POLICIES AND MEASURES FOR ANTI-MONEY LAUNDERING AND COUNTERING THE FINANCING OF TERRORISM
(hereinafter: Policy)
Digital Assets d.o.o. (hereinafter: the Company) is committed to the highest standards of anti-money laundering and countering the financing of terrorism (hereinafter: AML/CFT).
The Company complies with the laws of the Republic of Croatia and the European Union. It adheres to the provisions of the Anti-Money Laundering and Countering the Financing of Terrorism Law ("Official Gazette", no. 108/17, 39/19, 151/22; hereinafter: Law). The Croatian Financial Services Supervisory Agency (Hanfa) is the competent supervisory authority overseeing the Company's implementation of AML/CFT measures.
This Policy establishes the measures, actions, and procedures undertaken by the Company in its regular operations to ensure effective AML/CFT.
DEFINITIONS
Business relationship refers to a business, professional, or commercial relationship associated with the Company's professional activities, which, at the time of establishment, is expected to have a lasting element, including the opening of an account with the Company.
Client refers to a natural or legal person conducting an occasional transaction or establishing a business relationship with the Company.
Client identification is the process of determining the actual identity of a client based on reliable sources, primarily personal identification documents.
Financing of terrorism (hereinafter: FT) refers to the provision or collection of funds or attempts to provide or collect funds by any means, with the intention or knowledge that they will be used by a terrorist or a terrorist organization for any purpose, including financing travel for the commission of, or contribution to, terrorism, training for terrorism, or terrorist association.
Money laundering (hereinafter: ML) refers to the conversion or transfer of property acquired through criminal activity, the concealment or disguise of the true nature, source, location, disposition, or movement of property, as well as the acquisition, possession, or use of property derived from criminal activity, including attempts or participation in such actions.
Occasional transaction refers to a transaction conducted outside of an established business relationship.
Suspicious transaction is any attempted or completed transaction for which there are reasonable grounds to suspect that it involves funds derived from illegal activities or is related to ML or FT.
Transaction refers to any receipt, disbursement, transfer of funds, exchange, storage, disposal, or other actions involving fiat or virtual currencies within the Bitcoin Store platform and branches.
INTERNAL MEASURES FOR AML/CFT
The Company is committed to the highest level of compliance with the Law and associated regulations, undertaking at least the following activities:
- preparing ML/FT risk assessment;
- establishing policies, controls, and procedures for effective ML/FT risk management;
- conducting client due diligence measures;
- monitoring business relationships and transactions;
- reporting suspicious transactions, funds, and individuals;
- providing employee training;
- safeguarding and protecting data and maintaining records.
The Company carries out all activities and processes prescribed by the Law when establishing business relationships with clients and during occasional transactions conducted in its branches.
ML/FT RISK ASSESSMENT
The Company analyzes and manages risks to prevent activities related to ML/FT. This approach includes identifying, assessing, and understanding risks and implementing measures to mitigate, avoid, or accept such risks.
The analysis involves assessing risks associated with clients, geographic areas, products, services, and transaction channels. Risks are categorized as low, medium, high, or unacceptable, with corresponding due diligence measures and regular reviews.
The Company updates the risk assessment annually to ensure compliance with regulatory requirements.
POLICIES, CONTROLS, AND PROCEDURES
The Company has established an internal control system and adopted policies and procedures to manage ML/FT risks effectively. These measures include organizational structure, defined responsibilities, client due diligence, risk management, professional employee training, record-keeping, and internal AML/CFT system audits. The system is aligned with applicable laws, regulations, and risk assessments at the national and supranational levels, ensuring compliance and business protection.
CLIENT DUE DILIGENCE
Client identification involves verifying the identity of natural and legal persons and their representatives or ultimate beneficial owners through reliable documents and information.
In branches, employees conduct client identification directly, while remote business relationship establishment utilizes an external partner's services, ensuring compliance with applicable regulations.
Client due diligence also includes collecting information about the purpose and nature of the business relationship and other data by legal requirements, including, where necessary, information on the source of funds.
Suppose client due diligence cannot be fully completed or there is suspicion of illegal activities. In that case, the Company reserves the right to refuse a transaction, decline the establishment of a business relationship, or terminate an existing business relationship with the client.
MONITORING BUSINESS RELATIONSHIPS AND TRANSACTIONS
The Company continuously monitors business relationships and transactions to ensure knowledge of the client and prevent suspicious activities.
Key measures include verifying the compliance of business operations and transactions with predefined objectives, analyzing the source of funds, monitoring transactions that deviate from usual patterns, and updating client documentation and data.
These procedures are conducted both manually and through automated systems.
REPORTING SUSPICIOUS ACTIVITIES
By Law, the Company must report any suspicion, knowledge, or reason to suspect activities related to ML/FT to the Anti-Money Laundering Office of the Ministry of Finance.
EMPLOYEE TRAINING
The Company ensures that employees involved in AML/CFT activities are familiar with the applicable laws and regulations. This is achieved through internal and external training sessions, seminars, and annual training programs.
DATA PROTECTION AND RECORD-KEEPING
The Company must retain data and documentation related to clients, transactions, and business relationships, ensuring client privacy and data protection in compliance with GDPR and the Law.
FINAL PROVISIONS
The Company reserves the right to amend the Policy at any time to maintain the highest level of compliance with the Law.
This condensed version of the Policy enters into force on December 18, 2024, and replaces any other Policy that was in effect before this date.