Last Updated: May 6, 2022.
Shopperoo OÜ ("Shopperoo" / "Company") has zero tolerance for money laundering, terrorism financing, or any other form of illegal activity, and is committed to implementing policies, procedures, and controls that are shaped by best industry practises and the most effective anti-money laundering standards in use in Estonia and around the world. These regulations apply to all Company workers, including Board members, officers, contractors, and consultants, without exception.
The aim of this policy is to offer a high-level overview of the Company's AML/CTF compliance regime elements and processes to the Company's partners, clients, vendors, contractors, employees, regulators, law enforcement, and other concerned stakeholders. This document should not be construed as a complete list of the Company's policies, procedures, and controls for the prevention of money laundering, terrorism funding, and other forms of illegal behaviour.
This document, as well as its underlying policies, processes, and procedures, was created in accordance with the provisions, requirements, and suggestions of the following organisations:
- Money Laundering and Terrorist Financing Prevention Act of Estonia, as amended from time to time ("Act");
- International Sanctions Act of Estonia as amended from time to time; and
- FATF Guidance for a Risk-Based Approach to Virtual Assets and Virtual Assets Service Providers.
The Company is financially licensed in Estonia and is governed by Estonian legislation. In 2017, Estonia was one of the first countries in the world to adopt anti-money laundering ("AML") and counter-terrorist financing ("CTF") standards for enterprises dealing in virtual currency trading and virtual currency custody. As a result, any firm providing listed services from or within Estonia's jurisdiction must request for authorisation with the Estonian Financial Intelligence Unit ("FIUE").
Shopperoo is required to comply with the Money Laundering and Terrorist Financing Prevention Act and the International Sanctions Act as a regulated business, which require the company to identify and verify its clients' identities, conduct ongoing monitoring of their activity, including transaction monitoring, keep records of clients' activity and related documents for at least five years, and report certain transactions to authorities.
The Company defines money laundering as:
- the conversion or transfer of property, knowing that such property is derived from criminal activity or from an act of participation in such activity, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the commission of such an activity to evade the legal consequences of that person's action;
- the concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or ownership of, property, knowing that such property is derived from criminal activity or from an act of participation in such an activity;
- the acquisition, possession or use of property, knowing, at the time of receipt, that such property was derived from criminal activity or from an act of participation in such an activity;
- participation in, association to commit, attempts to commit and aiding, abetting, facilitating and counselling the commission of any of the actions referred to in points (a), (b) and (c).
Terrorist financing provides funds for terrorist activity. From legal standpoint it means the provision or collection of funds, by any means, directly or indirectly, with the intention that they be used or in the knowledge that they are to be used, in full or in part, in order to carry out any of the offences within the meaning of Articles 1 to 4 of Council Framework Decision 2002/475/JHA. Terrorist activity has as its main objective to intimidate a population or compel a government to do something. This is done by intentionally killing, seriously harming or endangering a person, causing substantial property damage that is likely to seriously harm people or by seriously interfering with or disrupting essential services, facilities or systems.
Risk Assessment and Risk-Based Approach
Shopperoo will conduct risk-based due diligence on each prospective client, gathering information and evidence in order to determine the risk profile. When establishing the overall character and type of all clients, the Company's workers will use caution, due diligence, and sound judgement. Shopperoo operates under the highest ethical standards and will not enter into commercial connections with individuals or companies who may harm the Company's reputation or jeopardise the virtual currency sector.
For the purpose of identification, assessment and analysis of risks of money laundering and terrorist financing related to its activities, the Company prepares a risk assessment, taking account of the following categories:
- Customer risk;
- Geographical risk;
- Product risk; and
- Delivery channel risk.
After the risk assessed and attributed to a particular customer, depending on degree of risk, it should be revised periodically upon knowledge of the customer and its activity.
The Company's management board shall nominate a Compliance Officer, who will function as the FIUE's point of contact and perform the Company's AML/CTF duties and obligations. A Compliance Officer reports directly to the management board and has the knowledge, resources, and access to pertinent information from all of the Company's structural units.
Only a Compliance Officer with the necessary education, professional suitability, abilities, personal traits, experience, and flawless reputation can be appointed to undertake the duties stated below. The FIUE is involved in the appointment of a Compliance Officer.
To appropriately manage and mitigate a higher-than-usual risk of money laundering and terrorist financing, the Company employs enhanced due diligence ("EDD") techniques.
- upon identification of a person or verification of submitted information, there are doubts as to the truthfulness of the submitted data, authenticity of the documents or identification of the beneficial owner;
- the customer is a politically exposed person, except for a local politically exposed person, their family member or a close associate;
- the customer is from a high-risk third country or their place of residence or seat in a high-risk third country;
- the customer is from such country or territory that, according to credible sources such as mutual evaluations, reports or published follow-up reports, has not established effective AML/CTF systems that are in accordance with the recommendations of the Financial Action Task Force, or that is considered a low tax rate territory.
Dealing with people who are subject to international sanctions puts the Company, its directors, officers, and owners at risk.
At a minimum, the Company will screen against the following sanctions lists:
- UN Sanctions;
- EU Sanctions;
- Sanctions administered by the Office of Financial Sanctions Implementation ("OFSI-UK")
- Sanctions administered by the Office of Foreign Assets Control ("OFAC-US");
- Sanctions imposed under the International Sanction Act.
Suspicious Activity Monitoring and Reporting
When the Company discovers an activity or facts that have the characteristics of money laundering, terrorist financing, or other criminal offences, or an attempt thereof, or that the Company suspects or knows constitutes money laundering, terrorist financing, or the commission of another criminal offence, a Compliance Officer of the Company must report it to the FIUE immediately, but no later than two working days after discovering it.
The Company must keep the documents and information used for customer identification and verification for at least five years after the commercial relationship has ended.
Following the application of the requirements arising from its obligations hereunder, the Company implements required regulations for the protection of personal data.
The Company is only permitted to process personal data collected as a result of the application of these laws for the purpose of combating money laundering and terrorist financing, and the data cannot be used for any other purpose, such as marketing.
Exchange of Information
The Company works with supervisory and law enforcement authorities to prevent money laundering and terrorist financing by sharing information and responding to queries in a timely manner, while adhering to the duties, obligations, and restrictions imposed by legislation. Please contact us at firstname.lastname@example.org with any pertinent requests. Please be aware that if you represent a law enforcement agency outside of the European Union, you may be subject to the Mutual Legal Assistance Treaty (MLAT).