Policy for preventing Money Laundering and Terrorism ...

1 Policy for preventing Money Laundering and Terrorism Financing SimpleFX Ltd. Approval Date: .12/03/2018 Type of approval/update Approved upon the Resolution of Board of Directors 1 Summary: Policy for preventing Money Laundering and Terrorism Financing SimpleFX 2. Definitions :5 3. Anti Money Laundering and Terrorism financing Policy of the SimpleFX8 1) Money LAUNDERING11 2) THE FINANCING OF TERRORISM12 4. Obligations and prohibitions13 5. Company s risk management model regarding Money Laundering and financing of terrorism17 Roles and responsibilities of the structures of the Company18 Roles and responsibilities of foreign Collaborators structures22 6.

2 Risk management regarding Money Laundering and Terrorism financing23 Risk management regarding Money Laundering and Terrorism financing in the Company24 Risk management regarding Money Laundering and Terrorism financing of foreign Collaborators25 7. Information flow26 2 SimpleFXLtd.( theCompany )aimstoprevent,detectandnotknowinglyfaci litate protectitsreputation,tocomplywithrelevan tlawsandrequirements,aswellasto Laundering ( AML )andcounter-terrorismfinancing( CTF )recommendationsina way that complements business priorities. ThemanagementoftheCompanyplacesextremely highimportanceonassisting foundnottobeadheringtothesepoliciesandpr ocedureswillfacesevere disciplinary action.

3 ItisthepolicyoftheCompanyanditsCollabora torstoprohibitandactively preventmoneylaunderingandanyactivitythat facilitatesmoneylaunderingorthe funding of terrorist or criminal activities. Theduetoentirelycross-boardercharacterof theperformingtransactions, coveredhereby,theinternationallegalframe workforanti moneylaundering consistsofanumberofsourcesrepresentedbyi nternationalconventions,the fatf recommendations , European as well domestic law provisions. Thefollowingtableindicatesthemainreferen cerulesfortheCompany,inrelation benotedthatforthepurposeoftheCompany sactivitiesoperationsinthe counterparts jurisdictions.

4 3 Source of legislation Legislative Description reference FAFT recommendations : RecommendationsofFATF-FATFIXS pecialRecommendations, fatf 40 recommendations . Theyrepresentthefundamentalstandardsonpr eventingand combatingmoneylaunderingandterrorismfina ncing,towhich otherinternationalbodies,theEuropeanUnio nandindividual Member State refer. Community EU EU Directive 2015/849 IV Anti Money Laundering Itsetsoutmeasuresforpreventingandcombati ngmoney launderingandterrorismfinancing,acknowle dging,overtime,the evolutionofinternationalstandardswiththe aimofachievinga harmonised regulatory environment between the Member States.

5 Domestic law of St. Vincent and the Grenadines The Proceeds of Crime Act, No. 38 of 2015; TheFinancialintelligenceUnitAct,Cap174of theRevisedLaws of 2009, as amended by Act No. 7 of 2013; TheDrugTraffickingOffensesAct,Cap173ofth eRevisedlawsof 2009; TheExchangeofInformationAct,cap146oftheR evisedLawsof 2009; TheProceedsofCrimeandMoneyLaundering(Pre vention)Act, 2001 The Proceeds of Crime and Money Laundering Regulations, 2002 The Financial Intelligence Unit Act, 2001 TheMutualAssistanceinCriminalMattersAct, cap177ofthe Revised Laws of 2009; TheAnti-MoneylaunderingandTerroristFinan cingRegulations, No.

6 20 of 2014; 4 TheConfiscationintheMagistrates CourtRegulations, 2015. legislationaimedatdetecting, preventing ,a ndprosecutingmoney launderingandotherseriouscrimesaswellasc onfiscatingthe practicesandtakeaccountofthe40 Recommendationsofthe FinancialActionTaskForce( fatf )onmoneylau nderingandthe 19 recommendations of the Caribbean fatf . Theregulatorybodywiththemandatetosupervi setheoffshore financial sector is the Financial Services Authority. Theabove-mentionedprovisionsarelikelytob eamended/integrated/replaced followingthefulltransposition inthejurisdictionsinwhichtheCompanyopera tes of EU Directive 2015/849 IV Anti Money Laundering Directive.

7 5 2. Definitions: 1. Anti MoneyLaundering(AML)OfficerorAnti-MoneyL aundering (AML)FunctionoftheCompany shallmeantheComplianceand AML Officer of Company. 2. Company Kingstown,atSuite305th(GriffithCorporate Centre),SaintVincentand Grenadines under IBC Number 22361. 3. BoardofDirectors shallmeanthe managementbody ofthe Company, ,namelythe managementoftheallCompany saffairsrelatedtoanyscopeofits commercialactivitiesandrepresentationofC ompanybeyondthird parties,courtandanyauthoritiesinlinewith therulesand representation of the Company.

8 4. Policy shallmeanthisPolicyforpreventingMoneyLau nderingand Terrorism Financing SimpleFX. 5. Collaborators shallmeaneachLegalEntityorNaturalPersoni n, bothdomesticandforeign,regardlessoflegal form( , partnerships,investmentfunds,mutualfunds etc.),whichisknownto haveclosebusinessrelationsrelatedtotheco mmoncommercial activities,providedbyleadershipofCompany ,includingoutsourcingor insourcingoftheparticularfractionofbusin essactivityoftheCompany ( IT; Customer s help desk; marketing services; customer service). 6. NaturalPerson shallmean aperson(inlegalmeaning, ,onewho hasitsown legalpersonality)thatisan individual humanbeing,as opposedtoa legalentity,whichmaybeaprivate( entity or non-governmentalorganisation)orpublic( government) organisation.

9 7. LegalEntity shallmeananyformoflegalpersons,bothdomes ticand foreign,regardlessoflegalform,suchaswith outlimitationcorporate entities,trusts,foundations,andlegalarra ngementssimilartotrusts, ( companies, partnerships, investment funds, mutual funds etc.). 8. Transaction shallmeananydeposit,withdrawal,exchangeo r transfer of funds. 9. Cryptocurrency shallmeana digitalasset designedtoworkas a mediumofexchange thatuses cryptography tosecureits transactions,tocontrolthecreationofaddit ionalunits,andtoverifythe transferofassets. Cryptocurrenciesareclassifiedasasubsetof digital currencies andarealsoclassifiedasasubsetof alternative currencies and s business activity crypto currency is treated as the emphasisedthatexchangingthecryptocurrenc iesforfiatcurrency within Company business model is strictly prohibited.

10 10. Fiduciary/FiatCurrency shallmeana currency without intrinsic value esta blisheda s Money bygo 6 assignedvalueonlybecausethegovernmentuse sitspowertoenforce the value of a fiat currency. 11. Customer shallmeanNaturalPerson(s)andLegalEntity( Entities) currency and crypto currency. 12. CFD shallmeanacontractfordifferencesas acontractbetweentwo parties,typicallydescribedas"buyer"and"s eller",stipulatingthatthe sellerwillpaytothebuyerthedifferencebetw eenthecurrentvalueof an asset anditsvalueatcontracttime(ifthedifferenc eisnegative,then thebuyerpaysinsteadtotheseller).