Customer Survey and Anti Money Laundering (KYC / AML)
Latest Revision: November 29, 2019
SATOS is a cryptocurrency broker. The primary business activities of SATOS consist of purchasing and selling cryptocurrency against traditional currencies. These activities are currently not supervised by De Nederlandsche Bank (Dutch National Bank or DNB) and the Dutch Authority for the Financial Markets (AFM). Yet SATOS is committed to prevent performing any form of money laundering. To this end, SATOS has developed a Know Your Customer procedure and Anti Money Laundering procedure (KYC/AML) that meet the requirements of European legislation and regulations. In practice, this means that in some cases we will ask for personal information before we can provide certain services. We do this not only because we are obliged to do so, but also because we want to keep our brand reputable as a reliable partner and to protect the reputation of cryptocurrency as a means of payment or store of value.
Know Your Customer and Anti-Money Laundering (KYC/AML)
The customer research and the policy formulated by the management of SATOS ensure that SATOS works in a manner fully compliant with European and Dutch laws and regulations. The SATOS procedures also ensure that customer research is up-to-date with the developments on the internet. Among the measures that SATOS implements are:
- An appointed Executive Compliance Officer who has the experience and freedom to design and implement measures and who is fully responsible for the AML/KYC policy;
- Monitoring developments in legislation and regulations regarding KYC/AML requirements;
- An approach based on risk sensitivity (Risk Based Approach);
- A system that automatically detects abnormalities and which draws attention from SATOS personnel;
- Training staff of SATOS in the field of legislation and regulations and communicating with customers.
Client research is tailored to the risk sensitivity of the type of client, the business relationship, the product or the risk of money laundering or financing of terrorism. In all cases, if the risk profile is high or SATOS has doubts about the reliability of the data obtained, risk-based and adequate measures must be taken to verify that the information obtained is correct. In this case, SATOS will initiate an 'enhanced client investigation. SATOS is empowered to request more information at any time and to suspend the transaction until any risks have been removed.
In recent decades, the European and Dutch legislators have paid a great deal of attention to combating money laundering. Money laundering is, in short, the introduction of revenue of criminal origin into the legal circuit. The government considers the tackling of money laundering to be of great importance for a stable and sound financial system and as an effective way of combating all forms of crime. Whether SATOS can be held accountable if we receive cryptocurrencies and exchange cryptocurrency, depends on whether cryptocurrency can be laundered or received as stolen goods. With regard to cryptocurrencies, there may be discussion about whether cryptocurrency qualifies as an 'object' or a 'good'. The Supreme Court of the Netherlands has already ruled that a virtual amulet and mask in an online game (Runescape) can qualify as 'good' in the context of theft. The Supreme Court considered it important that the virtual objects are susceptible to de facto and exclusive domination and represent a real value for users. The fact that these objects exist virtually and can be traced back to 'bits and bytes' did not stand in the way. Now that the legislator aims to include more than goods with the concept of 'object', the conclusion is obvious that such 'virtual goods' can be laundered. In line with this, the District Court of Rotterdam ruled in 2014 that bitcoins could be laundered. In the legislative history too, there are indications that the concept of 'goods' in criminal law must be interpreted broadly. With this knowledge, it is very plausible that cryptocurrency in criminal law will be regarded as a good or object that can be stolen, cured and laundered (among other things).
In case you have any questions regarding KYC/AML that you did not come across in this statement, please contact us through our contact form.