ANEMONE WEB BUILDING LTD (In brief “AWB”), as a provider of services relating to the use of virtual currency and in compliance with the regulations on anti-money laundering and financing of international terrorism (see Legislative Decree no. 231/2007 – “Anti-Money Laundering Decree”), has implemented measures to manage the related risk aimed at preventing AWB’s involvement in criminal events that may have negative repercussions on its market stability and reputation.
Money laundering and terrorist financing represent criminal phenomena which, also due to their transnational dimension, can constitute a serious threat to the legal economy. These are factors of strong pollution for the entire economic system: the reinvestment of illicit proceeds in legal activities and the presence of operators and economic bodies colluding with crime profoundly alter market mechanisms, undermine the efficiency and correctness of financial activity and weaken the economic system.
It is known that AWB provides users with services related to blockchain technology: an internet platform that allows to buy and sell tokens or any other existing “virtual” or “mathematical” currency, as well as to convert virtual currencies or cryptographic tokens between them or against currency having legal tender and vice versa. In this context, transactions are carried out protected through cryptography, potentially vulnerable, due to their anonymity, to the infiltration of money laundering and international terrorist financing, as indicated by the International Financial Action Group (FATF), or FATF
This being the case, AWB’s action to prevent and combat money laundering and terrorist financing is carried out through the introduction of safeguards aimed at ensuring adequate customer verification, traceability of financial transactions, identification suspicious transactions and the storage of customer data and documents. This document (“AML Policy”), in particular, describes the general principles and criteria – in turn subject to further and timely internal regulation – implemented and managed by AWB for the fulfillment of the obligations imposed by the Anti-Money Laundering Decree due to its characteristic activity, to which employees, collaborators, customers, corporate representatives and business partners are required to comply.
Following the transposition in our system of Directive 2015/849 / EU (known as the IV anti-money laundering directive), the national legislation on the subject has been substantially modified, extending the scope of its application also to service providers related to the use of virtual currency, limited to the performance of the conversion of virtual currencies from or into currencies with forced course.
The IV Anti-Money Laundering Directive was implemented in our system with Legislative Decree 90/2017 which amended and integrated the Anti-Money Laundering Decree.
The Anti-Money Laundering Decree is based on three main pillars:
- adequate customer verification;
- retention of customer data and information;
- reports of suspicious transactions.
The regulatory provisions of the Anti-Money Laundering Decree provide for an accurate survey of customer information and introduce the concept of a “risk-based approach” based on the “sensitivity” of customers, measuring the customer due diligence requirements for the risk associated with the customer, the product and the geographical area.
The authorities at national level called upon to monitor compliance with the regulations are the Ministry of Finance, the Financial Information Office (FIU) at the Bank of Italy, and the Supervisory Authorities of the individual sectors in which the subjects subject operate to the application of the legislation, the Anti-Mafia Investigative Directorate (DIA) and the Guardia di Finanza.
In order to clarify the terminology used in this AML / KYC Policy, the following definitions are specified:
- Customer: It is the person who establishes ongoing relationships with AWB, opens an account on the Website and carries out purchase and sale transactions or requests or obtains the performance of a professional service by AWB.
- Identification Data: They are: the name and surname, place and date of birth, registered residence and domicile, where different from the registered residence, the details of the identification document and, where assigned, the tax identification number or, in the in the case of persons other than natural persons, the name, the registered office and, where assigned, the tax code.
- Executor: It is the party delegated to operate in the name and on behalf of the Client or who is in any case given representative powers which allow him to operate in the name and on behalf of the Client.
- Financing of terrorism: Any activity directed, by any means, to the supply, collection, provisioning, brokerage, deposit, custody or disbursement, in any way, of funds and economic resources, directly or indirectly , in whole or in part, usable for the performance of one or more behaviors, with the purpose of terrorism in accordance with the provisions of the penal laws, regardless of the actual use of funds and economic resources for the commission of the aforementioned conduct.
- Fractional Operation: It is a single operation in terms of economic value, for an amount equal to or greater than the limits established by this decree, implemented through several operations, individually lower than the aforementioned limits, carried out at different times and in a limited area. period of time set at seven days, without prejudice to the existence of the fractioned operation when there are elements to consider it as such.
- Occasional Operation: It is a transaction that cannot be traced back to an ongoing relationship; the intellectual or commercial performance, including those with instant execution, made in favor of the customer is also an occasional transaction.
- High Risk Countries: These are countries that do not belong to the European Union and whose legal systems have strategic shortcomings in their respective national money-laundering and terrorist financing regimes, as identified by the European Commission.
- Politically Exposed Persons – PEP: “They are natural persons who have occupied or have ceased to occupy important public offices for less than a year, as well as their families and those who with the aforementioned subjects have notoriously close ties, as listed below:
- are natural persons who occupy or have occupied important public offices, those who hold or have held the office of:
o 1.1 President of the Republic, President of the Council, Minister, Vice-Minister and Undersecretary, President of the Region, regional councilor, mayor of the provincial capital or metropolitan city, Mayor of the municipality with a population not less than 15,000 inhabitants and similar offices in foreign countries ;
o 1.2 deputy, senator, MEP, regional councilor as well as similar positions in foreign states;
or 1.3 member of the central governing bodies of political parties;
or 1.4 judge of the Constitutional Court, magistrate of the Court of Cassation or of the Court of Auditors, Councilor of State and other members of the Administrative Justice Council for the Sicilian Region and similar offices in foreign States;
o 1.5 member of the governing bodies of central banks and independent authorities;
or 1.6 ambassador, person in charge of business or equivalent positions in foreign States, senior officer of the armed forces or similar positions in foreign States;
or 1.7 member of the administrative, management or control bodies of the companies controlled, even indirectly, by the Italian State or by a foreign State or participated, to a prevailing or total extent, by the Regions, by common provincial capitals and metropolitan cities and by municipalities with population not less than 15,000 inhabitants;
o 1.8 general manager of ASL and hospital company, university hospital company and other national health service bodies;
o 1.9 director, deputy director and member of the management body or person performing equivalent functions in international organizations;
- are family members of politically exposed persons: the parents, the spouse or the person connected in civil union or cohabitation of fact or similar institutions to the politically exposed person, the children and their spouses as well as the persons related to their children in civil union or cohabitation of fact or similar institutions;
- they are subjects with whom politically exposed persons have known ties:
or 3.1 the natural persons linked to the politically exposed person due to the actual joint ownership of legal entities or other close business relationship;
or 3.2 the natural persons who hold only the total control of an entity known to be formed, in fact, in the interest and for the benefit of a politically exposed person. “
- Continuing Report: It is a relationship of duration, falling within the exercise of the institute activity carried out by the obliged subjects, which does not end in a single operation.
- Recycling: “Recycling means the following criminal phenomena: conversion or transfer of assets, made knowing that they come from a criminal activity or from a participation in such activity, in order to conceal or conceal the illicit origin of same assets or to help anyone involved in this activity to avoid the legal consequences of their actions, concealment or concealment of the true nature, origin, location, disposition, movement, ownership of the goods or rights thereon, made knowing that such assets come from a criminal activity or from a participation in such activity, acquisition, possession or use of assets being aware, at the time of their receipt, that such assets come from a criminal activity or from a participation in such activity; ) participation in one of the acts referred to in letters a), b) and c) the association for commits such an act, the attempt to perpetrate it, the fact of helping, instigating or advising someone to commit it or facilitating its execution. “
- Effective Owner: It is the natural person or natural persons, other than the client, in whose interest or of whom, as a last resort, the ongoing relationship is established, the professional service is rendered or the operation is performed.
ADEQUATE CUSTOMER VERIFICATION
Customer knowledge (know your customer – KYC) is an essential topic of national and European legislation in the context of financial relations between operators and customers.
Appropriate customer verification, in addition to setting up a valid tool for combating money laundering and terrorist financing, protects operators from exposure to commercial and reputational risks as well as from the application of administrative, civil and criminal penalties.
AWB performs adequate customer verification and monitors the activity through the analysis of the following parameters:
- identification data / general information;
- legal nature (for institutions);
- prevalent activity performed;
- origin of the funds;
- behavior at the time of the opening of the ongoing relationship or the completion of the transaction;
- geographical area of belonging;
- purpose of opening the report;
- type of transaction or relationship;
- amount of the transaction;
- reasonableness of the transaction and the relationship.
In the acquisition of customer information, AWB avails itself of the activity carried out by third parties to which the appropriate verification activity has been delegated. In particular, the delegated subject acquires at least the client’s identification document and verifies its identity. In any case, the acquisition of internal and external data allows AWB to be able to determine for each customer the related recycling risk profile, which will be subjected to periodic monitoring based on the aforementioned risk profile.
During the relationship with the customer, AWB constantly updates customer due diligence both during the review phase of the relationship (programmed according to the level of risk), and upon the occurrence of any events such as by way of non-exhaustive example: the generation of anomalies detected by the computer applications in use, the reporting by the Authorities, the detection of transactions implemented by the customer that are not consistent with the nature of the underlying relationship
COMPLIANCE WITH THE MAIN OBLIGATIONS REGARDING ANTI-MONEY LAUNDERING AND TERRORISM FINANCING
The Anti-Money Laundering Policy adopted by AWB is inspired by the principles of the “risk-based approach”. In particular, AWB:
- does not carry out transactions with convenient banking companies that do not have a physical presence in the country in which they are established and authorized to carry out the activity (shell bank);
- places greater attention on and adopts reinforced measures in cases in which situations arise which involve a greater risk of money laundering or in the verification of persons who hold or have held important public offices (politically exposed persons);
- does not carry out operations involving for any reason (presenters, orderers or beneficiaries) subjects registered in judicial authorities;
- monitors outgoing and incoming operations (checks on beneficiaries and orderers) and evaluates the movements rejected following similarity with the anti-terrorism lists;
- performs, on an automated basis, population checks and makes comparisons with the names on the lists provided by the UN and the EC Regulations and other international and national agencies.
CONSERVATION OF INFORMATION
In order to comply with the conservation obligations, AWB has set up a computerized register, which ensures that the data is managed with clarity, completeness, so that there is the immediacy of information and ease in consulting them. The record keeping was entrusted by AWB to a third party.
The information and data retrieved are kept for ten years as required by the current legislative decree 231/2007.
ANTI-MONEY LAUNDERING FUNCTION
AWB has appointed a Head of the Anti-Money Laundering Function.
The internal control system of AWB, however, involves the entire company structure from the corporate bodies to the control functions. AWB ensures that adequate internal controls are maintained to protect the integrity of the recycling risk management process and the related reputational risk through the preparation of stringent guidelines on the matter, as well as through an adequate internal organizational structure.
The updating of the Anti-Money Laundering Policy, as well as the verification of compliance with the procedures and internal provisions adopted by AWB, is entrusted to the Anti-Money Laundering Function which, in collaboration with other internal functions or external professions, is called upon to guarantee the effectiveness of the activities put in place to mitigate the risks associated with money laundering and terrorist financing.
ORGANIZATIONAL / REGULATORY PRESIDES
AWB has implemented specific organizational / regulatory safeguards for the fulfillment of the obligations imposed by the Anti-Money Laundering Decree. In particular, adequate internal regulatory procedures have been put in place to regulate the prescribed obligations in order to provide the corporate functions of AWB with organic consultation and support tools useful for understanding the matter.
Furthermore, AWB has equipped itself with specific IT tools both for the analysis of anti-money laundering risk profiles to be attributed to customers and for the monitoring of “anomalous” operations for which an analysis is carried out by the competent structures for the purpose of evaluation of the same.
REPORTING OF SUSPECTED OPERATIONS
In order to cooperate with the Authorities to guarantee the stability of the financial system and avoid its involvement in money laundering and terrorist financing, AWB has adopted a structured process for reporting operations that arouse suspicion about the illicit origin of the funds transferred . To this end, AWB has identified a subject delegated to report suspicious transactions, which is required to transmit to the Financial Intelligence Unit (FIU) reports in the form and in the manner prescribed by the Authority.
AWB, as required by the Anti-Money Laundering Decree, annually prepares a training program (e-learning, specialized courses) that is mandatory for all personnel, collaborators and company representatives.
- WHAT IS DINDICASH AND WHAT DOES IT DO?
Dindicash is a copyright of Anemone Web Building Ltd-spa, with registered office in Old Gloucester street 27 London Vat 285516969, domiciled in Via Leone XIII 95 Rome (Anemone Web Building Ltd in short “AWB”) is the company that owns the website www. dindicash.com (“Site”) and subdomains https //: adminpanel.dindicash.com.
Through the AWB Website it mainly provides the services provider for the use of virtual currency, by providing users, on a professional basis, with functional services for use, exchange of value, exchange of goods and services, to the conservation of virtual currencies and to its conversion from or into currencies having legal tender. In this context, in particular, AWB provides users with services related to blockchain technology: an internet platform that allows the purchase and sale of tokens or any other existing “virtual” or “mathematical” currency, as well as the conversion of virtual currencies or cryptographic tokens between them or against currency having legal tender and vice versa.
For Italian law, AWB’s activity falls under the definition of “Provider of services related to the use of virtual currency” (see Legislative Decree 231/2007, Article 1, paragraph 2, lett. “Ff “) held, by reason of the art. 17-bis, c. 8-bis, Legislative Decree 141/2010, upon registration in a special section of the register managed by the OAM (to date not yet established).
TRT, as a provider of services relating to the use of virtual currency, is required to comply with the obligations imposed on the subjects obliged by the anti-money laundering legislation, see, ex D.lgs. 231/2007.
Furthermore, the Site, the services of AWB and their use are not offered, nor can they be used to / from physical or non-physical persons who have their residence or registered office in the United States of America and in all those other countries indicated by the European authorities as “blacklisted” in the appropriate lists (updated from time to time) accessible through the following link: https://www.ecb.europa.eu/paym/retpaym/paymint/sepa/html/index.en.html .
- WHAT ARE THE “VIRTUAL CURRENCIES”
Virtual currencies are defined as digital representations of value that are not issued by a central bank or public authority nor are they necessarily linked to a currency having legal tender, but which are used by a natural or legal person as a medium of exchange and which can be transferred, archived and negotiated electronically (see for more details on the EBA Opinion on Virtual Currencies of 4 July 2014, available at the link available here, also referred to by the joint communication of the Bank of Italy and the Financial Information Unit of 30 January 2015 , click here to access the communication, as well as also see the definition of Legislative Decree 231/2007, article 1, paragraph 2, letter “ff”.
- CHARACTERISTICS OF THE VIRTUAL CURRENCIES
To understand the risks arising from the use of virtual currencies, you need to know the main features.
Each item is indicated by the Bank of Italy in the aforementioned communication, has the following characteristics:
- they are created by a private issuer, or, in general, by users who provide sophisticated software within open networks (in the case of the decentralized currencies);
- are handled through electronic wallets (c.d. wallet), which can be accessed and consulted via the Internet following registration and authentication checks;
- They can also be purchased with the cost of purchasing, selling and converting virtual currencies with legal tender currency, or received online by someone who’s probabilities, and then kept on an “internal” portfolio on the exchange platform, or on a own external portfolio to it;
- the transactions with which virtual currencies are transferred are technically irreversible.
- WHAT ARE THE DIGITAL OR ENCRYPTIONAL TOKENS
Digital tokens are cryptographic account units issued in correspondence with a process of c.d. IEO or Initial Exchanger Offering carried out specifically to collect money from the public through the sale of them and the exchange with other virtual currencies, or, in some cases, with currencies having legal tender.
In an IEO, a company, a start-up or an entity not yet organized in corporate form issues coins or cryptographic tokens and puts them on sale in exchange for legal tender currency, or, much more often, in exchange for virtual currencies, such as Bitcoin or Ether.
- RISKS RELATED TO THE USE OF VIRTUAL CURRENCIES
Negotiations of purchase, sale and conversion of virtual currency and digital tokens involve certain risks. The risks include but are not limited to:
- (a) Lack of information: in the absence of information obligations, it may be difficult to find reliable information to understand the operation, costs, value and risks of each type of virtual currency.
- (b) Absence of legal and contractual protections: the purchase, exchange and use of virtual currencies are not assisted by legal and / or contractual protections similar to those that accompany currency transactions having legal tender; virtual currency transactions are almost always technically irreversible.
- (c) Absence of forms of control and supervision: the issuance and management of virtual currencies, including conversion into legal tender currency, are activities not subject to supervision by any other authority in Italy.
- (d) Absence of forms of protection or guarantee of the sums deposited: in the case of fraudulent conduct, bankruptcy or cessation of activity of the exchange platforms, there are no specific regulations to cover the losses incurred. Similarly, for virtual currency sums deposited with third parties, traditional protection instruments, such as deposit guarantee systems, do not operate.
- (e) High volatility in value and risk of losses: the value of virtual currencies is characterized by great volatility, also due to the price formation mechanisms and the absence of a central authority able to intervene to stabilize the value. This circumstance may result in losses in the case of holding virtual currency.
1 The risks from lett. a) under f) are highlighted by the Bank of Italy in the Communication already mentioned in this document dated 30 January 2015.
See for more details on the aforementioned joint communication of the Bank of Italy and the Financial Information Unit of 30 January 2015 (click here to access it) and the warning published jointly by ESMA, EBA and EIOPA on the risks associated with virtual currencies (click here to access it).
- RISKS RELATED TO PARTICIPATION IN AN IEO
The purchase of cryptographic tokens is equivalent to investing in an ICO, as defined above. As indicated by the European Securities and Markets Authority (see ESMA in the warning dated 13 November 2017, available at the link by clicking here), the main risks in investing in an IEO are the following:
- unregulated area, subject to potential fraud or illegal activities: depending on how the cryptographic tokens offered in an IEO are structured, they may escape the existing rules and may fall within an unregulated area without protection and protection for the investor;
- high risk of losing the invested capital: the vast majority of IEOs are launched by companies or startups that are at an early stage of development and that have a high risk of failure;
- absence of exit options and extreme price volatility: investors may not be able to exchange digital tokens for legal tender currencies as not all cryptographic tokens are tradable on exchange platforms and their price is extremely volatile because connected to the services to be developed by the issuer;
- inadequate information: information made available to investors, e.g. the so-called white papers, in most cases are not certified, are incomplete or even misleading; investors therefore may not fully understand the potential risks they assume by purchasing cryptographic tokens;
- defects in technology: the technology of the distributed register or blockchain at the base of cryptographic tokens, unlike those of virtual currencies, is still largely untested and there may be software development flaws. Thus, on the one hand, investors may not be able to access or control their digital tokens which, moreover, may be stolen or stolen for example in the event of a hack, and on the other, the registry technology may not work in quickly and safely, e.g. during activity peaks.
It should be remembered, however, that through the Site it is possible to participate or join only the IEO Dindicash, which Token Dindicash in brief (DDCH) will be exchangeable at the same time as the currency of Fiat and the currency of exchange within the DINDI circuit.