ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING POLICY
AND
RULES FOR IDENTIFICATION / VERIFICATION OF USERS / CLIENTS / CUSTOMERS
PREAMBLE
This Policy (hereinafter referred to as the “Policy”) constitutes an integral part of the BP.CX User Agreement (hereinafter referred to as the “Agreement”) and regulates the set of measures and procedures aimed at preventing money laundering and terrorist financing, including measures for the identification and verification of Users / Clients / Customers.
1. GENERAL PROVISIONS
1.1. This Policy defines the fundamental principles, objectives, conditions, and methods for the identification, prevention, and suppression of money laundering and terrorist financing activities within the operations conducted by BP.CX.
1.2. This Policy has been developed in accordance with the programs of the Eurasian Group on Combating Money-Laundering and the Financing of Terrorism (EAG), and the recommendations of the Financial Action Task Force (FATF) in the field of anti-money laundering and counter-terrorist financing (AML/CFT), as well as the regulatory acts on combating money laundering and terrorist financing in force in the jurisdictions where BP.CX conducts its activities.
1.3. This Policy applies to the process of any actions being performed under the User Agreement.
1.4. The User independently decides to provide their personal data and grants Consent freely, of their own volition, and in their own interest.
1.5. This Policy may be amended at any time at the discretion of BP.CX. The current version of the Policy is published on the Website or in the relevant section of the respective Service interface; any updates or amendments do not require separate notification to Users. The updated or amended Policy shall enter into force upon its publication on the Website or in the relevant section of the interface of the respective Service. Continued use of the Website or Services by the User following any amendments, updates, or additions to this Policy shall constitute the User’s acceptance of and agreement with such amendments, updates, or additions.
2. DEFINITIONS
For the purposes of this Policy, the following terms shall have the following meanings:
2.1. Anti-Money Laundering (AML)— a set of regulations, measures, and procedures aimed at preventing the concealment of illegally obtained funds as legitimate.
2.2. Know Your Customer (KYC)— the process of verifying the identity and legal status of the User / Client / Customer in order to detect or prevent unlawful actions (intentions) and to ensure compliance with regulatory requirements and contractual obligations.
2.3. Politically Exposed Person, PEP — an individual who holds or has held significant public or municipal positions. The identification of such individuals is essential for compliance with anti-money laundering and counter-terrorism financing regulations. Family members and business partners of such individuals are also subject to identification.
2.4. Suspicious transaction — a transaction that raises suspicions regarding its legality or the lawful origin of the assets involved.
2.5. Money laundering— the concealment or disguise of the true nature, source, location, disposition, transfer, ownership, or other rights in respect of assets obtained as a result of unlawful activity. The transfer, acquisition, possession, or use of assets for the purpose of concealing their unlawful origin, or providing assistance to persons engaging (or having engaged) in unlawful activity, in order to evade legal consequences of such activity.
2.6. Terrorist Financing — the transfer, distribution, or receipt of funds intended for the execution, planning, or commissioning of acts recognized as terrorist under applicable regulatory acts, or for the financing of terrorist organizations (including the concealment of information concerning the use of funds for the aforementioned purposes).
2.7. Sanctioned Person — an individual subject to legal restrictions due to participation in unlawful activities or violations of international law.
2.8. 50%+ Ownership Rule: a legal entity shall be deemed sanctioned if it is owned, directly or indirectly, 50% or more by a sanctioned person, or if several sanctioned persons collectively hold interests in the entity amounting to 50% or more.
2.9. Identification (of User / Client / Customer): the process of establishing the identity of an individual or entity.
2.10. Verification (of User / Client / Customer): the process of confirming the authenticity of an established identity.
2.11. Identification (of risks) – the process of detecting risks in the context of this Policy that relate to a specific individual.
3. PRINCIPLES AND OBJECTIVES OF THE POLICY
3.1. Measures and procedures aimed at countering money laundering and the financing of terrorism (including measures for the identification and verification of Users / Clients / Customers) are implemented by BP.CX on the basis of the following principles:
3.1.1. the principle of legality (compliance with the provisions of the regulatory acts referenced in clause 1.2 of this Policy);
3.1.2. the principle of good faith of the User / Client / Customer. BP.CX implements the verification and identification of Users / Clients / Customers in accordance with the procedure prescribed by this Policy. However, upon entering into any interaction with the User / Client / Customer following verification and identification, BP.CX proceeds on the basis of the principle of good faith, whereby BP.CX relies on the Guarantees provided by the User / Client / Customer, and under no circumstances shall bear any liability for any breach of such Guarantees by the Client / Customer or if such Guarantees are not accurate.
3.1.2. the principle of good faith of the User / Client / Customer. BP.CX implements the verification and identification of Users / Clients / Customers in accordance with the procedure prescribed by this Policy. However, upon entering into any interaction with the User / Client / Customer following verification and identification, BP.CX proceeds on the basis of the principle of good faith, whereby BP.CX relies on the Guarantees provided by the User / Client / Customer, and under no circumstances shall bear any liability for any breach of such Guarantees by the Client / Customer or if such Guarantees are not accurate.
3.2. BP.CX implements measures and procedures aimed at combating money laundering and terrorist financing (including measures for the identification and verification of Users / Clients / Customers) for the following purposes:
3.2.1. to verify and identify the User / Client / Customer for the purpose of entering into any interaction with BP.CX and for their subsequent execution;
3.2.2. to obtain assurance that the User / Client / Customer intends to enter into any interaction with BP.CX exclusively for lawful purposes in accordance with applicable regulations, and that BP.CX is acting on the principle of good faith of the User / Client / Customer and taking lawful actions when entering into any interaction (without violating any provisions of the current applicable legislation), shall in no way be directly or indirectly involved in the commission by itself, the User / Client / Customer, or any third parties of any unlawful acts;
3.2.3. to obtain a guarantee from the User / Client / Customer that the funds and digital assets involved in the execution of a Transaction with BP.CX are used on a legal basis; that the origin of the aforementioned assets is lawful; that the ownership, use, and disposal of these assets do not contravene any provisions of the prevailing applicable legislation; and that the aforementioned assets are not subject to any third-party claims.
3.2.4. to obtain assurance from the User / Client / Customer that they have no direct or indirect involvement in the legalization (laundering) of proceeds of crime, or in the financing (or any other support or promotion) of terrorism. That neither the User / Client / Customer, nor any persons associated with or controlled by them, nor any property owned or used by them, is connected with any unlawful activity in accordance with the provisions of the current applicable legislation;
3.2.5. to obtain a guarantee from the User / Client / Customer that the latter is not included in any lists of persons involved in money laundering and terrorist financing in any jurisdiction. That neither the Client / Customer nor any persons associated with them or under their control are being held liable by law enforcement or fiscal authorities of any jurisdiction for money laundering and terrorist financing, or for the commission of fraud or any other unlawful acts in the form of culpable action or inaction (whether intentional or by negligence).
3.2.6. obtain an assurance from the User / Client / Customer that the latter is not included on any sanctions list of any jurisdiction, is not listed among persons or companies (including individuals affiliated with such companies) associated with sanctioned persons under the 50%+ ownership rule, does not qualify as a Politically Exposed Person (PEP), and is not a family member or business associate of such persons.
3.2.7. obtain an assurance from the User / Client / Customer that the latter does not engage in activities that are contrary to the provisions of the regulatory acts referenced in clause 1.2 of this Policy.
3.2.2. to obtain assurance that the User / Client / Customer intends to enter into any interaction with BP.CX exclusively for lawful purposes in accordance with applicable regulations, and that BP.CX is acting on the principle of good faith of the User / Client / Customer and taking lawful actions when entering into any interaction (without violating any provisions of the current applicable legislation), shall in no way be directly or indirectly involved in the commission by itself, the User / Client / Customer, or any third parties of any unlawful acts;
3.2.3. to obtain a guarantee from the User / Client / Customer that the funds and digital assets involved in the execution of a Transaction with BP.CX are used on a legal basis; that the origin of the aforementioned assets is lawful; that the ownership, use, and disposal of these assets do not contravene any provisions of the prevailing applicable legislation; and that the aforementioned assets are not subject to any third-party claims.
3.2.4. to obtain assurance from the User / Client / Customer that they have no direct or indirect involvement in the legalization (laundering) of proceeds of crime, or in the financing (or any other support or promotion) of terrorism. That neither the User / Client / Customer, nor any persons associated with or controlled by them, nor any property owned or used by them, is connected with any unlawful activity in accordance with the provisions of the current applicable legislation;
3.2.5. to obtain a guarantee from the User / Client / Customer that the latter is not included in any lists of persons involved in money laundering and terrorist financing in any jurisdiction. That neither the Client / Customer nor any persons associated with them or under their control are being held liable by law enforcement or fiscal authorities of any jurisdiction for money laundering and terrorist financing, or for the commission of fraud or any other unlawful acts in the form of culpable action or inaction (whether intentional or by negligence).
3.2.6. obtain an assurance from the User / Client / Customer that the latter is not included on any sanctions list of any jurisdiction, is not listed among persons or companies (including individuals affiliated with such companies) associated with sanctioned persons under the 50%+ ownership rule, does not qualify as a Politically Exposed Person (PEP), and is not a family member or business associate of such persons.
3.2.7. obtain an assurance from the User / Client / Customer that the latter does not engage in activities that are contrary to the provisions of the regulatory acts referenced in clause 1.2 of this Policy.
4. IDENTIFICATION AND VERIFICATION OF USERS / CLIENTS / CUSTOMERS
4.1. Identification of Users holding an account in any Service is performed upon logging into the account.
4.2. Verification of Users holding an account in any Service is conducted using login data or by entering a password (if the relevant Service interface provides this function).
4.3. Identification of Service Users shall be carried out by means of the KYC procedure through submission of the information requested in the relevant form within the interface of the respective Service.
4.4. Identification of the User / Client / Customer at the time of executing any Add and concluding the corresponding Transaction (or when concluding a Transaction without an Add) by discretion of BP.CX could be conducted by collecting the following information regarding the User / Client / Customer (upon the decision of BP.CX could be collected partly or fully):
4.4.1. surname, first name, patronymic (if applicable);
4.4.2. date of birth;
4.4.3. type of identity document;
4.4.4. series and number of the identity document;
4.4.5. date of issue of the identity document;
4.4.6. name of the authority that issued the identity document;
4.4.7. address of registration/place of residence;
4.4.8. citizenship/nationality;
4.4.9. telephone number;
4.4.10. unique identifier (ID) in the Telegram messenger;
4.4.11. email address;
4.4.12. Whether the User / Client / Customer is a politically exposed person, a family member of a politically exposed person, or a business associate of a politically exposed person in accordance with Clause 2.3 of this Policy.
4.4.13. Whether the User / Client / Customer is a sanctioned person in any jurisdiction in accordance with Clause 2.7 of this Policy.
4.4.14. Whether the 50%+ ownership rule applies to User / Client / Customer in accordance with Clause 2.8 of this Policy, or whether the User / Client / Customer is an affiliated person with respect to any company to which the aforementioned rule applies.
4.4.2. date of birth;
4.4.3. type of identity document;
4.4.4. series and number of the identity document;
4.4.5. date of issue of the identity document;
4.4.6. name of the authority that issued the identity document;
4.4.7. address of registration/place of residence;
4.4.8. citizenship/nationality;
4.4.9. telephone number;
4.4.10. unique identifier (ID) in the Telegram messenger;
4.4.11. email address;
4.4.12. Whether the User / Client / Customer is a politically exposed person, a family member of a politically exposed person, or a business associate of a politically exposed person in accordance with Clause 2.3 of this Policy.
4.4.13. Whether the User / Client / Customer is a sanctioned person in any jurisdiction in accordance with Clause 2.7 of this Policy.
4.4.14. Whether the 50%+ ownership rule applies to User / Client / Customer in accordance with Clause 2.8 of this Policy, or whether the User / Client / Customer is an affiliated person with respect to any company to which the aforementioned rule applies.
5. IDENTIFICATION AND RISK ASSESSMENT REGARDING THE USER / CLIENT / CUSTOMER
5.1. In implementing measures and procedures to counter money laundering and terrorist financing, BP.CX distinguishes the following risk groups:
5.1.1. Risks of a geographic (geopolitical) nature (see details in section 5.2 of this Policy);
5.1.2. Risks related to the identity of the Client / Customer (see details in section 5.3 of this Policy);
5.1.3. Operational risks (see details in section 5.4 of this Policy).
5.1.2. Risks related to the identity of the Client / Customer (see details in section 5.3 of this Policy);
5.1.3. Operational risks (see details in section 5.4 of this Policy).
5.2. The level of geographic (geopolitical) risk shall be considered high if any link of the Client / Customer or the proposed Transaction with countries/territories recognized as high-risk is identified (in particular, but not limited to, the following source: http://www.fatf-gafi.org/countries/#high-risk):
5.2.1. countries and territories that are subject to international sanctions, embargoes, or other similar measures;
5.2.2. countries and territories that do not have a regulatory framework governing anti-money laundering and counter-terrorism financing measures;
5.2.3. countries and territories which, according to publicly available data, are involved in the support of terrorism, are associated with money laundering, or have a high level of corruption;
5.2.2. countries and territories that do not have a regulatory framework governing anti-money laundering and counter-terrorism financing measures;
5.2.3. countries and territories which, according to publicly available data, are involved in the support of terrorism, are associated with money laundering, or have a high level of corruption;
5.3. The risk level associated with the identity of the Client / Customer shall be considered high if the person:
5.3.1. is a politically exposed person, a family member of a politically exposed person, or a business associate of a politically exposed person, in accordance with Clause 2.3 of this Policy;
5.3.2. is a sanctioned person in any jurisdiction, in accordance with Clause 2.7 of this Policy;
5.3.3. is listed among persons involved in money laundering or terrorist financing in any jurisdiction, or if the Client / Customer, or persons affiliated with or controlled by the Client / Customer, are prosecuted by law enforcement or fiscal authorities of any jurisdiction for money laundering or terrorist financing, as well as for fraud or any other unlawful acts or omissions (whether intentional or negligent).
5.3.2. is a sanctioned person in any jurisdiction, in accordance with Clause 2.7 of this Policy;
5.3.3. is listed among persons involved in money laundering or terrorist financing in any jurisdiction, or if the Client / Customer, or persons affiliated with or controlled by the Client / Customer, are prosecuted by law enforcement or fiscal authorities of any jurisdiction for money laundering or terrorist financing, as well as for fraud or any other unlawful acts or omissions (whether intentional or negligent).
5.4. The operational risk level shall be considered high if:
5.4.1. The Client / Customer, when entering into a transaction, plans to use the assets of the Principal;
5.4.2. The Client, when entering into a transaction, plans for the provision by BP.CX (or persons to whom BP.CX assigns the performance of the relevant obligations) to be made in favor of a third party (the Beneficiary);
5.4.3. The Client / Customer, in any manner, requests to conceal information regarding the actual participants of the potential transaction;
5.4.4. The Client / Customer is unable to clearly justify the necessity and purpose of the proposed transaction;
5.4.5. When conducting transactions, the Client consistently (or frequently) transfers Title Units from various wallets;
5.4.6. The amount of fiat funds or the number of Title Units intended for use within the scope of the proposed transaction is not typical for this Client;
5.4.7. When conducting transactions, the Client consistently (or frequently) purchases different Title Units.
5.4.2. The Client, when entering into a transaction, plans for the provision by BP.CX (or persons to whom BP.CX assigns the performance of the relevant obligations) to be made in favor of a third party (the Beneficiary);
5.4.3. The Client / Customer, in any manner, requests to conceal information regarding the actual participants of the potential transaction;
5.4.4. The Client / Customer is unable to clearly justify the necessity and purpose of the proposed transaction;
5.4.5. When conducting transactions, the Client consistently (or frequently) transfers Title Units from various wallets;
5.4.6. The amount of fiat funds or the number of Title Units intended for use within the scope of the proposed transaction is not typical for this Client;
5.4.7. When conducting transactions, the Client consistently (or frequently) purchases different Title Units.
6. RISK MITIGATION MEASURES
6.1. BP.CX reserves the right to conduct additional verification by any lawful means or to refuse a transaction without further explanation if any of the risks specified in Article 5 of this Policy are identified.
6.2. BP.CX does not conduct any interaction with persons under the age of 18. In certain jurisdictions, this age restriction may differ in accordance with local legislation.
6.3. BP.CX reserves the right to reject any interaction with persons who refuse identification and verification in accordance with Article 4 of this Policy.
6.4. Upon execution of an Agreement in the course of entering into a Transaction, BP.CX (or parties to whom BP.CX delegates the fulfillment of relevant obligations) shall obligatorily require the Client / Customer to provide Guarantees in accordance with clauses 3.2.2–3.2.7 of this Policy (such conditions are incorporated into the Agreements). BP.CX disclaims any liability for any breach of the specified conditions by the Client / Customer or for the inaccuracy of the aforementioned Guarantees.
6.5. BP.CX conducts AML screening of the title instruments used by the Client to execute Transactions, in accordance with Article 7 of this Policy.
7. AML SCREENING OF THE CLIENT'S TITLE INSTRUMENTS
7.1. BP.CX conducts AML screening of the title instruments used by the Client to execute Transactions prior to their receipt, based on the data from the relevant wallet provided by the Client, or upon actual receipt of the title instruments, at BP.CX’s discretion.
7.2. The verification referred to in Clause 7.1 shall be conducted through the use of specialized services (including, but not limited to, AMLBot and Getblock). BP.CX reserves the right to utilize any services at its sole discretion, without disclosing their names to the User / Client.
7.3. Based on the results of the verification conducted in accordance with Clauses 7.1 and 7.2 of this Policy, BP.CX reserves the right to decline any transaction without further explanation if any of the following facts are identified:
7.3.1. the overall risk level based on the verification results exceeds 50%;
7.3.2. Based on the results of the review, the statuses Stolen Coins and/or Scam with a risk level exceeding 1% of the total amount have been identified, even if the overall risk level is below the threshold specified in Clause 7.3.1 of this Policy.
7.3.2. Based on the results of the review, the statuses Stolen Coins and/or Scam with a risk level exceeding 1% of the total amount have been identified, even if the overall risk level is below the threshold specified in Clause 7.3.1 of this Policy.
8. PROCEDURE FOR RESOLVING DISPUTES
8.1. Any disputes between the Parties shall be resolved in accordance with the provisions of the User Agreement referred to in the preamble, of which this Policy constitutes an integral part.