Last amended as of: 15 June 2021
ENSO Anti-Money Laundering Policy (hereinafter - the “Policy”) is designated to prevent and mitigate possible risks of ENSO being involved in any kind of illegal activity.
In this Policy, “we”, “us”, “our” and “ENSO” refer to FinTech Assn Ltd. - a company registered in accordance with the laws of the United Kingdom, registration number: 12630566, registration address: Unit 111375, 2nd Floor, 6 Market Place, London, Fitzrovia, United Kingdom, W1W 8AF.
ENSO pays thorough attention to any activities that may be considered as money laundering or terrorist financing. Our Policy is designed to prevent money laundering by complying with AML legislation obligations including the need to have adequate systems and controls in place to mitigate the risk of being used to facilitate the financial crime.
To minimize and mitigate the risk of money laundering and/or terrorist financing, ENSO is required to meet, among others, the following legal requirements:
- Understand and interpret the legal and regulatory framework for AML requirements and systems;
- Understand standard industry best practice in AML procedures and proportionate risk-based approach;
- Design and implement the systems and controls necessary to mitigate the risk of being used in connection with money laundering or financing terrorism.
1. LEGISLATIVE BASIS
Money laundering is a criminal process involving the conversion of the amount of illegally obtained funds (terrorism, corruption, drug trafficking, etc.) while hiding the true source in legal investments. This is because the illegal nature of such funds will not be detected because of their material values.
The country's government is fighting money laundering and terrorist financial transactions in connection with the need to prevent criminal funds from entering the economy. Financial and commercial institutions are most accessible to illegal processes of terrorist and criminal organizations.
Providing the Services ENSO is comply with:
- AML Act – UK Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 ("AML Act").
2. AML POLICY
The Policy is designed to lay down a framework to:
- prevent ENSO from being used, intentionally or unintentionally, by criminal elements for money laundering or financing terrorist activities;
- enable ENSO to know and understand its Merchants and other contacts with which ENSO has any financial dealings with and their financial background and source of funds better, which in turn would help it to manage its risks prudently;
- put in place appropriate controls for detection and reporting of suspicious activities in accordance with applicable laws, procedures and regulatory guidelines; and
- equip employees and contractors of ENSO with the necessary training and measures to deal with matters concerning AML procedures and reporting obligations. Our Policy will be reviewed and updated on a regular basis to ensure appropriate procedures and internal controls are in place.
What is money laundering?
- Conversion or transfer of funds obtained as a result of criminal activity, or funds obtained in place of such funds, knowing that such funds are the result of criminal activity or an act of participation in such activity, in order to conceal the illegal origin of the funds or to assist any person involved to commit such activities, to avoid the legal consequences of the actions of this person.
- The acquisition, possession or use of funds obtained as a result of criminal activity, or funds obtained instead of such funds, knowing, at the time of receipt, that such funds were obtained as a result of criminal activity or an act of participation in it.
- Concealment or disguise of the true nature, source, location, location, movement, rights in relation to or ownership of funds derived from criminal activity, or funds obtained in lieu of such funds, knowing that such funds are derived from criminal activity or from an act of participation in such an activity.
What is the financing of terrorism?
- Allocation or collection of funds for planning or committing acts that are considered acts of terrorism or for financing the operations of terrorist organizations, or on condition that the funds allocated or collected will be used for the aforementioned purposes.
What is Beneficial Owner?
- any natural person or persons who ultimately own or control the Merchant and, or the natural person or persons on whose behalf a transaction or activity is being conducted, and
- in the case of a body corporate or a body of persons, the beneficial owner shall consist of any natural person or persons who ultimately own or control that body corporate or body of persons through direct or indirect ownership of twenty-five per centum (25%) plus one (1) or more of the shares or more than twenty-five per centum (25%) of the voting rights or an ownership interest of more than twenty-five per centum (25%) in that body corporate or body of persons, including through bearer share holdings, or through control via other means, other than a company that is listed on a regulated market which is subject to disclosure requirements consistent with applicable law or equivalent international standards which ensure adequate transparency of ownership information:
Provided that a shareholding of twenty-five per centum (25%) plus one (1) share or more, or the holding of an ownership interest or voting rights of more than twenty-five per centum (25%) in the Merchant shall be an indication of direct ownership when held directly by a natural person, and of indirect ownership when held by one or more bodies corporate or body of persons or through a trust or a similar legal arrangement, or a combination thereof:
Provided further that if, after having exhausted all possible means and provided there are no grounds of suspicion, no beneficial owner in terms of this paragraph has been identified, subject persons shall consider the natural person or persons who hold the position of senior managing official or officials to be the beneficial owners, and shall keep a record of the actions taken to identify the beneficial owner in terms of this paragraph.
- in the case of trusts the beneficial owner shall consist of:
- the settlor;
- the trustee or trustees;
- the protector, where applicable;
- the beneficiaries or the class of beneficiaries as may be applicable; and
- any other natural person exercising ultimate control over the trust by means of direct or indirect ownership or by other means; in the case of legal entities such as foundations and legal arrangements similar to trusts, the beneficial owner shall consist of the natural person or persons holding equivalent or similar positions to those referred to in paragraph (b).
What is High Risk Jurisdiction?
- the jurisdictions designated by ENSO as a high risk jurisdiction in respect of the provision of Services from time to time.
What is Politically Exposed Person?
- a natural person who is or has been entrusted with prominent public functions, other than middle ranking or more junior officials. For the purposes of this definition, the term “natural person who is or has been entrusted with prominent public functions” includes the following:
- Heads of State, Heads of Government, Ministers, Deputy or Assistant Ministers, and Parliamentary Secretaries;
- Members of Parliament or similar legislative bodies;
- Members of the governing bodies of political parties;
- Members of superior, supreme, and constitutional courts or of other high level judicial bodies whose decisions are not subject to further appeal, except in exceptional circumstances;
- Members of courts of auditors or of the boards of central banks;
- Ambassadors, charges daffier, consuls and high ranking officers in the armed forces;
- Members of the administrative, management or supervisory boards of State owned enterprises;
- Anyone exercising a function equivalent to those set out in paragraphs (1) to (7) within an institution of the European Union or any other international body;
The term “family members” includes:
- the spouse, or a person considered to be equivalent to a spouse;
- the children and their spouses, or persons considered to be equivalent to a spouse; and
What is Persons known to be close associates?
- a natural person known to have joint beneficial ownership of a body corporate or any other form of legal arrangement, or any other close business relations, with that politically exposed person; or
- a natural person who has sole beneficial ownership of a body corporate or any other form of legal arrangement that is known to have been established for the benefit of that politically exposed person.
What is Prohibited Jurisdiction?
- the jurisdictions designated by ENSO as a prohibited jurisdiction in respect of the provision of Services from time to time.
What is Sanctioned Jurisdiction?
- any country or territory to the extent that such country or territory is the subject of any sanction issued by the United Nations, United States and/or the European Union.
What is Sanctioned Person?
- any individual or entity (a) identified on a sanctions list issued by the United Nations, United States and/or the European Union; (b) organized, domiciled or resident in a Sanctioned Jurisdiction; or (c) otherwise the subject or target of any sanctions, including by reason of ownership or control by one or more individuals or entities described in clauses (a) or (b).
Who is Merchant?
- a legal entity or a person who gains access to the ENSO Services, contacts us with an application to use our Services or with questions about the Merchant’s Account.
Who is Customer?
- natural person or legal entity who is buying the goods or services at the Merchant’s Webstore.
What is User?
- all visitors to our website located at https://ensopay.com/ (hereinafter referred to as the "Website").
4. RISK-BASED APPROACH
ENSO adopts and maintains a Risk-Based Approach (“RBA”) towards assessing and containing the money laundering and terrorist financing risks. The guidelines are as follows:
- Before starting provision of Services, necessary checks shall be conducted in line with the RBA so as to ensure that the identity of the Merchants does not match with any person with known criminal background or with banned entities such as individual terrorists or terrorist organizations;
- For the purpose of risk categorization of the Merchants, the relevant information shall be obtained from the Merchants before the provision of Services;
- The risk categorization process for different types of Merchants may take into account the background of the Merchants;
- The outcome of the risk categorization process shall be decided based on the relevant information provided by the Merchants before providing the Services.
5. ENSO ACTIVITIES IN ACCORDANCE WITH THE AML ACT
ENSO AML legal obligations include among others:
- Verify Merchant’s (including beneficial owners’) identity and address;
- Keep full records of all transactions together with identification provided;
- Monitor any unusual or suspicious transactions of any size;
- Report any suspicious transaction to the relevant authority.
ENSO is authorized at any time during the term of provision of Services to verify the Merchant's contact details, authorization for his business, and to request further documentation for the identification, purpose and intended character of the subject matter, and further to fulfill all legal obligations under the AML Act.
The Merchant is required to provide the necessary assistance in obtaining these documents.
In order to properly meet AML requirements, the Merchant is obliged to notify any changes to ENSO in writing or electronically in good time, in particular changes in the organizational structure of the Merchant and its ownership structure, changes in the name of the company and its registered address, changes of real owners, changes in the offered kinds of goods and services, the cancellation of webstore’s websites.
ENSO is authorized to check compliance with this undertaking and request the Merchant to cooperate.
Payment Partners / ENSO may block funds on the Account for the necessary time if:
- It is suspected that money on the Account is intended to commit a criminal offense.
- It is suspected that funds on the Account coming from a criminal activity or involving a suspicious transaction under the AML Act.
With copies of all the documents obtained, ENSO is obliged to treat as confidential information and to keep it only for the time strictly necessary according to the AML Act.
6. SANCTIONED JURISDICTIONS, PROHIBITED JURISDICTIONS AND HIGH RISK JURISDICTIONS
ENSO will establish and maintain the following lists of jurisdictions (i) Sanctioned Jurisdictions (ii) Prohibited Jurisdictions and (iii) High Risk Jurisdictions. In determining the list of Sanctioned Jurisdictions, Prohibited Jurisdictions and High Risk Jurisdictions, ENSO shall take into account the lists issued by the Payment Partners based on issued lists by Financial Action Task Force and by other organizations issuing guidelines and lists relating to the adequacy of legislative measures adopted by jurisdictions in relation to money laundering, funding of terrorism and transparency.
Merchants which are (i) incorporated and resident in, or (ii) have their source of wealth or source of funds linked to a Sanctioned Jurisdiction and/or a Prohibited Jurisdiction shall not be accepted as Merchants of ENSO.
Merchants which are (i) incorporated and resident in, or (ii) have their source of wealth or source of funds linked to High Risk Jurisdictions shall be subject to additional checks and measures by ENSO.
7. CONTACT US
If anything is left unclear in the text of this Policy, we will be happy to clarify its provisions.
For questions related to this Policy, please contact us via email firstname.lastname@example.org