Anti-Money Laundering (AML) and Know Your Customer (KYC) Policy
1. THE COMPANY
Paribu Kripto Varlık Alım Satım Platformu Anonim Şirketi ("PARİBU") is a crypto exchange and financial institution established under the laws of the Republic of Türkiye, conducting its commercial activities in full compliance with the law.
2. PURPOSE
The purpose of this policy is to establish the general framework for combating money laundering and the financing of terrorism on behalf of Paribu.
Paribu also takes reasonable measures to control and limit the risk of money laundering / terrorist financing, including the allocation of appropriate resources.
Paribu is committed to maintaining high standards in respect of money laundering and to compliance with anti-terrorist-financing (AML / CFT) requirements, and aims for its management and employees to comply with these standards in order to prevent the use of its products and services for money laundering or the financing of terrorism.
Paribu's AML programme has been designed to comply with the following:
- European and Turkish laws and regulations relating to AML / CFT;
- The Directives of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing.
3. MONEY LAUNDERING AND TERRORIST FINANCING
Money Laundering;
The offence of laundering may generally be defined as any kind of transaction carried out for the purpose of concealing the unlawful source of proceeds derived from predicate offences and presenting these proceeds as if they had been obtained from a lawful source.
The offence of laundering was first defined in our legal system under the heading "Money Laundering Offence" in Article 2/b of Law No. 4208, which entered into force on 19.11.1996. It was subsequently re-regulated in Article 282, entitled "Laundering of Assets Derived from Crime", of the Turkish Penal Code No. 5237, which entered into force on 1 June 2006.
Laundering acts are set out in detail in international conventions prepared in the context of combating laundering. For example, Article 6, entitled "Criminalisation of the Laundering of Proceeds of Crime", of the United Nations Convention against Transnational Organized Crime, to which Türkiye is a party, provides:
The conversion or transfer of property, knowing that such property is the proceeds of crime, for the purpose of concealing or disguising the illicit origin of the property or of helping any person who is involved in the commission of the predicate offence to evade the legal consequences of his or her action;
The concealment or disguise of the true nature, source, location, disposition, movement or ownership of, or rights with respect to, property, knowing that such property is the proceeds of crime;
Subject to the basic concepts of a State's legal system, the acquisition, possession or use of property, knowing, at the time of receipt, that such property is the proceeds of crime; and participation in, association with or conspiracy to commit, attempts to commit and aiding, abetting, facilitating and counselling the commission of any of the offences set out in this Article.
These have been set out as acts of laundering.
Terrorist Financing;
In any manner, directly or indirectly, providing or collecting funds with the intention that they be used, in full or in part, in order to carry out any terrorist act, or in the knowledge that they are to be used, in any manner, for such purpose.
4. ORGANISATION OF THE AML FUNCTION
4.1. CORPORATE ORGANISATION
In line with AML / CFT legislation, Paribu has appointed a member of the Board of Directors as the responsible person at the "highest level".
In addition, an Anti-Money Laundering Compliance Officer is responsible for the implementation of the AML policy and the company's procedures.
4.2. POLICY IMPLEMENTATION REQUIREMENTS
Every major change to Paribu's AML policy is approved by Paribu's Board of Directors and is carefully monitored.
4.3. COMPANY-WIDE RISK ASSESSMENT
The legal regulations on the prevention of the use of the financial system for the purposes of money laundering (ML) or terrorist financing (TF) require financial institutions to take a risk-based approach in combating ML and TF. Risk assessment is a critical component of Paribu's AML/CFT compliance management programme.
As part of its risk-based approach, Paribu has carried out an AML "company-wide risk assessment" in order to identify and understand the risks specific to its line of business. The Paribu AML risk profile is determined after the risks specific to the line of business — such as the products and services offered by the company, the customers to whom these products and services are offered, the transactions carried out by these customers, and the distribution channels used — have been identified and documented.
The identification of AML/CFT risk categories is based on Paribu's understanding of legal requirements, regulatory expectations and industry guidance.
This policy is reassessed annually.
5. MINIMUM STANDARDS
Paribu has established standards for Know Your Customer ("KYC"). These standards ensure that, before entering into a business relationship, due care is exercised with respect to each potential customer through the identification and verification of identity, and that we act in compliance with local and European AML/CFT legislation and regulations on the basis of documents, data or information obtained in a reliable and independent manner, as required.
The interpretation of the KYC principle begins with the identification of the customer using the required identity documents. This identity, completed with other information collected, ensures the implementation of the Customer Acceptance Policy.
In addition to these objective criteria, there are subjective elements that may give rise to suspicion regarding a customer and that require special attention.
Lastly, since KYC does not contain static data but rather dynamic data arising from the relationship with the customer, monitoring and continuous follow-up of the customer is required.
5.1. CUSTOMER IDENTIFICATION AND VERIFICATION (KYC)
The formal identification of customers when entering into commercial relationships is a vital element both for regulations relating to money laundering and for the KYC policy.
Pursuant to Article 3 of Law No. 5549, obliged parties must, in transactions carried out on their premises and in transactions in which they act as an intermediary, identify those carrying out the transaction and those on whose behalf or for whose account the transaction is carried out, before the transaction takes place. Within this scope, the "Principles regarding the identification of the customer" are regulated in the third section of the "Regulation on Measures Regarding the Prevention of Laundering of Proceeds of Crime and the Financing of Terrorism".
Within this scope, Paribu;
Identifies and verifies, prior to the establishment of a transaction and during the continuation of an ongoing business relationship, the valid identity and address information of (potential) customers as accepted by the legal authorities;
Verifies that customers' income levels and the financial services they carry out/request are consistent with their commercial activities, with the general working manner and income sources of the customer type to which they belong;
Carries out the necessary checks and takes additional measures with regard to the possibility that customers may appear on national/international sanctions lists.
Where Paribu is unable to identify the customer or to obtain sufficient information about the purpose of the business relationship, it does not establish a business relationship and does not carry out the transaction requested of it; where, due to doubts about the adequacy and accuracy of customer identification information previously obtained, the necessary identification and verification cannot be carried out, it terminates the business relationship.
The minimum identifications that must be carried out by our company within the scope of standard customer due diligence measures are set out below:
Identification and verification of the customer's identity, address verification, the beneficial owner, and authorised representatives within the framework of legal regulations and the internal policies of Paribu Kripto Varlık Alım Satım Platformu A.Ş.,
Screening of customers against the risk of appearing on international sanctions lists (including country risk assessment),
Determination of whether the customer and parties related to the customer are politically exposed persons or are connected with politically exposed persons,
Investigation of whether the customer and parties related to the customer are connected with very high-risk countries, as recognised within the scope of international sanctions and PARİBU Internal Policies,
Determination of whether the transaction is carried out on behalf of and/or for the account of another person,
Monitoring of customer transactions for the purpose of detecting unusual transactions,
Identification and verification of the source of income,
Obtaining information regarding the reasons for working with our company.
For customers identified as risky by the Company, either at the time of customer acceptance or as a result of subsequent risk assessment, enhanced customer measures are also applied. Independently of the result of the risk assessment, the application of enhanced measures and/or the updating of monitoring activities may also be put on the agenda within the framework of risky customer/transaction/sector assessments under national and international legislation and current company practices.
The minimum identifications that must be carried out by Paribu within the scope of enhanced customer measures are set out below:
Identification of the customer, the beneficial owner, and the authorised representative (including the company structure) and screening against the risk of appearing on international sanctions lists,
Approval of the customer relationship by the management of the relevant business line / senior management,
Identification of the wealth of the customer and the beneficial owner and, where necessary, verification on the basis of documents,
Determination of whether the sources of funds and/or capital belonging to the customer can be verified easily and satisfactorily and, where necessary, verification on the basis of documents,
Examination of information and documents regarding the reasons for working with the Company.
5.2 RISK PROFILE IDENTIFICATION
In order to assist in determining the level of AML/CFT due diligence to be applied with respect to the customer, a "Compliance" risk profile (Low, Medium, High) is calculated first. This calculation is repeated daily.
For this purpose, at Paribu;
* The geographical location in which the customer operates (country, region, etc.),
* The specific products and services provided to the customer,
* Whether the customer is a politically exposed person,
* The customer's line of business or the sector in which the customer operates,
* The type of transactions carried out by the customer,
* The customer's shareholding structure, capital and management control
are taken into account in a customer risk assessment methodology that is applied.
This methodology is revised when a new risk specific to a customer or transaction is encountered by the Company, and Paribu takes the necessary measures in this respect.
Persons and institutions for whom financial transactions will not be intermediated, or in respect of which enhanced measures will be taken when establishing a business relationship, within the scope of the risk assessment methodology are set out below:
* Persons and institutions that avoid providing information and documents and being placed on record,
* Persons and institutions wishing to open an account anonymously or under a pseudonym,
* Companies with bearer shares (for legal person members),
* Persons and institutions that appear on national and international sanctions lists,
* Persons and institutions in risky sectors and occupational groups,
* Persons and institutions located in, or connected with, countries that do not have adequate regulations on the prevention of money laundering and terrorist financing (risky countries),
* Shell companies,
* Politically exposed persons.
5.3. ONGOING CUSTOMER DUE DILIGENCE
For some high-risk customer categories, a periodic risk-based review is carried out to ensure that data or information regarding the customer is kept up to date. The existing KYC review process for other customer categories is essentially based on an "awareness principle" following the review of a specific file by the AML team.
5.4. ONGOING TRANSACTION MONITORING
Within the scope of the prevention of the laundering of proceeds of crime and the financing of terrorism, the Company carries out continuous monitoring and control activities directed at, at a minimum, the following matters:
Customers and transactions in the high-risk group, transactions carried out with risky countries, complex and unusual transactions, transactions that are not consistent with the customer's business, sources of funds and profile, linked transactions, electronic transfers, and newly offered products and services.
Accordingly, in order to monitor the services provided by the Company and the transactions in which it acts as an intermediary,
Reviews carried out by means of computer-aided programmes, media screening, reviews based on PARİBU mandatory screening lists, and special review activities are carried out. In addition, if business lines/personnel providing financial services or acting as intermediaries in transactions encounter a suspicious situation in the context of the prevention of the laundering of proceeds of crime and the financing of terrorism during the service/transaction they carry out, the relevant persons and institutions are taken into the scope of the review.
6. INTERNAL CONTROL ORGANISATION
6.1. SUSPICIOUS TRANSACTION REPORTING
A suspicious transaction is the existence of any information, suspicion or matter giving rise to suspicion that the assets that are the subject of a transaction carried out, or attempted to be carried out, on or through Paribu have been obtained by unlawful means or are being used for unlawful purposes — including for terrorist acts or use by terrorist organisations, terrorists or those financing terrorism — or are related to or connected with such persons or activities.
The definition of a suspicious transaction covers not only the obtaining of the asset values that are the subject of the transaction by unlawful means but also their use for unlawful purposes, and accordingly aims also at the prevention of terrorist financing (including any connection thereto).
The Company does not provide information to anyone, including parties to the transaction, that a suspicious transaction report has been or will be made to MASAK, other than information provided to audit personnel charged with auditing obligations and to the courts during proceedings. This obligation also covers persons, institutions and organisations that report a suspicious transaction to MASAK, the personnel of such persons who actually carry out and manage the transaction, their legal representatives and proxies, as well as any other personnel who become aware in any manner that a suspicious transaction report has been made.
6.2. RECORD-KEEPING
Paribu manages processes related to the obligation to provide information and documents and takes the necessary measures within the scope of Articles 31, 32 and 33 of the "Regulation on Measures Regarding the Prevention of Laundering of Proceeds of Crime and the Financing of Terrorism".
The Company retains documents related to its obligations (including training and internal audit) and transactions in any environment from the date of issue, books and records from the date of the last entry, and documents and records related to identification from the date of the last transaction, for a period of ten years, and presents them to the authorities upon request.
6.3. TRAINING
Training activities are planned in coordination with the PARİBU Human Resources and Training Unit to be established and are organised, either on-site (classroom training) or remotely (e-training programmes, reminder and awareness messages), to cover the following subjects and be directed at all Paribu personnel:
* Definition and introduction of MASAK,
* Information regarding the in-house compliance officer and suspicious transaction reporting channels,
* Concepts of money laundering and terrorist financing.
6.4. AUDIT
The Paribu internal audit mechanism regularly produces reports on AML/CFT activities and submits them to the Board of Directors.