1.1 This Anti-money Laundering and Combating the Financing of Terrorism Policy (the “Policy”) describes the policy and obligations of Odin Pay s.r.o. (the “Company”) to detect and prevent any money laundering or terrorist financing activities in the products and services offered by the Company to its customers.
1.2 The Company is supervised by the Government of the Czech Republic and the Financial Crimes Investigation Service.
1.3 Odin Pay s.r.o. provides tools to convert Crypto-Assets to other Crypto-Assets or Funds (and vice versa), ensuring transparency and control over financial flows.
1.4 The Company will not enter into a business relationship with any person or entity suspected of or directly involved in money laundering in order to conceal the source of illicit funds and give the appearance of legitimacy. Both international and local regulations require us to implement effective internal procedures and mechanisms to prevent money laundering, terrorist financing, drug and human trafficking, proliferation of weapons of mass destruction, corruption and bribery, and to take action when our customers detect any form of suspicious activity.
1.5 This Policy should in no way be construed as a complete set of all policies, procedures, and controls implemented by the Company to prevent money laundering, terrorist financing and other forms of illegal activity.
1.6 The purpose of this Policy is to provide clients with a general overview of the elements and procedures of the Company’s AML/CFT compliance, namely:
1.6.1 Money laundering;
1.6.2 Financing of terrorism;
1.6.3 Customer Due Diligence (CDD);
1.6.4 Review of CDD measures;
1.6.5 Know your customer (KYC) and know your business (KYB);
1.6.6 Source of funds;
1.6.7 Prohibited activities;
1.6.8 Selection of Politically Exposed Persons (PEPs);
1.6.9 Sanctions policy;
1.6.10 High-risk countries;
1.6.11 Monitoring of transactions with customers;
1.6.12 Red flags, abnormal activity, unusual behaviour or questionable behaviour;
1.6.13 Amendments and final clauses.
1.7 All capitalized terms not otherwise defined elsewhere in the Policy shall have the same meanings assigned to them in the Terms & Conditions and Privacy Policy.
2. MONEY LAUNDERING
2.1 Money laundering is the criminal process of converting amounts obtained through illegal means (terrorism, corruption, drug trafficking, etc.) with the concealment of their true source, into legitimate investments. This is because the illicit nature of such funds will not be detected, as they will have acquired material value.
2.2 Money laundering, according to international norms and legislation aimed at preventing money laundering and terrorist financing, includes the following:
2.2.1 Changing the legal status of Crypto-Assets or transferring them, knowing that the assets are derived from criminal activity, or participating in such activity, intending to conceal or obscure their illicit origin or to assist any person involved in criminal activity to avoid legal consequences. In addition, entering into or participating in an arrangement knowing or reasonably suspecting, or having reason to suspect, that the arrangement facilitates the acquisition, custody, use, or control of criminally derived assets.
2.2.2 Concealing or disguising the true nature, origin, source, location, disposition, movement, ownership or other rights to property, being aware that the property is derived from criminal activity or through participation in such activity.
2.2.3 It shall be an offence to acquire, administer or use property knowing at the time of acquisition or transfer that said property is derived from or participates in criminal activity. Regardless of attempts to conceal or disguise the criminal origin of the property, the acquisition, use, or possession of such criminally obtained property remains unlawful. It is important to note that this offence does not require active participation in the laundering process.
2.2.4 Participation in, attempting to commit, or complicity in any of the acts described in paragraphs 2.2.1, 2.2.2 and 2.2.3 of this section shall also be considered an offence.
2.3 Money laundering requires a separate criminalization, distinct from predicate offences. This means that actions related to concealing the origin of Crypto-Assets derived from illicit activities constitute a separate offence that requires prosecution, regardless of prior criminal activity.
2.4 Odin Pay s.r.o. has a strict zero tolerance towards money laundering, terrorist financing, corruption and bribery, tax abuse, irrespective of any money laundering offence.
2.5 Odin Pay s.r.o. is obliged to notify the authorized regulatory authority — FAU, as stipulated by the relevant international anti-money laundering (AML) mechanisms.
2.6 This obligation applies if there is knowledge or concern that assets, regardless of their value, have been directly or indirectly acquired through criminal activity or participation in such activity. Similarly, in accordance with international AML/CFT standards, it applies if there is knowledge or suspicion that the assets are linked to the financing of terrorist activities.
3. TERRORIST FINANCING
3.1 Terrorist financing refers to the intentional provision or collection by any means, directly or indirectly, of funds intended or knowingly used to facilitate terrorist acts. It involves the provision of funds by legitimate legal or natural persons to support terrorist activities or organizations for ideological, political or other motives.
3.2 Terrorist financing is the process of activities of legitimate legal and natural persons who may decide to provide funds to finance terrorist activities or organizations for ideological, political or other motives.
3.3 Odin Pay s.r.o. is obliged to ensure that its Users:
3.3.1 are not classified as terrorist organizations;
3.3.2 do not contribute to the financing of terrorist organizations.
4. CUSTOMER DUE DILIGENCE (CDD)
4.1 Customer Due Diligence (CDD) is key to understanding Odin Pay s.r.o.’s AML/CFT compliance procedures.
4.2 Customer Due Diligence (CDD) aims to protect the financial services sector from being used for money laundering or terrorist financing purposes. Obtaining complete information about Users and the effective use of this data is a key defence mechanism to prevent the facilitation of money laundering.
4.3 Odin Pay s.r.o. is required to conduct thorough CDD and ongoing monitoring to establish user identity, determine the involvement of third parties, ensure compliance with legal requirements for the provision of services and facilitate co-operation with law enforcement by providing available information on Users or activities under investigation.
4.4 Overview of CDD measures:
4.4.1 User identification and identity verification;
4.4.2 Identifying the beneficial owner and verifying identity, if necessary;
4.4.3 Obtaining information on the purpose and intended nature of the business relationship;
4.4.4 Monitoring and ongoing verification of the user’s transactions and activities;
4.4.5 Risk assessment, risk profiling and risk-based approach;
4.4.6 Compliance with legal and regulatory requirements;
4.4.7 Enhanced Due Diligence (EDD);
4.4.8 Record keeping and documentation;
4.4.9 Training and awareness programmes;
4.4.10 Transaction monitoring systems;
4.4.11 Adverse Media Screening;
4.4.12 Screening of Politically Exposed Persons (PEPs);
4.4.13 Geographic assessment;
4.4.14 Co-operation or partnership with other financial institutions or authorities to share information on emerging risks or criminal activity.
5. KNOW YOUR CUSTOMER (KYC) AND KNOW YOUR BUSINESS (KYB)
5.1 When establishing a business relationship, it is important for Odin Pay s.r.o. to identify the intended nature of the user’s business in order to determine normal operating patterns. As the relationship develops, all routine operations conducted by the User are evaluated in terms of the intended activity. Any deviations or unexplained activities are scrutinized to identify potential indications of money laundering or terrorist financing.
5.2 Personal information is collected at the beginning of the relationship, including nationality, date of birth and residential address. This data plays a key role in financial crime risk assessment, including anti-money laundering (AML) and counter-terrorist financing (CTF). In cases involving higher risk transactions, it may be necessary to verify the information provided by the User.
5.3 In cases where the User is a legal entity (company), the Know Your Business (KYB) compliance procedure becomes more stringent and depends on factors such as company structure, location, and other important aspects. It is required to identify the company owner, authorized representatives, location, and nature of business.
5.4 Due to differences in government documentation standards for legal entities in different jurisdictions, the verification process for such Users is carried out through Enhanced Due Diligence (EDD) procedures, which adds significantly to time costs.
6. SOURCE OF FUNDS
6.1 Verification of the source of funds, including the method of payment, its origin and the organization making the payment, is a fundamental aspect of every transaction in terms of Odin Pay s.r.o.’s compliance with AML/CTF laws and regulations. Compliance procedures include the strict practice of ensuring full knowledge of the source of funds at the outset of any User relationship.
6.2 Users are expected to confirm the accumulation of funds through documentation, such as statements or proof of specific transactions, such as receiving inheritance or insurance payments.
6.3 In addition, Odin Pay s.r.o. actively seeks clarification on the sources of funds for reasons of consistency with their legal nature. Legitimate sources of funds include a variety of legitimate sources, including:
6.3.1 Work-related income: Wages, bonuses, dividends and other income earned as a result of employment.
6.3.2 Retirement benefits: Including pension payments and similar income related to retirement.
6.3.3 Savings and investments: Consists of interest earned from personal savings accounts and income from various investments.
6.3.4 Income from asset transactions: Money from the sale of real estate or other legitimate asset transactions.
6.3.5 Genuine winnings: Including legally won money from bets, lottery winnings or similar types of winnings based on luck.
6.3.6 Inheritance and gifts: Legitimately acquired funds received through inheritance or as gifts.
6.7 Illegal sources of funds, on the other hand, include money obtained through terrorism, fraud, bribery, money laundering and so on.
7. PROHIBITED ACTIVITIES
7.1 Odin Pay s.r.o. regularly reviews the list of activities that are considered prohibited. Odin Pay s.r.o. prohibits any transactions related to the following activities:
7.1.1 Transactions involving sanctioned entities;
7.1.2 Weapons, ammunition, gunpowder and other explosives (including fireworks);
7.1.3 Toxic, flammable and radioactive materials;
7.1.4 Pyramid and investment schemes, multi-level marketing schemes and other unfair, predatory or deceptive practices;
7.1.5 Commodities used for speculation or hedging (e.g. derivatives);
7.1.6 Credit and collection services;
7.1.7 Drugs and drug paraphernalia (e.g., narcotics, controlled substances, and any equipment designed for the manufacture or use of drugs);
7.1.8 Marijuana/cannabis dispensaries and related products and businesses;
7.1.9 Pseudo-pharmaceuticals, substances that mimic illegal drugs;
7.1.10 Goods that infringe intellectual property rights such as copyrights, trademarks, trade secrets or patents, including counterfeit or unauthorized goods;
7.1.11 Sexually explicit content, services of a sexual nature;
7.1.12 Transactions related to cloud mining;
7.1.13 Transactions that disclose personal information of third parties in violation of applicable law;
7.2 The list is not exhaustive. Any other business activity that we believe is outside our risk appetite will be prohibited.
8. CHECKING POLITICALLY EXPOSED PERSONS (PEPS)
8.1 A politically exposed person (PEP) is an individual who is or has been entrusted with important public functions, including the following:
8.1.1 heads of state, heads of government, ministers, deputy or assistant ministers;
8.1.2members of parliament or similar legislative bodies;
8.1.3members of the governing bodies of political parties;
8.1.4members of supreme courts, constitutional courts or other high judicial bodies whose judgements are not subject to further appeal, except in exceptional cases;
8.1.5members of audit courts or boards of central banks;
8.1.6ambassadors, chargés d’affaires and high-ranking officers of the armed forces;
8.1.7members of the administrative, management or supervisory bodies of state-owned enterprises;
8.1.8directors, deputy directors and members of the board or equivalent function of an international organization.
8.2 None of the public functions referred to in paragraphs 8.1.1 to 8.1.8 shall be understood as covering officials of intermediate or more junior rank.
8.3 Family members of a politically exposed person (PEP) include the following:
8.3.1 the spouse, or a person equivalent to a spouse, of the politically exposed person;
8.3.2 children and their spouses or persons equivalent to spouses of the politically exposed person;
8.3.3 parents of the politically exposed person.
8.4 “Persons known to be close associates” means:
8.4.1 natural persons known to have joint beneficial ownership of legal persons or legal arrangements, or any other close business relationship with the politically exposed person;
8.4.2 individuals known to have sole beneficial ownership of a legal entity or legal arrangement that is known to have been established for the actual benefit of the politically exposed person.
8.5 To ensure that Odin Pay s.r.o. is aware of any Users who may be classified as PEP or placed on the sanctions list, Odin Pay s.r.o. has decided to screen all Users by independent external screening tools.
9. SANCTIONS POLICY
9.1 In line with our commitment to ensure sound AML/CFT practices and compliance with applicable laws and regulations, as well as international financial sanctions, Odin Pay s.r.o. applies a strict sanctions policy regarding freezing transactions with sanctioned entities or suspected sanctions violators, as well as suspending/terminating the use of our services by Users involved in such activities.
9.2 Odin Pay s.r.o. takes all necessary measures to ensure that all Users with whom business relationships are established are verified.
9.3 Odin Pay s.r.o. ensures compliance with all regulatory, legislative, economic and financial requirements for sanctions and carries out sanctions checks on all Users and third parties prior to the commencement of a business relationship and on an ongoing basis throughout the life cycle of the relationship.
9.4 The sanctions policy of Odin Pay s.r.o. strictly prohibits any interaction with Users involved in money laundering or terrorist financing. This applies if Odin Pay s.r.o. becomes aware of or is suspected of potential involvement in such activities or if the relationship with a User represents an unacceptable level of sanctions risk.
9.5 If Odin Pay s.r.o. is uncertain about the User’s potential status under financial sanctions or suspects that a particular transaction of the User violates financial sanctions, Odin Pay s.r.o. initiates a suspension procedure and implements Due Diligence measures, including:
9.6 If, after the application of the Due Diligence measures, Odin Pay s.r.o. confirms that the User is indeed subject to financial sanctions or that the transaction or activity of such User violates financial sanctions, or if additional information obtained during the Enhanced Due Diligence procedure does not conclusively establish this, or in case of suspected violation of financial sanctions, Odin Pay s.r.o. will freeze the funds involved in such transaction and suspend the User’s activity, immediately reporting such findings or suspicions to the relevant regulator.
9.7 In addition, if Odin Pay s.r.o. determines during the Due Diligence procedure that a transaction or operation of the User involves a sanctioned entity or a sanctioned third party — e.g. a Deposit from such entity or a sanctioned third party — the User is fully responsible for that transaction and/or operation, assumes full responsibility for its execution, the subsequent Due Diligence procedures in relation to that transaction, the potential freezing of funds involved in such transaction and the further suspension of the User’s activities, and the User’s activities.
9.5.1 collection of additional information to establish the User’s potential involvement in financial sanctions or potential violation of financial sanctions in a transaction or activity. This includes verifying data, documents, or information from a reliable and independent source;
9.5.2obtaining additional information about the nature and purpose of the business relationship, transaction, or activity. Odin Pay s.r.o. may request additional documents from the User, such as Proof/Source of Funds or Proof of Origin of Transaction, identity documents, request photo/video verification materials, verify them for accuracy and confirm these materials with reliable and independent sources;
9.5.3in cases where there is a risk or suspicion of violation of this Sanctions Policy, Odin Pay s.r.o. will rigorously apply enhanced due diligence measures;
9.5.4freeze the funds and economic resources of the subject of international financial sanctions and suspend or terminate the User’s access to Odin Pay s.r.o. products and services.
10. HIGH-RISK COUNTRIES
10.1 Government and international agencies publish detailed information on countries whose financial or social systems are such that they may pose a high risk of money laundering. The regulations require additional “due diligence” checks when dealing with persons or money from these countries. In addition, these checks must take into account specific deficiencies or problems noted by national or international authorities.
10.2 The use of Odin Pay s.r.o. products/services is prohibited for citizens and/or residents of the following countries (territories) and jurisdictions:
10.2.1 Afghanistan, Burundi, Belarus, Central African Republic, Cuba, Democratic Republic of the Congo, Iran, Ivory Coast, Iraq, Liberia, Libyan Arab Jamahiriya( Libya), Myanmar, North Korea, Sierra Leone, Somalia, South Sudan, USA, North Sudan, Syrian Arab Republic, Venezuela, Yemen, Zimbabwe, Russian Federation, Ukrainian occupied territories (Luhansk, Zaporizhzhia, Kherson, Donetsk regions, The Autonomous Republic of Crimea)
10.3 Please note that the above list of prohibited and particularly dangerous jurisdictions is not final and may be constantly revised by Odin Pay s.r.o. in accordance with the current legislation and regulations, and therefore you are obliged to check the latest version available on our Website.
11. MONITORING OF CUSTOMER TRANSACTIONS
11.1 After User registration, Odin Pay s.r.o. carries out comprehensive monitoring of transactions. Using internally developed automated fraud prevention and risk management systems, Odin Pay s.r.o. applies vigilance measures throughout the entire period of business relationship.
11.2 Vigilance measures include:
11.2.1 Transaction Monitoring: Continuous monitoring of customer-initiated transactions to identify any unusual, fraudulent or other criminal transactions, as well as deviations from typical patterns based on our understanding of the User and the risk profile of the business relationship. This is done using automated and manual transaction monitoring tools using predefined criteria, parameters, and thresholds;
11.2.2 Sanctions Compliance: Monitoring and evaluating transactions involving sanctioned individuals or entities in accordance with recognized sanctions lists;
11.2.3 Regular updating of client files: Periodic update of user files according to the KYC/AML risk frequency set for each User;
11.2.4 Risk Rating Update: Updates a User’s risk rating during each check or after the occurrence of a trigger event, such as significant changes in business relationships (e.g., User becomes a politically exposed person (PEP), unfavourable media coverage and third-party alerts, or as necessary to handle alerts or enhanced checks;
11.2.5 Reviewing high-risk transactions: Seeking appropriate confirmation of high-risk transactions in terms of AML/CFT compliance procedures.
11.3 Continued vigilance during the relationship may result in a change in the assigned rating and enhanced oversight if transactions are flagged as atypical (e.g., STRs, alerts, and multiple enhanced reviews).
11.4 In addition, Odin Pay s.r.o. reserves the right to prohibit incoming and/or outgoing suspicious or sanctioned transactions (or transactions made from/to/by/through sanctioned entities). This includes freezing the funds involved in such transactions, as well as suspending and/or terminating access to Odin Pay s.r.o. Services.
12. RED FLAGS, ABNORMAL ACTIVITY, UNUSUAL BEHAVIOUR OR QUESTIONABLE BEHAVIOUR
12.1 A transaction that may trigger “red flags”, “anomalous activity”, “unusual behaviour” or “questionable behaviour” often deviates from the established legitimate business or personal activities of the user or from the normal transactions typical of a given user profile. Thus, a key element of identification is having sufficient knowledge of the user’s business to identify any unusual or irregular transaction or series of transactions.
12.2 Odin Pay s.r.o. collects from Users proof of the destination of funds and the identity of the beneficiary. In addition, the origin of the funds and the purpose of the transaction are ascertained.
12.3 While a document (e.g. bank statement) to establish the origin of funds (e.g. inheritance) may be provided, it alone may not be sufficient to substantiate the source of funds. Statements or assurances provided by the User as part of a business relationship cannot be considered definitively sufficient.
12.4 If Odin Pay s.r.o. encounters opposition from the User who refuses to disclose relevant evidence, citing business or professional secrecy, Odin Pay s.r.o. considers this as a basis for questions. In such a scenario, doubts persist, which creates fears due to unresolved doubts.
12.5 In the area of AML/CFT, international laws and regulations require us to comply with all of the above compliance procedures, including collecting all necessary additional documents and information from Users as part of our AML/CFT policy.
13. AMENDMENTS AND FINAL REGULATIONS
13.1 If you do not agree to this AML/CFT Policy, you should refrain from using our Website, and/or the Services. This AML/CFT Policy is an integral part of our Terms & Conditions, Customer Agreement.
13.1 If you have any questions regarding this AML/CFT Policy, please contact our Anti-Money Laundering Department at [email protected]