AML/CFT Policy

Introduction

Throughout this Policy, all terms and conditions shall be construed and interpreted in conjunction with the definitions and provisions outlined in the Terms of Use.

Inqud (“we”, “us”, or “our”) recognises the adverse effect of financial crimes and is committed to conducting its activities with integrity, respecting its regulatory, ethical and social responsibilities to:

• protect users, staff (permanent and contractors), and others with whom we do business; and
• support governments, regulators, and law enforcement in wider economic crime prevention.
• Inqud will not tolerate any deliberate breach of financial crime laws and regulations (e.g. bribery, corruption, money laundering & terrorist financing, sanctions, tax evasion or market abuse) that apply to our business activity.

Money Laundering

"Money laundering" or "ML " means the doing of any act which constitutes an offence of money laundering under the Criminal Code of the Republic of Poland and is defined in the Act on Counteracting Money Laundering and Financing of Terrorism of the Republic of Poland. The criminal acts cover all procedures that seek to change the identity of illegally obtained funds, arising from drug dealing, terrorist activities or any other crime in order to give the impression that such money originated from legitimate or legal sources. Money laundering is the participation in any transaction that seeks to conceal or disguise the nature or origin of funds derived from illegal activities such as, for example, fraud, corruption, organised crime, or terrorism etc. 

“Terrorist financing” or “TF” means the provision of funds, directly or indirectly, with the intention that they should be used or in knowledge that they are to be used in order to carry out any of the offences within applicable regulatory framework There can be similarities between the movement of terrorist assets and laundering of criminal assets. However, there are two major differences between terrorist assets and criminal assets:

• terrorists can be funded from legitimately obtained income, including charitable donations, making it difficult to identify the stage at which legitimate funds become terrorist property;
• small amounts are enough to commit terrorist attacks, thus increasing the difficulty of tracking the terrorist property.

AML/CFT Policy covers the following matters:

• Internal controls
• Governance;
• Customer Due Diligence
• Monitoring, risk assessment and risk-based approach;
• Training of staff;
• Record keeping.

Internal controls

Inqud has a system of internal controls in order to comply with applicable AML/CFT laws and regulations, including, but not limited to:

• establishing user's identity and verifying the information provided;
• establishing special regime for dealing with users which are politically exposed persons (PEP);
• the identification of unusual activity and facilitating the reporting of suspicious activity (SAR);
• record keeping of user documentation and transactional history.

All controls and procedures are accessible by all staff at any time. In addition, all controls are:

• designed to ensure that all employees, businesses and legal entities comply with extraterritorial obligations and relevant regulations applicable in jurisdictions of Inqud operations;
• approved by the Board of Directors;
• are subject to an annual review cycle to ensure their effectiveness, which provides senior executive management with the necessary assurance regarding the financial crime control framework.
  

Governance

AML Compliance Officer is responsible for establishing and maintaining AML programs to identify, assess, monitor and manage risks related to Money Laundering, Terrorist Financing and other financial crime related matters. AML Compliance Officer is authorised by Inqud, for the development and enforcement of the effective implementation of the AML/CFT. 

The responsibilities of AML Compliance Officer include (but not limited): 

• establishing and updating internal policies and procedures for the completion, review, submission and retention of all reports and records required under the applicable laws and regulations;
• collecting users' identification information and verifying the information provided; implementing a records management system for appropriate storage and retrieval of documents, files, forms and logs;
• collection and analysis of information referring to unusual transactions or transactions or circumstances suspected of money laundering or terrorist financing, which have become evident; investigating any unusual, suspicious activity;
• reporting to the appropriate authorities in the event of suspicion of money laundering or terrorist financing; providing law enforcement with information as required under the applicable laws and regulations;
• periodic submission of written statements on compliance with the requirements arising from law to the management board;
• organization of the training of employees;
• performance of other duties and obligations related to compliance with the requirements of law; updating risk assessment regularly.

Customer Due Diligence

Inqud has established and maintains risk-based customer due diligence (CDD), identification, verification and know your customer (KYC) procedures, including enhanced due diligence (EDD) within the standards of AML/CFT frameworks.

In the process of due diligence and KYC and in order to open an account, a person's identity, information about a person provided and documents submitted have to be verified and checked against sanctions and watch lists, including PEP list. 

KYC includes not only knowing the clients and entities Inqud cooperates with or renders Services to, but also the Ultimate Beneficial Owners (UBOs), Legal Representatives and Authorised Signatories as appropriate.

Inqud carries out customer due diligence checks before entering business relations with user, client, contractor.

Additionally, Inqud has established the ongoing monitoring process that includes regular PEP and Sanctions screening, as well as periodic and trigger reviews. 

Inqud uses a third-parties services system in order to conduct customer due diligence checks.

Transaction Monitoring And Risk Assessment

Inqud 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.

In relation to AML/CTF risk, Inqud:

• monitors all transactions and reserves the right to ensure that transactions of suspicious nature are reported to the proper law enforcement;
• requests users to provide additional information and documents to confirm Source of Funds (SoF) and Source of Wealth (SoW) in case of suspicious transactions;
• suspends or terminates a user's account when there is reasonable suspicion that such user is engaged in illegal activity;
• Suspends or decline transaction when there is reasonable suspicion that such transaction is engaged in illegal activity;

However, the above list is not exhaustive and Inqud monitors users’ transactions on a regular basis in order to define whether such transactions are to be reported and treated as suspicious.

AML/CFT compliance ensures that an ongoing transaction monitoring is conducted to detect transactions which are unusual or suspicious compared to the user profile.

To assist in determining the level of AML/CFT due diligence to be exercised with regard to the customer, a compliance risk profile is calculated first of all on entry into relations (Low, Medium, High), and is then recalculated routinely.

AML/CFT compliance ensures that an ongoing transaction monitoring is conducted to detect transactions which are unusual or suspicious compared to the user profile.

If a transaction is inconsistent with a user’s known personal usual activities or personal habits, this transaction may be considered suspicious. Data and transaction monitoring tools are used to identify unusual/uncommon patterns of user’s activity. 

Training

All staff of Inqud receive a full AML/CFT training, along with a job‐specific guidance.

The training is tailored to the business to ensure that staff are aware of different possible patterns and techniques of money laundering which may occur in their everyday business. 

Training is conducted at least once every twelve (12) months to ensure that trainees are informed and act in compliance with all applicable laws and regulations. Training covers the general duties arising from regulatory and internal requirements.

Employees pass additional training if necessary (if new law or regulation is adopted, if required by law, etc.)

Record keeping

Record keeping is an essential component of the AML/CFT compliance program that assists in any financial investigation and ensures that criminal funds are kept out of the financial system, or if not, that they may be detected and confiscated by the authorities.

In accordance with our internal controls Inqud keeps the records of the following information (but not limited):

• customer related information;
• customer transactions;
• internal and external suspicion reports and information not acted upon;
• suspicious activity reports;
• training and the effectiveness of such training.

Policy changes

We reserve the right to modify, amend, or update this policy at any time to reflect changes in our business practices, legal requirements, or for any other reason. All modifications to this policy will be effective immediately upon posting the revised version on our platform or through other appropriate channels. It is your responsibility to review this policy periodically to stay informed about any updates.

By continuing to use our Services after the effective date of any changes to this policy, you hereby acknowledge and agree to the updated terms. If you do not agree with the revised policy, you may discontinue using our Services.

We may also notify you of significant changes to this policy through email or other means, depending on the nature of the changes. Your continued use of our Services following such notification constitutes your acceptance of the modified policy.