Money Laundering – is a set of activities with the property aimed to:
conceal the nature, source, location, disposition, movement, right of ownership or other rights related to such property; convert, transfer, acquire, possess or use such property for the purpose of concealing the illicit origin of property; assisting a person involved in criminal activity to evade the legal consequences of his or her action; participation in, association to commit, attempts to commit and facilitating the commission of illegal actions.
Terrorist Financing – acts of financing of terrorism as defined Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020 and/or and the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing.
International Sanctions – list of non-military measures decided by the EU or the UN (including but not limiting OFAC Sanction list and the Economic Sanctions list), which is aimed to maintain or restore peace, prevent conflicts and follow the rule of law, human rights and international law.
Compliance Officer or CO – representative appointed by the Management Board responsible for the compliance with the Rules & serving as contact person of the Seychelles FIU.
Seychelles FIU - Seychelles Financial Intelligence Unit
FCIS (FNTT) – Financial Crime Investigation Service under The Ministry of the Interior of the Republic of Lithuania
Business Relationship – a relationship of the Service Provider with the Client.
Transaction – cash flow or payment order or cryptocurrency wiring form a Client to the Provider of service.
Client – a natural or legal person using services of Service Provider.
Beneficial Owner – is a natural person, who:
- Exercises control over a transaction,
- Owns or controls a legal person through direct or indirect ownership of a sufficient percentage of the shares or voting rights or ownership interest,
- Holds the position of a senior managing official, if, the person specified in clause above cannot be identified,
- In the case of a trust, civil law partnership, community or legal arrangement, the beneficial owner is the natural person who ultimately controls the association via direct or indirect ownership.
Politically Exposed Person or PEP - is a natural person who is or who has been entrusted with prominent public functions.
Equivalent Third Country – a country, which is not a Member State of European Economic Area but applying an equivalent regime to the EU corresponding (AML) framework.
Virtual currency - a value represented in the digital form, which is digitally transferable / tradable, and which persons accept as a payment instrument, but that is not the legal tender of any country or funds.
Customer Due Diligence (CDD) - identification and verification of the identity of the client and any beneficial owner of the client, as well as obtaining information about the objectives of the intended nature of the business relationship.
Advanced Customer Check (EDD - Enhanced Due Diligence) - an additional measure customer due diligence to be applied if:
- the client was not physically present during identification;
- the client is a Politically Exposed Person;
- or in any other situation that, by its nature, may pose a higher risk of money laundering or terrorist financing;
- Know Your Customer (KYC);
- Money Laundering Regulations (MLR).
Transaction - customer asset management. The transaction is performed through the customer account.
Risk Client Profile - an illustration of the risks and threats that may be encountered by an organization when working with the Client. This may include the probability of negative consequences and a plan of potential costs and the level of violation for each risk. It is in the company's best interest to be proactive when it comes to its risk management systems. Some risks can be minimized if properly taken into account. Compliance with risk accounting requirements ensures that the company and its employees comply with regulatory and ethical processes.
Accounting system - the company's internal electronic system for storing information on customers.
Proof address – utility bill, property tax receipt and etc.
The Service Provider’ activities description:
The Service Provider offers services of exchanging of virtual currencies against virtual currencies, a virtual currency against a fiat currency, and vice versa. The Service Provider is a subject to authorization by the Seychelles FIU and/or the Lithuanian FCIS.
The MB shall appoint a CO to monitor the compliance with the Rules & relevant laws, compile & keep updated the data regarding countries with low tax risk, high and low risk of Money Laundering and Terrorist Financing and economic activities, instruct the Representatives, report to the MB on compliance with the Rules, process the data on suspicious activities, report to the Seychelles FIU on events of suspected ML or TF, respond to Seychelles FIU and/or the Lithuanian FCIS. enquiries; make proposals on remedying deficiencies.
Tasks of the CO can be performed by a department
Application of due diligence measures
The Service Provider shall determine and take due diligence (DD) measures using results of conducted risk assessment / provisions of national risk assessment, published on the web-page of the Seychelles Financial Intelligence Unit and/or Financial Crime Investigation Service under The Ministry of the Interior of the Republic of Lithuania.
DD measures shall include the following procedures:
Identifying the Client and verifying its identity, including e-identifying, Identifying and verifying the Client’s representative and the right of representation, Identifying the Client's Beneficial Owner, Assessing and obtaining information on the purpose of the Business Relationship and the Transaction, 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, Obtaining information whether the Client is a PEP or PEP’s family member / close associate.
To comply with the DD obligation, the Representatives shall have the right and obligation to:
request appropriate identity documents to identify the Client and its representatives, request Proof address, request documents and information regarding the Client’s activities / legal origin of funds, request information about Beneficial Owners of a legal person, screen the risk profile of the Client/Transaction, assess the risk whether the Client or another person linked with the Transaction may become involved in ML or TF, re-identify the Client / its representative, in case of any doubts regarding the correctness of the information, refuse to participate in or carry out the Transaction if there is any suspicion that the Transaction is linked with ML or TF, or that the Client / another person linked with the Transaction could be involved in ML or TF. The objective of the continuously applied DD measures is to ensure on-going monitoring of Clients and Transactions.
Updated data shall be recorded in the Provider of service’s Client database.
Identification of a person:
Upon implementing DD measures the following person shall be identified:
Client – a natural or legal person, Representative of the Client – an individual who is authorized to act on behalf of the Client; · Beneficial Owner of the Client, PEP – if the PEP is the Client or a person connected with the Client.
Upon establishing the relationship with the Client and when carrying out a Transaction, the Service Provider shall identify and verify the Client while being present at the same place as the Client or by using information technology means.
For identification of a Client and verification of the identity of a Client by using information technology means, the Provider of service shall use:
- an ID document issued for the purpose of digital identification;
- a driving license/learning license;
- another electronic identification system within the meaning of the Regulation (EU). If the Client is a foreign national, the identity document issued by the competent authority of the foreign country is also used simultaneously.
Documents that can be used for identification:
Personal ID card (whether ID card, e-resident card or residence permit card), passport, diplomatic passport, or driving license/learning license.
Legal person and its passive legal capacity shall be identified and verified on the basis of an extract of a registry card of commercial register, foreign legal persons shall be identified on the basis of an extract of the relevant register / a transcript of the registration certificate / an equal document issued not earlier than six months before submission.
The following data shall be recorded:
For a natural person:
- Name of the Client
- Personal identification code (in case of absence the date and place of birth and place of residence)
- Information regarding identification and verification of the right of representation
For a legal person:
- Name of the Client
- Registry code (or registration number and registration date) of the Client
- Names and authorisations of members of the Management Board or the head of branch or the other relevant body
- Register of the shareholders
- Certificate of incorporation
*If you have European company and open register , please send only certificate of incorporation