KNOW-YOUR-CUSTOMER / ANTI-MONEY LAUNDERING POLICY
Last updated: 04 October 2022
Prior update: 24 January 2022
This policy (this Policy) sets out the know-your-customer (KYC) (commonly also known as customer due diligence) and anti-money laundering requirements for the provision of cryptocurrency wallet services including, but not limited to, the issue of tokens to you and the redemption of tokens by you (the Services) by companies in the Peccala Group including Peccala Token Ltd., and its subsidiaries (Peccala, we, us or our). This Policy shall apply to all third-party owners of tokens who wish to utilize the Services following the purchase of tokens through a third-party exchange.
Please read the following carefully to understand our requirements for the use of our Services. In order to deposit or withdraw any funds from your wallet, you must provide the required KYC to a standard which is satisfactory to Peccala (and/or our duly appointed agents, representatives or nominees). Failure to provide KYC to the satisfaction of Peccala will result in you being unable to access the Services. Peccala has retained the services of third-party providers to collate and assess KYC, and such providers may have requirements in excess of this Policy in order to approve your use of the Services.
Peccala is committed to: (i) ensuring that the Services are not used in association with any money laundering, terror financing, evading of sanctions or otherwise to facilitate criminal activity; and (ii) complying with relevant and applicable anti-money laundering and terrorist financing rules and regulations. This Policy reflects this risk-based approach and, in particular, tracks, as closely as practicable, the requirements of the BVI Anti-Money Laundering and Terrorist Code of Practice 2008 (as amended from time to time), notwithstanding that Peccala currently falls outside the scope of this regulation.
1. Jurisdictional and Sanction Restrictions
Users of the Services are obliged to represent and warrant to Peccala (and to certain other persons) that they are not Restricted Persons. The Services are not being offered to any Restricted Persons and Restricted Persons are strictly prohibited from utilizing the Services.
A Restricted Person means any person that is, or any person utilizing the Services on behalf of: (i) a U.S. Person; (ii) a resident of the People’s Republic of China; (iii) a resident of Canada; (iv) a citizen, resident (tax or otherwise) of, or a person located or domiciled in any Restricted Jurisdiction (other than the People’s Republic of China or Canada) or any entity, including without limitation, any corporation, partnership, trust or unincorporated entity, created or organized in or under the laws of any Restricted Jurisdiction; (v) any person who is the subject of economic or financial sanctions or trade embargoes administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control (OFAC) or the U.S. Department of State or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom; or (c) any other relevant sanctions authority (Sanctions) or is organized or resident in a country or territory that is the subject of country-wide or territory wide Sanctions; (vi) a person under the age of 18 years; or (vii) an individual who is or has been entrusted with prominent public functions and members of his or her immediate family, or persons who are known to be close associates of such individuals (being ‘politically exposed persons’).
A Restricted Jurisdiction means: (i) the United States (being the United States of America (including the states and District of Columbia) and any of its territories, possessions and other areas subject to its jurisdiction; (ii) the British Virgin Islands; (iii) the Cayman Islands; (iv) any country on the Financial Action Task Force (FATF) call for action list; (v) any country on the EU money laundering or non-cooperative tax lists; and (vi) any jurisdiction for which Services, or any offer or solicitation in respect of the Services by Peccala, would require registration or licensing not obtained by Peccala
or otherwise would be unlawful. Further, users of Services from certain jurisdictions, at the discretion of Peccala, may be required to provide a completed and executed representation letter, certifying that they are an ‘accredited investor’ or similar concept under relevant regulatory regimes.
A U.S. Person means (i) a U.S. citizen, U.S. lawful permanent resident, individual who meets the “substantial presence” test described in section 7701(b)(3) of the U.S. Internal Revenue Code of 1986 (as amended), protected individual under section 1324b(a)(3) of the U.S. Immigration and Nationality Act, or individual who holds a passport issued by the United States government; (ii) a corporation, partnership, or other entity established or organized in or under the laws of the United States; (iii) any estate of a decedent who was a citizen or a resident of the United States or which any executor or administrator is a U.S. Person; (iv) any trust if (a) (i) a court within the United States is able to exercise primary supervision over the administration of the trust, and (ii)) one or more United States Persons have the authority to control all substantial decisions of the trust or (b) any trustee is a U.S. Person; (v) any entity organized or incorporated outside the United States in which any of the foregoing, whether singularly or in the aggregate, directly or indirectly holds a 50 percent or greater equity interest by votes or value, holds a majority of seats or memberships on the board of directors of the entity, or authorizes, establishes, directs, or otherwise controls the actions, policies, personnel decisions, or day to-day operations of the entity; (vi) any pension plan for the employees, officers or principals of a legal entity described in clause (ii), unless the pension plan is primarily for foreign employees of such entity; (vii) any agency or branch of a foreign entity located in the United States; (viii) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. Person; (ix) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and (x) any partnership or corporation if: (A) organized or incorporated under the laws of any jurisdiction outside of the United States and (B) formed by a U.S. person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in the Securities Act) who are not natural persons, estates or trusts. U.S. Person status is determined by beneficial as well as record ownership.
2. Required Documents
Users will be required to submit documents for verification prior to being permitted to access the Services. The type of documents requested will depend on the type of applicant and will be subject to the sole discretion of Peccala and its third-party service providers but will, in the most part, follow the guidelines below.
All copy documents provided pursuant to this Policy must be valid, current, clear and legible. Where a document is in a foreign language, it must be translated into English by a suitably qualified translator. The translator should sign the document to confirm the accuracy of the translation and their credentials.
In addition to the below, Peccala and its third-party service providers may carry out checks through risk databases, wallet analysis services and IP tracing services. Where carried out, the results of which must be to the satisfaction of Peccala (and/or our duly appointed agents, representatives or nominees) in order for your obligations under this Policy to be satisfied and for you to be able to access the Services.
Individuals will be required to provide the following information:
i. a copy of the individual’s passport, national identity document or other government-issued and photo-bearing driving license;
ii. documentary evidence of the individuals’ permanent residential address (such as a bank or credit card statement or utility bill), dated within the last three months (where a P.O. box forms part of such address, the complete address should be evidenced);
iii. details of their email address and telephone number; and
iv. in certain cases, verification of the source of funds used to acquire cryptocurrencies deposited in the wallet. For example, but not limited to payslips, bank statements, tax declarations etc.
Companies will be required to provide the following information:
i. a copy of the entity’s certificate of incorporation or equivalent formation document;
ii. a copy of the memorandum and articles of association or by-laws of the entity or its equivalent governing constitution;
iii. where the company is regulated, details of the regulatory regime and regulator;
iv. a description of the company’s activities and, in certain cases, verification of the source of funds used to acquire funds deposited (in fiat or crypto); and
v. satisfactory evidence of identity for each underlying beneficial owner of the company who owns, controls or is otherwise entitled to, directly or indirectly, at least 10 per cent of the entity and at least two directors (or one, where there is a sole director only) of the company (as set out in ‘individuals’ above).
Partnerships and unincorporated entities
Partnerships and unincorporated entities will be required to provide:
i. a copy of the certificate of registration, where registered, and the partnership agreement or articles of partnership or other constitutional documents or agreements;
ii. a description of the entity’s activities and, in certain cases, verification of the source of funds used to acquire cryptocurrencies deposited in the wallet; and
iii. satisfactory evidence of identity for each underlying beneficial owners of the entity who owns or otherwise is entitled at least 10 per cent of the entity and any partner or other controlling officer relevant to the use of the Services (as set out in ‘individuals’ above).
Trustees acting on behalf of a trust will be required to provide:
i. confirmation of the type of trust, the nature and place of the activities of the trust and, in certain cases, verification of the source of funds used to acquire cryptocurrencies deposited in the wallet; and
ii. satisfactory evidence of identity for each of the settlor, trustees or protector of the trust and, where Peccala, in its sole discretion, determines that the trust presents other than a low level of risk, the beneficiaries of the trust (as set out in ‘individuals’ above).
3. Standards of due diligence
Standard due diligence
All Peccala customers are required to undergo standard due diligence involving ID and proof of address verification, and checks against AML/Sanctions/PEP lists provided by governments and International Organizations worldwide. These checks may be conducted by a third-party supplier.
Customers who pass standard due diligence are considered to be “Level 1” verified, allowing them to deposit up to $15,000 per month, or equivalent in a different currency.
Enhanced due diligence
Peccala customers who wish to invest more than $15,000 per month (or as a one off transaction) will be required to become “Level 2” verified by passing our enhanced due diligence process. This involved submitting source of funds proofs for the amount of money they wish to invest. Such proofs will depend on the source of funds, but may include cryptocurrency investment transactions, salary slips, tax returns, bank statements etc. The documents required will be at the sole discretion of Peccala.
Peccala may also, at its sole discretion, enhance its KYC requirements where it feels it necessary or desirable to do so. In particular, such enhanced due diligence may be required where a user is identified as:
i. involved in a business activity, or having an ownership structure, or depositing or withdrawing such volume of cryptocurrencies, in each case that is complex or unusual, having regard to the risk profile of the user or where the entity exhibits an unusual pattern of transactions or does not demonstrate any apparent or visible economic or lawful purpose;
ii. located in a country that is either considered or identified as a high-risk country (see below) or that has international sanctions, embargos or other restrictions imposed on it.
Peccala has the discretion to request certified copies of any documents to be provided under this Policy. Peccala will request such certified copies if it considers that the non-certified copies provided may not be authentic, may be doubtful or generally has concerns regarding the non-certified copies or the user.
In addition to requesting certified documents, Peccala or its third-party service providers are entitled to require additional verification, including: (i) video verification; (ii) contacting you by telephone at a business line or verified residential line; (iii) requiring reference letters or other additional documents; (iv) confirming residential address through a pick-up of any application form via courier from; and/or (v) requiring a face-to-face meeting.
Such enhancements are subject to the sole discretion of Peccala.
High risk countries mean countries which are:
i. subject to Sanctions, embargoes or similar measures or have otherwise been identified by regulatory bodies to which Peccala is subject as being high risk;
ii. identified as providing funding or support for terrorist activities or that have designated terrorist organizations operating within them;
iii. identified as having significant levels of organized crime, corruption or other criminal activity, including source or transit countries for illegal drugs, human trafficking, smuggling and illegal gambling; and
iv. identified as having weak governance, law enforcement and regulatory regimes including countries identified by the FATF and EU statements as having weak anti-money laundering and/or counter terrorist financing regimes, especially for virtual asset service providers (VASPs) and for which VASPs and other obliged entities should give special attention to business relationships and transactions.
Ongoing user and transaction monitoring
As well as conducting due diligence on new customers, Peccala will also engage in automated and manual ongoing transaction and periodic user behavior monitoring to identify potentially suspicious activity. These checks will be conducted in line with FATF and EU AML Directive requirements to maintain the highest standard of anti-money laundering compliance. Suspicious transactions / activity may be reported to relevant government authorities in line with statutory requirements.
Storage of customer data
In line with British Virgin Islands and EU guidelines, customer transaction data will be held for a minimum of five years after an account is closed.
4. Contact and responsible person
If you would like to contact us regarding this Policy, please send us an email to firstname.lastname@example.org. To ensure your query is dealt with as swiftly as possible, please include as the subject or heading line “KYC Policy”.
Peccala will, in future, seek to appoint a compliance officer whose duty it is to ensure effective implementation and enforcement of this Policy.
5. Privacy Notice
Any information collected by Peccala pursuant to this Policy will be retained in accordance with our privacy and data protection notice as provided by or on the behalf of Peccala from time to time.
6. Updates to information
It is important that any personal information held by us or our third-party service providers about you is accurate and current. Where the information provided by you to us pursuant to this Policy becomes outdated between the date provided and the date on which you cease to utilize the Services, or the information provided otherwise proves to be incorrect, you agree to notify Peccala as soon as possible and provide updated or corrected information. Peccala further reserves the right to refresh the information held on you, at its sole discretion, prior to the use of any of the Services including but not limited to further issues of tokens to you or the redemption of tokens by you.
7. Other services
This Policy applies to use of the Services. Additional KYC may be required to participate or utilize services offered by Peccala and your ability to participate or utilize such services may be subject to you providing such additional documents or assurances.
8. Right to refuse or cancel and obligations to report
It is further noted that Peccala will be under an obligation, pursuant to applicable laws and regulations, to report to the relevant authorities any transactions where it knows, or suspects, or has reasonable grounds for knowing or suspecting, that another person is engaged in money laundering.
9. Changes to this Policy
We may update this Policy from time to time and we encourage you to periodically review this Policy.