Policy on the prevention of money laundering and terrorist financing according to the German Anti-Money-Laundering-Act
(“AML Act”– Gesetz über das Aufspüren von Gewinnen aus schweren Straftaten (GwG))
Anti Money Laundering and Terrorist Financing Policy
22765 Hamburg(hereinafter referred to as “Tixl gGmbH“)
§ 1 Objective of the Policy
The AML Policy aims to implement the statutory provisions on the prevention of money laundering and terrorist financing laid down in the AML Act.
Even if the legal situation as regards the applicability of the catalogue of duties under the AML Act to sellers of tokens is still unclear at the time of drafting this AML Policy, Tixl gGmbH hereby voluntarily undertakes to comply with these duties based on the classification as a goods dealer in the meaning of § 2 (1) no. 16 in conjunction with § 1 (9) AML Act.
All employees and members of the management board of Tixl gGmbH must observe and comply with the statutory provisions in conjunction with the obligations and internal policies resulting from the AML Policy of Tixl gGmbH.
§ 2 Person responsible for compliance
The designated person responsible for compliance with the AML Act and corresponding laws as well as with this AML Policy is Mr Sebastian Gronewold (Management Board Member of Tixl gGmbH) (hereinafter referred to as "AML Manager").
§ 3 Risk management (§§ 4 et seq. AML Act)
A goods dealer has an efficient risk management system in place in case it accepts or makes cash payments of at least EUR 10,000 as part of executed transactions. The risk management of the Tixl gGmbH involves a risk analysis and internal security measures.
§ 4 Customer-related due diligence requirements (KYC)
1. General due diligence requirements (KYC principles)
Tixl gGmbH is obliged to meet the general due diligence requirements under the AML Act specified below,
- if any circumstances exist that indicate that the assets connected with a transaction or business relationship are the object of money laundering or are related to terrorist financing, and
- in the case of transactions as part of which cash payments of at least EUR 10,000 are made or accepted.
The general due diligence requirements to be met in these cases include:
- identification of the contractor and, if applicable, the person acting on his/her behalf, and verification whether the person acting on behalf of the contractor has been authorised to do so (e.g. based on the relevant power of attorney),
- clarification whether the contractor acts on behalf of a beneficial owner and, if so, identification of the beneficial owner; in cases, where the contractor is not a natural person, this involves the obligation to obtain knowledge about the contractor’s ownership and control structure using appropriate means (e.g. excerpt from the company register, list of shareholders),
- obtaining and evaluating information about the purpose and intended type of the business relationship if this information is not evident from the business relationship itself in a given case,
- determining – by way of appropriate risk oriented procedures – whether the contractor or the beneficial owner is a politically exposed person (PEP), a PEP's family member or a person known to be a close associate of a PEP, and
continuous monitoring of the business relationship, including the transactions carried out thereunder, in order to ensure that these transactions correspond
(1) to the documents and information possessed by Tixl gGmbH about the contractor and the beneficial owner, if necessary, their business operations and customer profile, and,
(2) if necessary, to the information Tixl gGmbH possesses about the origin of assets;
as part of the continuous monitoring process, Tixl gGmbH has to ensure that the relevant documents, data or information are updated at appropriate time intervals taking into account the respective risk.
In order to meet the general due diligence requirements according to letters i. to iv., an employee of Tixl gGmbH must hand out a specifically prepared questionnaire to potential contractors of Tixl gGmbH before a contract is concluded (questionnaire “Information according to the AML Act, which is to be filled in and returned by them to Tixl gGmbH prior to conclusion of the contract. Where a person acts on behalf of a potential contractor towards Tixl gGmbH, such person has to prove, in particular, that he/she has been authorised to represent the contractor (e.g. based on the relevant power of attorney). The information given by the contractor is verified on the basis of appropriate evidence (e.g. official passport, identity card, register excerpts).
In order to meet the general due diligence requirements according to letter v., Tixl gGmbH monitors the business relationships, including the transactions carried out thereunder, from the moment when the business relationship is initiated until its termination on an ongoing basis.
If Tixl gGmbH is not able to meet the general due diligence requirements, the respective business relationship will not be established or continued, the respective transaction will not be carried out and an existing business relationship will be terminated.
In addition, measures that may be required in the context of a suspect notification (“Verdachtsmeldung”) under § 5 must be taken if the reason for the required fulfilment of the general due diligence requirements under the AML Act is the identification of circumstances indicating that the assets connected with a transaction or business relationship are the object of money laundering or are related to terrorist financing.
2. Increased due diligence requirements
Increased due diligence requirements must be met if it is determined in the individual case that a higher risk of money laundering or terrorist financing may exist.
An increased risk exists in particular, if
- a (potential) contractor or a beneficial owner is a PEP, a PEP's family member or a person known to be a close associate of a PEP,
- a (potential) contractor or a beneficial owner is a natural or legal person located in a third country identified by the European Commission as a high-risk third country (i.e. North Korea, Iran, Afghanistan, Bosnia and Herzegovina, Guyana, Iraq, Laos, Syria, Uganda, Vanuatu, Yemen, Ethiopia, Sri Lanka, Trinidad and Tobago, and Tunisia) or
- a given transaction is particularly complex or large, is handled in an unusual way or has no obvious economic or legal purpose in relation to comparable cases.
The information whether a (potential) contractor or beneficial owner is a PEP, a PEP's family member or a person known to be a close associate of a PEP can be obtained, in particular, from the completed questionnaire “Information according to the AML Act”.
If a higher risk exists, the establishment or continuation of a business relationship requires
- appropriate measures that allow for the identification of the origin of the assets to be used in the business relationship or the transaction, and
- intensification of the continuous monitoring of the business relationship.
3. Commissioning of a third party
The verification of the information will be generally outsourced to a specialized service provider which is acknowledged by the competent authorities. Tixl gGmbH plans to enter into a business relationship with IDnow GmbH.
§ 5 Record-keeping and retention obligations
Tixl gGmbH records all data, information and documents (copies of identity cards, register excerpts etc.) relating to contractors or, if applicable, to persons acting on behalf of contractors and beneficial owners, which are collected or obtained when fulfilling the due diligence requirements. Likewise, all data and information about business relationships and transactions, in particular transaction documents, are recorded to the extent they may be necessary for the investigation of transactions.
Tixl gGmbH ensures that all records are stored for at least five years and are immediately destroyed thereafter. In the case of the general due diligence requirements, the retention period commences at the end of the calendar year in which the business relationship was terminated/expired.
§ 6 Amendments
Tixl gGmbH will review the AML policy periodically and may amend the AML policy from time to time in its sole discretion and without prior notice.
Version as of: April 2019