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Introduction
In this policy, “Bankii” or “the Company” means “BLOCKVEST (PTY)LTD” trading as “Bankii”.
The Company is committed to conducting its business with the highest ethical and legal standards and expects all employees and other individuals acting on its behalf to uphold this commitment.
Having regard for the safety of the users and due to global legal requirements, the Company has implemented and started to use KYC policy (customer’s identification) and AML / CTF (combating money-laundering and terrorist financing) as it is required from financial institutions. The purpose of these policies is an effective combating of money-laundering and terrorist financing (AML / CTF) on our platform by proper identification of actual users of our accounts and supervision of their transactions. We shall identify and cease transactions made not only to purchase/sell a cryptocurrency but made mainly to hide the criminal origin of money, finance illegal activity or other unlawful actions or behaviours.
Bankii will not conduct business with individuals or corporations whose conduct may give risk to suspicions of involvement with illegal activities. The Company will report any suspicions of money laundering or terrorist financing activity to the relevant authorities. The Company personnel must comply with the anti-money laundering laws of all countries where the Company carries out its activities.
Policy Statement on AML
It is Bankii’s policy to comply with all applicable AML Laws in our operations worldwide. To this end, Bankii will only conduct business with customers who are involved in legitimate business activity and whose funds are derived from legitimate sources.
- Important Definitions
Money laundering is defined as engaging in acts to conceal or disguise the origins of illegally or criminally derived proceeds and assets so that they appear to have legitimate origins and are introduced into the legal financial and business as if they were lawful.
For the purposes of this policy, the following conducts shall be regarded as money laundering:
- The conversion or transfer of property, knowing that such property is derived from criminal activity or from an act of participation in such activity, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the commission of such an activity to evade the legal consequences of that person’s action.
- The concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or ownership of, property, knowing that such property is derived from criminal activity or from an act of participation in such activity.
- The acquisition, possession or use of property, knowing, at the time of receipt, that such property was derived from criminal activity or from an act of participation in such activity.
- Participation in, association to commit, attempts to commit and aiding, abetting, facilitating and counselling the commission of any of the above-mentioned actions.
Examples of illicit provenance are forgery of money, extortion, robbery, and drug crime, as well as fraud, corruption, organized crime, or terrorism, etc.
The money laundering process consists of three “stages”:
- Placement: This involves the introduction of illegally obtained monies or other valuables into financial or non-financial institutions.
- Layering: Layering occurs by conducting multiple, complex financial transactions that make it difficult to link the money to an illegal activity. These layers are designed to hamper the audit trail, disguise the origin of funds and provide anonymity.
- Integration: Placing the laundered proceeds back into the economy in such a way that they re-enter the financial system as apparently legitimate funds.
- Financing Terrorism
For the purposes of this Policy, “terrorist financing” means the provision or collection of funds, by any means, directly or indirectly, with the intention to be used or in the knowledge that they are to be used, in full or in part, in order to use indiscriminate violence as a means to create terror, fear, or to achieve a political, religious, or ideological aim.
- Politically Exposed Person (PEP)
Transactions involving Politically Exposed Persons (“PEPs”) require enhanced due diligence. A PEP is an individual who is or has been entrusted with a prominent public function. Due to their position and
influence, it is recognized that many PEPs are in positions that potentially can be abused for the purpose of committing money laundering offences and related predicate offences, including corruption and bribery, as well as conducting activity related to terrorist financing. The potential risks associated with PEPs justify the application of additional anti-money laundering/counter-terrorist financing preventive measures.
For the purposes of this Policy, Politically Exposed Persons (“PEP”) includes, but are not limited to:
- Heads of State, heads of government, ministers and deputy or assistant ministers.
- Members of parliament or of similar legislative bodies.
- Members of the governing bodies of political parties.
- Members of supreme courts, of courts or of other high-level judicial bodies, the decisions of which are not subject to further appeal, except in exceptional circumstances.
- Members of courts of auditors or of the boards of central banks.
- Mayors and members of local administration, city and district assemblies.
- Ambassadors, charge d’affaires and high-ranking officers in the armed forces.
- Members of the administrative, management or supervisory bodies of State-owned enterprises.
- Directors, deputy directors and members of the board or equivalent function of an international organization.
Not only the person that officiates a public function must be considered as PEP, also close family
members must be included in the assessment. For the purpose of this Policy, family members mean:
- The spouse, or a person considered to be equivalent to a spouse, of a politically exposed person.
- The children and their spouses, or persons considered to be equivalent to a spouse, of a politically exposed person.
- The parents of a politically exposed person.
Also, persons known to be close associates to a PEP must be assessed with the same risk approach
that includes:
- Natural persons who are known to have joint beneficial ownership of legal entities or legal arrangements, or any other close business relations, with a Politically Exposed Person.
- Natural persons who have sole beneficial ownership of a legal entity or legal arrangement which is known to have been set up for the de facto benefit of a Politically Exposed Person.
- President, State Governors, mayors, and any kind of ancillary such as ministers, counselors and secretaries.
- Officers or employees of national, federal, regional, local, or other, government bodies, departments, or agencies.
- Officer or employees of state-owned or state-controlled entities, national or international.
- Heads of state or anyone who exercises governmental authority.
- Politicians, political party officials and candidates for political office.
- Employees of regulatory agencies, public entities and mixed capital societies.
- Officers and employees of public international organizations, as the United Nations, the World Bank and the International Monetary Fund.
- Operational Principles
Bankii is committed to fight against money laundering and the finance of terrorism. The following principles will be applied in the Company’s operations:
1) Identifying Parties
Due diligence will be done on customers and other third parties and the findings will be documented. As part of the due diligence process, the following information (as applicable) is collected: name, date of birth, address, Identity number, passport number if it is a physical person or company name, registered office, corporate purpose, Tax Identity Number (TIN), and/or incorporation details.
The Company will not enter into a business relationship with a person or an entity that appears on any sanctions lists.
The Company also will conduct ongoing monitoring to identify suspicious transactions and report those transactions where legally required.
2) Identifying the Ultimate Beneficial Owner (UBO)
Before the commencement of a commercial relationship, whether of a habitual nature, and prior to its execution, the Ultimate Beneficial Owner of any Third Parties who are formally involved must be
identified. Ultimate Beneficial Owner (UBO) means the person who directly or indirectly controls 25% or more of the equity or voting rights in the corresponding company or owns the company. In the event of the existence of a beneficial owner in the third party, that person must be identified through their name, nationality, identity number, or passport number. Listed companies are excluded from the obligation to identify the UBO.
If the UBO is a PEP, then the Company must conduct enhanced due diligence before entering into any
contractual or commercial relationship with the entity.
3) Obligation to formally record commercial relationships in writing:
Before the commencement of commercial relationships and prior to carrying out transactions with third parties (attention being paid to those of an international nature) the relationship must be formally recorded in a written agreement in accordance with Bankii’s standards.
The provisions in a written agreement should include a commitment to comply with the Anti-Money
Laundering laws, and Bankii’s right to immediately terminate the contract in case of violation, subject to applicable law.
- Enhanced Due Diligence
Enhanced due diligence involves the gathering of additional information to ensure that the person or
entity is not participating in any improper or illicit conduct. This information should include, but is not
limited to, the source of the funds, the source of the individual or company’s wealth, and the individual’s occupation or the type of business. The findings of enhanced due diligence should be documented.
- Due Diligence and Record Keeping
It is our policy to carry out due diligence (“DD”) at the outset of any business relationship and, if necessary, where any red flags arise subsequently on our suppliers, distributors, counterparties, agents and any person with whom Bankii has an established business relationship that will involve the transfer to or receipt of funds (“Customers”), so we can be satisfied that they are who they say they are and so that we can ensure that there are no legal barriers to working with them before contracts are signed or transactions occur. Various factors will determine the appropriate forms and levels of screening.
- Updates, Review and Ownership
This Policy may be updated from time, and the updated version of the Policy will be immediately made available on the Bankii website.
