procedure shall be allowed to use methods and means provided by the legislation norms, the General Agreement including its integral parts (Annexes).
9.2. The Authorized Person is obliged to detect and investigate activities with signs of illegality. He takes necessary measures to protect the interests of the Company, the Customers, and the partners and to prevent illegal activities.
9.3. The Company has the right to involve external organizations to collect evidence of illegal activity and to pass it to competent authorities.
9.4. The responsibility of the Authorized Person shall extend to the following:
- 9.4.1. To collect, and store information related to the suspected persons, including data related to the Customer, transactions, and transactions.
- 9.4.2. To inform the Company management, competent authorities, and third parties about the progress, results of the investigation, and suspicions, if necessary - to provide them with information on the investigation.
- 9.4.3. Open, conduct, close investigations, and report any investigation into Prohibited Conduct to the extent of his competence. It does not require prior notice to the suspect, obtaining the suspect's consent, or accepting intervention by the suspect person or organization. Investigations are conducted with strict objectivity and confidentiality.
9.5. The Company has the right to block the account of the Client, not to give him access to all funds until all circumstances of investigation are not clarified. Such measures are taken to ensure promptness and to carry out the investigation procedure to the necessary extent.
By adhering to the General Agreement, the Customer agrees to cooperate with the Authorized Person. It assumes the obligation to provide the requested information and documents promptly, in due volume.
9.6. The Company undertakes to observe strict confidentiality concerning the documentation and materials relevant to the investigation process of the Prohibited activity. The confidentiality regime is maintained so that the interests of the persons under investigation, third parties, and the investigation process are not compromised.
9.7. The authorized person shall be obliged to provide confidential information to competent authorities, persons, and organizations if they independently conduct an investigation or provide assistance to other structures having the necessary competence.
10. RESPONSIBILITIES OF THE PARTIES
10.1. The Authorized Person shall be responsible to monitor, investigate, and prevent actions with attributes of Prohibited behavior.
10.2. The Company shall have the right to identify the Client's identity, transactions to prove that Prohibited Conduct has taken place, and acts with indications of unlawfulness have been committed. It is consistent with KYC policy.
10.3. The Company's responsibility extends to the following:
- 10.3.1. To take appropriate action against persons who have committed the crime or persons suspected of committing the offense.
- 10.3.2. To ensure that controls are appropriately effective to prevent unlawful acts.
- 10.3.3. To conduct prompt investigations if Prohibited Conduct and Unlawful Acts are discovered.
- 10.3.4. To report suspicious activity and its perpetrators to state authorities and competent organizations.
- 10.3.5. To ensure that the Authorized Person reports any suspicious incidents relevant to unlawful acts.
11. CLIENT APPLICATION
11.1. The Client of the Company's service is guaranteed to refrain from the actions qualified as Illegal conduct. The User agrees to inspections under the investigation, which are carried out according to the Policy. The User agrees to cooperate promptly and to the required extent with the Authorized Person who carries out the investigations.
12. CHANGES AND ADDITIONS
12.1. By accepting the terms of the Policy, which may be amended or supplemented at the discretion of the Company, the Client accepts responsibility to follow the relevant notices provided by the Company to verify that the terms of cooperation are up to date (See clause 7.1).
12.2. The refusal to accept changes in the Policy implies that the Client no longer intends to request the Company's services. Upon further use of the services of the Company, it is acknowledged that the Client has automatically agreed to comply with the Policy with the amendments made to it (See clause 7.2).
If you have information about suspicious persons and activities related to the Company's AML and KYC Policy, please inform our support service: support@betatransfer.io.