What is the Anti-Money Laundering Policy (AML Policy)
Money laundering is a crime against economic activity that allows illegal money to circulate legally. The purpose of the said action is to turn the illegally obtained money into legal circulation unnoticed, so that its illegal nature remains unnoticed. Accordingly, a person who participates in money laundering or launders illegal money himself, allows the illegally obtained money into economic circulation and benefits from it, which in turn threatens the economic stability of the country. In addition, the money obtained by a person who commits an illegal act may be dangerous and used for other illegal acts. With the money obtained at this time, it puts honest business representatives in an unequal position, who obtained the money through legal means and became participants in the economic turnover. Therefore, it is important to detect such crimes in a timely manner and to involve those representatives of the private sector who have daily contact with financial transactions in the process of avoiding illegal actions.
Policy against money laundering in Georgia
The Law of Georgia on "Promoting the Prevention of Legalization of Illegal Income" was adopted on June 6, 2003, however, at that time, the scope of the law did not extend to lawyers. According to the law, "giving illegal income a legal face (acquisition, use, transfer or other action), as well as concealing or disguising its true origin, owner or owner and/or property rights, or attempting to commit such an act" is a punishable act and falls within the scope of money laundering. . The crime of money laundering is discussed in Article 194 of the Criminal Law Code, according to which the mentioned article applies to both lawyers and representatives of other professions, if they participate in money laundering or assist a person who launders money. Moreover, according to Article 194 1 of the Criminal Code, not only the person who committed the crime, but also the person who knew and analyzed that he was acquiring illegal property also commits a crime. Georgian legislation took into account the request of the Council of Europe Convention that money laundering should be punishable even in the case of a legal entity.
CryptoBuy.ge AML Policy
CryptoBuy.ge, taking full account of international recommendations, the requirements of the National Bank of Georgia and the Financial Monitoring Service of Georgia, has drawn up internal procedures to combat money laundering, which implies the following:
a) Identification of natural persons
In accordance with the request of the Financial Monitoring Service of Georgia, CryptoBuy.ge might request the following information for the identification of users:
a) Full name, subject of business, legal address
b) Registering authority, registration date and number
c) taxpayer identification number
d) identification data of persons authorized for management and representation
e) Identification of legal entities
f) name, legal form, existence of foundation documentation, partnership agreement and other related documentation related to determining the client's origin
g) Documentation that regulates issues of distribution of shares, naming people who own shares in companies, senior and junior managers, directors and other persons authorized to represent.
h) Actual and legal address
i) Identification of the beneficial owner
In the case of a legal entity, CryptoBuy.ge identifies the beneficial owner (a natural person who is the entity's ultimate owner or controlling entity):
a) identification of the natural person, the beneficiary, if he exercises control over the legal entity, the owner or has such an interest
b) If there is doubt and the beneficial owner is a person who has control over the management activities of the company or if no natural person is designated, the persons who exercise actual control of the company must be identified.
c) If there is no natural person identified in the above-mentioned points, the lawyer or financial institution should establish the identity of the person who holds the position of manager of the company.
d) high and low risk factors
FATF recommendations for attorney-client relationships are based on high and low risk factors. When considering customer identification cases, according to the FATF recommendation, attention should be paid to the following cases to identify high risk factors:
The business relationship between the parties is unusual, e.g. There is a big difference geographically
There is a non-resident client between the financial institution and the client
Legal entities or transactions related to an offshore registered company
Companies that have a nominal share or a share with confirmation coupons, although such a share is not registered in the register (bearer share)
A cash paying business
The business structure or the company itself is too complex and unusual
Identification of politically active persons
According to Article 2, Clause K of the Law of Georgia "On Promotion of Prevention of Legalization of Illegal Income", a politically active person is a citizen of a foreign country who holds a public/state position or engages in important public and/or state activities. CryptoBuy.ge's use of enhanced client identification measures with politically active individuals is related to their influence, which may contribute to money laundering and terrorist financing, as well as corruption.
When the company has relations with politically active persons, their family members or relatives, then for the initiation of such business relations, the company takes reasonable measures to determine the source of property and funds, to establish enhanced continuous monitoring of the business relations.
Identifying clients from high-risk countries and organizations
According to the Law of Georgia "On Promotion of Prevention of Legalization of Illegal Income" and the order of the head of the Financial Monitoring Service of Georgia, CryptoBuy.ge terminates or refuses to conduct business relations with the client, if the identification of the person is not possible or the party involved in the transaction is included in the list of terrorists or persons supporting terrorism.
"Know Your Customer" (KYC)
CryptoBuy.ge receives the above-mentioned information about its users by asking them to fill out a questionnaire. The user is obliged to fill out the questionnaire within a reasonable time allotted by the company, otherwise his account will be blocked until the questionnaire is not filled.