AML policy - ChangeCoins

Last updated: May 2020

Changecoins.io CHANGECOINS PAY LTD, in accordance with the regulators' concerns about the possibility of using cryptocurrencies to legalize the proceeds of crime, and recognizing the complete anonymity of cryptocurrency operations contrary to the interests of their customers, adopts this Program in the field of combating money laundering and terrorism financing on the following.

 

Terms and Definitions

- In the AML Policy, unless the text expressly states otherwise, the following terms will have the meanings indicated below:

-"Legalization of crime proceeds"- giving a lawful type of possession,use or disposal of funds or other property obtained as a result of a crime.

- “Service” - changecoins.io

- “Agreement” - the User Agreement, the text of which is available at https://changecoins.io/site/terms

- “User” is a sui iuris individual in accordance with applicable law who has entered into an Agreement with the Service.

- “Obliged entity” – legal entity CHANGECOINS PAY LTD.

- “Compliance officer - management board member who is in charge of implementation of this Act and legislation and guidelines adopted on the basis thereof.

- “Program” - this AML program.

- “Public Officials” - persons holding public positions and persons replacing civil service positions (including heads of state, governments, ministers, heads of departments, heads of central banks, judges of high courts, prosecutors, ambassadors, heads of state corporations and foundations, members of parliament).

- “Terrorism financing” - providing or raising funds or providing financial services with the knowledge that they are intended to finance the organization, preparation and commission of a terrorist act."

All other terms and definitions found in the text of the Program should be interpreted in accordance with the Agreement and current legislation of England and Wales.

The titles of articles of the Program are intended solely for the convenience of using the text of the Program and have no literal legal meaning.

 

2. Program applicability

2.1 The provisions of the Program are mandatory for the Service and Users;

2.2 The Service provides services to Users only on the terms of Users' compliance with the Program.

2.3 The purpose of this Program is, by increasing the trustworthiness and transparency of the business environment, to prevent money laundering and terrorist financing.

 

3. Refusal to cooperate

3.1 General rule

1) The Service disclaims any obligations to the User if the Service becomes aware that the User seeks to use the Service in any way for carrying out illegal activities, including legalization of crime proceeds and terrorism financing.

3.2 Special cases

1) The Service disclaims any obligations to the User if it requires the commission of any actions in favor of the persons:

- suspected or accused of terrorist activity or extremist activity or convicted for these actions;

-  in respect of whom international or regional sanctions are adopted;

- in respect of whom measures are applied or must be applied for freezing (blocking) of money and other property;

-  who are public officials found guilty of violating human rights;

- who are nationals of states that are subject to international sanctions.

 

4. Operation restrictions

4.1 If there is a reason to suspect the User in carrying out illegal activities in accordance with clause 3 of the Program, the Service reserves the right at any time to stop making any actions in favor of such User.

4.2 The Service has the right to suspend the operations of a User until the User provides the

additional documents to identify the beneficial owner, source of funds proof and other required documents (the package of necessary documents is determined by the Service in each specific case), if:

1) The Service has a reason to consider the operation conducted by the User doubtful or unusual;

2) The requested documents were not provided by the User, or the Service had doubts about the accuracy of the information contained in these documents, the Service reserves the right not to carry out the operation or suspend the operation until the relevant documents are provided.

 

5. The duties of a compliance officer

5.1 The duties of a compliance officer include, inter alia:

1) organisation of the collection and analysis of information referring to unusual transactions or transactions or circumstances suspected of money laundering or terrorist financing, which have become evident in the activities of the obliged entity; 

2) performance of other duties and obligations related to compliance with the requirements of this Program.

5.2 A compliance officer has the right to:

1) demand that a structural unit of the obliged entity eliminate within a reasonable time deficiencies identified in the implementation of the AML requirements;

3) receive data and information required for performance of the duties of a compliance officer;

4) make proposals for organisation of the process of submission of notifications of suspicious and unusual transactions;

5) receive training in the field.

 

6. User Identification

6.1 The obliged entity identifies the customer and, where relevant, their representative and retains the following data on the person and, where relevant, their representative:

1) name;

2) personal identification code or, if none, the date and place of birth and the place of residence or seat;

3) information on the identification and verification of the right of representation and scope thereof and, where the right of representation does not arise from law, the name of the document serving as the basis for the right of representation, the date of issue, and the name of the issuer.

6.2 The obliged entity verifies the correctness of the data specified in clauses 1 and 2 of subsection 1 of this section, using information originating from a credible and independent source for that purpose. Where the identified person has a valid document specified in subsection 3 of this section or an equivalent document, the person is identified and the person’s identity is verified on the basis of the document or using means of electronic identification and trust services for electronic transactions, and the validity of the document appears from the document or can be identified using means of electronic identification and trust services for electronic transactions, no additional details on the document need to be retained.

1) the Service may require the User to provide other documents necessary to comply with the requirements of the Program.

2) In the case when the Service becomes aware that the User has hidden this information, the Service has the right to terminate any actions in favor of such Users.

 

7. Due diligence measures

7.1 The obliged entity applies due diligence measures:

1) upon establishment of a business relationship;

2) upon making or mediating occasional transactions outside a business relationship where a cash payment of over 15,000 euros or an equal amount in another currency is made, regardless of whether the financial obligation is performed in the transaction in a lump sum or in several related payments over a period of up to one year, unless otherwise provided by law;

3) upon verification of information gathered while applying due diligence measures or in the case of doubts as to the sufficiency or truthfulness of the documents or data gathered earlier while updating the relevant data;

4) upon suspicion of money laundering or terrorist financing, regardless of any derogations, exceptions or limits provided for in this Program.

7.2 User applies due diligence measures at least every time a payment of over 10,000EUR or an equal sum in another currency is made to or by the trader in cash, regardless of whether the pecuniary obligation is performed in a lump sum or by way of several linked payments over a period of up to one year.

7.3 Where the duty to apply due diligence measures depends on the exceeding of a certain sum, the due diligence measures must be applied as soon as the exceeding of the sum becomes known or, where the exceeding of the sum depends on the making of several linked payments, as soon as the sum is exceeded.

7.4 The obliged entity applies the following due diligence measures:

1) identification of a customer or a person participating in an occasional transaction and verification of the submitted information based on information obtained from a reliable and independent source, including using means of electronic identification and of trust services for electronic transactions;

2) identification and verification of a customer or a person participating in an occasional transaction and their right of representation;

3) identification of the beneficial owner and, for the purpose of verifying their identity, taking measures to the extent that allows the obliged entity to make certain that it knows who the beneficial owner is, and understands the ownership and control structure of the customer or of the person participating in an occasional transaction;

4) understanding of business relationships, an occasional transaction or act and, where relevant, gathering information thereon;

5) gathering information on whether a person is a politically exposed person, their family member or a person known to be close associate;

6) monitoring of a business relationship.

 

7.5 Upon implementation of clause 4 of subsection 4 of this section, the obliged entity must understand the purpose of the business relationship or the purpose of the occasional transaction, identifying, inter alia, the permanent seat, place of business or place of residence, profession or field of activity, main contracting partners, payment habits and, in the case of a legal person, also the experience of the customer or person participating in the occasional transaction.

8. Documents requirements for identification of natural person

8.1 The obliged entity identifies a natural person based on the following documents:

1) an identity card;
2) a digital identity card;

3) a residence permit card;
4) an Estonian citizen’s passport;
5) a diplomatic passport;
6) a seafarer’s discharge book;
7) an alien’s passport;
8) a temporary travel document;

9) a travel document for a refugee;
10) a certificate of record of service on ships;
11) a certificate of return;
12) a permit of return;
13) a driving licence;

14) the European travel document for return for the purposes of Regulation (EU) 2016/1953 of the European Parliament and of the Council on the establishment of a European travel document for the return of illegally staying third-country nationals, and repealing the Council Recommendation of 30 November 1994.

8.2 Where the original document specified in subsection 1 of this section is not available, the identity can be verified on the basis of a document specified in subsection 1, which has been authenticated by a notary or certified by a notary or officially, or on the basis of other information originating from a credible and independent source, including means of electronic identification and trust services for electronic transactions, thereby using at least two different sources for verification of data in such an event.

 

9. Documents requirements for identification of legal person

9.1 The obliged person identifies a legal person registered in Estonia, the branch of a foreign company registered in Estonia and a foreign legal person and retains the following details on the legal person:

1) the name or business name of the legal person;

2) the registry code or registration number and the date of registration;

3) the names of the director, members of the management board or other body replacing the management board, and their authorisation in representing the legal person;

4) the details of the telecommunications of the legal person;

5) the registry card of the relevant register;

6) the registration certificate of the relevant register.

9.2 Where the original document specified in subsection 1 of this section is not available, the identity can be verified on the basis of a document specified in subsection 1, which has been authenticated by a notary or certified by a notary or officially, or on the basis of other information originating from a credible and independent source, including means of electronic identification and trust services for electronic transactions, thereby using at least two different sources for verification of data in such an event.

9.3 A representative of a legal person of a foreign country must, at the request of the obliged entity, submit a document certifying his or her powers, which has been authenticated by a notary or in accordance with an equal procedure and legalised or certified by a certificate replacing legalisation (apostille), unless otherwise provided for in an international agreement.

10. Monitoring of business relationship

10.1 The monitoring of a business relationship must include at least the following:

1) checking of transactions made in a business relationship in order ensure that the transactions are in concert with the obliged entity’s knowledge of the customer, its activities and risk profile;

2) regular updating of relevant documents, data or information gathered in the course of application of due diligence measures

3) identifying the source and origin of the funds used in a transaction;

4) in economic or professional activities, paying more attention to transactions made in the business relationship, the activities of the customer and circumstances that refer to a criminal activity, money laundering or terrorist financing or that a likely to be linked with money laundering or terrorist financing, including to complex, high-value and unusual transactions and transaction patterns that do not have a reasonable or visible economic or lawful purpose or that are not characteristic of the given business specifics;

5) in economic or professional activities, paying more attention to the business relationship or transaction whereby the customer is from a high-risk third country or a country or territory or whereby the customer is a citizen of such country or whereby the customer’s place of residence or seat or the seat of the payment service provider of the payee is in such country or territory.

11. Application of enhanced due diligence measures

11.1 The obliged entity applies enhanced due diligence measures in order to adequately manage and mitigate a higher-than-usual risk of money laundering and terrorist financing.

11.2 Enhanced due diligence measures are applied always when:

1) upon identification of a person or verification of submitted information, there are doubts as to the truthfulness of the submitted data, authenticity of the documents or identification of the beneficial owner;

 2) the person participating in the transaction or professional act made in economic or professional activities, the person using the professional service or the customer is a politically exposed person, except for a local politically exposed person, their family member or a close associate;

 3) the person participating in the transaction or professional act made in economic or professional activities, the person using the professional service or the customer is from a high-risk third country or their place of residence or seat or the seat of the payment service provider of the payee is in a high-risk third country;

4) the customer or the person participating in the transaction or the person using the professional service is from such country or territory or their place of residence or seat or the seat of the payment service provider of the payee is in a country or territory that, according to credible sources such as mutual evaluations, reports or published follow-up reports, has not established effective AML systems.

 

12. Changes to the Program

12.1 The Service has the right to unilaterally change the Program, including the addition new requirements and restrictions.

The Service announces the acceptance of a new version of the Program by posting a message on a website at https://changecoins.io

In this case, the new version of the Program comes into force upon expiration of 3 (three) days from the moment of its posting on the Internet at the network address https://changecoins.io/aml

12.2 Users agree to get acquainted with the new version of the Program.

Continued use of the site https://changecoins.io will mean that the Users agree to the terms of the new version of the Program.

12.3 If the User does not agree with the terms of the new version of the Program, he/she ceases to use the Site and the System.