Anti-Money Laundering and Counter-Terrorist

Financing Policy of KUNA Pay

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This Anti-Money Laundering and Counter-Terrorist Financing Policy (the “Policy”) of UAB KUNA Pro (hereinafter "KUNA Pay", "We" or "Us") was prepared in accordance with the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing, Proceeds of Crime. 

Money laundering and terrorist financing pose significant risks to the integrity and stability of the global financial system, and as a responsible member of the international community, We recognize the importance of combatting these threats. As a result, We are committed to implementing a comprehensive of Anti-Money Laundering (“AML”) and Combating Terrorism Financing (“CTF”) program that adheres to the highest standards of legal and regulatory compliance.

The Policy is designed to represent the basic standards of AML and CTF procedures, which will be strictly complied with by Us.

All definitions in this Policy are used within the meaning of the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing and Proceeds of Crime.

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If you have any questions about this Policy, please contact Us via email: kunapay@kunapay.io

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1. What’s the purpose of this Policy?

The purpose of this Policy is to ensure that We comply with the rules and regulations set out in the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing. 

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2. What are Money Laundering and Terrorist financing?

Money laundering is the process of hiding the true origin of money obtained through illegal activities. This process involves disguising the proceeds of criminal activity as legitimate funds. 

Money laundering plays a fundamental role in facilitating the ambitions of the drug trafficker, the terrorist, the organized criminal, the insider dealer, and the tax evader, as well as the many others who need to avoid the scrutiny from the authorities that sudden wealth brings from illegal activities.

Terrorist financing is the process of providing funds to individuals or groups to carry out acts of terrorism. Terrorists may move or transfer funds and assets through various methods, including: 

• using the financial system to transfer funds; 
• relying on systems such as the hawala system in areas with less developed financial systems are often employed for multiple small amounts of fund transfers; and 
• using international trade networks to transfer assets.

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3. Who is the operator of KUNA Pay's platform?

The operators of the Kuna Pay platform are:

• UAB Kuna Pro if you reside in any acceptable jurisdiction except Canada; and
• FlexyPay Inc - if you reside in Canada.

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3.1. Administrative Information:

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• Legal name: UAB Kuna Pro
• Registered address: Eišiškių Sodų 18-oji g. 11, LT-02194 Vilnius
• Company number: 306041195

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• Legal name: FlexyPay Inc
• Registered address: 398-416 Main st, Vancouver, BC, Canada, V5T3E2
• Company number: BC1341302

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4. Why do We need to verify your data?

We are obliged to verify your data as it is required by:

• the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing, Proceeds of Crime; and
• Canada Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Kuna Pay is accountable to the:

• Lithuanian Financial Crime Investigation Service (“FCIS”). FCIS performs supervision of our activities of virtual currency services related to the prevention of money laundering and/or terrorist financing and has the following contact details: address: Šermukšnių g. 3, LT-01106 Vilnius; email: dokumentas@fntt.lt; and
• Financial Transactions and Reports Analysis Centre of Canada; email information@fintrac-canafe.gc.ca. 

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5. Can you use our services without passing KYC?

You cannot use KUNA Pay's services without passing the KYC procedure. We are committed to comply with all relevant legal requirements in the field of AML/CTF. 

Failure to submit the required information and documents or provision of incorrect or incomplete information and documents, or failure to comply with our other requests will result in our services being unavailable to you. 

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6. What is Customer due diligence?

Customer Due Diligence (“CDD”) is a process used by Us to identify and verify your identity and assess the risks associated with doing business with you. 

The CDD process helps Us to understand who you are, what business you have, and what risks you may pose and enables Us to implement appropriate measures to mitigate those risks. It is a key component of AML and CFT compliance programs.

  Customer Due Diligence Measures include:

• identification of the Merchant;
• identifying the persons acting on behalf of the Merchant;
• the ultimate beneficiaries of the Merchant;
• performing a risk analysis of the Merchant;
• monitoring the Merchant during the provision of the services.

We also reserve the right to determine the origin of your assets, to establish your proof of address, and collect other relevant information to evaluate the risk of Money Laundering, Terrorist Financing, and other illicit activities.

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7. What data We might ask from a Merchant Authorized Representative(s)?

When applying CDD measures We are obliged to identify both the Merchant and the Merchant Authorized Representative. 

The following persons may act as Merchant Authorized Representative(s):

• The Merchant's director;
• The beneficial owner of the Merchant;
• Official representative.

In order to identify and verify Merchant Authorized Representative(s), We shall obtain the following data:

• Passport/national ID or visa for the country of residence (if applicable);
• Liveness check;
• Proof of address (not older than 3 months);
• Document certifying the right to represent the Merchant.

The Merchant Authorized Representative(s) must fill out our Questionnaire, providing us with the following data:

• Company basic information:

• Company profile (name, number, legal form, country of incorporation, date of incorporation);
• Proof of legal existence of the company (for example Certificate of Incorporation, Share Certificates/Shareholders Register, Memorandum of Association, Articles of Association, Tax Registration Certificate);
• License, if any (license number, issuing authority, issue date); and document confirming that your company has a license;
• Company website (if available); domain ownership proof.

• Company address:

• Registration address;
• Business address;
• Proof of the company's registered address (e.g., utility bill/bank statement (not older than 3 months), lease agreement).

• Business Information:

• Description of the offered products/services;
• Purposes for which you plan to use KUNA Pay's Services;
• Total No of employees;
• At least three countries of operation and top 3 business partners (We may request a contract with your business partners).

• Anticipated trading size;
• Company clients (type of customers, and number of customers);
• Details about individual shareholder(s), beneficial owner(s), director(s):

• Full name;
• Nationality;
• Date of birth;
• Ownership % of each shareholder(s) and beneficial owner(s);
• Documents for each shareholder(s), beneficial owner(s), and director(s): Passport/national ID or visa for the country of residence (if applicable), Proof of address (not older than 3 months), Tax identification document.

• Details of shareholders-legal entities:

• Company profile (name, number, country of incorporation, date of incorporation, registered address);
• Full name of director;
• Ownership %;
• Documents for each shareholder-legal entity: certificate of incorporation, memorandum of association, or articles of association.

• Wallet and account information (сrypto wallet address, banking account number/IBAN, banking account holder name, bank name, bank SWIFT);
• Compliance information (e.g. Privacy Policy, AML Policy, if available). 

Please note that we reserve the right to ask you for information regarding your customers (for example, KYC data - passport, address, source of funds, etc.). We only need this data if we have reasonable doubts about the legitimacy of the funds received from the Merchant's customers to their KUNA Pay account. We strongly encourage Merchants to conduct KYC on their customers where applicable. 

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8. Which third-party providers do We use for data verification?

For client identification purposes, We use the services of our trusted partner Sum and Substance Ltd (“SumSub”). SumSub collects and stores your data on our behalf. 

Sum and Substance Ltd. was incorporated and registered in England with company number 09688671. Sumsub being a software-as-a-service business, takes its responsibilities with regard to the requirements of the EU GDPR and UK GDPR very seriously.

Besides SumSub We can use publicly available databases, different search engines, and other possible legal methods of data verification.

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9. What kind of customers do We not serve?

We do not serve the following customers:

• who fail or refuse to submit, the requested data and information for the verification of their identity;
• who reside in jurisdictions which are being banned by our internal policies or international sanctions;
• any other that we consider risky to our business or suspicious in regards to Money Laundering and Terrorist Financing.

We will not accept as Customers persons or entities from the following countries and territories: Afghanistan, Belarus, Central African Republic, Democratic Republic of the Congo, Iran, Libya, Myanmar (formerly Burma), North Korea, Russia, Ukrainian Territories (Donetsk, Luhansk, Zaporozhye, Kherson, Crimea), Somalia, South Sudan, Sudan, Syria, United States, Venezuela, and Yemen.

We reserve the right to refuse service to customers from Japan and the United Kingdom based on specific local regulatory conditions.

Persons or entities from jurisdictions where a particular license or permit is required will not be served if we have not received such a permit or license.

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10. How long do We keep your data?

Your data will be retained within the provision of our services to you and 5 years after our Business Relationship with you is over. 

In some cases, We will keep the data longer if We are required to do so by law or other legal requirements.

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11. To whom can We share your data?

We cooperate with supervisory and law enforcement authorities in preventing money laundering and terrorist financing, thereby communicating information available to us and replying to queries within a reasonable time, following the duties, obligations, and restrictions arising from legislation.

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12. How often will the Policy change?

We take our AML obligations seriously and are committed to preventing and detecting money laundering and terrorist financing. We will continue to monitor and update our policies and procedures to ensure that We remain in compliance with all applicable AML regulations.

We reserve the right to modify or update this AML Policy at any time and for any reason, with or without notice. It is your responsibility to review this AML Policy periodically for any changes, so we urge you to make a copy of the text of this AML Policy for future reference. Your continued use of the services following the posting of any changes to this AML Policy will signify your acceptance of those changes.

You can find the current version of the Policy at the top right of this page.

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13. Our contacts

If you have any comments or questions with respect to this Policy please feel free to contact us via email: kunapay@kunapay.io