Anti-money laundering policy

Effective from 1 January 2019

General

AML rules mean procedures and rules to prevent financial abuse of the system based on Act No. 253/2008 Coll., on Some Measures Against Legalization Proceeds from Crime and Terrorist Financing (hereinafter referred to as the “AML Act”); 281/2008 Coll., On Certain Requirements Against the Legalization of Proceeds from Criminal Activity a the financing of terrorism (hereinafter referred to as the 'AML Decree').
The authorized authority in the area of combating money laundering and terrorist financing in the Czech Republic is the Financial Analytical Unit of the Ministry of Finance (hereinafter referred to as FAU MF), whose main task is to examine suspicious transactions reports received from obliged entities on the basis of notification.
The operation of the WAYFORPAY Payment System is governed by this AML Policy together with the General Terms and Conditions and other policies. The AML Policy governs how we prevent the legalisation of proceeds from criminal activity and financing of terrorism.
Definitions used in this AML Policy have the meaning defined in the General Terms and Conditions unless expressly stated otherwise.

Why We Identify

We are a financial institution subject to the provisions of Czech Act No. 253/2008 Coll., which makes provision with respect to certain measures against the legalisation of proceeds from criminal activity and financing of terrorism, as amended (hereinafter referred to as the “Act”).
In accordance with the Act we take measures against the legalisation of proceeds from criminal activity and financing of terrorism. We fulfil obligations stipulated by legal regulations in this field so as to prevent the misuse of the financial system for the legalisation of proceeds from criminal activity and financing of terrorism and so as to establish conditions for detecting such conduct.
The Act obliges us to meet obligations in relation to Clients. The above obligations include in particular performing identification of Clients (S. 7 of the Act) and performing due diligence of Clients in cases stipulated by the Act (S. 9 of the Act).

When We Identify

We perform your identification always before the start of the contractual relationship between the WAYFORPAY and you. The positive and undeniable identification is an unavoidable condition to start the cooperation.

How We Identify

Identification is performed in one of the following ways:

Distance, without the physical presence of the Partner pursuant to Section 11 (7) of the AML Act;
Identification in the physical presence of the Partner or its representative;
We also accept mediated identification under Section 10 of the AML Act by a notary or public administration contact point.

Identification of the Partner

An individual – entrepreneur

We identify a physical person - entrepreneur.

Legal entity

We identify natural persons acting on behalf of legal entities and company owners to the ultimate owner - natural person.

Distance identification.

Identification without the physical presence of the Partner, provided that the first payment is made through a bank account held in the name of the client and at the same time the client submits copies of their identification documents electronically.
- The Partner shall provide copies of relevant documents electronically made in such a way that the relevant data are legible and legible ensure that they are retained for the period laid down in this Directive and must also include a copy of the representation of the identified natural person in identity card of such quality as to permit verification of conformity the form of the relevant parts of the identity card and at least one another supporting document from which identification data can be obtained relevant natural persons, type and number of identity card, state, where appropriate, the authority which issued it and its period of validity.
- The Partner shall provide a document confirming its existence electronically account held in the name of the Partner with a credit institution or foreign credit institutions operating in the European Union economic space.
- The Partner provides by electronic means other relevant documents, or copies of documents, duly legible and in a form which permits their retention after the period laid down in this Directive.
- The documents supplied must show unambiguous identification Partner.
Wayforpay verifies that the above conditions are met and that, according to the information at its disposal, any of the Partners, any of the products, or any particular trade does not pose an increased risk of misuse for legalizing the proceeds of crime or terrorist financing. In case of any doubts or failure to provide necessary documents or illegibility etc. the Partner is contacted and instructed to remedy the deficiency. In the case of non-removal, neither trade nor business relationship can be concluded.
Identification in the physical presence of the Partner or its representative, identifying and verifying the identification data from the identity card. At the same time, we will verify the identity of the identified client with the representation in the identity card. Wayforpay will find out all full names, personal identification number and, if not assigned, date of birth, place of birth, gender, permanent or other residence, and citizenship when performing Partner identification. Wayforpay records and verifies the identity card, records the type and number of the identity card, the state or authority that issued it, and the period of validity. At the same time, Wayforpay will verify that the image conforms to the identity card image. It is also necessary to record the name of the business name, distinguishing the supplement or other designation, the place of business and the identification number of the person. Wayforpay may make copies or extracts of submitted documents and process theinformation thus obtained for the purposes of the AML Act. It is only possible to make copies of personal documents within the framework of personal identification with the consent of the holder.
Identification without the client's physical presence if he / she submits an authentic instrument of identification.

Required documents

identity document of the client (persons authorized to act on behalf of the client)
document proving the existence of a company (extract from the Register of Companies)
bank account statement in the name of the client
where applicable, proof proving ownership of the Internet domain
if necessary, proof proving the address of the client (persons authorized to act)
If necessary, another proof of ownership structure
PEP report (statement that the client is not a politically exposed person)

Personal data collecting:

Birth identification number: information mandatory for Czech citizens, foreigners with a residence permit in the Czech Republic, asylum seekers and other persons to whom the birth certificate number is assigned pursuant to Section 16 of Act No. 133/2000 Coll., On Population Registration, as amended.
Date of birth: mandatory for persons who do not have a personal identification number.
Gender: this figure is particularly important for foreigners with names of which gender is not obvious (eg they do not contain the ending -ová), or if it does not follow from the birth number.
Place of birth: the format for recording the place of birth is not the AML law
prescribed, it should be understandable and unambiguous.
Permanent or other residence: identification of the relevant residence in order to be traceable - and existing (verifiable on the Internet), and should be verifiable in the relevant documents. Authority issuing the identity document: the entry is recorded if it is included in the identity card.
Required types of identity card: identity card, passport, driving license, identity card, foreigner's residence permit, etc.

These types of ID cards can only be accepted if they meet the following requirements:

it is a valid and government-issued document;
the card is not damaged beyond the normal level of wear (eg missing sheets, glued, rewritten, illegible etc.);
the holder 's portrait on the license must correspond to the true form of the holder and must be sufficiently clear or undamaged to allow the holder to be sufficient the likelihood of identification;
it is a document from which it can be clearly identified which authority of which State has issued it;
it is a document which for no reason raises doubts as to its authenticity.

If some identification data (eg gender, address of residence) is not included in the identity document, a Partner statement will suffice.

Inspection of the Partner

Wayforpay carries out Partner checks pursuant to Section 9 of the AML Act. By conducting Partner Checks, we obtain the information we need to assess whether or not a trade is suspicious.

Partner control includes:

obtaining information on the purpose and intended nature of the trade or business relationship,
ascertaining the ownership and management structure of the Partner and its beneficial owner, if any Partner means a legal entity, trust or other legal arrangement without a legal personality, and taking measures to identify and verify the identity of the beneficial owner,
continuous monitoring of the business relationship, including review of transactions conducted during the relationship, to determine whether the transactions are in accordance with what is known to the liable entity about the Partner and its business and risk profile, reviewing the sources of funds or other property to which the trade or business relationship relates, and
in the context of a business relationship with a politically exposed person, appropriate measures to establish the origin of his property.

Partner Verification

For each client, we perform verification in national and international databases. We verify the truth of the information provided, compliance with card association rules, client identification verification, and other relevant facts. We continuously monitor sanction lists as well as individual transactions.

We use the G2, Accuity and World-Check systems to verify.

Partner Acceptance Rules

With respect to the Partner's risk profile, Wayforpay carries out the following activities:

Categorization of Partners
deciding on the execution of a trade with the Partner or termination of an existing trade with the Partner
identification of risk factors for new Partners and at the same time updating the classification of the Partner into the relevant risk category according to the information found
Adopt appropriate measures against Partners who have identified a risk factor.

The risk profile of the Partner is always compiled and evaluated with respect to the following risk factors:

the fact that one of the Partner's countries of origin, the person dealing with the liable entity on behalf of the Partner, or one of the countries of the beneficial owner of the Partner is a State that does not apply AML / CFT prevention insufficiently or not a person considered at risk;
the fact that, according to the information available to the liable entity, the subject-matter of the transaction has been or is to be transferred or provided in connection with the transaction from a State which does not apply the ML / FT measures (or assessment of the liable entity is considered to be risky) or that the subject of the transaction has been or is to be transferred or provided to such a state in connection with the transaction
the Partner is registered on the list of persons and movements against whom sanctions are applied in accordance with other legal regulations; a person dealing with the obliged person on behalf of the Partner
the actual owner of the Partner; the person with whom the Partner carries out the trade; or (if known to the liable entity) the ultimate owner of the person with whom the Partner conducts the transaction
Opaque ownership structure of the Partner
the unclear origin of the Partner's funds
facts suggesting that the Partner is not acting on its own account or that it disguises that it is complying with a third party's instruction
unusual way of realization of the trade, especially with regard to the type of Partner, subject, amount and manner of settlement of the transaction, purpose of the trade and subject of the Partner's activity
Indications that the Partner is conducting a suspicious transaction
the fact that, according to the information available to the liable entity, the subject of the Partner's activities is associated with an increased ML / FT risk.

Partner Acceptance

Wayforpay refuses to conduct a trade (or establish a business relationship or terminate a business relationship) if:

The Partner shall refuse to submit the identification
The Partner shall refuse to provide a power of attorney if represented by an agent
The Partner does not provide the necessary cooperation in the Partner's control
for any other reason, the Partner cannot be identified or reviewed
if the person performing the identification or control of the Partner has doubts about the truthfulness of the information provided by the Partner or the authenticity of the submitted documents (in this case it is necessary to submit the OPO at the same time)
The partner or person acting on behalf of the Partner is a person who is included in the list of sanctioned entities (in this case it is necessary to file an OPO at the same time)
Partner is PEP.

How We Prevent Fraud

We apply control system and anti-fraud management system together with internal guidelines the aim of which is to prevent the legalisation of proceeds from criminal activity and financing of terrorism. In accordance with that we use risk management whose aim is to prevent the risk of having the WAYFORPAY Payment System misused for fraudulent transactions or other illegal activities. The internal guidelines are submitted for inspection to the Czech National Bank and the Ministry of Finance of the Czech Republic who are the supervisory authority.
Before each transaction is made, we carry out an analytical risk assessment based on information about you or information provided by third parties. We reserve the right to refuse to make such transaction upon assessment of the degree of potential risk.
We perform automated assessment of suspicious financial flows and regularly report to pertinent persons and due diligence divisions within our company as well as to public authorities such as the Ministry of Finance of the Czech Republic.
We regularly analyse threats of new risks to which we adapt the set-up of the whole system and its behaviour.
We may ask you to identify yourself again so as to verify the correctness of the originally performed identification.
We regularly check whether the activities and range of products offered on the website through which you offer or effect the sale of goods or offer or provide your services corresponds to the activity and range of products you have declared to us. We regularly do mystery shopping of goods and services in order to verify whether your activities are in line with the Contract.

How we prevent threats

We send funds exclusively to a bank account in the name of the Partner.

We continually evaluate potentially suspicious transactions by monitoring against predefined behavioral criteria and transaction limits. Monitoring is performed by the AML department using internal and external monitoring systems. Transactions assessed as suspicious are escalated for final consideration.

The FAU MF may request information on trades subject to identification or investigations, as well as all participants in such trades. In such a case, we shall provide him / her with appropriate cooperation and promptly secure all required information and data, or allow access to documents authorized by the employees of the FAÚ MF within the time limit set by the Ministry of Finance.

If we assess a transaction as suspicious and at the same time there is a risk that the execution of a client's order could be thwarted or substantially impeded by securing the proceeds of crime or terrorist financing, we are obliged to "secure funds against manipulation" the suspicious transaction notification (hereinafter referred to as “OPO”) and postpone the processing of the client's order by 24 hours (the time period of 24h is calculated from the time of receipt of the OPO at the FAÚ MF).

The client's order for suspicious activity must be postponed by 24 hours also if the FAU MF decides so. If there is a risk that the immediate execution of the client's order could be thwarted or substantially complicated by securing the proceeds from the tr. activities or funds intended to finance terrorism, the FAU MF decides to postpone the execution of a client's order or to secure property (which is the subject of a suspicious transaction) for up to 72 hours. Our duty in this case is to extend the retention of funds for this period. If within this limit the FAU submits a criminal complaint, we must wait for the competent law enforcement authority to decide on the blocked funds within three days of its filing. Identification data stipulating the obligation to accompany transfers of funds with information on the parties to the trade, copies of documents submitted for identification, if any, information on who and when performed the first identification of the client, documents justifying an exemption of the Act, and in the case of representation, we keep the original or a certified copy of the power of attorney safely for at least ten years from the termination of the business relationship with the client or from the transaction. This period starts run on the first day of the calendar year following the year in which the last transaction of the transaction took place.

Final Provisions

We are entitled to unilaterally amend the AML Policy in accordance with the rules and terms laid down in this Article. You accept the above entitlement.
If we amend the AML Policy, we are obliged to notify you of this change in advance by e-mail containing a link to the new AML Policy from where you may print it or download it in electronic form.
The AML Policy is issued in electronic form and is available on our website.
The AML Policy comes into effect as of January 1 st , 2019.

DEFINITIONS

Terrorist financing

Collection or provision of funds or other property knowing that it will be used, even in part, to commit the crime of terror, terrorist attack or an offense intended to facilitate or assist the commission of such an offense; or support for a person or group of persons preparing to commit such an offense. Acts leading to the reward or compensation of the perpetrator of the crime of terror, terrorist attack or crime to allow or assist the commission such offense, or a close person within the meaning of the Criminal Code, or collecting funds for such remuneration or compensation. For the purposes of the AML Act, the financing of the proliferation of weapons of mass destruction, which is understood the collection or provision of funds or other property, knowing that: will be used, even if only partially, by the WMD proliferator or will be used for encouraging the proliferation of such weapons contrary to the requirements of international law.

Financial service

Any banking, credit, insurance, personal, pension, investment or payment service nature. Thus, the provision of payment gateway services.

Legalization of proceeds from crime

Negotiations aimed at obscuring the unlawful origin of any economic advantage resulting from crime in order to give the impression that it is a property benefit acquired in accordance with by law; such conduct consists, for example:

in the transformation or transfer of property, knowing that it originates from crime, to conceal or conceal its origin, or to assist a person who engage in such activity to escape the legal consequences of its actions,
in acquiring, holding, using or disposing of property, knowing that it is a criminal offense activities,
in a criminal organization of persons or any other form of cooperation for the purposes of that act above.

It is irrelevant whether or not the abovementioned conduct has taken place or is to take place territory of the Czech Republic or abroad.

Trade

Any conduct of WAYFORPAY and the Partner with another person, if such conduct is intended to dispose of the property of that other person or to provide the service to that other person. If a payment is split into several separate transactions, it is the value of the trade or payment their sum if these transactions are related.

Business relationship

The contractual relationship between WAYFORPAY and the Partner for the purpose of dealing with WAYFORPAY the property of that other person or the provision of services to that other person, if any contractual relationship taking into account all circumstances obvious that it will contain recurring with fulfillment.

Suspicious trade

Trade executed in circumstances giving rise to suspicion of money laundering criminal activity or suspicion that the funds used in trade are intended for financing terrorism, or that trade is otherwise related or linked to the financing of terrorism, or otherwise a fact that could indicate such suspicion. Circumstances they cause suspicions, for example, may be anomalies in the client's behavior compared to his usual behaviour or the behavior of a set of clients of a similar type.

Politically exposed person

(a) a natural person who is or has been in a significant public office with a national one; or regional importance, such as the head of state, prime minister, head of central government a public administration body or its representative (deputy, state secretary), member of parliament, member the governing body of the political party, the head of territorial self-government, the judge of the Supreme court, constitutional court or other supreme judicial authority against whose decision in general (with some exceptions) remedies cannot be applied, a member of the Bank Board of the Central Bank, high officer of the armed forces or corps, member or deputy member (if legal) person) a statutory body of a business corporation controlled by the state, an ambassador or a chief executive diplomatic missions, or a natural person who performs similar functions in or on a similar basis another state, in an EU institution or in an international organization,

(b) a natural person who is a close person to the person referred to in point (a);

(c) a natural person who is a partner or beneficial owner of the same legal person; where appropriate, a trust fund or other legal arrangement without a legal personality, such as the person referred to in point (a) or known to SF to be in any other close person business relationship with the person referred to in point (a),

(d) a natural person who is the beneficial owner of a legal person or, as the case may be, a trustee fund or other similar legal arrangement without legal personality of which SF is cconcerned known to have been created for the benefit of the person referred to in point (a).

Identity card

Document issued by a public authority stating the name and surname, date birth and from which is evident the form or other data enabling identification of the person, submitting the document as its authorized holder.

Risk country

Country at risk in terms of money laundering, terrorist financing or terrorist financing in terms of proliferation of weapons of mass destruction. The list of these countries is established by a Commission Regulation (EU) 2016/1675 of 14 July 2016 amending Directive (EU) 2015/849 European Parliament and Council adds to the identification of high-risk third countries with strategic risks shortcomings.

Country of origin

For a natural person, any State of which he or she is a national and all others States in which he is registered for permanent or other residence.

CNB

Czech National Bank

Office

Financial Analytical Office

Law

Act No. 253/2008 Coll., On some measures against money laundering a terrorist financing.

Decree

Decree No. 281/2008 Coll., On certain requirements against money laundering and terrorist financing.

OPO

Report of suspicious trade.

AML / CFT

Measures to prevent money laundering and terrorist financing (Anti-Money Laundering / Countering the Financing of Terrorism)

ML / FT

Money Laundering / Financing of terrorism)