This Anti-Money Laundering and Counter-Terrorist Financing Policy (hereinafter the ‘AML/CTF Policy’) is designed to stipulate the commitment of MAINIELL OÜ to detect, prevent and report attempts to use its financial services platform (the “Services”) to illegally launder money, to finance illegal activities such as terrorism and drug trafficking, or to commit fraud.
Money laundering is defined as the process where the identity of the proceeds of crime are so disguised that it gives the appearance of legitimate income. Criminals are known to specifically target financial services firms through which they attempt to launder criminal proceeds without the firm’s knowledge or suspicions. Moreover, terrorist financing is defined as the financing and supporting of an act of terrorism and commissioning thereof within the meaning of the Penal Code of Estonia.
Ethical behavior is an integral part of our business model. MAINIELL OÜ therefore does not tolerate any illegal or illicit activity from either its clients or its own employees, and the MAINIELL OÜ is committed to the highest standards for preventing money laundering, financial crime (including bribery and corruption), terrorism financing and other acts punishable by law.
This AML/CTF Policy outlines the principles, strategic objectives and requirements, including internal safeguards and customer due diligence duties, that underpin the MAINIELL OÜ’s commitment to combatting and preventing money laundering, financial crime, terrorism financing and other acts punishable by law.
1. Objectives of AML/CFT Policy
1.1 As an obliged person under Estonian Money Laundering and Terrorist Financing Prevention Act (RahaPTS), MAINIELL OÜ has an obligation to assist in the efforts to prevent the use of the financial system and economic space of the Republic of Estonia for money laundering and terrorist financing purposes.
1.2 The broad purpose of this AML/CTF policy is to ensure that MAINIELL OÜ meets its obligations under RahaPTS and conforms with the requirements of Financial Intelligence Unit.
2. Customer verification procedures
2.1 One of the international standards for preventing illegal activity is client due diligence. MAINIELL OÜ has established its own verification procedures within the standards of “Know Your Client” frameworks.
2.2 MAINIELL OÜ identity verification procedure requires the Customer to provide MAINIELL OÜ with reliable, independent-source documents, data or information. MAINIELL OÜ reserves the right to collect Customer’s identification information to meet the requirements of the Policy.
2.3 MAINIELL OÜ will take steps to confirm the authenticity of documents and information provided by Clients. All legal methods for double-checking identification information will be used and MAINIELL OÜ reserves the right to investigate certain Clients who match a higher risk profile or appear suspicious.
2.4 MAINIELL OÜ reserves the right to review Customer’s proofs of identity on an on-going basis, especially where identification information has changed, or activity appears suspicious / unusual for a particular Customer. MAINIELL OÜ can decide which traits / activities are deemed suspicious at its sole discretion.
2.5 MAINIELL OÜ reserves the right to request up-to-date documents from the Customers, even if they have previously passed identity verification.
2.7 Customer’s identification information will be subject to the risk-level as well as amount that each customer will want to purchase. For customers who buy for more than €40,000 additional enhanced due diligence measures will be performed.
3. Monitoring of transactions
3.1 MAINIELL OÜ Customers must complete MAINIELL OÜ’s identity verification process (who you are) before trading. After verification is completed, the Customer consents to transaction monitoring, MAINIELL OÜ analyses the Customer’s transactional patterns (what they do).
3.2 MAINIELL OÜ relies on data analysis as a risk-assessment and suspicious activity detection tools. These tools perform a variety of compliance-related tasks, including capturing data, filtering, record-keeping, investigation management, and reporting.
3.3 In connection with the AML/CFT Policy, MAINIELL OÜ will:
(a) monitor all transactions. MAINIELL OÜ reserves the right to ensure that transactions of suspicious nature are reported to the proper law enforcement;
(b) request the Customer to provide any additional information and documents in case of suspicious transactions;
(c) suspend or terminate Customer’s Account when MAINIELL OÜ has a reasonable suspicion that such Customer is engaged in illegal activity.
The above list is not exhaustive, and the Compliance Officer will monitor Customers’ transactions on a regular basis to define whether such transactions are to be reported and treated as suspicious.
4. International sanctions compliance risk
4.1 MAINIELL OÜ must adhere to financial sanctions and embargoes against certain persons, entities and countries as published by the United Nations, the European Union, Estonia and the U.S. Office of Foreign Asset Control.
4.2 MAINIELL OÜ must adhere to financial sanctions and embargoes against certain persons, entities and countries as published by the competent national authorities of their location.
4.3 MAINIELL OÜ must screen all Customers and beneficial owners against relevant sanctions lists before any transaction can be carried out or before any business relationship can be established. In cases where persons or entities involved in the transaction or business relationship are subject to sanctions as mentioned above, the transaction must not be conducted, or the business relationship must not be established or continued.
4.4 MAINIELL OÜ must adhere to the applicable processing regulations or asset and funds freezing regulations.
4.5 MAINIELL OÜ may consider processing certain transactions at its sole discretion, such as those which relate to humanitarian aid or which are otherwise permitted by a license from an appropriate authority. These transactions will be considered on a case-by-case basis and must be submitted in advance to the Compliance Officer for approval.
4.6 MAINIELL OÜ may decide at their sole discretion not to process transactions, provide services or otherwise facilitate transactions, even where permitted by applicable sanctions, laws and regulations.
5. Regulatory compliance risk
5.1 MAINIELL OÜ ensures that it adopts all regulatory, legal and compliance requirements and values in a proportionate way that satisfies the requirements of the regimes in a pragmatic, cost-effective and ethical manner. MAINIELL OÜ maintains a zero tolerance for regulatory fines. Consequently, noncompliance to regulatory requirements shall immediately trigger mitigation/rectification actions.
6. Compliance officer
6.1 The Compliance Officer is the person, duly authorized by MAINIELL OÜ, whose duty it is to ensure the effective implementation and enforcement of the Policy. The Compliance Officer is obliged to have relevant education and specific knowledge and expertise in AML/CTF fundamental and practical issues.
6.2 3.2. It is the Compliance Officer’s responsibility to supervise all aspects of implementing the Policy including, but not limited to: collecting Clients’ identification information; establishing and updating internal policies and procedures for the completion, review, submission, and retention of all reports and records required under applicable laws and regulations; monitoring the transfer of assets and investigating any significant deviations from normal transfer activity; implementing a records management system for appropriate storage and retrieval of documents, files, forms and logs; and regularly updating risk assessment.
6.3 The Compliance Officer is entitled to interact with competent authorities involved in the prevention of all types of illegal activity.
7.1 All of our employees and officers receive ongoing broad-based AML/CTF training, as well as position-specific training. They must repeat this training at least once every twelve (12) months to ensure they are knowledgeable and in compliance with all pertinent laws and regulations. New employees receive training within thirty (30) days of their start date. All documentation related to compliance training including materials, tests, results, attendance and date are maintained. In addition, our compliance training program is updated as necessary to reflect current laws and regulations.
8. Risk assessment
8.1 In order to meet its obligations regarding Anti-Money Laundering and Counter-Terrorist Financing, MAINIELL OÜ completes an annual AML/CTF Risk Assessment. The aim of the AML/CTF Risk Assessment is to prevent criminals from using MAINIELL OÜ to launder money by highlighting risks and assessing controls MAINIELL OÜ has put in place. A risk-based approach is taken to identify Customers and monitor how they use our Services.
8.2 The Compliance Officer is responsible for managing financial crime risks and making improvements in financial crime risk management by identifying the general and specific money laundering risks that MAINIELL OÜ is facing, determining how these risks are mitigated by MAINIELL OÜ’s AML/CTF controls, and establishing the residual risk that remains for MAINIELL OÜ.
9. AML audit program
The Compliance Officer is responsible for conducting AML/CFT audit at least annually. In addition, annual independent test of the AML/CFT procedures is done by a third party. In order to achieve segregation of duties, the Compliance Officer is not responsible for such independent test.