KYC means the know your client policy
Company shall refer to VT PLAN & SECURITY Sarl
Company address: Place Chauderon 18, Lausanne, 1003, Switzerland
Phone: +49 177 5020002.
Money launderingis the movement and disguise of cash or other assets generated from illegal activities through legitimate financial institutions or businesses to conceal the source of the funds or make it appear that the source of the funds is, in fact, legitimate.
Money Laundering occurs in three stages:
- placement stage: cryptocurrencies/Tokens and/or Fiat Currencies enter the Financial System, where the assets generated from Criminal Activities are converted into monetary instruments, and deposited/withdrawn or converted via accounts of Financial Institutions.
- layering stage: the funds/assets are transferred or moved into other accounts or other Financial Institutions to further hide its Criminal Origin.
- integration stage: the funds are reintroduced into the economy and used to purchase legitimate assets or to fund other Criminal Activities or illegitimate Businesses.
Terrorist financingis the process by which terrorists fund their operations to perform terrorist acts. Terrorists need financial support to carry out their activities and to achieve their goals.
Politically exposed persons are:
- individuals who are or have been entrusted with prominent public functions by a foreign country, such as heads of state or of government, senior politicians at national level, senior government, judicial, military or political party officials at national level, and senior executives of state-owned corporations of national significance (foreign politically exposed persons);
- individuals who are or have been entrusted with prominent public functions at the national level in Switzerland in politics, government, the armed forces or the judiciary, or who are or have been senior executives of state-owned corporations of national significance (domestic politically exposed persons);
- individuals who are or have been entrusted with a prominent function by an intergovernmental organization or international sports federations, such as secretaries-general, directors, deputy directors and members of the board or individuals who have been entrusted with equivalent functions, (politically exposed persons in international organizations. The international sports federation is the International Olympic Committee and the non-governmental organizations that it recognized that regulate one or more official sports at the global level.
The family members and close associates of politically exposed personsare individuals who are closely connected to politically exposed persons either through their family or for social or professional reasons.
The beneficial ownersof an operating legal entity are the natural persons who ultimately control the legal entity in that they directly or indirectly, alone or in concert with third parties, hold at least 25 percent of the capital or voting rights in the legal entity or otherwise control it. If the beneficial owners cannot be identified, the most senior member of the legal entity’s executive body must be identified.
2. KYC/AML Policy
The Company is strongly committed to preventing the use of its operations for money laundering or any activity which facilitates money laundering, or the funding of terrorist or criminal activities.
On a global level, in order to prevent and combat money laundering and terrorist financing, there has been an introduction of the number of laws concerning Acquirer identification and verification procedures including but not limited to the EU Directive 2018/843 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (the «5th AML Directive»), which brings the virtual currencies under the scope of the Anti-Money Laundering Directive.
The Company has put in place an Anti-Money Laundering /Counter-Terrorist Financing Policy and a Know Your Customer Policy (collectively, the «Policy»). This Policy applies to all the Company Acquirers.
As part of its AML obligations, the Company carries out KYC/AML procedures with all Acquirers to meet its requirements. Each Acquirer must carefully read and comply with this Policy. It is understood and presumed that by the fact of the Company’s Website use and purchasing tokens FDM or otherwise, the respective Acquirer fully read, understood and accepted this Policy. If any Acquirer does not agree with this Policy in general or any part of it, such Acquirer must not access and use the Website and/or purchase FDM tokens.
The Policy is designed to lay down a framework to:
- prevent the Company from being used, intentionally or unintentionally, by criminal elements for money laundering or financing terrorist activities;
- enable the Company to know/understand its Acquirers and their financial background and source of funds better, which in turn would help it to manage its risks prudently;
- put in place appropriate controls for detection and reporting of suspicious activities by applicable laws, procedures, and regulatory guidelines;
- deal with matters concerning KYC/AML procedures and reporting obligations.
3. The Policy risk-based approach
3.1. The Company shall adopt and maintain a Risk-Based Approach (RBA) towards assessing the money laundering and terrorist financing risks to the Company arising out any transactions it has with Acquirer.
3.2. The guidelines are as follows:
- Before entering into any transaction or proposed transaction, necessary checks shall be conducted in line with the RBA to ensure that the identity of the Acquirer or persons associated with the entities does not match with any person with a known criminal background or with banned entities such as individual terrorists or terrorist organizations.
- For the purpose of risk categorization of Acquirers, the relevant information shall be obtained from the Acquirers at or before the time of entering into the transaction or commencement of the business relationship.
- The risk categorization process for different types of Acquirers may take into account the background of the Acquirer, nature of the business activity, location of the Acquirer / activity and profile of the Acquirer, country of origin, sources of funds, mode of payments, volume of turnover, social and financial background and other information.
- The outcome of the risk categorization process shall be decided based on the relevant information provided by the Acquirer at the time of commencement of the business relationship.
- Enhanced due diligence would be required for higher risk Acquirers, especially those for whom the sources of funds are not clear, or for transactions of higher value and frequency, which shall be determined by Company at its sole and absolute discretion.
- If the Company deems necessary, the Company may appoint a third-party company to ensure compliance with prevailing regulations and this Policy.
- To identify the Acquirer and verify the identity of the Acquirer when establishing a business relationship.
- Due diligence measures concerning Acquirer shall be repeated whenever, about a business relationship, doubts arise about the veracity or adequacy of the previously obtained Acquirer identification information.
4. Acquirer Due Diligence
4.1. The Acquirer identification is to be carried out at the following stages: 1) while establishing a business relationship; 2) before or during the carrying out of any financial transaction, and 3) when there is any doubt about the authenticity/veracity or the adequacy of the previously obtained Acquirer’s identification data.
4.2. Information to be documented:
– for natural persons, the following is to be appropriately documented: name, first name, date of birth, nationality and the actual domicile address as well as the means used to prove identity;
– for legal entities and partnerships, the following is to be appropriately documented: company name and actual registered office as well as the means used to prove identity.
If an Acquirer comes from a country where the date of birth or domicile address is not used, this information is not necessary.
4.3. In exceptional cases where the identity of the Acquirer cannot be verified in the prescribed manner, for instance, because an individual has no identification documents or because no appropriate documents exist for a public-law corporation or institution, the Company may verify the identity in another expedient manner by inspecting other credentials or by obtaining corresponding attestations from public authorities or, in the case of a legal entity, by obtaining the most recent certificate from a recognized firm of auditors. Attestations and copies of substitute documents must be kept on file, and a file note must be created giving the reasons for the exceptional situation.
- Natural persons proof of identification
The Company will require Acquirer to provide proof of identificationand proof of residence.As part of the exercise of this right, Acquirers will be required to provide the following information:
4.4.1. for natural persons, sufficient identification data shall be obtained to verify:
– name and full name
-date of birth (the Company shall not accept Acquirers who are not at least eighteen (18) years of age)
– address (residence and mailing addresses (if different)
– nationality/ citizenship
– country of birth
– identification number (a taxpayer identification number, passport number, and country of issuance, alien identification card number, or number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard).
4.4.2. Upon registration on the Website, Acquirers go through an automated verification process where they submit:
– documents confirming information specified above.
– a unique photo of them holding their government-issued photo ID.
4.4.3. Verification of identityis required by obtaining a high-resolution, non-expired copy of the Acquirer’s government-issued ID (passport, national identity card, or a driver’s license). The submitted imaged requirements include:
- full-color image. Black and white, watermarked, etc. are not accepted;
- legible. All information on the ID must be completely clear and readable. The Company does not accept IDs that are torn or worn out; and
- background. The edges of the ID document must be clearly visible on a contrasting background;
- the photo should be taken without hats, headbands, glasses and the Acquirer should look straight.
In the case of poor-quality photographs, the Company employee may ask you to re-create them and send a better one.
4.4.4. Further verification is requested from the Acquirer by submitting a unique photo of them holding their government-issued ID as well as a unique handwritten note. In the photo, the Acquirer must be visibly smiling. This allows the Company to easily prove that the Acquirer’s picture was not stolen or photoshopped, and is being used exclusively for the Company.
The government-issued ID the Acquirer holds in their hand:
- must be the same government-issued ID the Acquirer submitted previously; and
- must be fully clear and readable.
The handwritten note the Acquirer holds in their hand:
- must be handwritten (not typed);
- must be in English;
- must contain today’s date;
- must contain the sentence: For VT PLAN & SECURITY Sarl only; and
- must contain the Acquirer’s signature;
- no part of the text should be closed.
4.4.5. Verification of residency is required by obtaining a copy of an acceptable address proof document issued in the 3 months before establishing an Account. The document must carry the Acquirer’s name and address.
A valid proof of residence document can be:
- bank statement;
- debit or credit card statement;
- utility bill (water, electricity, gas, internet, phone);
- payroll statement or official salary document from the employer;
- insurance statement;
- tax document; or
- residence certificate.
- Legal entities
4.5.1. Upon entering into a business relationship with a legal entity incorporated in the Swiss commercial register or equivalent foreign register, Company shall identify the Acquirer using one of the following documents:
- a register statement issued by the Registrar or Registrar;
- a written extract from a database maintained by the Registry;
- a written extract from privately managed directories and databases, provided they are trustworthy.
4.5.2. Legal entities not registered in the Swiss commercial register or an equivalent foreign register shall be identified using one of the following documents:
- the Articles of Incorporation, the Articles of Incorporation or the Memorandum, a confirmation by the Auditors, an official authorization to carry out the activity or an equivalent document;
- a written extract from privately managed directories and databases, provided they are trustworthy.
The register extract, the auditor’s confirmation, and the list or database extract may not be more than twelve months old at the time of identification and must reflect current circumstances.
4.5.3.For legal entities, sufficient documentation shall be obtained to verify:
- corporate denomination;
- date of registration;
- principal place of business and/or registered address (if different);
- certificate of incorporation/ or certificate of registration;
- certificate of goodstanding;
- M&AA/ Constitution/ Articles of Incorporation/ By-Laws;
- the ownership and control structure of the legal entity, and to determine who are the natural persons who ultimately control the legal entity the power of attorney of any person purporting to act on behalf of the legal entity;
- the identification data of the natural persons who ultimately control the legal entity;
- documents that declare directors;
- IDs of all directors and general signatories as well as shareholders and beneficiaries who hold more than 25% of the shares;
- confirmations of residential addresses of all directors and general signatories as well as shareholders and beneficiaries who hold more than 25% of the shares (not older than 3 months).
4.5.4. Where a person purports to act on behalf of an Acquirer, in addition to identifying and verifying the identity of the Acquirer and, where applicable, the beneficial owner, the Company shall ensure that such person is duly authorized in writing to act on behalf of the Acquirer and shall identify and verify the identity of that person
4.6. Please note that the list above is not exhaustive and the Company reserves the right to require additional information at any time to verify the Acquirer’s identification and to fully satisfy the latest Anti-Money Laundering rules.
4.7. If the documents are not written in Latin or English, the Company may require a notarized translation of the document into English.
4.8. If any of the above documents are requested, before sending them to the Company the Company may require them to be certified as a true copy of the original by
– a lawyer admitted in Switzerland or a lawyer admitted to practice in Switzerland;
– a notary public or public body that normally issues such certificates of authenticity;
– a lawyer or a solicitor.
The Company requires the documents to be sent to the Company in high-quality color format. The Company reserves the right to reject any documents, which do not comply with the above or if the Company has doubts as to their veracity.
4.9. List and type of required documents for passing KYC and AML procedures depend on legislation and may differ in each case.
4.11. The Company must repeat the procedure concerning of the identification the Acquirer, the determination of the beneficial owner if any doubts arise as to, a) whether the information given concerning the identity of the contracting partner is accurate; b) whether the beneficial owner is still the same; or c) whether the statements made on Form A are correct and if these doubts cannot be eradicated through any inquiries.
5. Establishing the identity of the beneficial ownership
5.1. The Company requires its Acquirer a statement concerning the beneficial ownership of the assets. Generally, the beneficial owners of the assets are natural persons.
5.2. If the Acquirer declares that the beneficial owner is a third party, then the contracting partner has to document the latter’s last name, first name, date of birth and nationality, along with actual domicile address, or the company name, address of registered office and country of registered office using Form A.
5.3. If the beneficial owner comes from a country where the date of birth or domicile address is not used, this information is not necessary.
5.4. If the Company has no doubts that the contracting partner is identical to the beneficial owner, it is exempt from any duty according to articles below.
6. Company restrictions
- The Company shall screen prospective Acquirer for matches in the following categories:
- Global Sanctions List ‐screening prospective Acquirers against sanctions lists.
- PEPs ‐screening prospective Acquirers for identification as a “politically exposed person”. A PEP is a term describing someone who has been entrusted with a prominent public function. A PEP generally presents a higher risk for potential involvement in bribery and corruption by their position and the influence that they could hold.
- Adverse Media ‐screening prospective Acquirers against adverse media involves looking for any negative mentions of them in traditional news media and publicly available information more broadly.
6.2. The Company may not receive any assets that it knows or must assume are the result of a crime or a qualified tax offense, even if the crime or offense was committed abroad.
6.3. When there shall be any suspicion of money laundering or terrorism financing activities, or where there shall be any doubt about the adequacy or veracity of previously obtained Acquirer’s identification data, the due diligence measures shall be reviewed, including verifying again the identity of the Acquirer and obtaining information regarding the purpose and intended nature of the business relationship with the Company.
6.4. The Company does not serve Acquirers from certain regions that are deemed high-risk or unwelcoming from a legal or regulatory perspective.The Company does not carry out of the financial transaction with individuals who are Politically Exposed Persons (PEPs), or their family members. The Company screens all Acquirers against global PEPs lists before they are allowed to establish a relationship with the Company.6.5
6.5. The Company may not conduct business relationships:
- with companies and individuals that they know or accept to be responsible for financing terrorism, forming a criminal organization, or belonging to such an organization;
- with banks that do not have a physical presence at the place of incorporation (fictitious banks), unless they are part of a financial group with appropriate consolidated supervision.
7. Enhanced Acquirer due diligence
7.1. Enhanced Due Diligence (EDD) measures might be applied by the Company in addition to the Acquirer Due Diligence (ADD) measures in the following cases:
- about the activities or services that are determined by the Financial Intelligence Analysis Unit to represent a high risk of money laundering or funding of terrorism, having taken into consideration the findings of any national risk assessment and any other relevant factors as may be deemed appropriate;
- when dealing with natural or legal persons established in a non-reputable jurisdiction, other than branches or majority-owned subsidiaries which comply with group-wide policies and procedures in which cases enhanced due diligence measures shall be applied where there is a high risk of money laundering or funding of terrorism; and
- in other cases.
7.2. EDD measures will be applied on a risk-sensitive basis and should be appropriate in the view of the higher risk.
EDD measures should be applied in the following cases:
– business relationships with foreign politically exposed persons and their family members or close associates ;
– business relations with domestic politically exposed personsand their family members or close associates;
– business relations with politically exposed persons in leading positions in intergovernmental organizationsand their family members or close associates;
– business relations with politically exposed persons in leading positions in international sports federationsand their family members or close associates;
– in any case, transactions with increased risks are transactions in which at the beginning of the business relationship assets in the amount of more than 100,000 francs are physically contributed in one go or stages;
– there are indications that assets are the proceeds of a felony or an aggravated tax misdemeanor or are subject to the power of disposal of a criminal organization or serve the financing of terrorism
– the transaction or the business relationship appears unusual unless its legality is clear;
7.3. There are indications of money laundering by name if:
- the person predominantly paid with small denominations;
- mainly readily marketable goods with a high degree of standardization are acquired;
- the person provides no or insufficient information for their identification or the identification of the beneficial owner;
- the person makes false or misleading information;
- doubts exist on the authenticity of the proven identity cards.
7.4.In such case, the Company checks the background and the purpose of a transaction or a business relationship, namely the source of the money, and its reasons and purpose of the transaction with the Acquirer.The Company will make reasonable additional inquiries about business relationships or transactions with increased risks.
To be clarified, depending on the circumstances, namely:
- whether the Acquirer is economically entitled to the contributed assets;
- the origin of the assets brought in;
- the purpose of deducted assets;
- the background and the plausibility of larger incoming payments;
- the origin of the assets of the Acquirer and the beneficial owner of the entity or assets;
- the professional or business activity of the Acquirer and the beneficial owner of the business or assets;
- the question of whether the Acquirer or the beneficial owner of assets is a politically exposed person.
7.5. The clarifications include, depending on the circumstances, namely:
7.5.1. obtaining written or verbal information from the Acquirer or the beneficial owner of the assets;
7.5.2. visits to the place of business of the Acquirer or the beneficial owner of the assets;
7.5.3. the consultation of publicly available public sources and databases;
7.5.4. if necessary, inquiries with trustworthy persons.
The Company checks the plausibility of the results of the clarifications and documents them.
7.6. If increased risks are identified in a business relationship, the Company immediately initiates the additional clarifications and carries them out as soon as possible.
8. Suspicious transaction and activity reports
8.1. For the Policy, a “Suspicious transaction” means a transaction or attempted transaction, which to a person acting in good faith:
– gives rise to a reasonable ground of suspicion that it may involve proceeds of criminal or other illicit activity, regardless of the value involved;
– appears to be made in circumstances of unusual or unjustified complexity;
– appears to have no economic rationale or bona fide purpose; and
– gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.
8.2. Ongoing monitoring is an essential element of effective implementation. The Company will diligently monitor transactions for Suspicious transactions and other suspicious activity about the sale of its tokens.
8.3. The Company diligently monitors transactions for suspicious activity. Unusual transactions are carefully reviewed to determine if it appears that they make no apparent sense or appear to be for an unlawful purpose. Internal controls will be implemented so that a monitoring system is in place to reasonably detect such activity as it occurs. When suspicious activity is detected, the AML/KYC Compliance Companywill decide as to whether the transaction meets the definition of suspicious transaction or activity and whether any filings with law enforcement authorities should be filed. The Company reserves the right to report suspicious transactions or activity to law enforcement authorities at its sole discretion.The Company will maintain a copy of the filing as well as all backup documentation. The fact that a filing has been made is confidential. No one, other than those involved in the investigation and reporting should be told of its existence. In no event should the parties involved in the suspicious activity be told of the filing.
8.5. Suspicious activity can include more than just suspected money laundering attempts. Activity may be suspicious, and the Company may wish to make a filing with a law enforcement authority, even if no money is lost as a result of the transaction.
8.6. The Company must report to the Money Laundering Report Office Switzerland (MROS) any cases of suspicions of money laundering.
9. AML/KYC Compliance Company
9.1. The Company may also, under its responsibility, designate expert external persons as money laundering agent if:
- he is not able, by his size or organization, to set up his department; or
- the establishment of such would be disproportionate.
9.2. The Company must have a copy of the documents that have served to fulfill the anti-money laundering and terrorist financing duties, and a written confirmation that the copies submitted to him correspond to the original documents.
10.1.Our AML/KYC Compliance Company is responsible for ensuring that AML and KYC records are maintained properly.
10.2.Our AML/KYC Compliance Company document our verification, including all identifying information provided by an Acquirer, the methods used and results of verification, and the resolution of any discrepancies identified in the verification process.Our AML/KYC Compliance Company keeps records containing a description of any document that she or he relied on to verify an Acquirer’s identity, noting the type of document, any identification number contained in the document, the place of issuance, and if any, the date of issuance and expiration date.
10.3.Our AML/KYC Compliance Company also keeps records containing a description of the resolution of each substantive discrepancy discovered when verifying the identifying information obtained. Our AML/KYC Compliance Company retains records of all identification information as long as reasonably necessary to comply with applicable regulations. Our AML/KYC Compliance Company retains records made about verification of the Acquirer’s identity as long as reasonably necessary to comply with applicable regulations.
As far as the Company introduces new products or services, or as the Internet and computer security technology evolves or in Company’s sole discretion at any time, this Policy will be updated. The Company consequently reserves the right to change or supplement further explanations as needed, and changes will be published on this page of the Company’s Website. The Acquirer must periodically visit the Company’s Website to review any changes that may be made to this Policy. Acquirer continued use of the Company’s Website constitutes Acquirer’s agreement to be bound by any such changes to this Policy.
Please check this page regularly to ensure Acquirer (you) are familiar with the current version.