AML/KYC policy
1. Overview
1.1 Understanding Money Laundering
Money laundering (ML) involves the process of making illicit funds appear legitimate by disguising their origins. This practice usually involves money derived from illegal activities, such as drug trafficking or terrorism, which are manipulated to obscure their true source or redirect them into less noticeable ventures.
1.2 Anti-Money Laundering Measures
Anti-Money Laundering (AML) refers to the essential regulatory frameworks and procedures that organizations must implement to combat ML. Institutions, particularly in the financial sector, are obligated to actively prevent, detect, and report any suspicious financial activities.
An effective AML program includes the following components:
- Mandatory Customer Verification: Requiring financial institutions to authenticate customer identities, implement risk-based controls, keep accurate records, and report any suspicious activities they may encounter.
- Criminalization of Money Laundering: Establishing legal consequences for those involved in money laundering activities.
- Empowering Regulatory Bodies: Providing regulators and law enforcement with the necessary tools and resources to effectively investigate cases of money laundering.
- Cross-Jurisdictional Information Sharing: Facilitating the exchange of pertinent information between jurisdictions to enhance the effectiveness of AML efforts.
2. Regulatory Obligations
Employees in the remote gaming sector are obligated to report any information related to potential money laundering (ML) activities they encounter during their work under the following circumstances:
- When they have actual knowledge.
- When they have suspicions.
- When they have reasonable grounds to suspect involvement in money laundering or terrorist financing.
These obligations establish the criteria for knowledge or suspicion. Regulatory authorities expect documented evidence that risk assessments are conducted before establishing business relationships, ensuring that customer transactions correspond with the assessed risk levels.
The organization must show that ongoing monitoring is performed based on the identified level of risk and that detailed records are maintained to support an accurate risk profile. This document outlines additional measures for risk monitoring, including requiring customers to disclose the source of their funds in high-risk situations that may indicate potential money laundering.
2.1 Specific Compliance Rules
The organization is committed to integrating compliance into every aspect of its operations, particularly in accordance with Curaçao gaming licenses, which regulate the operation of online games of chance.
3. AML Policy and Crime Prevention
Our Anti-Money Laundering (AML) policy is built on essential principles and practices:
- Development of Customized Systems and Controls: We ensure compliance with legal and regulatory standards through the creation of tailored systems.
- Commitment from Senior Management: Our senior management is fully committed and holds ultimate responsibility for the AML policy.
- Regular Evaluations: We consistently assess the effectiveness of our systems and controls.
- Transaction Recording: We maintain records of transactions that may be pertinent to law enforcement investigations regarding money laundering and terrorist financing.
- Annual Risk Assessments: We conduct yearly evaluations of our business operations, leading to the adoption of a risk-based approach that is adaptable, efficient, proportional, and cost-effective.
- Comprehensive Training: Relevant employees receive extensive training on AML policies and procedures.
- Empowerment of Designated Officers: We equip designated officers with the necessary resources and authority to operate effectively and independently.
4. Risk Management
Our risk management policy, in accordance with the Money Laundering Regulations 2007, follows a systematic approach to assess and manage risks related to money laundering and terrorist financing:
- Identification of Relevant Risks: We identify potential risks associated with money laundering and terrorist financing.
- Policy Development and Implementation: We create and implement policies and procedures to manage and mitigate these risks.
- Continuous Monitoring: We monitor and enhance the effectiveness of our risk management controls regularly.
- Documentation of Actions: We document all actions taken and the rationale behind them.
This risk-based approach allows us to focus our efforts where they are most needed and will be most effective. It receives full support from our senior management and requires active involvement from all employees. We have completed a comprehensive business risk assessment to evaluate potential threats and their impact.
5. Suspicious Activity Monitoring
Suspicious activity encompasses any unusual transactions, extreme player behaviors, or discrepancies in deposits. We have established specific criteria for identifying players who require enhanced monitoring and due diligence. If our checks uncover potential risks, we may request additional documentation, including:
- Passport or ID card
- Bank statements
- Further proof of identity
- Utility bills
Enhanced Due Diligence (EDD) is conducted to assess the risk level of players. If any indicators of concern are detected, we will engage the client with further inquiries and closely monitor the associated risks. This process also considers the customer’s employment, the value of their residential property, and whether their expenses align with their reported lifestyle.
5.1 Reporting Suspicious Activity
The process for submitting Suspicious Activity Reports (SARs) is vital. Employees must report any knowledge or suspicion of money laundering (ML) or terrorist financing to the risk team. Failure to report can result in criminal charges.
SARs must be handled with the utmost confidentiality and submitted in handwritten form, as electronic submissions (such as email) are prohibited to ensure privacy. Employees are not permitted to disclose any AML-related matters to the subject of the investigation or any unrelated parties. Unauthorized disclosure, often referred to as “tipping off,” is strictly forbidden and carries severe legal consequences. To protect yourself, refrain from making comments that might suggest suspicion of ML on customer accounts.
5.2 Operational Procedures
Merchants are required to thoroughly examine player spending and activities to identify any suspicious behavior. Prior to processing withdrawals, the following procedures must be adhered to:
- Deposit History Review: Analyze the customer’s deposit history to ensure that no suspicious payments have been recorded.
- Turnover Verification: Confirm that the customer’s turnover is consistent with expected patterns of legitimate casino play.
- Funds Return Policy: Whenever possible, ensure that funds are returned to the original payment method utilized by the player.
5.3 Withdrawal Protocol
Before processing a withdrawal, AML checks are mandatory when reviewing a customer’s account. Key questions to consider include:
- Has the player wagered?
- Is the payment method used for deposits owned by the player?
- Are the customer’s transactions consistent with expected behavior?
5.4 Escalation Process
Our AML policies mandate immediate escalation of any suspicious activity. This step is crucial to protect the company from potential financial loss and to ensure compliance with various jurisdictions. Any activity that raises suspicion, regardless of its severity, requires prompt action. Failing to address suspicions of ML can lead to criminal prosecution.
6. Employee Responsibilities
6.1 Senior Management
Senior management is fully accountable for the execution of this policy. They bear responsibility for any violations of the regulations, including those resulting from actions taken, consent given, or omissions made.
6.2 Money Laundering Reporting Officer (MLRO)
The designated Money Laundering Reporting Officer (MLRO), Nikos Lajos, can be reached at finance@pinup-bet-bangladesh.casino or +35780077001. The MLRO is tasked with preventing and detecting money laundering, tracing terrorist financing, and filing Suspicious Activity Reports (SARs) in accordance with relevant legislation. The MLRO possesses the authority to operate independently and is provided with the necessary resources to perform their responsibilities effectively.
The MLRO’s key responsibilities include:
- Keeping senior management informed about AML (Anti-Money Laundering) and counter-terrorism financing activities.
- Making disclosures as required under applicable legal acts.
- Filing external reports when appropriate.
6.3 Employee Training
All employees are required to undergo training on their AML obligations and the procedures for escalating suspicious incidents. Employees are informed that failure to comply with these legal requirements, such as monitoring for criminal spending, may lead to criminal or regulatory action.
Training will cover:
- Customer Due Diligence (CDD), with a focus on high-risk customers, including Politically Exposed Persons (PEPs).
- Procedures for reporting suspicious activities to the appropriate authorities and obtaining necessary consents for conducting business transactions.
7. High-Risk Jurisdictions
High-risk jurisdictions are identified by the Financial Action Task Force (FATF) or the Gambling Commission, and customers from these areas are subject to Enhanced Due Diligence (EDD). Currently, countries on the FATF’s high-risk list include Afghanistan, Ecuador, Panama, Yemen, among others.
Players from jurisdictions recognized by the FATF as having substantial money laundering (ML) or terrorist financing activities are not permitted to participate.
8. Record Maintenance
We prioritize thorough record-keeping to support any financial investigations initiated by law enforcement. Our record maintenance policies encompass critical areas such as:
- Documentation of compliance monitoring by the designated authority.
- Tasks related to Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) assigned by the designated officer.
- Reports from the designated officer to senior management.
- Justifications for decisions of no further action taken by the designated officer, if applicable.
- Customer identification and verification records.
- Records of business relationships or occasional transactions.
- Employee training records.
- Internal and external Suspicious Activity Reports (SARs).
- Communications between designated officials and law enforcement or the National Crime Agency (NCA), including records related to consent.
9. Criminal Awareness
Employees are educated about the risks associated with specific offenses, including:
- Failing to report suspicious activities as mandated by the Proceeds of Crime Act (POCA) and the Terrorism Act.
- Not fulfilling obligations to disclose information to a designated officer or the NCA promptly upon suspicion.
- Committing an offense by sharing information related to SARs that could compromise an investigation.
- Concealing, altering, or destroying relevant information when aware of or anticipating an investigation by the authorities.
10. New Employee Screening Process
The company conducts thorough screenings of new employees to ensure compliance with legal requirements. This process involves:
- Validating other personal and background information.
- Verifying that the employee is of legal age.
- Confirming their identity and qualifications through at least two independent references.
11. Protecting Company Assets from Fraud and Misuse
To prevent internal fraud, the company identifies its most valuable assets and implements effective controls to safeguard them. Our server equipment, housed at Unicept Malta, is protected by various policies, including:
- Visitor management protocols.
- Fire safety measures.
- Document shredding practices.
- Locked cabinets for sensitive information.
- Regular security testing.
- A dedicated security team.
Similar protective measures are also enforced at our office locations.
12. Compliance and Risk Committee
We have established a Compliance and Risk Committee to oversee executive risk management. This committee is composed of the Money Laundering Reporting Officer (MLRO), the Compliance Officer, and at least one non-executive director. The committee meets quarterly or as necessary.
13. Working with Reputable Companies
WWe uphold high standards of business ethics and professionalism when selecting suppliers. Key criteria for evaluation include:
- Financial stability.
- Legal and regulatory compliance.
- Commitment to corporate responsibility.
- Ability to provide quality and value.
New suppliers undergo a stringent approval process, where their submitted information is thoroughly verified. The company assesses the risks associated with each supplier based on the aforementioned criteria. Suppliers that do not meet our standards are notified accordingly. We ensure that all partners and clients within relevant jurisdictions understand and adhere to our compliance obligations.sidering the aforementioned criteria. Rejected suppliers are notified accordingly. We ensure that all partners and clients within relevant jurisdictions understand and adhere to our compliance obligations.
14. Compliance with the Proceeds of Crime Act (POCA)
The company fully complies with the Proceeds of Crime Act 2002, adhering to all relevant policies and procedures as outlined in our compliance framework.
15. Internal Record-Keeping Guidelines
We maintain rigorous internal record-keeping standards to meet legal and regulatory requirements:
- All customer transaction records are retained for a minimum of six years following the transaction.
- Customer details are kept for at least six years after the termination of the customer relationship, regardless of the account’s value or status.
- Records related to money laundering investigations and Suspicious Activity Reports (SARs) are maintained for six years after the conclusion of the investigation.
16. Prevention of Collusion and Data Protection Compliance
Our commercial terms explicitly prohibit cheating, and any fraudulent accounts will be closed. Concerning data protection, all user payment data is securely stored, encrypted, and managed by Payment IQ, with no access granted to merchant employees. We enforce a comprehensive information security policy that encompasses system access controls, password protocols, malware protection, intrusion prevention, encryption, and rigorous network management procedures.
Know Your Customer (KYC)
Introduction
By accepting our Terms, you authorize us to perform verification checks to confirm your identity and contact information as required or mandated by third parties, including regulatory bodies. During this verification process, we may restrict withdrawals from your account. If the information provided is found to be false, inaccurate, misleading, or incomplete, we reserve the right to terminate your account immediately and take necessary actions.
If we cannot verify your legal age, your account may be suspended. In the event it is determined that you were underage during any gambling activities:
- Your account will be closed.
- All transactions during that period will be voided, and any deposits will be refunded.
- Any winnings accrued will be forfeited, and you will be required to repay any funds withdrawn.
Please notify us of any changes to your personal information.
Policy Objective
The company will request user verification in the following circumstances:
- Suspicion of fraud, money laundering, or criminal activity.
- Doubts regarding the authenticity of provided documents.
- Violations of the Company’s Terms of Use.
- Any other situation deemed necessary by the Company.
The verification process may require a standard set of identification data and additional documents, including:
- Full name.
- Date of birth.
- Citizenship.
- Permanent residence address.
- Identification number.
Required documents may include:
- Original passport or ID card.
- Proof of residence (utility bill, bank statement, etc.).
Additional documents may include:
- National ID card (driver’s license, military ID, etc.).
- A photo of the user holding an open passport with their face visible in the background.
- A photo of the front of the bank card (with specific digits and details visible).
The Company may also request documentation to verify the source of funds, such as:
- Proof of earnings (payslips, director’s remuneration, etc.).
- Bank statements showing consistent deposits from identifiable sources.
- Trust deeds indicating entitlement to funds.
- Proof of awards or payments received by the user.
The Company reserves the right to reject any customer application and terminate service provision without explanation if any policy violations occur.
Liability
- Due Diligence (DD): Customers are required to undergo the Due Diligence process, with their data being protected in accordance with applicable regulations.
- Benami Accounts: The use of benami or alias accounts is strictly prohibited. Any accounts identified as such will undergo due diligence. If the identity of the account holder cannot be verified, the account will be closed, winnings will be canceled, and deposits will either be returned or withheld.
- Dual/Multiple Accounts: The Company will identify and link any related accounts that are operated by the same individual. Additional accounts may be canceled, with winnings forfeited and funds returned to the original account owner.
- Politically Exposed Persons (PEPs): The Company is required to identify PEPs—individuals with significant public profiles or access to public funds. A risk-based approach will be applied to their accounts, taking into account the scale of gambling and the customer’s location. The KYC process will include specific questions aimed at identifying PEPs.
The Company reserves the exclusive right to reject any customer application and terminate services without explanation in the event of policy violations.
