Decentralized Boutique Ltd AML/KYC Policy
Money Laundering Definition
Money laundering is defined as the process of moving illicitly obtained fiat currency through financial systems so that it appears to originate from a non-illicit source. Money laundering offences are criminal activity and include the movement, disguise, and exchange of illegally obtained property (proceeds of crime act 2002). Engaging in suspicious acquisitions, use, and control of criminal property by or on behalf of any persons using or possessing criminal assets (proceeds of crime act 2002).
Additional offences include but not limited to: The failure to disclose the suspicion of money laundering to necessary parties such as a Money Laundering Reporting Officer. The failure of a MLRO to report suspicious activities to the National Crime Agency and the “tipping off” of any party suspected of engaging in Money Laundering Offences in such a way as to reduce the likelihood of them being investigated.
Decentralized Boutique Ltd
Decentralized Boutique Ltd’s business activities include the sale of jewellery below the limit defined as “high-value goods”. Despite not legally being classified as a high-value dealer Decentralized Boutique Ltd will take every opportunity to enforce current AML/KYC legislation. This approach is to show Decentralized Boutique Ltd’s stance that its services will not facilitate or allow any kind of Money Laundering activities and not to be used by criminals to launder proceeds of crime.
This policy outlines by what method Decentralized Boutique Ltd employees should do regarding raising concerns, by reporting suspicious activity to the MLRO. Employees actively investigate discrepancies and suspected money laundering activities, raising concerns throughout the organization and reporting to the relevant authority.
Controls and Procedures
Decentralized Boutique Ltd is fully committed to establishing and maintaining policies, controls, and procedures that mitigate the risks of money laundering to the best of our abilities. These cover the following measures:
• Know Your Customer Verifications.
• Continuous assessment of customer actions.
Risk Assessment and Risk Management Practices
Regulation 18 (1) of the UK 2017 Regulations Act requires firms to take measures when identifying and assessing the risks of Money Laundering and Terrorist Financing. Decentralized Boutique Ltd considers the risks associated with the following demographics: Countries or Geographical areas, Products or Services required, Nature of Transactions and Delivery Channels, Willingness to comply when prompted for additional information.
Personal data will only be used by Decentralized Boutique Ltd for verifying customers and for the prevention of money laundering, fraud, or terrorist financing. Records will be erased and overwritten multiple times to ensure security to the best of our abilities
Politically Exposed Persons
Politically Exposed Persons or PEP are defined in Regulation 35 of the 2017 Regulations. PEPs are defined as individuals entrusted with prominent public functions, such as heads of state, members of government, members of government bodies and ambassadors as well as members of their close family. PEPs are classified to carry higher risks of Money Laundering. Should a person be identified as a politically exposed person lower limits and greater due diligence will be applied and in some cases services are refused and accounts terminated.
Decentralized Boutique Ltd will not engage in any business activity with any individual, group, or entity found to be on either the US or EU sanctions lists.
Customer Due Diligence (CDD)
Decentralized Boutique Ltd will not engage in business activity with those who have not complied with the policy set out or staff suspect of potential Money Laundering.
Ongoing Customer Due Diligence
Any client activity outside the normal or expected activity should be considered as unusual and should be investigated. Understanding the client profile is crucial to assessing potential indicators of suspicious activities. An investigation into suspicious activity should establish the true motivation behind the activity in question. This may result in the confirmation of suspicious activity or remove all reasonable doubt. If suspicious activity is confirmed it must be reported to the MLRO and failure to do so is an offence that could result in imprisonment.
Potential issues to be aware of include but are not limited to:
• Where money is suspected to be involved in Money Laundering, the money will not be instantly returned to the customer as it may alert the customer that Anti-Money Laundering is suspected as it would expose Decentralized Boutique Ltd and its staff to criminal liability under the “tipping off” offence under POCA.
• Where customers refuse, are uncooperative, are deceptive in providing explanations of their financial activity or their explanation is assessed to be untrue Decentralized Boutique Ltd will cease to provide services and or payments of any kind. The MLRO will report any activity deemed suspicious to the relevant authority immediately.
Source of Funds Requests SOFR
Trades exceeding the AML threshold will require additional documentation as to the source of funds before transactions can be made.
• Any trade from a Non-PEP customer with a fiat value in excess of €10,000.
Customers are required to provide confirmation of source of funds and should provide the following:
• An explanation of where the funds for the trade-in question have originated from (savings, salary, inheritance, sale of assets)
• Documentary evidence to back up the customer’s specific claim such as; Copy of bank statements, investment account records, solicitor or accountants letter confirming source of funds.
The managing director and MLRO will be consulted in each source of funds request, following receipt of relevant documentation, his/her consent must be obtained before any trade may take place.