Release date: 18.08.2022
Last update: 18.09.2024

AML Policy Disclaimer

Transactions with Cryptocurrencies involve various risks, including the risk of money laundering and terrorist financing. For this reason, Cleverlee has implemented Anti-Money Laundering and Counter-Terrorist Financing Compliance Guidelines (‘Guidelines’) and undertakes measures for the prevention of Money Laundering and Terrorist Financing.

Beneficial Owner

Beneficial Owner is a natural person who, taking advantage of their influence, makes a transaction, act, action, operation or step or exercises control in another manner over a transaction, act, action, operation or step or over another person and in whose interests or for whose benefit or on whose account a transaction or act, action, operation or step is made. In the case of a legal entity, a Beneficial Owner is a natural person whose direct or indirect holding, or the sum of all direct and indirect holdings in the legal person, exceeds 25 per cent, including holdings in the form of shares or other forms of the bearer.

Money laundering

Money Laundering (ML) is the concealment of the origins of illicit funds through their introduction into the legal economic system and transactions that appear to be legitimate. There are three recognized stages in the Money Laundering process:
· placement, which involves placing the proceeds of crime into the financial system;
· layering, which involves converting the proceeds of crime into another form and creating complex layers of financial transactions to disguise the audit trail and the source and ownership of funds;
· integration, which involves placing the laundered proceeds back into the economy to create the perception of legitimacy.

Terrorist financing

Terrorist Financing (TF) is 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 in the meaning of applicable legislation.

Customer due diligence measures

Customer due diligence (CDD) measures are required for verifying the identity of a new or existing User as a well-performing risk-based ongoing monitoring of the business relationship with the User. Cleverlee takes various measures during and after the KYC verification, which consists of 3 levels, including simplified and enhanced due diligence measures, which will be implied by Cleverlee in accordance with the identified risk level of the User.
Cleverlee will identify the User, their representative (incl. their right of representation), as well as any other connected persons, where relevant. For this, Cleverlee may collect and retain from the User various documents and data for the following purposes:
· identification of the User, who is a natural person (the User, who is a natural person, cannot use a representative in the course of the business relationship or occasional transaction with Cleverlee);
· identification of the User, who is a legal entity;
· identification of the User's representative and their right of representation (incl. the nature and scope of the right of representation of the User);
· identification of the User's Beneficial Owner;
· identification, whether the User, the Beneficial Owner of the User or the representative of this User is a politically exposed person, their family member or close associate or if the User has become such a person;
· understanding the purpose and nature of the establishing business relationship or performing transactions;
· monitoring of the business relationship (incl. updating the documents and data collected during the KYC verification, screening and monitoring of the transactions of the User concluded during the business relationship, identification of the source and origin of the funds used in the transaction).
Cleverlee does not establish or maintain the business relationship and does not perform the transaction if:
· Cleverlee is not able to take and perform any of the required CDD measures;
· Cleverlee has any suspicions that Cleverlee’s services or transactions will be used for Money Laundering or Terrorist Financing;
· the User whose capital consists of bearer shares or other bearer securities;
· the User who is a natural person behind whom is another, Beneficial Owner, wants to establish the business relationship (a suspicion that a front person is used);
· the risk level of the User or of the transaction does not comply with Cleverlee's risk appetite.

Risk-Based Approach and Risk Assessment

The company employs a risk-based approach to due diligence by gathering comprehensive information and documentation on prospective clients to evaluate their risk profiles.
To identify, assess, and analyze risks associated with money laundering and terrorist financing, the Company conducts a risk assessment that considers the following categories:

• Customer Risk
• Geographical Risk
• Product Risk
• Delivery Channel Risk

Once the risk level is determined for a customer, it is periodically reviewed and updated based on ongoing knowledge of the customer and their activities.

Sanctions

Sanctions are an essential tool of foreign policy aimed at supporting the maintenance or restoration of peace, international security, democracy and the rule of law, following human rights and international law or achieving other objectives of the United Nations Charter or the common foreign and security Policy of the European Union.
Upon the entry into force, amendment or termination of sanctions, Cleverlee will verify whether the User, the Beneficial Owner or a person who is planning to have the business relationship or transaction with them is a subject of Sanctions. When identifying the subject of the Sanctions, Cleverlee will identify the measures that are taken to Sanction this person in order to take appropriate measures against such person.

Reporting obligation

Cleverlee is subject to reporting obligation, where the supervisory authority (FCIS) must be notified of circumstances, where:
· Cleverlee has established that the User is carrying out a suspicious transaction;
· Cleverlee knows or suspects that assets of any value are obtained directly or indirectly from criminal activity or participation in such activity;
· the daily value of the transaction(s) is equal to or exceeds EUR 15,000 or the equivalent amount in foreign or Cryptocurrency, regardless of whether the transaction is concluded in one or more related monetary transactions.
Cleverlee is prohibited to inform a person, its Beneficial Owner, representative or third party about a report submitted on them to the relevant regulatory authority, a plan to submit such a report or the occurrence of reporting as well as about a precept made by the relevant regulatory authority or about the commencement of criminal proceedings.

Politically Exposed Person (PEP)

Politically Exposed Person (PEP) is defined as an individual who is or has been entrusted with prominent public functions. Due to their position and influence, PEPs are considered higher risk for potential involvement in bribery, corruption, and money laundering.

Data retention

Cleverlee collects documents and data about the User and their transactions and other activities during and after the KYC verification, in the course of monitoring the business relationship (also incl. any instances, where Cleverlee was not able to implement CDD and circumstances of the termination of a business relationship). Such shall be retained for 8 years after the expiry of the business relationship or the complete transaction. The data related to the performance of the reporting obligation must be retained for 5 years after the performance of the reporting obligation. The correspondence of a business relationship with the User must be retained for 5 years from the date of termination of transactions or business relationship.

Internal control

Cleverlee conducts periodic internal control of the performance of the Guidelines.