Anti Money
Laundering

Effective date: April 1, 2022

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Anti-Money Laundering (AML) Program:  

Compliance and Supervisory Procedures

1. Firm Policy

It is the policy of the firm to prohibit and actively prevent money laundering and any activity that facilitates money laundering or the funding of terrorist or criminal activities by complying with all applicable requirements under the following regulation (hereinafter AML Regulation):

 

• Act No. 253/2008 Coll. on Selected Measures against Legitimisation of Proceeds of Crime and Financing of Terrorism; 

• Act No. 69/2006 Coll. on the Implementation of International Sanctions;

• Act No. 254/2004 Coll. on Restriction of Cash Payments;

• Regulation (EU) No 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006;

• Regulation (EC) No 1889/2005 of the European Parliament and of the Council on controls of cash entering or leaving the Community.

 2. AML Compliance Person Designation and Duties 

Designate your firm’s AML Compliance Person and describe his or her duties.

 

The firm has designated Tomas Hnilicka, statutory body of IVBF, s.r.o., as its Anti-Money Laundering Program Compliance Person (AML Compliance Person), with full responsibility for the firm’s AML program. The AML Compliance Person has a working knowledge of the respective regulations and is qualified by experience, knowledge, and training. The duties of the AML Compliance Person will include monitoring the firm’s compliance with AML obligations, overseeing communication and training for employees. The AML Compliance Person will also ensure that the firm keeps and maintains all of the required AML records and will ensure that Suspicious Activity Reports (SARs) are filed with the Financial Analytical Bureau (FAB) when appropriate (via FAB notice). The AML Compliance Person is vested with full responsibility and authority to enforce the firm’s AML program.  

 

The firm will provide FAB with contact information for the AML Compliance Person, including: (1) name; (2) title; (3) mailing address; (4) email address; (5) telephone number. The firm will promptly notify FAB of any change in this information and will review, and if necessary, update this information within 17 business days after the end of each calendar year. 

3. Checking the Office of Foreign Assets Control Listings (OFAC)

 

Before opening an account, and on an ongoing basis, the AML Compliance Person will check to ensure that a customer does not appear on the SDN list or is not engaging in transactions that are prohibited by the economic sanctions and embargoes administered and enforced by OFAC. (See the OFAC website for the SDN list and listings of current sanctions and embargoes). Because the SDN list and listings of economic sanctions and embargoes are updated frequently, we will consult them on a regular basis and subscribe to receive any available updates when they occur. With respect to the SDN list, we may also access that list through various software programs to ensure speed and accuracy. See also OFAC’s Sanctions List Search tool, which screens names against the SDN list and other sanctions lists administered by OFAC. The AML Compliance Person will also review existing accounts against the SDN list and listings of current sanctions and embargoes when they are updated and he will document the review.

 

If we determine that a customer is on the SDN list or is engaging in transactions that are prohibited by the economic sanctions and embargoes administered and enforced by OFAC, we will reject the transaction and/or block the customer's assets and file a blocked assets and/or rejected transaction form with OFAC within 10 days. We will also call the OFAC Hotline at (800) 540-6322 immediately.

 

Our review will include customer accounts, transactions involving customers (including activity that passes through the firm such as wires) and the review of customer transactions that involve physical security certificates or application-based investments (e.g., mutual funds). 

4. Customer Identification Program (CIP)

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In addition to the information we must collect under the above mentioned AML Regulation, we have established, documented and maintained a written Customer Identification Program (CIP). We will collect certain minimum customer identification information from each customer who opens an account; utilize risk-based measures to verify the identity of each customer who opens an account; record customer identification information and the verification methods and results; provide the required adequate CIP notice to customers that we will seek identification information to verify their identities; and compare customer identification information with government-provided lists of suspected terrorists, once such lists have been issued by the government. 

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a. Required Customer Information

 

Prior to opening an account, the AML Compliance Person will collect the following information for all accounts, if applicable, for any person, entity or organization that is opening a new account and whose name is on the account:  

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(1) the name; 

(2) date of birth (for an individual); 

(3) an address, which will be a residential or business street address (for an individual), an Army Post Office (APO) or Fleet Post Office (FPO) box number, or residential or business street address of next of kin or another contact individual (for an individual who does not have a residential or business street address), or a principal place of business, local office, or other physical location (for a person other than an individual); and 

(4) an identification number, which will be a taxpayer identification number (for U.S. persons), or one or more of the following: a taxpayer identification number, passport number and country of issuance, alien identification card number, or number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or other similar safeguard (for non-U.S. persons).  

When opening an account for a foreign business or enterprise that does not have an identification number, we will request alternative government-issued documentation certifying the existence of the business or enterprise.

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b. Customers Who Refuse to Provide Information  

 

If a potential or existing customer either refuses to provide the information described above when requested, or appears to have intentionally provided misleading information, our firm will not open a new account and, after considering the risks involved, consider closing any existing account. In either case, our AML Compliance Person will be notified so that we can determine whether we should report the situation to FAB.  

 

c. Verifying Information 

 

Based on the risk, and to the extent reasonable and practicable, we will ensure that we have a reasonable belief that we know the true identity of our customers by using risk-based procedures to verify and document the accuracy of the information we get about our customers. The AML Compliance Person will analyze the information we obtain to determine whether the information is sufficient to form a reasonable belief that we know the true identity of the customer (e.g., whether the information is logical or contains inconsistencies).   

 

We will verify customer identity through documentary means, non-documentary means or both. We will use documents to verify customer identity when appropriate documents are available. In light of the increased instances of identity fraud, we will supplement the use of documentary evidence by using the non-documentary means described below whenever necessary. We may also use non-documentary means, if we are still uncertain about whether we know the true identity of the customer. In verifying the information, we will consider whether the identifying information that we receive, such as the customer’s name, street address, zip code, telephone number (if provided), date of birth and Social Security number, allow us to determine that we have a reasonable belief that we know the true identity of the customer (e.g., whether the information is logical or contains inconsistencies). 

 

Appropriate documents for verifying the identity of customers include the following: 

 

• For an individual, an unexpired government-issued identification evidencing nationality or residence and bearing a photograph or similar safeguard, such as a driver’s license or passport; and

• For a person other than an individual, documents showing the existence of the entity, such as certified articles of incorporation, a government-issued business license, a partnership agreement or a trust instrument.

 

We understand that we are not required to take steps to determine whether the document that the customer has provided to us for identity verification has been validly issued and that we may rely on a government-issued identification as verification of a customer’s identity. If, however, we note that the document shows some obvious form of fraud, we must consider that factor in determining whether we can form a reasonable belief that we know the customer’s true identity.

 

We will use the following non-documentary methods of verifying identity:

 

• Independently verifying the customer’s identity through the comparison of information provided by the customer with information obtained from a consumer reporting agency, public database or other source; 

• Checking references with other financial institutions; or 

• Obtaining a financial statement.

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We will use non-documentary methods of verification when: 

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(1) the customer is unable to present an unexpired government-issued identification document with a photograph or other similar safeguard; 

(2) the firm is unfamiliar with the documents the customer presents for identification verification; 

(3) the customer and firm do not have face-to-face contact; and 

(4) there are other circumstances that increase the risk that the firm will be unable to verify the true identity of the customer through documentary means.  

 

We will verify the information within a reasonable time before or after the account is opened. Depending on the nature of the account and requested transactions, we may refuse to complete a transaction before we have verified the information, or in some instances when we need more time, we may, pending verification, restrict the types of transactions or dollar amount of transactions. If we find suspicious information that indicates possible money laundering, terrorist financing activity, or other suspicious activity, we will, after internal consultation with the firm's AML Compliance Person, file a FAB notice in accordance with applicable laws and regulations.

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d. Lack of Verification

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When we cannot form a reasonable belief that we know the true identity of a customer, we will do the following: (1) not open an account; (2) impose terms under which a customer may conduct transactions while we attempt to verify the customer’s identity; (3) close an account after attempts to verify a customer’s identity fail; and (4) determine whether it is necessary to file a FAB notice in accordance with applicable laws and regulations.

e. Recordkeeping

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We will document our verification, including all identifying information provided by a customer, the methods used and results of verification, and the resolution of any discrepancies identified in the verification process. We will keep records containing a description of any document that we relied on to verify a customer’s identity, noting the type of document, any identification number contained in the document, the place of issuance, and if any, the date of issuance and expiration date. With respect to non-documentary verification, we will retain documents that describe the methods and the results of any measures we took to verify the identity of a customer. We will also keep records containing a description of the resolution of each substantive discrepancy discovered when verifying the identifying information obtained. We will retain records of all identification information for five years after the account has been closed; we will retain records made about verification of the customer's identity for five years after the record is made. 

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f. Comparison with Government-Provided Lists of Terrorists

 

At such time as we receive notice that any government agency has issued a list of known or suspected terrorists and identified the list as a list for CIP purposes, we will, within a reasonable period of time after an account is opened, determine whether a customer appears on any such list of known or suspected terrorists or terrorist organizations issued by the respective government agency. We will follow all directives issued in connection with such lists.    

 

Even though IVBF, s.r.o. is a non-US entity, the firm will continue to comply separately with OFAC rules prohibiting transactions with certain foreign countries or their nationals.

5. Monitoring Accounts for Suspicious Activity

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We will monitor account activity for unusual size, volume, pattern or type of transactions, taking into account risk factors and red flags that are appropriate to our business. The customer risk profile will serve as a baseline for assessing potentially suspicious activity. The AML Compliance Person or his or her designee will be responsible for this monitoring, will review any activity that our monitoring system detects, will determine whether any additional steps are required, will document when and how this monitoring is carried out, and will report suspicious activities to the appropriate authorities. 

 

In situations involving violations that require immediate attention, such as terrorist financing or ongoing money laundering schemes, we will immediately call an appropriate law enforcement authority. If a customer or company appears on OFAC’s SDN list, we will call the OFAC Hotline at (800) 540-6322. If we notify the appropriate law enforcement authority of any such activity, we must still file a timely a FAB notice.

6. AML Recordkeeping 

Our AML Compliance Person and his or her designee will be responsible for ensuring that AML records are maintained properly and that FAB notices are filed as required. 

 

In addition, as part of our AML program, our firm will create and maintain FAB notices and relevant documentation on customer identity and verification and funds transmittals. We will maintain FAB notices and their accompanying documentation for at least five years. We will keep other documents according to existing recordkeeping requirements.

 

Signed: Tomas Hnilicka

Title: Statutory body

Date: April 12, 2022

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