1. Introduction
1.1. This AML/KYC Policy (hereinafter referred to as the “Policy”) sets forth the rules, principles and procedures that UAB, its subsidiaries and affiliated parties (hereinafter referred to as the “Company”) follows for detecting and preventing any financial crime, including money laundering and the funding of terrorism, in accordance with all relevant and mandatory applicable laws.
1.2. This Policy is an integral part of the Company’s Terms of Services – i.e. the terms and conditions, which are at all times available on the Company’s Website. The Policy specifies the main and general principles and rules, applicable for the purposes of detecting and preventing any financial crime, including money laundering and the funding of terrorism, in accordance with all relevant and mandatory applicable laws.
1.3. The Company is strongly committed to preventing the use of its Services for money laundering or any other activity which facilitates money laundering, the funding of terrorist and/or any other criminal activities, or any other illicit purposes.
1.4. The Company has its own implemented internal policies and internal control procedures (hereinafter referred to as the “Procedures”), developed and implemented in accordance with the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing, 19 June 1997, No VIII-275, as well as other applicable law in force and by-laws adopted on the basis of this Law and other applicable, relevant and mandatory legal requirements (hereinafter altogether referred to as the “AML/CFT Laws”). The Procedures are administered by the Company’s Director, the AML Officer (MLRO), and his team, together referred to as the Compliance Department in strict accordance with the AML/CFT Laws.
1.5. The Company’s Compliance Department is tasked with monitoring compliance with the relevant AML/KYC regulations and administrating the Procedures within the Company in strict accordance with applicable laws.
2. The Company’s Services and AML/KYC Principles
2.1. In accordance with the Lithuanian law, as well as the AML/CFT Laws, the Company provides licensed virtual asset services, permitted in accordance with the AML/CFT Laws, as well as specified in the Terms of Services.
2.2. The Company administers and applies its AML/KYC principles, rules, measures and procedures in strict accordance with the AML/CFT Laws for the purposes of detecting and preventing any financial crime, including money laundering and the funding of terrorism and any other illegal activity.
3. The Company’s Protection Measures
3.1. The Company has its own developed and implemented protection measures and procedures, which protect the Company from being involved and the Company’s Users from carrying out any suspicious financial activity, business and transaction(s). For these purposes, the Company:
1. Performs AML/KYC procedures on Users, i.e. natural and legal persons and their representatives;
2. Performs an enterprise-wide risk assessment in order to determine the Company’s risk profile;
3. Implements internal procedures, policies, and controls aimed at mitigating risks of money laundering, terrorist financing and/or other financial crimes;
4. Conducts AML/CFT staff (employee) training;
5. Conducts a periodic AML/CFT audits (including internal and external);
6. Maintains, keep and updates User data records, documents and other information;
7. Reports suspicious transactions to the relevant financial authority in accordance with AML/CFT Laws (i.e. to the Financial Crime Investigation Service - FCIS);
8. Takes all other necessary and developed steps and measures to detect and prevent any financial crime, including money laundering and terrorism financing, in accordance with AML/CFT Laws.
4. AML/KYC Measures
4.1. As part of the User’s Due Diligence, the Company’s Compliance Department:
1. Identifies the User and/or its representative(s) and verifies provided data, documents and other information using reliable and independent sources, including but not limited to using the means of e-identification;
2. Investigates Users, whose business, activities and/or documents have been identified as risky and/or suspicious;
3. Requests additional, new and/or updated data, documents and other information from Users when deemed necessary by the Company at any time;
4. Confirms the authenticity of data, documents and information provided by Users;
5. Verifies Users’ transactions on an on-going basis. even if User(s) have been identified in the past.
6. Takes all other necessary and/or implemented steps and measures for the purposes of detecting and preventing any financial crime, including money laundering and the funding of terrorism, in strict accordance with relevant and mandatory applicable laws.
4.2. The Company has the right to request additional, new and/or updated data, documents and/or information from any User at any time, even if such User has been identified before in accordance with applicable laws.
4.3. The Company may stop and refuse providing Services to Users and/or report such Users to the FCIS, if they do not provide the Company with requested data, documents and/or information in accordance with applicable laws.
5. The Company’s Verification Levels and Requested Data, Documents and Other Information
5.1. The Company implements and applies different AML/KYC Verification Levels to detect and prevent any financial crime, including money laundering and the funding of terrorism, in accordance with AML/CFT Laws.
5.2. The Company’s Verification Level, conducted on each User, shall directly influence the amount of activities the User can perform on the Company’s website. For the purposes of the Company’s Verification Levels, the following terms shall have the following meaning:
1. The Valid ID shall mean:
a) identity document of the Republic of Lithuania or a foreign state or
b) residence permit in the Republic of Lithuania or
c) driving licence issued in a state of the European Economic Area.
2. The Proof of Residence shall mean a bank statement, utility bill, insurance, credit card statement and/or tax statement issued within the last 3 (three) months.
5.3. In accordance with the applicable AML/CFT Laws, as well as the Company’s internal compliance procedure rules, when making a transaction or a series of linked transactions and/or at any time requested by the Company, a User shall provide a Proof of Funds, which shall mean any document that verified the lawful source of User’s funds, such as copies of company’s accounts, agreements, bank statements and so on.
5.4. For the purposes of the Company’s Verification Levels and/or at any time the Company may also send a User an AML/KYC Questionnaire, which shall mean a series of questions and/or a video-call with the Company’s Compliance Department in order to detect and identify the intent and the source of funds, that are subject to User’s business, transactions and activities, as well as to rule out any illicit purpose.
6. Risk Assessment Principles and Risk Factors
6.1. When carrying out risk assessment, as well as initial and/or ongoing Procedures, the Company takes into account the risk factors, including the User’s and the geographical risk characteristics.
6.2. When carrying out risk assessment, the Company takes into account the untruthful, false and/or incomplete data, information, documents and facts, including but not limited to discrepancies in ID documents provided, fictitious person, stolen identity, pervious financial crime record, terrorist record, wanted person and so on.
6.3. When carrying out risk assessment, the Company also pays attention to the performance of suspicious, high-volume and unusual transaction and/or series of linked transactions by its User(s).
6.4. When carrying out risk assessment, the Company, in accordance with its internal procedure rules, may apply simplified or enhanced AML/KYC measures in accordance with the AML/CFT Laws and based on the results (outcomes) of the risk assessment.
6.5. The Company has its own developed and implemented list of countries, with whom it does not work with. The list of countries is based on the list of countries identified by the EU as high risk, as well as the list of countries identified as being at risk by the Financial Action Task Force (FATF). The lists created by EU and FATF are essential for assessing the risk of Users, transactions and/or business relationships.
7. The Company’s Monitoring Requirements
7.1. The Company carries out ongoing monitoring of activities to prevent money laundering, terrorism financing, and other illegal activities. As part of the monitoring activities, the Company:
1. Checks transactions of its Users;
2. When it is necessary, requests documents to update and/or confirm data, documents and information, obtained when applying AML/KYC measures;
3. When it is necessary, identifies the lawfulness of the User’s source of funds;
4. Pays additional and special attention to suspicious, high-volume and unusual transaction(s) or series of linked transactions;
5. Pays additional and special attention to transactions made by Users from countries with a risk of money laundering, terrorism financing and any other illegal activities, higher than usual.
6. Applies other monitoring steps and requirements in strict accordance with the AML/CFT Laws.
8. Suspicious Business, Activity and Transaction Detection and Reporting Obligation
8.1. In an event that the Company reasonably suspects suspicious transaction(s), it shall conduct additional questioning regarding the User’s activity by the means of the AML/KYC Questionnaire, and request any additional data, documents and/or information, that may be required for these purposes and in accordance with applicable AML/CFT Laws, as well as FCIS requirements and guidelines.
8.2. In case the User has not provided any data, document, information and explanation about the suspicious transaction(s), a complete set of requested documents, and/or has presented suspicious or unusual data, documents and other information that the Company cannot verify, the Company will reasonably suspect that the User’s business, activities and transaction(s) may be connected to money laundering, terrorism financing or other illegal activity, business and transaction(s). In such cases the Company files a report to the FCIS, reporting the suspicious activity, business and transaction(s) and reserves the right to suspend the User’s account, suspected of such activities, business and transaction(s) at its sole discretion.
9. Contacting the Company’s Compliance Department
9.1. If you have any questions about this AML/KYC Policy, procedures and/or any other AML/KYC-related matters or any complaints about Company’s Services, you may contact us at compliance@swapzy.io.
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https://swapzy.io/ is operated by UAB "Destigama" (Reg. No. 306360741), Žalgirio g. 88-101, Vilnius, Lithuania. UAB "Destigama" registered in Lithuania as virtual currency exchange operator and custodian virtual currency wallet operator.
