Our AML policy is designed to comply with the following regulation:
- The Proceeds of Crime Act 2002 (POCA), as amended by the:
- Serious Organised Crime and Police Act 2005 (SOCPA); and the
- Proceeds of Crime Act (Amendment) Regulations 2007;
- The Terrorism Act 2000, as amended by the:
- The Anti Terrorism, Crime & Security Act 2001; and the
- Terrorism Act (Amendment) Regulations 2007;
- The Terrorism Act 2006;
- The Money Laundering Regulations 2007
- 5 th Anti Money Laundering Directive
- The Joint Money Laundering Steering Group (JMLSG) Guidance for the UK Financial Sector
on the prevention of money laundering/combating terrorist financing.
Introduction and scope
As with any institution dealing with financial transactions, there is a risk of BLOCKNOTE products and
services being used to launder money and finance terrorism. English and European law and applicable
local laws in the jurisdictions in which we operate, requires us to put training, processes and systems in
place to identify, manage and mitigate this risk. We do this to protect the BLOCKNOTE’s reputation, to
comply with relevant laws and to be a good corporate citizen. Failure to do so may result in social harm,
significant penalties, including legal and regulatory action.
Our AML/CTF policy
Sets out how the BLOCKNOTE complies with its legislative obligations applies to all business divisions and employees (permanent, temporary and third party providers) working in Isle of Man, United Kingdom, Europe and oversea
Money laundering is the procedure of hiding or concealing the source of unlawfully obtained (“dirty”) assets to make them appear genuine (“clean”), e.g. by sifting them through the financial system. Money laundering decreases the hazard of discovery and confiscation by authorities. It is just as serious as the criminal activity behind it – and preventing it can help reduce crime.
The relevant laws mentioned at the start of this policy provide a list of ‘designated services’, such as opening an account or making a deposit. Before receiving any of these designated services, customers will be required to provide proof of identity or similar documentation. Omafinances is required to collect and verify information stated in the Appendix “Documents required”. We take steps to confirm the authenticity of documents and information provided by our customers. After accepting a client to work with us, we continuously perform analyzes of client’s transactional patterns. Our policy is to ensure that transactions of suspicious nature are reported the Compliance Officer, Money Laundering Compliance Officer and if required by law, to Financial Intelligence Units. If any suspicious operations occur – we stop any relations with a customer until investigation is completed.
Our retention period for client’s due diligence documentation after the business relationship has ended, set at 7 years.
Customer due diligence:
- Identify the client and verify their identity
- Understand ownership and structure
- Identify the beneficial owners where relevant and verify their identity
- Classify by AML risk level, follow prescribed procedure for data requirements
- Carry out Enhanced Due Diligence where required (e.g. high risk/PEPs)
- Obtain information on the purpose and intended nature of the relationship
- Conduct on-going monitoring of the relationship
Money laundering and terrorism financing are sometimes detected because a customer acts or behaves
in a suspicious way.
For a ‘suspicion’ to be valid, we must have reasonable grounds to believe Money laundering and
terrorism financing activity may be occurring. To support this, employees receive training in identifying
and reporting suspicious matters.
BLOCKNOTE is prohibited from transacting with individuals, companies and countries that are on
prescribed Sanctions lists and politically exposed persons. BLOCKNOTE will therefore screen against
United Nations, European Union, UK Treasury and US Office of Foreign Assets Control (OFAC) sanctions
lists in all jurisdictions in which we operate.
We are obliged to report any suspicious activity of our clients to the Financial Intelligence Units.
Risk based approach:
- Firm is required to assess the risks of being used for money laundering or terrorist financing
- Identify the main risks
- Design systems accordingly
- Act in accordance with its systems and controls
- Beware political correctness
- Use common sense and good judgement
Politically exposed persons:
- “Individuals who have, or have had, a high political profile, or hold, or have held public office can
pose a higher money laundering risk to firms as their position may make them vulnerable to
- A PEP is defined as an individual who has at any time in the preceding year been entrusted with
prominent public functions
- Includes close family members
External Services we use:
We use service Onfido to verify individuals identities and search against blacklist/sanctions databases. We also use Chainalysis service for real-time alerts on incoming and outgoing transactions for links to potentially suspicious activity
List of countries – high risk countries: Our policy is to avoid to work with, otherwise consult with Regulator and our Bank.
Algeria Nicaragua Angola Nigeria Antigua and Barbuda Pakistan Argentina Sudan Bangladesh South Korea Bolivia Sri Lanka Bosnia and Herzegovina Saint Tomas Iran Syria Brunei Tajikistan Ecuador Tanzania Ethiopia Thailand Philippines Turkey Emmen Trinidad and Tobago Ghana Turkmenistan Guyana Uganda Cambodia Vanuatu Cuba Venezuela Democratic People’s Republic of Korea Vietnam Indonesia Yemen Iran Zimbabwe Iraq Kenia Kyrgyzstan Lao PDR Morocco Mongolia Myanmar Namibia Nepal
Appendix: Documents required: For legal persons (Companies/Foundations)
- Certified copy of the Certificate of Incorporation or equivalent
- Copy of the latest report and accounts if available (audited, where possible);
- Certified copy Memorandum of Association or equivalent document.
- Provide explanation in writing the type of activities of your company and the reason for purchase/sell of digital assets
- Proof of funds:
- recent bank statements / audited financial statements (for a legal entity)
- explanation of source of funds in writing
For natural persons Identity:
- Current valid passport bearing the photograph of the applicant.
- Certified copy valid passport bearing the photograph of the applicant. Residential address:
- A recent account statement (i.e. no more than 3 months old) from a recognised bank, building society or credit card company or the most recent mortgage statement from a recognised
- Photographic driving licence or national identity card containing current residential address if
the document has not been used to verify identity.
- A recent rates, council tax or utility bill (recent in respect of utility bills is considered to be no
more than 3 months old). Utility bills received electronically are not acceptable.
- Mobile telephone bills are not acceptable as evidence of address under any circumstances.
- Correspondence from an official independent source such as a central or local government
department or agency.
- Proof of funds:
- recent bank statements
- explanation of source of funds in writing
Notes on Certification
Certification wording for photographic ID: “Having met the holder and having seen the original document at the same time, I confirm that this is true and accurate copy of the original document that I have seen and that the photograph bears a true likeness to the holder.” For Utility Bills and non-photographic documents: “I confirm that this is true and accurate copy of the original document that I have seen.” For certification to be effective:
- The certifier will need to have seen the original documentation and have met the individual face-to-face.
- The certifier must sign and date the copy document (printing his/her name clearly in capitals underneath) and clearly indicate his/her position or capacity on it and provide his contact details. If a member of a recognised professional body, also provide membership number.
Suitable persons to certify verification of identity documents include
- an officer of an embassy, consulate or high commission of the country of issue of documentary verification of identity;
- a lawyer or notary public who is a fully qualified member of a recognised professional body;
- an actuary who is a fully qualified member of a recognised professional body;
- an accountant who is a fully qualified member of a recognised professional body;
- a company secretary who is a fully qualified member of a recognised professional body;