Anti-Money Laundering, Counter-Terrorist Financing and KYC Policy

The purposes of ArrivalPay's Anti-Money Laundering, Counter-Terrorist Financing and Know Your Customer Policy (hereinafter, the "AML/CFT and KYC Policy") is to identify, prevent and mitigate possible risks of ArrivalPay being involved in illegal activity.

To conform with the Estonian Money Laundering and Terrorist Financing Prevention Act (the "AML Act") and international AML/CFT regulations, the Company has implemented effective internal procedures to prevent money laundering, terrorist financing, drug and human trafficking, proliferation of weapons of mass destruction, corruption and bribery and to react correspondingly in case of any form of suspicious activity from its Users.

Money Laundering is defined as:

  1. the conversion or transfer of property derived from criminal activity or property obtained instead of such property 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 actions;
  2. the acquisition, possession or use of property derived from criminal activity or property obtained instead of such property, knowing, at the time of receipt, that such property was derived from criminal activity or from an act of participation therein;
  3. the concealment of the true nature, origin, location, manner of disposal, relocation, or right of ownership of property acquired as a result of a criminal activity or property acquired instead of such property or the concealment of other rights related to such property.

Terrorist Financing is defined as: "the financing and supporting of an act of terrorism and commissioning thereof as well as the financing and supporting of travel for the purpose of terrorism".

The Company must adhere to the AML/CFT Act and guidance set down by the Estonian regulator on how financial institutions should conduct Due Diligence on their customers.

The main legislation in relation to AML/CFT are:

  • Money Laundering and Terrorist Financing Prevention Act
  • Anti-money laundering (AMLD V) - Directive (EU) 2018/843

The AML/CFT and KYC Policy includes:

  • Verification procedure
  • Role of the Chief Compliance Officer
  • Transactions Monitoring
  • Risk Assessment

Verification Procedures

To help fight the funding of terrorism and money laundering activities, the AML/CFT Act requires all financial institutions, including virtual-currency exchanges, to obtain, verify and record information that identifies each person or entity who opens an Account. We are required by law to ask you to provide your name, address, date of birth, and other information about you, your organization, or persons related to your organization that will allow us to identify you before we approve your Account. We also may ask you to provide certain identifying documents, such as your driver's license or passport or your organization's articles of incorporation, and may obtain credit and other consumer reports to assist us in verifying your identity and in determining whether you satisfy our Account criteria. Unless you provide the requested information and documentation, we may not be able to open your Account.

By applying for an Account, you agree to provide the information and documentation requested by the Company and consent to the Company's acquisition of credit and other consumer reports about you for the purposes described above.

The Company's Customer due diligence ("CDD") procedure requires the Users to provide ArrivalPay with reliable, independent source documents to identify them and confirm their residential address. Such documents may include, for example, a national ID card, an international passport, a bank statement, a utility bill. For such purposes, the Company reserves the right to collect the Users' identification information for the purposes of compliance with its AML/CFT and KYC Policy. The Company may use face-recognition technology or other advanced tools to confirm your identity.

The Company will take steps to confirm the authenticity of documents and information provided by Users. The Company will also look to verify identification information through secondary sources, and the Company reserves the right to investigate further the cases of Users where the Company is not satisfied with the documentation submitted.

The Company reserves the right to verify the identity of the User on an ongoing basis, especially when its identification information has been changed or its activities appear suspicious (unusual for a particular User). In addition, the Company reserves the right to request from the User's current documents, even if they have been authenticated in the past.

Information about the User's identification will be collected, stored, shared, and protected strictly in accordance with The Company's Privacy Policy and relevant rules. The User agrees that if any information provided in the Account application changes ceases to be true or becomes materially misleading (including, but not limited to, the ownership of the Account), then the User will notify the Company of the changes.

After confirming the identity of the User, the Company may refuse to provide Services to the User if ArrivalPay's Services are suspected to be used for the purposes of conducting illegal activities.

The Company has a regulatory requirement to verify the sources of Fiat Money and/or Cryptocurrency to know that the sources of the Funds that Users use to trade with are legitimate.

Users who intend to use payment cards for the purpose of consuming Services must undergo a card check in accordance with the instructions available on the Company's Site.

The Company may use independent third-party providers to perform on its behalf any procedure required under this AML/CFT and KYC Policy.

The Company reserves the right to terminate or refuse Accounts on the basis of information attained by the third-party companies; this includes Users connected to "high-risk" wallets.

Chief Compliance Officer

The Chief Compliance Officer is the person duly authorized by the Company, whose duty is to ensure the effective implementation and enforcement of the AML/CFT and KYC Policy. It is the Chief Compliance Officer's responsibility to supervise all aspects of the Company's anti-money laundering and counter-terrorist financing procedures, in particular:

  • collection of Users' identification information;
  • establishing and updating internal policies and procedures for the completion, review, submission, and retention of all reports and records required under the applicable laws and regulations;
  • monitoring transactions and investigating any significant deviations from normal activity;
  • implementing a records management system for appropriate storage and retrieval of documents, files, forms, and logs, updating risk assessment regularly, providing law enforcement with information as required under the applicable laws and regulations.

The Chief Compliance Officer is the contact point for ArrivalPay with law enforcement agencies for the purposes of prevention of money laundering, terrorist financing, and other illegal activities.

Transaction Monitoring

The Company Users must complete The Company's identity verification process (who you are) before trading. After verification is completed, the User consents to transaction Monitoring, the Company analyses the User's transactional patterns (what they do).

The Company relies on data analysis as a risk assessment and suspicious activity detection tools. These tools perform a variety of compliance-related tasks, including capturing data, filtering, record-keeping, investigation management, and reporting.

In connection with the AML/CFT and KYC Policy, the Company will:

  • monitor all transactions. The Company reserves the right to ensure that transactions of suspicious nature are reported to the proper law enforcement;
  • request the User to provide any additional information and documents in case of suspicious transactions;
  • suspend or terminate User's Account when the Company has a reasonable suspicion that such User is engaged in illegal activity.

The above list is not exhaustive, and the Chief Compliance Officer will monitor Users' transactions on a regular basis in order to define whether such transactions are to be reported and treated as suspicious.

Risk Assessment

In order to meet its obligations regarding Anti-Money Laundering and Counter-Terrorist Financing, the Company completes an annual AML/CFT Risk Assessment. The aim of the AML/CFT Risk Assessment is to prevent criminals from using the Company to launder money by highlighting risks and assessing controls the Company has put in place. A risk-based approach is taken to identify Users and monitor how they use our Services.

The Chief Compliance Officer is responsible for managing financial crime risks and making improvements in financial crime risk management by identifying the general and specific money laundering risks that the Company is facing, determining how these risks are mitigated by the Company's AML/CFT controls, and establishing the residual risk that remains for the Company.