AML POLICY
Effective date: 19/06/2024
Both international and local regulations require TrustChange to implement effective internal procedures and mechanisms to prevent money laundering, terrorist financing, drug and human trafficking, proliferation of weapons of mass destruction, corruption and bribery, tax evasion and to take action in case of any suspicious form of activity of its Customers.
TrustChange’s AML Policy is designed to identify, prevent and mitigate possible risks of involvement of TrustChange in any type of illegal or fraudulent activity. The provisions described in this AML Policy confirm that we diligently adhere to the standards established by Polish and European legislation in the field of AML that imply obligations on the regulated entity to verify of the Customers, as well as to conduct vigilance of their transactions when they use TrustChange services on the website https://www.trustchange.com/ (further the “Site”). This AML Policy applies to any visitor of the Site/ the user/ the cryptocurrency buyer/ the client/ the customer (further the “Customer”, “you”, “your”) who uses the Site, registers on it and uses TrustChange services.
The Site is owned by EONTECH SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ (EONTECH sp. z o.o. - in short) - a company registered according to legislation of Poland with its registered number (REGON) 528366146, whose registered address is ul. HOŻA, nr 86, lok. 210, miejsc. WARSZAWA, kod 00-682, poczta WARSZAWA, kraj POLSKA (further “TrustChange”, “we”, “us”, “our”). EONTECH sp. z o.o. was entered into the Virtual Currency Business Activity Register maintained by the Director of the Revenue Administration Chamber in Katowice under the number RDWW-1278.
WARNING!!! TrustChange demonstrates a zero-tolerance position towards money laundering, terrorist financing, drug and human trafficking, proliferation of weapons of mass destruction, corruption and bribery, tax evasion and other illegal activity of the Customers. TrustChange is obliged to notify the General Inspector if it becomes aware that there is knowledge or serious concern that assets were acquired as a result of offenses stated above in this warning.
Definitions
Anti-Money Laundering (AML) is a set of measures and procedures aimed at detecting and/or preventing the use of TrustChange service/the Site and/or services provided by TrustChange for the purpose of money laundering.
Beneficial Owner means a natural person or natural persons who exercise, directly or indirectly, control over a customer through the powers held, which result from legal or actual circumstances, enabling exerting a critical impact on activities or actions undertaken by a customer or a natural person or natural persons, on whose behalf a business relationship is established or an occasional transaction is conducted.
Counter-terrorist financing (CTF) is a set of measures and procedures aimed at identifying and/or preventing the use of TrustChange service/ the Site and/or services provided by TrustChange to finance terrorism.
Fraud is deception with the aim of pursuing personal interests and damaging the interests of Customers and/or the TrustChange service.
Know Your Client (KYC) is a set of measures and procedures aimed at obtaining information about the client and their activities to manage the service's risks.
Money laundering (ML) is a financial transaction scheme that aims to conceal the identity, source, and destination of illegally obtained money or finance illegal activities.
Politically Exposed Persons (PEP) mean natural persons holding significant positions or fulfilling significant public functions in the country.
Sanctions are commercial and financial sanctions applied by one or more countries against targeted self-governing states, groups, or individuals.
Scam is a way of deception and fraud to get money from Internet users. It may involve withholding information or providing incorrect or false information to steal victims' money or other property.
Tax evasion stands for efforts to avoid paying the full amount of taxes owed to the government. They embrace deceitful actions aimed at sidestepping tax obligations, e.g. voluntary omission or deliberate error in declarations, concealment of taxable amounts, organizing insolvency to evade tax payment etc.
Principles for Structure and Management of TrustChange in respect to the AML Policy
Business Risk Assessment
TrustChange’s management assesses the risk of business and flow of Customers, understands macroeconomics and political processes taking place in different countries in order to anticipate and prevent incidents that violate AML/CFT legislation.
TrustChange’s management takes measures to convey to employees responsible for AML / KYC the idea that different clients and different market participants have a different level of risk. That is why the depth of due diligence for clients differs depending on the level of risk. Cross-border transactions, as well as clients operating in high-risk areas or residing in high-risk countries, are subject to a deeper check.
TrustChange’s management strictly follows the requirements set out in the Directive (EU) 2015/849 with amendments, Directive (EU) 2015/847 and the ACT of 1 March 2018 on counteracting money laundering and terrorist financing of the Republic of Poland.
Risk assessment and indicating the risk score of a particular transaction is done according to internal procedures.
Monitoring of Transactions
TrustChange conducts monitoring of transactions with the aim of AML/CFT and applies AML/KYC procedures to certain Customers, addresses and operations with crypto assets. If the crypto asset is considered to be one of a high risk, we refuse to conduct the operation. TrustChange may keep a blacklist of wallet addresses.
Compliance System
There is a Compliance division within TrustChange’s structure. It is a part of the management/control system in the organization, associated with the risks of non-being in accordance with requirements of legislation, regulations, rules and standards of supervisory authorities, industry associations and self-regulatory organizations, codes of conduct. Among other things, the Compliance division is involved in AML/CFT.
KYC and Due Diligence
KYC (Know-your-client) and Due diligence checks are carried out in accordance with this AML Policy and internal procedures of TrustChange.
Third Parties Engagement and Software Usage
TrustChange may involve third parties to perform the AML/KYC procedures in whole or in part in order to fulfill the AML/CFT function in best endeavors with respect to the Privacy Notice.
TrustChange can use software of any complexity, both developed by itself and supplied by third parties, to carry out the AML/KYC procedure.
TrustChange uses the Compliance platform for crypto services providers, financial crime compliance service to improve customer AML verification, and services as an unified verification platform for ID verifications of the Customers supplied by third-party vendors.
TrustChange reserves the right to appoint a third-party service provider to perform the whole AML/KYC procedure on behalf of TrustChange. When processing the Customer’s information, such service provider fully complies with our Privacy Notice regarding our Customers’ personal information.
Money Laundering Reporting Officer (MLRO)
According to the ACT of 1 March 2018 on counteracting money laundering and terrorist financing of the Republic of Poland the obligated institutions shall appoint an employee holding a management position, responsible for ensuring the compliance of activity of the obligated institution and its employees and other persons performing activities for this obligated institution with the provisions on money laundering and terrorist financing. The appointed employee shall be also responsible for the submission of notifications to the General Inspector on behalf of the obligated institution.
MLRO in TrustChange serves as a pivotal figure in the implementation of our AML strategies and policies and is entrusted with overseeing our AML program and reporting suspicious activities to the General Inspector.
Key duties of an MLRO include:
- Overseeing TrustChange’s AML systems, internal policies and procedures in the AML/ KYC realm;
- Serving as the focal point for inquiries from the General Inspector, regulatory and law enforcement agencies;
- Collecting Customers’ identification information, verifying provided data, and implementing a record system for decent data storage and retrieval;
- Gathering and analyzing information concerning unusual transactions or suspected activity of the Customers, receiving suspicious activity reports and making decisions regarding their reporting to authorities;
- Conducting investigations into any unusual or criminal activity of the Customers;
- Handling ongoing monitoring of operations;
- Taking reasonable steps to establish and maintain adequate arrangements for anti-financial crime awareness and training for TrustChange’s employees;
- Prepare and send an AML status report to the management of TristChange.
MLRO may either deal with a compliance officer or combine functions of both for prevention of money laundering, terrorist financing, and other illegal activity.
Principles of Customer Due Diligence Measures Implementation
Customer verification activities are based on the following principles:
- Risk-oriented Approach
This principle involves determining the risk of the Customer and transactions and conducting due diligence as appropriate for the level of risk, in order to use resources efficiently and not to create additional impediments for Customers.
- Deeper due diligence is done for clients from high-risk areas or ML/FT high-risk countries.
- Principle of Reasonable Application.
This principle implies a one-time verification of a regular Customer.
- Blacklists
TrustChange keeps blacklists of wallet addresses and checks against blacklists.
- TrustChange refuses to carry out an operation if the Customer refuses to undergo KYC verification.
Customer Due Diligence Measures
We strive to protect our Customers from fraudulent activities in the field of crypto assets. Certain crypto assets can be used for fraud or any other criminal activity defined by law. In order to prevent this happening, TrustChange takes steps to provide Customer verification and the security of financial transactions. One of the best measures is the AML/KYC procedure, which allows TrustChange to confirm that the Customer is a law-abiding individual or legal entity.
TrustChange has a risk-scoring system that can detect suspicious activity. If the transaction is flagged by the system, it is put on hold, and the Customer is requested to undergo AML/KYC verification. For security reasons, we cannot disclose the specific criteria of our system; however, it is very effective against money launderers, scammers, etc.
TrustChange reserves the right to apply the AML/KYC procedure to certain Customers, addresses, and specific transactions with crypto assets. The application of the AML/KYC procedure is based on the internal policy of TrustChange that is current regulations compliant and is aimed at preventing and reducing the possible risks of TrustChange being involved in money laundering processes, as well as in another illegal activity.
The KYC procedure includes identifying the Customer and verifying the identity of the Customer, identifying the registered address, establishing the status of PEP, presence in the sanctions lists and/or other official lists (for example, on the Interpol wanted list).
When providing services to corporate clients, the due diligence procedure includes identifying the company, its officers and Beneficial owners, establishing the powers of officers to conduct transactions, as well as identifying persons who have significant control over the company, especially if the Beneficial owners are hidden behind multilevel structure of corporate governance.
The AML/KYC procedure can be applied to those crypto assets that are identified as suspicious by our automatic risk prevention system. In this case, TrustChange will contact the Customer via the email specified when creating the exchange order.
The AML/KYC procedure involves verifying the Customer’s identity through a high-quality photo of their ID valid in their country or any other applicable documentation. In response to TrustChange’s request for Customer’s documentation, TrustChange takes all the reasonable steps to recognize false documentation and reserves the right to investigate certain Customers or transactions found to be risky or suspicious.
TrustChange shall document the Customer due diligence measures applied as well as the results of the ongoing analysis of transactions performed. On request of competent authorities, TrustChange shall demonstrate that we have applied the relevant Customer due diligence measures considering the level of identified risk of money laundering and terrorist financing related to the specific business relationship or occasional transaction.
Normal Due Diligence measures
Normal Customer due diligence measures comprise:
- identification of the Customer and verification of its identity;
- identification of a Beneficial owner and undertaking justified measures in order to verify its identity; define the ownership and control structure;
- assessment of business relationship and, as applicable, obtaining information concerning its objective and intended nature;
- ongoing monitoring of customer’s business relationship.
TrustChange shall apply the normal Customer due diligence measures in the case of:
- establishing business relationship;
- performing an occasional transaction:
- with the value equivalent to EUR 15,000 or more, irrespective of whether the transaction is conducted as a single operation or as several operations which seem to be linked, or
- which constitutes the transfer of funds for the amount exceeding EUR 1,000;
- using virtual currencies equivalent to EUR 1,000 or more;
- suspicion of money laundering or terrorist financing;
- doubts regarding the authenticity or completeness of Customer identification data obtained so far.
TrustChange shall also apply customer due diligence measures in relation to Customers with whom we maintain business relationship, taking into consideration the identified risk of money laundering or terrorist financing, in particular, in situations when a change in formerly determined nature or circumstances of business relationship occurred.
Identification of the Customers
The identification of the Customer involves determining in the case of a natural person:
- name and surname,
- citizenship,
- number of the Universal Electronic System for Registration of the Population (PESEL) or date of birth in the case if the PESEL number has not been assigned, and the state of birth,
- series and number of the document confirming the identity of a person,
- residence address in case of availability of such information to the obligated institution,
- name (company), tax identification number (NIP) and address of the principal place of business in the case of a natural person pursuing economic activity.
The identification of the Customer involves determining in the case of a legal person or an organizational unit without legal personality:
- name (enterprise),
- organizational form,
- address of the registered office or address of pursuing the activity,
- NIP, and in the case of unavailability of such a number – the state of registration, the commercial register as well as the number and date of registration,
- identification data (name, surname, date of birth) of a person representing such a legal person or organizational unit without legal personality,
- identification data (name, surname, date of birth) of a Beneficial owner of a legal person organizational unit without legal personality.
The identification of a person authorised to act on behalf of the Customer (e.g. agent, representative etc.) shall comprise determining of the data in the case of a natural person referred to earlier in this paragraph.
The verification of identity of the Customer, a person acting of its behalf and the Beneficial owner shall be based on confirmation of determined identification data based on a document confirming the identity of a natural person, a document containing valid data from the extract of the relevant register or other documents, data or information originating from a reliable and independent source.
The verification of identity of the Customer or the Beneficial owner shall take place before establishing a business relationship or performing an occasional transaction.
Should TrustChange be unable to conduct the Customer identification:
- we shall not establish a business relationship;
- we shall not perform an occasional transaction;
- we shall not conduct transactions through the crypto wallet;
- we shall terminate a business relationship.
Simplified due diligence measures
TrustChange may apply simplified Customer due diligence measures in cases where the risk assessment has confirmed a lower risk of money laundering and terrorist financing. A lower money laundering and terrorist financing risk may be when the Customer being:
- a public finance sector entity (e.g. Ministry of Finance),
- a state-owned enterprise or a company with the majority State Treasury share, local government authorities or their associations,
- a company whose securities are admitted to trading on the regulated market, subject to the requirements of disclosing information on its Beneficial owner, arising from the European Union law regulations or the corresponding regulations of the third country, or a company with the majority share of such a company,
- a resident of a European Union Member State, a member state of the European Free Trade Association (EFTA) – a party to the agreement on the European Economic Area,
- a resident of a third country determined by reliable sources as a state of low level of corruption or other criminal activity,
- a third country resident where, according to the data derived from reliable sources, provisions related to counteracting money laundering and terrorist financing corresponding to the requirements arising from the European Union provisions related to counteracting money laundering and terrorist financing apply.
Enhanced due diligence measures
TrustChange shall apply enhanced customer due diligence measures in cases of a higher risk of money laundering or terrorist financing.
The following circumstances may, in particular, substantiate an increased money laundering and terrorist financing risk:
- establishing business relationships under unusual circumstances;
- the Customer being:
- a legal person or an organizational entity without legal personality whose activity is aimed at storage of personal assets,
- a company where bearer shares were issued, whose securities are not traded on a regulated market, or a company where rights arising from stocks or shares are exercised by entities other than shareholders or stakeholders;
- the subject of economic activity pursued by the customer comprising processing of a considerable number of cash transactions or cash transactions for high amounts;
- an unusual or excessively complex ownership structure of a customer taking into account the type and scope of economic activity pursued by it;
- the Customer’s use of services or products fostering anonymity or hindering identification of the Customer,
- ordering transactions where the Customer is the beneficiary by unknown or non-associated third parties;
- association of business relationships or an occasional transaction with:
- a high risk third country,
- a state defined by reliable sources as the state with an elevated level of corruption or other type of criminal activity, the state financing or supporting committing of acts of terrorist nature, or the state associated with activity of organizations of terrorist nature,
- a state in relation to which the United Nations Organisation or the European Union made the decision on imposing sanctions or specific restrictive measures,
- In the case of cross-border correspondent relationships with an institution - third country respondent.
Ongoing monitoring
Ongoing monitoring of the Customer’s business relationship includes:
- the analysis of transactions carried out throughout the course of business relationship in order to ensure that such transactions are compliant with the knowledge of the obligated institution on the customer, the type and scope of activity carried out by it, as well as compliant with the money laundering and terrorist financing risk associated with such a Customer,
- examining the origin of assets available to the Customer - in cases justified by circumstances,
- ensuring that any possessed documents, data or information concerning the business relationship shall be updated on an ongoing basis.
TrustChange carries out ongoing analysis of transactions performed.
In the case of disclosure of unusual or excessively complex transactions for high amounts which seem legally or economically unjustified, TrustChange:
- undertakes measures in order to clarify circumstances under which such transactions were carried out;
- intensifies the application of the Customer due diligence measure in relation to business relationships under which such transactions were performed.
Implementation of Sanctions
If the Customer refuses to undergo KYC verification or if the Customer is under suspicion of ML/FT, TrustChange may apply the following sanctions against the Customer:
- refusal to conduct an exchange operation;
- termination of business relations;
- blocking the Customer’s account in TrustChange system;
- blacklisting the wallet address from which the high-risk operation was planned to be carried out;
- blacklisting a client;
- sending the information collected during the AML/KYC procedure to the competent authorities if a legitimate request is received from such an authority.
Refusal to the Transaction or Business Relationship and Their Termination
TrustChange will not do business with a person or entity suspected of or directly involved in money laundering or whose source of funds is related to illegal activities.
After the successful completion of the AML/KYC procedure for high-risk assets, these assets will be returned to the Customer, if it is practically possible, minus the commission specified in Terms and Conditions.
After that, TrustChange will block the account of the Customer who made the deposit of high-risk assets and blacklist the wallet address from which the deposit of high-risk assets was made.
Reporting
TrustChange keeps the records of due diligence provided according to the ACT of 1 March 2018 on counteracting money laundering and terrorist financing of the Republic of Poland.
TrustChange may forward the information collected during the AML/KYC procedure to the competent authorities upon legitimate request. In order to do so, TrustChange retains the right to disclose the Customer’s information with respect to the Privacy Notice.
In order to analyze and monitor the overall level of risk, TrustChange may keep internal reporting in accordance with internal procedures, which is submitted to TrustChange’s management.
AML/KYC Training Obligations
All the employees of TrustChange should read the AML Policy.
Officers responsible for AML should inform employees about new types of fraud in the field of crypto exchange, new risks that arise in the industry in order to allow the employees maintain the current level of knowledge on AML/CFT issues on a regular basis.
Compliance employees are required to be fully trained in AML/CFT legislation.
The management creates favorable conditions to improve knowledge in the field of AML/CFT for the employees.
Employees involved in AML/KYC should be able to use modern IT technologies to conduct checks efficiently, cost-effectively and quickly.
Collection and Storing of Data
TrustChange has the right to document Customer checks, store all the information found, documents and their copies, photo and video files, the results of their check, as well as conclusions and discrepancies in the data.
TrustChange may use all legal methods to collect data of its customers, including third party services.
Customer data can be stored for a long time within the period required by law.
The collection, storage and transfer of customer data is conducted in compliance with the requirements of GDPR and Privacy Notice.
Disclosure of Customer data is possible only to the competent authorities upon the legitimate request of such authorities.
Amendments and Final Provisions
This AML Policy is effective as of the date of publishing on the Site. The effective date is indicated on the top of the document.
We may update and/or change the terms of this AML Policy, and it is your responsibility to monitor all relevant updates to this document.
If you disagree with this AML/CTF Policy, then you should refrain from using the Site and its mobile version, and/or TrustChange services.
If you have any questions regarding this AML Policy, you can contact us by our registered address: ul. HOŻA, nr 86, lok. 210, miejsc. WARSZAWA, kod 00-682, poczta WARSZAWA, kraj POLSKA.
