AML rules

Anti-Money Laundering and Combating the Financing of Terrorism Policy

Last updated: October 2023

This Anti-Money Laundering and Combating the Financing of Terrorism Policy (“AML/CFT Policy”) has been adopted by us to prevent the use of services for money laundering and terrorist financing activities. We are committed to complying with all applicable laws, regulations, and guidance regarding AML and CFT as defined below.

AML/CFT Policy intends to protect Company from being used as a tool for illegal activities such as money laundering or terrorist financing. AML/CFT Policy sets out specific procedures to achieve this goal, including the implementation of robust client identification process, ongoing Transaction Monitoring to detect Suspicious Activity.

By using our services via our Website, crypto exchanges or otherwise, or by using our Website by our customer, he/she/it expressly agrees with AML/CFT Policy.

Definitions
1. The following terms has the meanings as defined below:
  1. Act means the Act of 1 March 2018 On Anti-Money Laundering and Counter-Terrorist Financing.
  2. AML means anti-money laundering being a set of activities, procedures and regulations created to prevent criminal activities related to money laundering.
  3. AML/CTF Compliance Officer means an officer or another engaged person responsible for reviewing and investigating reports of Suspicious Activity and determining whether the reported activity is indicative of money laundering or terrorist financing. He/she also takes necessary steps to report Suspicious Activity to the appropriate authorities.
  4. beneficial owner means an individual or individuals exercising direct or indirect control over a customer through the powers they have, which arise from legal or factual circumstances, enabling them to exercise decisive influence over the actions or activities undertaken by a customer or an individual or individuals on whose behalf business relationships are established or the occasional transaction is carried out.
  5. CFT means counter-financing terrorism being a set of activities, procedures and regulations created to prevent criminal activities related to terrorism.
  6. customer means you as an individual or a legal entity if you use our services, Website.
  7. Due Diligence shall mean a thorough process of identifying and assessing the risks associated with new relationships, which includes a variety of steps to verify the identity of the customer, assess the risk of money laundering or terrorist financing, and obtain information about the customer’s Source of Funds, Source of Wealth and intended use of Company’s services.
  8. Ongoing Monitoring means regularly reviewing and assessing the activities of customers and transactions to detect Suspicious Activity and ensure compliance with AML/CFT Policy and internal Company’s policies and procedures.
  9. PEP (Politically exposed person) means an individual holding a significant position or performing a significant public function.
  10. Source of Funds (SoF) means the origin of the money or assets that a customer uses to conduct transactions or activities.
  11. Source of Wealth (SoW) means the origin of the customer’s entire body of wealth (i.e. total assets) which explains activities the customer participates in and their geographical location.
  12. Sanctions Lists means lists of individuals or legal entities that have been designated by government agencies and international organizations as being subject to sanctions, embargoes, or other restrictions on trade or financial transactions.
  13. Suspicious Activity means any unusual or suspicious financial transactions or activities that may indicate money laundering or terrorist financing.
  14. Third-Party Service Providers means external companies or individuals that provide services to Company, such as accounting, legal, or IT services etc.
  15. transaction means a legal or factual act on the basis of which is made the transfer of ownership or possession of assets, funds, or a legal or factual act made for the purpose of transferring ownership or possession of assets, funds.
  16. Transaction Monitoring means a process of reviewing and analyzing transactions to detect Suspicious Activity and ensure compliance with AML/CFT policies and internal Company’s policies and procedures.
  17. Website means https://cryptosha.com/en/ and/or another website of Company, as we may operate from time to time.
Who we are?
1. We are CRYPTOSHA.COM SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ, a company registered under the law of Poland and having a proper official authorization to provide the services in the exchange between cryptoassets and funds, between cryptoassets, with KRS number: 0001042580, with a legal address at: 86 HOŻA Str., office 210, Warsaw, Poland (“Company”, “we”, “us” or “our”).
2. Company provides services via Website, crypto exchanges, or otherwise.
3. Company does not provide services of exchange of fiat currency for another fiat currency, payment services according to the Payment Services Act (the legal entity especially does not accept deposits and does not transfer funds).
When are we obliged to make appropriate Due Diligence, financial security measures prescribed by Act?
1. When
  1. establishing economic relations (showing the characteristic of permanence);
  2. conducting an occasional transaction with the use of cryptoassets of the equivalent of EUR 1,000 or more;
  3. see suspected money laundering or terrorist financing;
  4. have doubts about the veracity or completeness of customer identification data obtained to date;
  5. in other cases prescribed by Act.
When do we conduct simplified or enhanced Due Diligence, financial security measures?
1. Simplified financial security measures are allowed where a risk assessment confirms a lower risk of money laundering or terrorist financing.
2. We draw your attention that the lower risk may be evidenced by the fact that a customer is:
  1. a unit of the public finance sector;
  2. a state-owned enterprise or local government units or their associations;
  3. a company whose securities are admitted to trading on a regulated market subject to beneficial owner disclosure requirements or a company with a majority stake in such a company;
  4. a resident of a member state of the European uniоn, a member state of EFTA – a party to the EEA Agreement;
  5. a resident of a third country described by reliable sources as a country with low levels of corruption or other criminal activity;
  6. a resident of a third country where AML/CFT regulations are in force, according to reliable sources;
  7. another low risk person defined as such by Act or appropriate governmental authorities.
3. Enhanced security measures are applied in case of a higher risk of money laundering or terrorist financing and, in particular, in case of customers coming from or based in a high-risk third country. For enhanced Due Diligence details, please see the terms and conditions below.
4. The criteria of customers for the enhanced security measures are defined by internal AML/CFT policies and regulations of Company, Act or appropriate governmental authorities.
What are we obliged to collect from you as a customer for identification and verification? Know-your-User (KYC) procedures.
1. In the case of an individual:
  1. name and surname, date of birth;
  2. residency, citizenship;
  3. the Universal Electronic systеm for Registration of the Population (PESEL) number or date of birth, and if no PESEL number has been assigned, the date of birth and country of birth;
  4. the series and number of the person’s identification document;
  5. address of residence;
  6. where the customer is a sole proprietor, in addition to the above, also collect the following:
    1. customer’s full business name (if any) under which the customer carries on his or her business;
    2. full address of the customer’s principal place of business (if any); (or the customer’s residential address);
    3. any business number issued to the customer;
    4. tax identification number (NIP);
  7. other information needed for the identification and verification of a customer, as required by Act, our Company’s internal documentations, AML/CFT Compliance Officer.
2. Please note that we could ask you to provide copies of documents, fill in the forms, and questionnaires as required by us, and you are obliged to provide them all.
3. In the case of legal entities or organizational unit without legal personality:
  1. the full name of the company as registered at the company registry;
  2. organizational form;
  3. the full address of a company’s registered office;
  4. the full address of a company’s principal place of business, if any;
  5. NIP, and in the absence of such a number – the country of registration, the name of the relevant registry, and the number and date of registration;
  6. the name of each director of the company;
  7. identification data of the person representing that legal entity or organizational unit without legal personality;
  8. identification of beneficial owner (his/her name, data itemized abode, other information);
  9. other information needed for the identification and verification of a customer, as required by Act, our internal documentations, AML/CFT Compliance Officer.
4. Company could decide to provide enhanced Due Diligence, if it becomes aware that:
  1. it determines under its risk-based systems and controls that the money laundering, terrorist financing risk is high;
  2. a reasonable suspicion has arisen in relation to the customer or transaction;
  3. a party to a transaction or proposed transaction is physically present in, or is a corporation incorporated or doing business in, a jurisdiction deemed high-risk;
  4. a service is being provided to a customer who is, or who has a beneficial owner who is, a PEP;
  5. it has determined that there is a significant change in the nature of a customer’s business relationship, its control structure or its beneficial ownership.
5. Where enhanced Due Diligence is applied, Company could undertake one or more of the following actions:
  1. clarify or updаte KYC information already collected from the customer;
  2. obtain further KYC information, including, where appropriate, taking reasonable measures to identify the Source of Funds, Source of Wealth, and the ultimate beneficial ownership of the customer (if not an individual);
  3. clarify the nature of the customer’s ongoing business with Company;
  4. consider any suspicion that may have arisen for the purposes of submitting a suspicious matter report; or
  5. ask additional documents, information.
6. Company conducts identification of the customer and verification of his, her identity, including in particular whether he, she is PEP, PEP’s close associate, or PEP’s family member. Any customer relationship with a PEP will be deemed high-risk. Determination of whether a customer is PEP is made by the customer’s declaration before using our services and ongoing checking of the information obtained to identify and verify the person. The customer shall make a declaration that he/she is not a person holding such a position.
7. Information and documents provided by a customer must be accurate and up-to-date.
8. Verification consists in confirming the established identification data of the persons mentioned above, based on documents required by us.
9. Company reserves the right to request photo/video verification of the customer, its representatives etc. In turn, the Company verifies the authenticity of documents and information provided by the customer.
10. If a customer’s identification information has been altered or their activity appears suspicious, Company has the right to request updated documents from the customer, even if they have already been verified.
11. Additionally Company might also assess the risk of money laundering or terrorist financing by researching the customer’s background, including financial history, and by evaluating the industry or sector, obtains information about the customer’s Source of Funds, Source of Wealth and intended use of Company’s services to understand business activities.
Do we conduct Ongoing Monitoring?
1. Yes, we do. Company recognizes the importance of Ongoing Monitoring to ensure that customers do not pose a risk of money laundering or terrorist financing. Therefore, it conducts Ongoing Monitoring of customers to ensure that their activities do not change and become a higher risk. This includes Transaction Monitoring for Suspicious Activity, reviewing a customer’s information for any changes, and conducting additional Due Diligence when necessary.
2. Overall, Company’s Due diligence process and ongoing monitoring are essential tools for identifying and managing the risks associated with its external relationships and for ensuring that it is complying with applicable laws and regulations related to AML and CFT.
3. Ongoing Monitoring of the customer’s business relationships, including:
  1. analysis of transactions carried out within the framework of the business relationship to ensure that these transactions are consistent with our knowledge of the customer, the type and scope of its business, and consistent with the money laundering and terrorist financing risks associated with that customer;
  2. investigation of Source of Funds, Source of Wealth, assets, funds at the disposal of the customer – in cases justified by the circumstances;
  3. ensuring that the documents, data or information in its possession regarding business relations are kept up to date.
Sanctions screening
1. Company has a responsibility to ensure that it is not doing business with individuals and legal entities that are prohibited by sanctions laws. To achieve this, Company implements procedures to screen all customers against Sanctions Lists. This will inсlude checking the names of individuals and legal entities against lists of individuals and legal entities that have been designated by government agencies, international organizations as being subject to sanctions, embargoes, or other restrictions on trade or financial transactions.
2. Company also screens transactions to ensure that they do not involve prohibited individuals or legal entities. This will involve reviewing transaction details, such as the names of parties involved, the amounts, and the location of the transaction, to ensure that they are not connected to any individual or legal entity that is subject to sanctions.
3. Additionally, Company has procedures in place to investigate and report any potential sanctions violations to the appropriate authorities.
Risk Assessment
1. Company conducts a comprehensive risk assessment of the relationships with customers to identify and evaluate any potential risks. This risk assessment considers a range of factors, including the nature of the relationship, the services provided, the location of the customer, and the customer’s industry or sector.
2. Based on the results of the risk assessment, Company takes appropriate measures to mitigate any risks identified.
3. Additionally, the Company implements a risk-based approach for its AML/CFT compliance program.
4. Company may provide services to customers who/which have a connection with foreign jurisdictions. In assessing the risk associated with a jurisdiction to which a customer is connected, Company takes account of the following classifications:
  1. Financial Action Task Force (FATF) member countries;
  2. non-FATF countries whose regimes are not subject to sanctions imposed by the UNSC and are not otherwise deemed as high-risk jurisdictions or prescribed foreign countries below;
  3. countries with AML/CTF deficiencies, serious organized crime, political instability, corruption and weak rule of law;
  4. countries subject to UNSC sanctions.
Reporting Suspicious Activity
1. Company recognizes the importance of having a process in place to report any suspicious activities or transactions that indicate money laundering or terrorist financing.
2. Reports of suspicious activities will be reviewed and investigated by Company’s AML/CFT Compliance Officer, which will be responsible for determining whether the reported activity is indicative of money laundering or terrorist financing. If it is determined that the reported activity is suspicious, AML/CFT Compliance Officer will take the necessary steps to report the Suspicious Activity to the appropriate authorities.
Third-Party Service Providers
1. Company takes steps to ensure that Third-Party Service Providers comply with its AML/CFT regulatory requirements. This will involve conducting thorough Due Diligence on these providers, reviewing their reputation and past behavior, and evaluating their own AML and CFT policies and procedures. To ensure Sanctions compliance, Company could inсlude specific provisions related to AML and CFT in agreements with Third-Party Service Providers. Additionally, Company conducts regular monitoring of these providers to confirm they are adhering to the AML and CFT requirements set forth in the contract.
Specific restrictive measures
1. Customers’ Transaction Monitoring and analysis of the received data is one of the tools for assessing the risk and detecting suspicious transactions. In case of suspicion of money laundering or terrorist financing, Company controls all transactions and reserves the right to:
  1. suspend or terminate the customer’s access to account registered at Website;
  2. suspend providing services and freeze, block assets, funds until the circumstances are clarified;
  3. return the customer’s assets, funds by canceling the order, instruction;
  4. take other actions allowed by Act, Company’s internal policies and procedures.

Conclusion
1. Company is committed to complying with all applicable laws and regulations related to AML and CFT in its external relationships. By implementing this AML/CFT Policy, Company aims to prevent its services from being used for money laundering or terrorist financing activities. Company will review and updаte this AML/CFT Policy regularly to ensure that it remains effective in addressing the risks of money laundering and terrorist financing.
2. Company is required to document the financial security measures in place. Records are kept for a period of 5 years from the date of termination of business relations with the customer or from the date of the occasional transaction, unless a longer term is prescribed by Act. Documents are stored in a manner that ensures their security and in accordance with data protection regulations.
3. Communication with a customer may take the form of telephone or video conference discussions and email correspondence.
4. If You have any questions about AML/CFT questions you can contact us:

[email protected]