VERIDIUM LABS TOKEN FOUNDRY LIMITED
Know-Your-Client / Anit-Money Laundering Policy
Last updated: 28 September 2018
This policy (the Policy) sets out the know-your-client (KYC) (commonly also known as customer due diligence) and anti-money laundering process for the offering of VERDE and/or CARBON Tokens (Tokens) by Veridium Labs Token Foundry Limited (Veridium Labs, we, us or our).
Please read the following carefully to understand our requirements for each purchase of Tokens. In order to purchase and receive any Tokens following their creation, you must provide the required KYC to a standard which is satisfactory to Veridium Labs (and/or our duly appointed agents, representatives or nominees). Failure to provide KYC to the satisfaction of Veridium Labs will result in Tokens not being distributed to you.
Veridium Labs is committed: (i) to ensure that the Tokens and the Veridium platform are not used in association with any money laundering, terror financing, evading of sanctions or otherwise to facilitate criminal activity; and (ii) to comply with relevant and applicable anti-money laundering and terrorist financing rules and regulations. This Policy reflects this risk-based approach and, in particular, tracks the requirements of the BVI Anti-Money Laundering and Terrorist Code of Practice 2008 (as amended with effect from 1 August 2018), notwithstanding that Veridium Labs currently falls outside the scope of this regulation.
Veridium Labs has collaborated with Coinfirm Ltd., a third-party provider, to assist with the KYC process for the Token offering. Coinfirm Ltd. offers services which can assist Veridium Labs in ‘white-listing’ potential purchasers of Tokens by, among other services: (i) validating and corroborating internet protocol (IP) addresses, name and residential address details and government issued documents; (ii) searching both individuals and corporations against sanctions, politically-exposed-persons and terrorist lists; and (iii) risk scoring sources of funds to prevent contributions from known ‘bad’ wallets or addresses.
2. Jurisdictional and sanction restrictions
Purchasers of Tokens are obliged to represent and warrant to Veridium Labs (and to certain other persons) that they are not Restricted Persons. The Tokens are not being offered to any Restricted Persons and Restricted Persons are strictly prohibited from receiving or purchasing the Tokens.
A Restricted Person is any person who is, or any person purchasing Tokens on behalf of (i) a U.S. Person; (ii) a citizen, resident (tax or otherwise) of, or a person located or domiciled in any Restricted Jurisdiction or any entity, including without limitation, any corporation, partnership, trust or unincorporated entity, created or organized in or under the laws of any Restricted Jurisdiction; or (iii) a person under the age of 18 years.
A Restricted Jurisdiction means: (i) the United States (being the United States of America (including the states and District of Columbia) and any of its territories, possessions and other areas subject to its jurisdiction); (ii) Canada; (iii) any FATF high-risk jurisdiction or a FATF jurisdiction with strategic deficiencies; or (iv) any jurisdiction for which the sale of Tokens, or any offer or solicitation in respect of the Tokens, would require registration or licensing or otherwise would be unlawful or which restricts or licenses the activities of the kind that can be accessed or used through the Veridium Labs platform.
A U.S. Person means a green card holder of the United States, a corporation (or other entity treated as a corporation for United States federal income tax purposes) created or organized in the United States or any political subdivision thereof, an estate the income of which is subject to United States federal income taxation regardless of its source, a partnership or other entity created or organized in or under the laws of the United States, a trust if (i) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more United States fiduciaries have the authority to control all substantial decisions of the trust or (ii) the trust properly elected to be treated as a U.S. Person, or any person falling within the definition of the term “United States Person” under the U.S. Securities Act of 1933 or under any other applicable rules or regulations.
3. Required documents
Through Coinfirm Ltd., applicants will be required to submit documents for verification prior to being permitted to receive Tokens. The type of documents requested will depend on the type of applicant and will be subject to the discretion of Veridium but will, in the most part, follow the guidelines below.
Individuals will be required to provide the following information:
- i. a copy of the individual’s passport, identity document or other government-issued and photo-bearing identification document;
- ii. documentary evidence of the individuals’ permanent residential address (such as a bank or credit card statement or utility bill); and
- iii. in certain cases, verification of the source of funds to be used to acquire Tokens.
Companies will be required to provide the following information:
- i. a copy of the entity’s certificate of incorporation;
- ii. a copy of the memorandum and articles of association or by-laws of the entity or its equivalent governing constitution;
- iii. where the company is regulated, details of the regulatory regime and regulator;
- iv. a description of the company’s activities and, in certain cases, verification of the source of funds to be used to acquire Tokens; and
- v. satisfactory evidence of identity for each underlying beneficial owner of the company who owns, controls or is otherwise entitled to, directly or indirectly, at least 10 per cent of the entity and at least two directors of the company (as set out in ‘individuals’ above).
Partnerships and unincorporated entities
Partnerships will be required to provide:
- i. a copy of the certificate of registration, where registered, and the partnership agreement or articles of partnership or other constitutional documents;
- ii. a description of the entity’s activities and, in certain cases, verification of the source of funds to be used to acquire Tokens; and
- iii. satisfactory evidence of identity for each underlying beneficial owners of the entity who owns or otherwise is entitled at least 10 per cent of the entity and any partner or other controlling officer relevant to the application for Tokens (as set out in ‘individuals’ above).
Trustees acting on behalf of a trust will be required to provide:
- i. confirmation of the type of trust, the nature and place of the activities of the trust and, in certain cases, verification of the source of funds to be used to acquire Tokens; and
- ii. satisfactory evidence of identity for each of the settlor, trustees or protector of the trust and, where Veridium Labs determines that the trust presents other than a low level of risk, the beneficiaries of the trust (as set out in ‘individuals’ above).
4. Standards of due diligence
Reduced due diligence
Veridium Labs may, at its discretion, choose to waive certain KYC requirements applicable to any purchaser of Tokens where the amount to be paid by the purchaser is less than USD 10,000, or the equivalent in any fiat or cryptocurrency, unless: (i) Veridium Labs has reasonable grounds for believing (whether at the date of application for tokens or subsequently) that the purchase of Tokens is linked to one or more other purchases, the aggregate amount of which would equal or exceed USD 10,000 (or its equivalent); or (ii) Veridium Labs or any person handling the purchase on behalf of Veridium Labs knows or suspects that the purchase involves money laundering.
Veridium Labs may further, at its discretion, choose to waive certain KYC requirements for other applicants where permitted pursuant to applicable laws and regulations.
Such waivers are at the sole discretion of Veridium Labs.
Enhanced due diligence
Veridium Labs may, at its discretion, enhance its KYC requirements where it feels it necessary or desirable to do so. In particular, such enhanced due diligence may be required where a purchaser is identified as:
- i. an individual who is or has been entrusted with prominent public functions and members of his or her immediate family, or persons who are known to be close associates of such individuals (being ‘politically exposed persons’);
- ii. involved in a business activity, or having an ownership structure, or requesting such volume of Tokens, in each case that is complex or unusual, having regard to the risk profile of the purchaser or where the entity exhibits an unusual pattern of transactions or does not demonstrate any apparent or visible economic or lawful purpose; or
- iii. located in a country that is either considered or identified as a high risk country or that has international sanctions, embargos or other restrictions imposed on it.
We have the discretion to request certified copies of any documents to be provided under this Policy. We will request such certified copies if we consider that non-certified copies provided may not be authentic, may be doubtful or we generally have concerns regarding non-certified copies or the purchaser.
Such enhancements are in the sole discretion of Veridium Labs.
High risk countries mean countries which:
- a. are subject to sanctions, embargos or similar restrictive measures imposed by the United Nations, European Union, or other regional or international organisation of which the British Virgin Islands is a member or associate member, or of which the United Kingdom is a member and the sanctions, embargos or similar measures have been extended to the British Virgin Islands by an Order in Council, through the exercise of any Royal Prerogative or otherwise; or
- b. have otherwise been identified by regulatory bodies to which Veridium Labs is subject as being high risk.
5. Contact and responsible person
If you would like to contact us regarding this Policy, please send us an email at firstname.lastname@example.org. To ensure your query is dealt with as swiftly as possible, please include the subject line “KYC Policy”.
Veridium Labs has appointed a compliance officer whose duty it is to ensure effective implementation and enforcement of this Policy.
7. Updates to information
Where the information provided by you to us pursuant to this Policy becomes out-dated between the date provided and the date on which the Tokens are issued to you, or the information provided otherwise proves to be incorrect, you shall notify Veridium Labs as soon as possible and provide updated or corrected information.
8. Veridium Labs Platform
This Policy applies to initial purchases of Tokens pursuant to an offering by Veridium Labs. Additional KYC may be required to participate on the Veridium Labs platform and your ability to participate as such may be subject to you providing such additional documents or assurances.
9. Right to refuse or cancel and obligations to report
We reserve the right to refuse or cancel Token purchase requests at any time in our sole and absolute discretion, whether pursuant to non-compliance with this Policy or otherwise. In such an event, any consideration paid by you shall be dealt with in accordance the applicable terms of sale.
It is further noted that Veridium Labs will be under an obligation, pursuant to applicable laws and regulations, to report to the relevant authorities any transactions where it knows, or suspects, or has reasonable grounds for knowing or suspecting, that another person is engaged in money laundering.
10. Changes to this Policy
We may update this Policy from time to time and we encourage you to periodically review this page.
Last updated: 28 September 2018