ANTIMONEY LAUNDERING POLICY AND PROCEDURES
Mybitok OU (“Mybitok”) is committed to complying with all applicable regulations and laws
that apply to its business and, in furtherance of its past antimoney laundering efforts, has
developed and initiated a comprehensive program to combat money laundering.
Mybitok will take all necessary steps to ensure that the investors, clients, agents, and
intermediaries with whom we do business will not be a party to illegal, money laundering
transactions in support of terrorism or otherwise; and Mybitok will engage in such activities and
measures as are necessary to frustrate and prevent money laundering.
Every employee at Mybitok is responsible for protecting Mybitok from money laundering
activity. Mybitok management is committed to training Mybitok employees about the
consequences of money laundering to each employee and the firm, including criminal, civil and
disciplinary penalties, up to and including termination, and the very significant harm that is
likely from any connection with money laundering activity by the firm.
It will be the policy of Mybitok to accept deposits in its name for trading accounts only. No
deposits will be accepted in any other name other than Mybitok or its direct subsidiary.
Mybitok businesses must:
● protect Mybitok and its clearing institution from being used for money laundering
● adhere to the Know Your Customer policies and procedures
● take appropriate action once suspicious activity is detected and make reports to
government authorities in accordance with applicable laws: and
● comply with applicable money laundering laws, regulations and firm policies and
In the global marketplace, the attempted use of financial institutions to launder money is a
significant problem that has caused great concern in the international and domestic
community, which has resulted in the passage of strict laws and increased penalties for
money laundering worldwide.
This Policy establishes governing principles and standards to protect Mybitok and its
clearing firm and its businesses from being used to launder money. All Mybitok
employees, wherever located, must be vigilant in the fight against money laundering and must
not allow Mybitok or its clearing firm to be used for money laundering activities.
A. What is Money Laundering?
Money laundering is not just an attempt to disguise money derived from the sale of drugs.
Rather, money laundering is involvement in any transaction or series of transactions that seek to
conceal or disguise the nature or source of proceeds derived from illegal activities,
including drug trafficking, terrorism, organized crime, fraud, and many other crimes.
B. The Importance of this Policy to the Individual Employee of the company
In adhering to this Policy, as with every aspect of its business, Mybitok expects that its
employees will conduct themselves in accordance with the highest ethical standards.
Mybitok employees shall not knowingly provide advice or offer assistance to individuals who
attempt to violate or avoid money laundering laws or this Policy.
Money laundering laws apply not only to criminals who try to launder their illgotten gains, but
also to financial institutions and their employees who participate in those transactions if the
employees know that the property is criminally derived. “Knowledge” includes the concepts of
“willful blindness” and “conscious avoidance of knowledge.” Those employees of a financial
institution whose suspicions are aroused, but who then deliberately fail to make further
inquiries, wishing to remain ignorant, may be considered under the law to have the requisite
“knowledge.” Mybitok employees who suspect money laundering activities should refer
the matter to their supervisor and Mybitok’s AntiMoney Laundering Compliance Officer.
Failure to adhere to this Policy may subject Mybitok employees to disciplinary action up to and
including termination of employment.
C. Wire Transfers
When Mybitok transfers funds of $10,000 or more, Mybitok maintains a wire transfer advise
that contains at least the following information: the name and address of the transmitter and
recipient, the amount of the transmittal order, the execution date of the transmittal order;
payment instructions received from the customer, the identity of the recipient’s financial
institution (i.e., the name and address of the recipient and the account number of the recipient).
Mybitok will not wire money from a customer’s account to a third party under any
circumstance even if the customer makes a request to do so. Mybitok understands that
certain events in the future may warrant the need for a third party wire to be made by Mybitok.
In the event a third party needs to be made, the wire must first be approved by the AML
Wire advices will be retained for at least two years and such information will be retrievable by
the names and account numbers belonging to the Mybitok customer involved in the transfer.
D. Know Your Customer
The requirement to “know your customer” is one borne of sound business practices and
established regulatory oversight. Presently, industry regulations require firms to undertake
reasonable efforts to obtain and maintain the essential facts relative to each customer and each
account opened. For ease of use, all customer information captured is maintained in the firm’s
new account documentation for two years, which includes the customer account application,
corporate resolutions (if applicable), governmental photo identification for investors (e.g., driver’s
license, passport, national identity card) or other such documentation as may be appropriate to
ascertain and verify a person’s identity. Therefore, all employees
are reminded to obtain valid government issued photo identification on all natural person
accounts as well as directors on institutional accounts.
In cases where the account is that of an institution (e.g., corporation, limited liability company,
partnership, trust, etc.), Mybitok will ask the customer to provide the legal documents to form
the institution (e.g., Articles of Incorporation, Partnership Agreement, Articles of Organization,
Trust Agreement, etc.), register of all directors and shareholders (in relation to whom all natural
person documentation KYC requirements will apply) and may ask for a financial statement.
The process of “knowing” one’s customer is not concluded once the initial account opening
information has been obtained. Even after the account is established, registered persons are
required to update their customer’s information in the normal course of the relationship.
For situations where Mybitok cannot form a reasonable belief as to the customer’s identity, the
account should not be opened. Mybitok AML Compliance Officer will determine if a suspicious
activity report needs to be filed. UNDER NO CIRCUMSTANCES WILL A CUSTOMER BE
PERMITTED TO FUND THEIR ACCOUNT OR PLACE TRADES IN THEIR ACCOUNT UNTIL
THE ACCOUNT HAS BEEN APPROVED AND THE CUSTOMER HAS REASONABLY
DEMONSTRATED ITS IDENTITY PURSUANT TO THESE POLICIES AND PROCEDURES.
If a potential or existing customer either refuses to provide the information described above
when requested, or appears to have intentionally provided misleading information, Mybitok
will not open a new account and, after considering the risks involved, consider closing any
existing account. In either case, the antimoney Laundering Compliance Officer will be notified
so that we can determine whether we should report the situation to the regulator.
Mybitok is a company with a global scope and thus numerous applications are submitted in
languages other than English that are not able to be read by the AML compliance officer and
several of the account opening personal. If an account is opened in a foreign language, then it
must be reviewed for approval by an Mybitok employee or third party translator proficient in
the aforementioned language. All correspondence between the foreign applicant and the
Mybitok employee regarding customer identification problems / issues must be described and
translated in detail to a principal of the firm and maintained in the applicant's file for two years.
E. Suspicious Individuals and Blocked Countries
If a customer attempts to use bribery, coercion, undue influence, or other inappropriate means to
induce the firm to open an account or proceed with a suspicious or unlawful activity or
transaction, and any other situation that Mybitok reasonably determines requires immediate
government intervention, then Mybitok will immediately notify appropriate law enforcement
Mybitok has also implemented in house policy for blocking citizens or institutions or
naturalized residents of the following countries: the United States of America.
Mybitok will not open an account under any circumstances from an individual currently
residing in one of these countries, with the exceptions noted below. Mybitok will also not
open any account from a citizen of one of these countries w
ho is currently domiciled in a
different unblocked country.
Although by no means exhaustive, the following is a list of potential indicators of suspicious
activity, which, if unexplained, may evidence money laundering activity. All employees that work
in areas susceptible to money laundering activities must play an active role in the monitoring of
account activity. All such employees must monitor account activity to aid in the detection and
identification of unusual size, volume, pattern or type of transactions. All such employees must
be cognizant of geographic factors, such as whether jurisdictions designated as
“noncooperative” are involved, any of the “red flags” or suspicious activities outlined
F. Senior Foreign Government/Public Officials
Additional scrutiny is required to identify accounts maintained for senior foreign
government/public officials, their immediate family members, and close associates that may
involve the proceeds of foreign official corruption.
G. For the purpose of this Policy, the following definitions apply:
● A “senior foreign political figure” is a senior official in the executive, legislative,
administrative, military or judicial branches of a foreign government (whether elected or
not), a senior official of a major foreign political party, or a senior executive of a foreign
governmentowned corporation. This definition includes any corporation, business or
other entity that has been formed by, or for the benefit of, a senior foreign political
● The “immediate family” of a senior foreign political figure typically includes the figure’s
parents, siblings, spouse, children and inlaws.
● A “close associate” of a senior foreign political figure is a person who is widely and
publicly known to maintain an unusually close relationship with the senior foreign
political figure, and includes a person who is in a position to conduct substantial
domestic and international financial transactions on behalf of the senior foreign
● Foreign clients (new and established) who appear to be in any of the above categories
must be asked if they are, in fact, a senior foreign political figure, a member of the
figure’s immediate family, or a close associate of the figure. If the client answers in the
affirmative, or is uncertain in answering this question, the matter should be discussed
with your supervisor/branch office manager and Mybitok AML Compliance
● Mybitok will not accept any account for a senior foreign political figure, the figure’s
immediate family or a close associate of the figure unless approved by senior
management. If approved, the supervisor, in consultation with the AML Compliance
Officer, shall develop and maintain appropriate methods of monitoring the account.
H. Hiring New Employees
Mybitok recognizes that a successful AML Program is only as effective as the people who
perform its functions. Therefore, any applicant that has a derogatory, suspicious or criminal
background will not be hired.
Mybitok will retain records pertaining to its customer identification and verification efforts,
including all identifying information provided by a customer, all identifying information obtained
about a customer from third party databases, the methods used and results of verification,
and the resolution of any discrepancy in the identifying information. Mybitok will maintain all
these records for two years after the account has been closed. Furthermore, Mybitok will
maintain all records pertaining to suspicious activity reporting on file for a period of five years.
J. Additional Resources
Any questions relating to this AML policy and procedures shall be referred to Mybitok’s AML
Compliance Officer. The AML Compliance Officer shall take the appropriate steps to answer all
inquiries and assist in the investigation of suspicious activities. Where necessary, the firm’s
senior management, General Counsel, governmental authorities, including law enforcement,
shall be consulted on specific antimoney laundering issues. On rare occasion, there will be a
legitimate need to approve exceptions for a given client. The AML Compliance Officer and
other appropriate Senior Management must approve any exception or deviation from the
standards set forth in this Policy. Exceptions to this Policy, if any, will be maintained by the
AML Compliance Officer.