KYC and AML policy

Most recently updated on 13-06-2024

1. General framework

Anti-Money Laundering and Combating Money Laundering and Terrorist Financing Policy ("AML Policy" or "Policy") sets out the consistent principles and standards of Globe Monnaie SRL ("Company" or "TOKERO") in relation to preventing and combating money laundering (AML) and financing of terrorism (FT), as well as the implementation of international sanctions (IS) and is drawn up with the purpose of ensuring that the Company's business is conducted in compliance with applicable legal obligations in force with respect to prudent, sound practices to prevent the Company and/or the services offered from being used, intentionally or unintentionally, in illegal or criminal activities carried out by its customers.

1.1. Objectives

The objective of this Policy is:

  • presentation of the CSB/CFT/SI framework;
  • defining the role and responsibilities of the persons involved in the CSB/CFT/SI process;
  • defining the rules for the functioning of the CSB/CFT framework.

1.2. Legal framework

  • Law no. 129/2019 on preventing and combating money laundering and terrorist financing, as well as amending and supplementing certain normative acts, updated with subsequent additions and amendments;
  • Rules of March 2, 2021 for the application of the provisions of Law no. 129/2019 for preventing and combating money laundering and terrorist financing, as well as for amending and supplementing some normative acts, for the reporting entities supervised and controlled by the National Office for the Prevention and Combating of Money Laundering (ONPCSB);
  • Order no. 191 / 28.06.2023 on the approval of the form and content of the reports provided for in Articles 6 and 7 of Law no. 129/2019 on preventing and combating money laundering and terrorist financing, as well as for amending and supplementing some normative acts and the methodology for their transmission;
  • Directive (EU) 2015/849 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing and amending Directives 2009/138/EC and 2013/36/EU - as amended by Directive (EU) 2018/843 of the European Parliament and of the Council of May 30, 2018;
  • Commission Delegated Regulation (EU) 2016/1675 of July 14, 2016 supplementing Directive (EU) 2015/849 of the European Parliament and of the Council by identifying high-risk third countries with strategic deficiencies;
  • GD No. 603/2011 for the approval of the Rules on the supervision by the National Office for Preventing and Combating Money Laundering of the implementation on international sanctions, as amended and supplemented;
  • GEO No. 202/2008 on the implementation of international sanctions, with subsequent amendments and additions;
  • Law No. 535/2004 on preventing and combating terrorism, as amended and supplemented.

1.3. Scope

This Policy applies to all activities carried out by TOKERO and covers:

  • TOKERO's management bodies and their employees, irrespective of their position, role or seniority within the company;
  • Contractors, subcontractors, consultants, suppliers, beneficiaries and other relevant persons or entities involved in TOKERO's activities;
  • Business partners and other persons through whom TOKERO conducts business.

1.4. Definitions

  • Money laundering means:
    - the exchange or transfer of property, knowing that such property has been derived from crime, for the purpose of concealing or disguising the illicit origin of such property or of assisting the person who has committed the criminal offense from which the property originates to evade prosecution, trial or punishment;
    - conceal or disguise the true nature, source, location, disposition, movement or ownership of or rights in property, knowing that such property is derived from crime;
    - the acquisition, possession or use of property by a person other than the active subject of the offense from which the property originates, knowing that such property has been derived from the commission of offenses.
  • Terrorist financing means making movable or immovable property available to a terrorist entity, in the knowledge that such property is being used to support or commit terrorist acts, as well as making or collecting funds, directly or indirectly, or carrying out any financial or banking operations.
  • Beneficial owner - means any natural person who ultimately owns or controls the customer and/or the natural person on whose behalf or for whose benefit a transaction or an operation or activity is carried out, directly or indirectly.
  • Customer means any natural person, legal entity or entity without legal personality with which the Company conducts business relations or with which it carries out other operations of a permanent or occasional nature. A Customer of the Company is considered to be any person who has completed the full identity identification process in accordance with the internal know-your-customer procedures and rules
  • Publicly Exposed Persons (PEPs) are the natural persons who hold or have held prominent public positions, members of their families, and persons publicly known to be close associates of individuals who hold prominent public positions. After the expiry of one year from the date on which the person ceased to hold a prominent public office, the Company is no longer required to consider that person as a PEP.
  • CSB/CFT - combating money laundering/combating the financing of terrorist acts.
  • SB/FT - money laundering/terrorist financing.
  • Virtual currency means a digital representation of value that is not issued or guaranteed by a central bank or public authority, is not necessarily linked to a legally established currency and does not have the legal status of money or currency, but is accepted by natural persons or legal entities as a means of exchange and can be transferred, stored and traded electronically.
  • Digital wallet provider means an entity that offers services to securely hold private cryptographic keys on behalf of its customers for holding, storing and transferring virtual currency.
  • Office - National Office for Prevention and Combating Money Laundering.

2. Measures to comply with legal obligations in the area of preventing and combating money laundering and terrorist financing and implementing international sanctions

2.1. SB/FT Compliance Officer

In application of the provisions of the legislation on money laundering and terrorist financing, the Company has appointed a Compliance Officer with responsibilities in the application of Law no. 129/2019 and the regulations issued in its application.

2.2. Know Your Customer (KYC) measures

In order to identify and prevent money laundering, the Company applies Know Your Customer (KYC) measures to all new and existing customers, depending on the risk resulting from the application of its own SB/FT risk assessment system. The Company also applies KYC measures to all corporate customers. Know-your-customer measures are also applied when the relevant circumstances of the customer change. The company shall not open and operate anonymous or fictitious name accounts for which the identity of the account holder is not known and properly disclosed.

The Company has established a customer approval and risk categorization process whereby appropriate measures are taken to prevent and combat money laundering and terrorist financing and to implement international sanctions. Based on the internal SB/FT risk assessment system, the Company applies standard, simplified or additional know-your-customer measures. The implementing measures also allow the identification of the beneficial owner, where applicable.

The company applies the following standard KYC measures to prevent and combat money laundering and terrorist financing as follows:

a) customer identification and verification of the customer's identity based on documents, data and information obtained in the customer registration process, including from reliable and independent sources (if applicable);

b) identification of the beneficial owner in order to understand the ownership and control structure of the customer and verification of the identity of the beneficial owner based on documents, data and information obtained from the customer's registration process, including from reliable and independent sources (if applicable);

c) assessing the purpose and nature of the business relationship and, if necessary, obtaining additional information about them;

d) conducting ongoing monitoring of the business relationship, including by reviewing completed transactions throughout the duration of that relationship, to ensure that the transactions entered into are consistent with the information held on the customer, the business profile and risk profile, including, where appropriate, the source of funds, and that the documents, data or information held are up to date and relevant.

TOKERO conducts real-time identity verification of all customers through an automated process that includes verification of identity documents and liveness verification. This process ensures that the customer's identity is valid and that the documents provided are genuine. Without this process, through the Ondato remote identification provider, the company would not accept any customers.

The enrolment process for natural persons and legal entities, including the remote verification process, can be consulted on the website www.tokero.com or directly by clicking on the links:

https://tokero.com/en/kb/how-to-create-a-TOKERO-account-8/ - natural persons and https://tokero.com/en/corporate/ - legal entities.

TOKERO checks international databases for PEPs, including membership of international sanctions lists, through dedicated third-party providers.

Classification as a PEP also applies to:

  • first-degree relatives of the PEP, the spouse/partner of the PEP, and the spouse/partner of the PEP's children;
  • legal entities whose ultimate beneficiaries are PEPs or relatives of the first degree of the PEP, the spouse/partner of the PEP, and the spouse/partner of the PEP's children;
  • persons known to be associates of the PEP, whether they are acting as intermediaries as natural persons or as beneficiaries of the legal entity.

In order to open a customer account on the TOKERO platform, the identity documents accepted by the Company for natural person customers are:

  • a) identity card issued in countries accepted by the Company;
  • b) passport issued in countries accepted by the Company;
  • c) residence document (residence permit) issued in the countries accepted by the Company.
  • d) bank statement in the name of the natural person;

In order to open a customer account on the TOKERO platform, the identity documents accepted by the Company for legal entity customers are:

  • a) constituent documents (e.g. articles of incorporation, articles of association, as appropriate);
  • b) tax registration certificate (CUI/CIF) or equivalent for authorized natural persons and foreign legal entities;
  • c) certificate issued by another authority in the country in which the legal entity was registered/authorized, within a maximum of 90 days from issuance - for documents issued in Romania and within 6 months from issuance - for documents issued by another Member State;
  • d) bank statement in the name of the legal entity;
  • e) for the legal representative - power of attorney or resolution of the General Meeting of Shareholders;
  • f) the identity document of the legal representative/legally authorized representative and of the identified beneficial owner(s).

The Company shall not open and operate anonymous accounts or accounts in fictitious names for which the identity of the account holder is not known and properly declared.

Furthermore, the Company does not initiate or engage in contractual relationships with fictitious banks, any person or entity included in the OFAC lists of sanctioned countries or SDNs, the list of natural persons and legal entities suspected of committing or financing terrorist acts (Government Decision no. 784/2004) or the list of natural persons and legal entities suspected of committing or financing terrorist acts (Government Decision no. 1.272/2005). In case the Company falls into this category during the course of the business relationship, the Company will comply with the provisions of the legislation on international sanctions.

2.3. Monitoring and control

In order to prevent money laundering and terrorist financing, TOKERO conducts a monitoring and control process, at least in relation to: high-risk clients and transactions, transactions with high-risk countries, and complex and unusual transactions.

One of the important processes in monitoring customer transactions is the verification of the source of funds. Upon identification of a transaction that requires further verification, the customer is requested to provide relevant documents and information evidencing the source of funds or source of wealth.

A Proof of Sources of Funds (POSOF) is any (collection of) document(s) that explains where the funds used for a fiat deposit came from and where the crypto assets used for a fiat withdrawal came from.

Any POSOF document submitted must cover all deposits or withdrawals made by that funding method.

Individual acceptable POSOF:

  • Tax return (last two taxable years);
  • Letter from a bank/accountant certifying assets;
  • Bank and/or share account statements;
  • Pay slip(s) showing your income for the last two years;
  • A letter from an accountant certifying real estate properties and an inheritance of a customer is sufficient for net worth.

Acceptable Corporate POSOF

  • Audited finances;
  • Tax return (last two taxable years);
  • Letter from the bank or brokerage listing the assets;
  • Standardized statement from a digital asset exchange;
  • Proof of balance on the cryptocurrency exchange(s);
  • Signed message on the crypto wallet.

The updating of customer documents, data and information shall be carried out periodically, in proportion to the degree of risk associated with the customer, and whenever deemed necessary. Irrespective of the reason for initiating the process of updating documents, data and information, this process necessarily entails the customer/legal representative going through a new identification process which involves both a new identification through the application of the remote identification provider (KYC/PEP/SI) and the updating of all documents, data and information required by the Company in the identification flow.

Until the data update process is completed, including the information requested by the company, the customer may not carry out transactions on/from his/her account.

2.4. Reporting

A suspicious transaction refers to the presence of any information, suspicions, or any other matter that would necessitate suspicion that the assets involved in a transaction, conducted or attempted to be conducted through TOKERO's products, have been obtained illegally or are used for illegal purposes, or are used by any terrorist organizations, terrorists, or terrorism financiers for this purpose, or are related to or associated with them.

TOKERO will not provide any information to any person, including any person who is a party to the relevant transaction, other than information provided to the courts during any trial or to the authorities as required by laws and regulations.

TOKERO has systems in place that allow the prompt transmission, upon request by the Office and/or law enforcement authorities, of information obtained from the application of customer due diligence measures and transaction records for an additional period of 5 years from the date of termination of the business relationship with the customer.

 2.5. Keeping documents

TOKERO keeps at least the following documents and information in a form admissible in legal proceedings for the purpose of preventing, detecting and investigating possible cases of SB/FT:

  1. all records obtained through the application of know-your-customer measures, such as copies of identification documents, copies of monitoring and verification performed and of the results of customer reviews, customer files and correspondence, including information obtained by electronic means of identification necessary for compliance with the know-your-customer requirements;
  2. all documents necessary to reconstruct the transactions.

The documents and information referred to above shall be kept for the entire duration of the business relationship and thereafter for a period of five years from the termination of the business relationship or from the date of the occasional transaction, unless it is necessary to extend the period of retention of documents for the purpose of preventing, detecting or investigating money laundering or terrorist financing, in which case the archiving period shall be extended by the period indicated by the competent authorities, but not exceeding five years.

Upon expiry of the retention period, the Company will delete the personal data, unless other legal provisions require further retention. Personal data is processed by the Company on the basis of this Law and in compliance with the applicable legislation on the processing of personal data solely for the purpose of preventing money laundering and terrorist financing and is not further processed in a manner incompatible with this purpose.

2.6. Training activities

Training activities are planned in coordination with internal procedures and organized for all TOKERO staff in the form of on-site sessions (classroom learning) or remote (e-learning programs, reminder and awareness messages).

3. Final provisions

All documents related to AML/CFT and international sanctions are confidential and the property of the company.