Know Your Customer Policy

KYC (Know Your Client) Policy

Know your customer policies have become increasingly important on a worldwide basis, especially among banks and other financial institutions, in order to prevent identity theft, money laundering, financial fraud and terrorist activity.

Beegbit holds a zero tolerance fraud policy, and is taking all measures possible to prevent it. Any fraudulent activity will be documented and all accounts related to it will be immediately closed.

Prevention

Beegbit aims to ensure the integrity of any sensitive data it obtains, such as your account information and the transactions you make, using a variety of security measures and fraud controls. Securing your electronic transactions requires us to be provided with certain data from you, including your preferred deposit method.

Definition of Customer

For the purpose of Company’s KYC policy a ‘Customer’ means any of the following:

A person that maintains an account and/or has a business relationship with the Company;

A Person who has a Registered Account with Company and has a financial transaction or activity with the Company;

A Person on whose behalf the Registered Account is maintained (i.e. the beneficial owner);

Any other Person connected with a financial transaction which can pose significant reputation or other risks to Company.

The guidelines in respect of Customer relationship in the Company broadly includes the following:

No account is to be opened in anonymous or fictitious/name;

Accept Customers only after verifying their identity. The client also declares and guarantees that he has reached the age of majority (at least 18 years old). Necessary checks before opening a new account are to be ensured so that the identity of the Customer does not match with any person with known criminal background or the Customer is not connected with banned entities;

Classify Customers into various risk categories and, based on risk perception, apply the acceptance criteria for each category of Customers. Customer requiring very high level of monitoring, e.g. Politically Exposed Persons as explained may, if considered necessary, be kept in the High Risk Category.

Documentation requirements and other information to be collected in respect of different categories of Customers depending on perceived risk and compliances with Anti-Money Laundering Legislation.

Not to open an account or close an existing account, where identity of the account holder cannot be verified and/or documents/information required could not be obtained/confirmed, as per the risk categorization, due to non-cooperation of the Customer or non-reliability of the data/information furnished to Company.

The decision to open an account for Politically Exposed Person (PEP) should be taken at a senior level. It may, however, be necessary to have suitable built in safeguards to avoid harassment of the customer. For example, decision to close an account may be taken at a reasonably high level after giving due notice to the customer explaining the reasons for such a decision.

Under no circumstances, a Customer is permitted to act on behalf of another person.

The Company`s anti-money laundering/know your customer procedure is intended to ensure that, prior to accepting funds from Clients, all reasonable and practical measures are taken to confirm the clients’ identities and to verify that any third party upon whom the Company relies for Client identification, such as a bank and other financial intermediary, or any other third party adheres to the same standards.

These Client Identification Procedures are based on the premise that the Company will accept funds from a new and existing Client only after:

The Company has confirmed the Client’s identity and that the Client is acting as a principal and not for the benefit of any third party unless specific disclosure to that effect is made;

or:

If the Client is acting on behalf of others, the Company has confirmed the identities of the underlying third parties.

Natural person identification

The Company shall take reasonable steps to ascertain satisfactory evidence of an individual Client’s name, address, date and place of birth, including the employer’s address and the source of the Client’s funds. In order to confirm the identity of the Client, copies of certain of the following documents will be obtained and retained for Company’s records:

Passport or other official government-issued identification;
Power of attorney (if applicable, along with contact details of the attorney).
Declaration over Application Form with Simplified Due Dilligence which includes;

Identity Details of the Applicant
Address Details of the Applicant
Details concerning Annual Income, Source of Income, Occupation and Shareholder Category
Bank Details
Custody, Clearing and Settlement Agent
Selfie with handwritten note and identification document
Supporting documents which may be requested include:

- Bank statement or utility bill; or other residential identifying information;

- Bank references

The Company`s compliance officer is always entitled to ask any Client for additional documentation to complete proper KYC/AML procedure and if there is any suspicions on money laundering or dishonest activities. The Company is entitled to stop any cooperation with client or not to enter it if Client failed to refute any suspicions. The Company is entitled to report any unlawful activity.

Entity identification

The Company shall take reasonable steps to ascertain satisfactory evidence of an entity Client’s name and address, its authority to make the contemplated investment. The Company will obtain certain of the following, as appropriate under the circumstances:

Declaration over Application Form with Basic Due Dilligence which includes

Entity name
Brief description of entity’s economic activity
Entity address
Registration number
List of directors, shareholders.
Ultimate beneficial owner information
Tax number
License information (if applicable)
Supporting documents which include:

Copy of resolution granting the Directors/Principals authority to act;
Articles of Memorandum and Articles of Association;
Certificate of Incorporation;
List of Directors/Principals;
Authorized signatory list;
Description of the Client’s primary lines of business;
Publicly available information from law enforcement agencies or regulatory authorities; and/or
Client’s annual report and/or, if appropriate, Client’s bank references.
License (if applicable)
Ultimate Beneficial Owner passport or other governmental document, bank reference, bank statement, curriculum vitae, utility bill.

The Company`s compliance officer is always entitled to ask any Entity Client for additional documentation to complete proper KYC/AML procedure and if there is any suspicions on money laundering or dishonest activities. The Company is entitled to stop any cooperation with client or not to enter it if Client failed to refute any suspicions. The Company is entitled to report any unlawful activity.

High-risk clients definition

The Compliance Officer will provide and will continuously update a list of the types of Clients that the Company considers to be of ‘high risk,’ such that enhanced due diligence procedures are warranted compared to the routine Client Identification Procedures.

Following are the examples of Clients who pose a high money laundering risk:

A Senior Foreign Political Figure, any member of a Senior Foreign Political Figure’s Immediate Family, and any Close Associate of a Senior Foreign Political Figure (Politically Exposed Persons or PEPs defined by FATF recommendations are also included in this category);
A Senior Domestic Political Figure, any member of a Senior Domestic Political Figure’s Immediate Family, and any Close Associate of a Senior Domestic Political Figure (Politically Exposed Persons or PEPs defined by FATF recommendations are also included in this category)
Any Client resident in, or organized or chartered under the laws of, a Non-Cooperative Jurisdiction;

Note: Non-Cooperative Jurisdiction means any foreign country that has been designated as non-cooperative with international anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering (“FATF”)

Any Client who gives the Compliance Officer any reason to believe that its funds originate from, or are routed through, an account maintained at an “offshore bank”, or a bank organized or chartered under the laws of a Non-Cooperative Jurisdiction; and
Any Client who gives the Compliance Officer any reason to believe that the source of its funds may not be legitimate or may aid terrorist activities.

Non-cooperative (high-risk) Jurisdiction may also be the cause of rejecting cooperation with Client that is associated with non-cooperative jurisdiction. These jurisdictions are:

Iran

Democratic People's Republic of Korea (North Korea)

Russia

United States

Afghanistan

Barbados

Burkina Faso

Cambodia

Cayman Islands

Democratic Republic of Congo

Gibraltar

Haiti

Jamaica

Jordan

Mali

Morocco

Mozambique

Myanmar/Burma

Panama

Philippines

Senegal

South Sudan

Syria

Tanzania

Trinidad and Tobago

Uganda

United Arab Emirates

Vanuatu

Yemen

Georgia

Bosnia and Herzegovina

Cuba

Ethiopia

Iraq

Lao People's Democratic Republic

Sri Lanka

Sudan

Tunisia

Lebanon

Serbia

Algeria

Bangladesh

Bolivia

China

Kyrgyzstan

Macedonia

Nepal

Nigeria

Thailand

Liberia

Central African Republic

Gaza Strip

St Maarten

Burundi

United States Virgin Islands

Ghana

Zimbabwe

Libya

Pakistan

Somalia

Nicaragua

High-risk clients identification

The Company shall take reasonable steps to ascertain satisfactory evidence of a High-Risk Client’s name and address, its authority to make the contemplated investment. The Company will obtain certain of the following, as appropriate under the circumstances. High-risk Client identification is enhanced due diligence procedure, which includes more strict requirements for compliance.

On top of all the required documentation related to natural person or entity identification through simplified or basic due diligence procedures enhanced due diligence procedure include but not limited to such measures:

Assessing the Client’s business reputation through review of financial or professional references, generally available media reports or by other means;
Considering the source of the Client’s wealth, including the economic activities that generated the Client’s wealth and the source of the particular funds intended to be used to make the investment;
Reviewing generally available public information, such as media reports, to determine whether the Client has been the subject of any criminal or civil enforcement action based on violations of anti-money laundering laws or regulations or any investigation, indictment, conviction or civil enforcement action relating to financing of terrorists;
Conducting a face-to-face meeting with the Client to discuss/confirm the account opening documents.
Reviewing recent changes in the ownership or senior management of the Client;
Conducting a visit to the Client’s place of business and conducting a face- to-face meeting with the Client to discuss/confirm the account application, the purpose of the account and the source of assets;

The Company compliance officer is always entitled to ask any High-Risk Client for additional documentation to complete proper KYC/AML procedure and if there is any suspicions on money laundering or dishonest activities. The Company is entitled to stop any cooperation with client or not to enter it if Client failed to refute any suspicions. The Company is entitled to report any unlawful activity.

Transaction identification requirements

The Company is entitled to ask for any documents required for AML/KYC procedure. List of documentation may change depending on the sums of transaction.

Please pay attention that Client is obliged to provide all the documents requested by the Company. Client is obliged to provide all requested KYC documents within 72 hours after he made Bitcoin purchase from Beegbit. If Client failed/refused to provide requested documents to the Company and does not cooperate with Beegbit, the Client shall be imposed to pay liquidated damages in the amount of 2,500 EUR without any proof of damage. In addition, the Company will be able to file a lawsuit and initiate legal actions against Client.

Credit card KYC requirements:

ID – any amount

Credit card copy (front and back) – any amount

Proof of Address - any amount

Declaration of Purchase - any amount (signed online)

Selfie with ID and handwritten note – transaction higher than 10001 Euro

For transactions higher than 50000 Beegbit`s Compliance Officer may require phone verification and/or Source of funds.

Bank transfers KYC requirements:

ID – any amount

Proof of Address - any amount

Declaration of Purchase - any amount (signed online)

Selfie with ID and handwritten note – transaction higher than 10001 Euro

For transactions higher than 50000 Beegbit`s Compliance Officer may require phone verification and/or Source of funds.

In particular cases, in addition to general identification measures applicable for Clients, the Company may apply (upon its discretion) the following financial security measures (more detailed delineated in the Company’s AML Policy):

identifying the Beneficial Owner and taking reasonable steps to:
1. verification of his identity,
2. determine the ownership and control structure in the case of a Client that is a legal person, an organizational unit having no legal personality or a Trust;
assessing the business relationship with Client and, as appropriate, obtaining information on its purpose and intended nature;
ongoing monitoring of the Client's business relationships including:

an analysis of transactions undertaken throughout the course of business relationships to ensure that the transactions are consistent with Osterwetus' knowledge of the Client, the nature and scope of its business and consistent with the Money Laundering and Terrorist Financing risks related to that Client;
investigation of the source of origin of property values at the disposal of the Client - where justified by the circumstances;

ensuring that the documents, data or information in its possession relating to the business relationship with the Clients are kept up to date.

PLEASE NOTE THAT YOU WILL RECEIVE YOUR BITCOIN ONLY AFTER YOUR ACCOUNT WITH Beegbit IS FULLY VERIFIED!

Updates to the KYC Policy

The KYC policy may be amended/updated according to the current and effective legislation and international regulations.

If you have any questions please do not hesitate to contact our customer support: support@Beegbit.net.