The present user agreement (“Agreement”) is a contract between “you” as a “user” and bitcanuck.ca, a platform owned by the company LSNI Solutions Inc., Corporation Number: 901472-1, Business Number 837545391, having its registered office in 119 Hawkwood Drive NW, Calgary, Alberta, Canada (“BitCanuck”, “us” or “ours”).
This agreement applies to the use:
(A) of the site BitCanuck.ca, available at the address www.bitcanuck.ca, as well as of any other hosted/ associated sites;
(B) of any of the services offered through BitCanuck.ca, together with the website www.bitcanuck.ca, “Bitcanuck Services”.
This agreement sets out the entire understanding between the user and BitCanuck.ca with regard to the object of the present act and it replaces any other discussion, as well as all the preceding discussions, agreements and understanding of any kind (including without limitation any previous versions of the present agreement), as well as any financial relations between you and BitCanuck.ca.
If, after having read this agreement in its entirety, you still have doubts or you have any questions, please do not hesitate to contact BitCanuck Support, at the email address [email protected]
Acceptance of the Terms and Conditions of Use of the Present Platform:
By using and registering on this website, you accept the terms and conditions of use mentioned hereinafter, being necessary to read them carefully.
The platform www.bitcanuck.ca, is registered with the company LSNI Solutions Inc., and allows users to buy cryptocoins (Bitcoin, Ethereum, ZCASH, as well as other cryptocoins that the user wishes to acquire).
Our platform, and implicitly LSNI Solutions Inc., cannot be held liable in any way if you send the cryptocoin to an incorrect address or you send the wrong amount of cryptocoins. Also, the platform www.bitcanuck.ca, as well as the hosting company, cannot be held liable for the inaccuracies/ disagreements/ mistakes/ errors, which the user might commit.
You are directly liable and agree, and implicitly declare on own oath the fact that the documents that you use to acquire cryptocoins of any kind (DNI, identity card, passport, driving license, as well as any other documents you have to present as being appropriate and conclusive in the conclusion of the procedures of registration on the website, as well as of acquisition of cryptocoins), on the platform www.bitcanuck.ca, belong to you, are legal, have been issued by the competent institutions of the state where you belong. Also, you declare that you have the legal age to acquire cryptocoins using the platform www.bitcanuck.ca.
The market of cryptocoins is very volatile and prone to a quick change of prices. The market price changes in time, so that your cryptocoins might have a much lower value in the future. In fact, cryptocoins can become even completely void of value. Cryptocoins are not supported by any entity. Neither BitCanuck.ca, nor any other entity is bound to buy back your cryptocoins in the future.
Please make sure you fully understand the implied risks and, therefore you do not invest any money that you cannot afford to lose.
We are not responsible if, for various reasons, you cannot access this website. Once you accept these terms and conditions of use, Bitcanuck.ca will offer to you an individual, non-exclusive, non-transferable and limited right to access and use our website, as well as our service.
Based on your consent to register on the website, you declare that:
– you agree with the conditions of use;
– you are aged at least 18 years old;
– you are completely competent to accept the present conditions of use for the purpose of fulfilment of any transactions of cryptocoins.
By initiating a transaction, you implicitly confirm that you fulfil at once the following conditions:
1) The cryptocoins that you will acquire will not be used as a means of payment of any unlawful or illegal activities;
2) The acquisition of these cryptocoins is not an activity of money laundering;
3) You are the holder of the account who performs the bank transfer in order to buy cryptocoins;
4) You declare on your own oath that the amount of money in CAD/USD, used to acquire cryptocoins, is not the result of a fraud. In case the contrary is demonstrated, you undertake to borne all the prejudices and any potential legal consequences, or compensations, non-material damage, material damage.
Cookies represent the data stored on user’s hardware, containing information on the user. If users reject a cookie, they can still use the website www.bitcanuck.ca. Cookies help us track and classify the interests of our users, to enhance their visit on our website.
BitCanuck.ca complies with privacy clause relative to the clients’ data and it undertakes not to forward any of the personal data of its clients or its website users to third parties (natural or legal entities), not to trade them, not to undertake any exchanges of data with third parties or other users of the website www.bitcanuck.ca.
The personal data of the clients or users will be used solely for the fulfilment of the purpose for which they have been provided.
Refund and cancellation Policy:
Once submitted a request, the price offer will be available 60 minutes.
Within this timeframe, the payment has to be made, otherwise, the offer will be automatically canceled and the offer will no longer be available.
Once the payment is processed, the cryptocurrency will be funded in the buyers account.
All sales are final, no refunds are available after the payments is processed.
Bitcanuck.ca, by means of the platform www.bitcanuck.ca, provides users with the possibility to sell or buy cryptocoins.
Buying/ selling operations of cryptocoins that have already been processed are irreversible, and the agreed exchange rate remains the same until the conclusion of the operations.
The buying/ selling rate is guaranteed solely in case of operations for which the amount is credited in one of the Bitcanuck bank accounts, within 60 minutes at most, according to what was mentioned at the time when the operation was initiated, during the working schedule: Monday-Friday, 09 am-17 pm.
If the value of buying operation is not credited in one of the Bitcanuck accounts in the established time of 60 minutes, the exchange rate will be established by Bitcanuck at the time of collection of the amount transferred by the user in the Bitcanuck account, depending on the buying rate available at that time.
If the amount corresponding to the buying operation is credited in one of the Bitcanuck accounts in the established time of 60 minutes, but outside the working schedule, we reserve the right to confirm and approve the buying operation in the following business day, at the buying rate available at that time, by mutual agreement with the client.
The approval of the operation can last between few minutes and 3 days (business days), depending on the means used to transfer the amount, the acquired value, the history of the account and the volatility of the market. The confirmation of the operation by the cryptocoin network varies depending on how busy the network is.
Withdrawing cryptocurrency from your bitcanuck.ca account to your wallent, will be possible only if you withdraw to your personal wallet, we do not accept third party wallets.
You can confirm only one account on the trading platform BitCanuck.ca. If you try to open more than one account, such additional account can be suspended or closed. In order to use any of the services supplied by BitCanuck.ca, you must submit a request at the e-mail address [email protected], our team following to contact you in order to initiate your registration as a user of the website. This means you have to provide us, on our request, your identity documents in order to verify your eligibility. Subsequently, after having successfully completed the registration process (if the procedure is complete, and the information and documents provided by you are accurate, conclusive and authentic), BitCanuck.ca will enable your account. From time to time, we can request further information, as a condition to continue using the services.
If you wish to convert the local currency in cryptocoins or the cryptocoins in the local currency agreed by Bitcanuck, directly or by means of some third parties, Bitcanuck may request any information necessary to validate your identity.
It means that several information on the user might be requested, such as the name, surname, date of birth, e-mail address, home address, tax identification number, personal identification number, as well as any information relative to the bank account (the financial institution, account type, account number), but also photographs of the user and the identity documents, in order to confirm the identity of the user and for the user to benefit from the services supplied by Bitcanuck.
Bitcanuck is entitled to ask you to answer certain questions or it can take the appropriate actions to verify your identity, thus complying with the legislation in force. As you provide further personal information that might be asked from you, please verify that all the information is correct and authentic and that you agree to inform Bitcanuck whenever your statute/ address/ name/ surname might change, as well as any other identification details of yours.
We reserve the right to keep your registration details after you close the account, for regulatory purposes and for the fulfilment of the applicable legislation.
Password Security and Preservation of the Current Contact Details:
You are responsible for the maintenance of the security and an appropriate control of any ID, passwords, information, personal identification numbers (PIN) or any other codes that you might use in order to access the services supplied by BitCanuck.ca. Any loss or corruption of the above information and/ or the personal information can enable the unauthorized access of third parties to your account.
You are responsible for keeping you e-mail address up to date, in your account, in order to receive any notices or alerts that we might send. BitCanuck.ca will not be held liable for any losses or damages caused by the non-fulfilment of rules related to the preservation of the information of the account, or the impossibility to track or act in relation to any notices or alerts that we might send.
In case you consider that the information of your Bitcanuck account has been corrupted, contact immediately the Bitcanuck Support service: [email protected]
We do not hold the liability for any damages or interruptions caused by computer viruses, any spyware or other types of malware which might affect the computer or other equipment, or by other sources of phishing, spoofing or attack.
It is recommended the regular use of a reliable antivirus for malware screening and the prevention software. If you have any doubts with regard to the authenticity of some information allegedly coming from the part of Bitcanuck, you must connect by means of your account, using the website www.bitcanuck.ca, and not by clicking on the links contained by e-mails.
Account suspension and its closure:
We might, at our own discretion, without being held liable before you or any third party, deny the opening of an account, suspend your account or close your account or reconsider the manner in which one or several services operate. Such actions can be taken following the inactivity of the account, the failure to answer the requests for client support, spam-like activities (for example initiating transactions without completing them in the allotted time) or following the infringement of the terms of the present agreement.
Your account can be suspended in compliance with the requirements of a valid notice or by legal order, or in case that BitCanuck.ca reasonably suspects that you might use your Bitcanuck account for promotion purposes of illegal activities, (without limitation to these) or to open several Bitcanuck accounts or to abusively benefit from the promotions that Bitcanuck might offer from time to time.
If you have any unsettled transactions in an account that has been suspended or closed, you will be able to recover those funds, except for the case in which this is forbidden by law or a legal order.
Bitcanuck, at its choice, will allow you to withdraw these funds from an already known bank account or it will send the funds to an external address known by crypto. We reserve the right to request further identification data before processing such agreements and to delay or forbid these agreements, if Bitcanuck considers that any fraudulent or illegal activities have been carried out. If you do not manage to connect to your account, you will have to contact the support service in order to process such agreements.
You have the right to terminate the present agreement at any time, by interrupting the use of the services offered by Bitcanuck. At the termination of the present agreement and the suspension of your account, you continue to be held liable for all the transactions carried out while the account has been open.
Right to Suspend or Delay Transactions and Settlements:
Bitcanuck reserves the right to refuse the processing or annulment of any ongoing transaction using cryptocoins or any transaction using the local currency connected to your account, according to the legal provisions or as an answer to a notice, a legal order or another binding decision. Bitcanuck cannot reverse the settlement of the cryptocoin that has been communicated and confirmed by the special network for cryptocoins.
Bitcanuck reserves the right to deny a procedure or to annul it, with regard to any acquisition or sale of cryptocoins or any transfers, at its own discretion, if it suspects that the transaction implies, or it presents a high risk of implication in money laundering, the financing of terrorism, a fraud or any other type of financial infringement, tax evasion, as well as any offence provided for by the criminal law, as an answer to a notice, legal order or other governmental order, or if it suspects that the transaction refers to a narrowed activity.
We reserve the right to modify, suspend or interrupt any aspect of the Services, at any time, including the operating hours or the availability of any facility, without a prior notification and without any liability.
We can deny the processing of any transaction or the settlement without a prior notification and we can limit or suspend your right to use one or several services, at any time, at our own discretion.
The suspension of your right to use any of the services will not affect your rights and obligations pursuant to the present agreement. It is possible, at our own discretion, to delay the transactions or agreements, if we consider that the transaction is suspicious or that it might imply any frauds or irregularities, or that its infringes the applicable laws or it infringes the terms of this agreement.
In case of an increased volatility of a market, unforeseen situations on the economic scene or events of force majeure, the transactions and settlements can be subjected to delays. Bitcanuck will not be held liable for these delays, not having any control on these potential events. Bitcanuck is not responsible for these delays due to the settlements subjected to a transfer between banks.
It is your exclusive responsibility to determine if any fees shall be applied, and in which measure, to the transactions of cryptocoins performed by means of the Services, and to retain, collect, report and remit the right values of the fees to the tax authorities from your territory.
Limitation of the Right of Use:
You have the possibility to see, print and/or download a copy of these materials from the website www.bitcanuck.ca, only for personal, informative, non-advertising use, under the condition that the copyright and the other legal provisions are kept intact.
Cryptocoins of trademarks, service marks, logos, as well as other similar items used on this website are associated with “Bitcanuck”, being owned by the latter and its owners. The software, texts, images, data, prices, graphics, diagrams and the audio materials used on this website are exclusively owed by Bitcanuck.
It is strictly forbidden to copy, reproduce, modify, republish, present and send any part of the website www.bitcanuck.ca. Also, it is forbidden to collect or distribute in any form the above mentioned items.
It is strictly forbidden to use for any purposes, any materials existing on this website, on any other website or any other network of computers. Any such unauthorised use, which infringes the copyright, the trademarks or other laws, can be subjected to civil or criminal sanctions.
Termination of the Collaboration:
You have the possibility of terminate the present agreement with Bitcanuck and to close your account at any time, after the settlement of the ongoing transactions. Moreover, you agree that Bitcanuck can annul the access to this website, and in order to close the account it is necessary the simple consent, at any time and without a prior notification. We have the right to annul, terminate the service and close the account of the members. We have the right to limit the access and content of the website, to remove or delete the content, having as well the permission to take the necessary legal and technical measures to close the account of the member on this website, if we suspect that they create issues aimed to disturb the activity and integrity of Bitcanuck, or that they infringe the intellectual property right of third parties, or that their actions are not consistent and not complying with the “terms and conditions of use”, or that they try to obtain the unauthorized access to this website, or to use this service for illegal purposes, such as money laundering or the unlawful financing of criminal activities.
E-mails sent by means of the Internet are not secured and Bitcanuck is not liable for any damages derived from their transmission. We suggest you to send e-mails using an encrypted format.
To the extent permitted by the law, Bitcanuck is not held liable for the prejudice/ damage, or loss of profit, of business, of data, of opportunities or other direct or indirect losses.
None of the items mentioned above excludes or limits the liability of any of the parties for frauds, death, physical injuries, caused by negligence, the infringement of the clauses deriving from the law or by any other liability which cannot be limited or excluded by law.
If you have any doubts, questions with regard to “the terms and conditions of use” of the platform www.bitcanuck.ca, in relation to the rights and obligations arising from them, but also to the use of the website, to the service, account and any other issue deriving from them, please contact us at [email protected]
Please take into account the fact that “the terms and conditions of use”, will consistently be amended, updated, completed, in accordance with the amendments of the related applicable legislation made by the competent institutions of the state.
It is the policy of LSNI Solutions Inc. to prohibit and actively prevent money laundering and any activity that facilitates money laundering or the financing of terrorist or criminal activities.
We will comply with all applicable requirements and regulations.
Money laundering is generally defined as engaging in acts designed to conceal or disguise the true origins of criminally derived proceeds so that the proceeds appear to have derived from legitimate origins or constitute legitimate assets.
Generally, money laundering occurs in three stages.
Cash first enters the financial system at the “placement” stage, where the cash generated from criminal activities is converted into monetary instruments, such as money orders or traveller’s checks, or deposited into accounts at financial institutions.
At the “layering” stage, the funds are transferred or moved into other accounts or other financial institutions to further separate the money from its criminal origin.
At the “integration” stage, the funds are reintroduced into the economy and used to purchase legitimate assets or to fund other criminal activities or legitimate businesses.
Terrorist financing may not involve the proceeds of criminal conduct, but rather an attempt to conceal either the origin of the funds or their intended use, which could be for criminal purposes.
Legitimate sources of funds are a key difference between terrorist financiers and traditional criminal organisations.
In addition to charitable donations, legitimate sources include foreign government sponsors, business ownership and personal employment.
Although the motivation differs between traditional money launderers and terrorist financiers, the actual methods used to fund terrorist operations can be the same as or similar to methods used by other criminals to launder funds.
Funding for terrorist attacks does not always require large sums of money and the associated transactions may not be complex.
Our AML/CFT policies, procedures and internal controls are designed to ensure compliance with all applicable regulations and will be reviewed and updated on a regular basis to ensure appropriate policies, procedures and internal controls are in place to account for both changes in regulations and changes in our business.
LSNI Solutions Inc. has a designated Money Laundering Reporting Officer (“MLRO”).
The MLRO has full responsibility for the LSNI Solutions Inc. AML/CFT program.
The duties of the MLRO will include monitoring LSNI Solutions Inc. compliance with AML/CFT obligations, overseeing communication and training for employees and overseeing LSNI Solutions Inc. software modifications to ensure they comply with AML/CFT obligations.
The MLRO will also ensure that LSNI Solutions Inc. keeps and maintains all of the required AML/CFT records and will ensure that any Suspicious Transaction Reports (“STR”) generated by LSNI Solutions Inc. software are filed with the ANTI MONEY LAUNDERING OFFICE when appropriate.
The MLRO is vested with full responsibility and authority to enforce LSNI Solutions Inc. AML/CFT program.
LSNI Solutions Inc. will provide the company administrators, company secretary and associated financial institutions with contact information for the MLRO, including:
(3) mailing address;
(4) email address; and
(5) telephone number.
LSNI Solutions Inc. will promptly notify all parties of any change in this information and will review, and if necessary update, this information within 30 business days after the end of each calendar year.
The annual review of this information will be conducted by the MLRO and will be completed with all necessary updates being provided no later than 30 business days following the end of each calendar year.
In addition, if there is any change to the information, the MLRO will update the information promptly, but in any event not later than 30 days following the change.
We will respond to a request (“Request”) concerning accounts and transactions by immediately searching our records to determine whether we maintain or have maintained any account for, or have engaged in any transaction with, each individual, entity or organisation named in the Request.
We will designate one or more persons to be the point of contact (POC) for Requests and will promptly update the POC information following any change in such information. (See Section 2 above regarding updating of contact information for the MLRO.)
Unless otherwise stated in the Request, we are required to search our files for each individual, entity or organisation named in the Request.
If we find a match, the MLRO will consider any appropriate action.
If the search parameters differ from searching through our entire database, for example, if limits to a geographic location apply, the MLRO will structure our search accordingly.
If the MLRO searches our records and does not find a matching account or transaction, then the MLRO will not reply to the Request.
We will maintain a register of Money Laundering and Financing of Terrorism Enquiries together with documentation that we have performed the required search by saving the logs, which will at all times be available on request.
We will not disclose the fact that the authorities have requested or obtained information from us, except to the extent necessary to comply with the Request.
The MLRO will review, maintain and implement procedures to protect the security and confidentiality of requests from the authorities with regard to the protection of customers’ non-public information.
We will direct any questions we have about the Request to the authorities.
Unless otherwise stated in the Request, we will not be required to treat the information request as continuing in nature, and we will not be required to treat the Request as a government provided list of suspected terrorists for purposes of the customer identification and verification requirements.
We will collect sufficient information from each customer who has opened an account to enable the customer to be identified;
Utilise risk-based measures to verify the identity of each customer who has opened an account;
Record CDD information and the verification methods and results;
Provide the required adequate CDD 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.
A . REQUIRED CUSTOMER INFORMATION
After opening an account, LSNI Solutions Inc. will collect the following information for all accounts, if applicable, for any person, entity or organisation that is opening a new account and whose name is on the account prior to activating the account for deposits and withdrawals of FIAT currencies (deposits, trading and withdrawing digital currencies does not require CDD verification): the name, nationality and other necessary information.
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, LSNI Solutions Inc. will deactivate the account and, after considering the risks involved, consider closing any existing account.
In either case, our MLRO will be notified so that we can determine whether we should report the situation to the authorities.
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, but in any case complying with the statutory requirements.
The MLRO 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, postcode, email, telephone number, date of birth and photographic ID, 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
– Certified proof of identity (passport copy or provisional or full driving licence or Government issued National Identity Card (picture page is sufficient))
– Certified proof of residential address (utility bill* less than 3 months old or bank statement)*Electricity, gas, water, phone bill (not mobile phone)
For a Corporation
– Certificate of Incorporation
– Memorandum and articles of Association
– Identify the Beneficial Owner
– For at least 2 directors of a Corporation – proof of identity and proof of residential address
All of the above documents should be certified by a lawyer, accountant, notary public or Consular Official at a British Embassy or Consulate.
The certifier must sign and date the copy document (printing his/her name clearly in capitals underneath) and clearly indicate his/her position or capacity on it and provide his contact details.
The certifier must state that it is a true copy of the original.
Any non-English documentation requires translation and certification as above.
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:
– Confirming validity of email
– Confirming validity of telephone number
We will verify the information within a reasonable time 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 LSNI Solutions Inc. MLRO, report the activity in accordance with applicable laws and regulations.
We recognize that the risk that we may not know the customer’s true identity may be heightened for certain types of accounts, such as an account opened in the name of a corporation, partnership or trust that is created or conducts substantial business in a jurisdiction that has been designated as a primary money laundering jurisdiction, a terrorist concern, or has been designated as a non-cooperative country or territory.
We will identify customers that pose a heightened risk of not being properly identified.
We will also take the following additional measures that may be used to obtain information about the identity of the individuals associated with the customer when standard documentary methods prove to be insufficient:
1. Obtain verification of beneficial owners of corporations
2. Obtain additional references from financial institutions
D . LACK OF VERIFICATION
When we cannot form a reasonable belief that we know the true identity of a customer, we will do the following:
(1) deactivate the account or keep it in deactivated status;
(2) close an account after attempts to verify customer’s identity fail; and
(3) determine whether it is necessary to inform the FINTRAC in accordance with applicable laws and regulations.
We will keep logs of 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 logs 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.
F . COMPARISON WITH GOVERNMENT-PROVIDED LISTS OF TERRORISTS
At such time as we receive notice that the authorities have issued a list of known or suspected terrorists and identified the list as a list for CDD purposes, we will, within a reasonable period of time after an account is opened (or earlier, if required by another law or regulation or directive issued in connection with an applicable list), determine whether a customer appears on any such list of known or suspected terrorists or terrorist organizations issued by any government agency and designated as such by the authorities in consultation with the functional regulators. We will follow all directives issued in connection with such lists.
G . NOTICE TO CUSTOMERS
We will provide notice to customers that LSNI Solutions Inc. is requesting information from them to verify their identities, as required by law.
We will use the following method to provide notice to customers:
Inform them by email and through LSNI Solutions Inc. software when the customer wants to activate their account for depositing and withdrawing FIAT currencies, by using the following text:
Important Information About Procedures for Activating a New Account
§ To help the government fight the funding of terrorism and money laundering activities, LSNI Solutions Inc. is required to obtain, verify, and record information that identifies each person who opens an account and wishes to deposit and withdraw FIAT currencies.
§ What this means for you: When you would like to deposit and withdraw FIAT currencies, we will ask for your name, address, date of birth and other information that will allow us to identify you.
We will also ask to see photographic proof of your identification and proof of address.
H . RELIANCE ON ANOTHER FINANCIAL INSTITUTION FOR IDENTITY VERIFICATION
We may, under the following circumstances, rely on the performance by another party (including an affiliate) of some or all of the elements of our CDD with respect to any customer that is opening an account or has established an account or similar business relationship with the other party to provide or engage in services, dealings or other financial transactions:
– when such reliance is reasonable under the circumstances;
– when the other party has entered into a contract with LSNI Solutions Inc. requiring it to certify annually to us that it has implemented its antimoney laundering and counter terrorist financing program and that it will perform (or its agent will perform) specified requirements of the CDD program.
People who have opened an account need to provide their full contact details, prior to being allowed to deposit, exchange and withdraw currencies.
This is known as Level one clearance, which allows deposits and withdrawals of USD/CAD 100 a day and USD/CAD 1,000 a month.
Level 2 clearance allows for USD/CAD 1,000 a day in deposits and withdrawals and USD/ CAD 5,000 a month and for this a scanned copy of photographic ID and proof of address as explained in clause 5 is required.
Level 3 clearance allows for unlimited deposits and withdrawals and for this we will need original certified photographic ID and proof of address in our possession.
It is important to our AML and KYC reporting program that we obtain sufficient information about each customer to allow us to evaluate the risk presented by that customer and to detect and report suspicious activity.
When we open an account for a customer, the due diligence we perform may need to be enhanced.
For each account meeting the following criteria and which could be deemed to be higher risk:
– Corporations in off shore jurisdiction;
– Individuals from high risk countries; and
– CDD documentation of questionable origin;
We will take steps to obtain sufficient customer information to comply with our enhanced due diligence requirements. Such information should include:
– Identification of beneficial owners of corporations
– Reference from a financial institution
– Proof of source of funds
We do not open or maintain private banking accounts.
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. (Red flags are identified in Section 7.b. below.)
The MLRO 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.
The MLRO or his or her designee will conduct an appropriate investigation and review relevant information from internal or third-party sources before the authorities are notified.
a. Emergency Notification to Law Enforcement by Telephone
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.
b. Red Flags
Red flags that signal possible money laundering or terrorist financing include, but are not limited to:
Customers – Insufficient or Suspicious Information
– Provides unusual or suspicious identification documents that cannot be readily verified.
– Reluctant to provide complete information about nature and purpose of business, prior banking relationships, anticipated account activity, officers and directors or business location.
– Refuses to identify a legitimate source for funds or information is false, misleading or substantially incorrect.
– Background is questionable or differs from expectations based on business activities.
– Customer with no discernible reason for using LSNI Solutions Inc. service.
Efforts to Avoid Reporting and Recordkeeping
– Reluctant to provide information needed to file reports or fails to proceed with transaction.
– Tries to persuade an employee not to file required reports or not to maintain required records.
– “Structures” deposits, withdrawals or purchase of monetary instruments below a certain amount to avoid reporting or recordkeeping requirements.
– Unusual concern with LSNI Solutions Inc. compliance with government reporting requirements and LSNI Solutions Inc. AML/CFT policies.
Certain Funds Transfer Activities
– Wire transfers to/from financial secrecy havens or high-risk geographic location without an apparent business reason.
– Many small, incoming wire transfers or deposits made using checks and money orders. Almost immediately withdrawn or wired out in manner inconsistent with customer’s business or history. May indicate a Ponzi scheme.
– Wire activity that is unexplained, repetitive, unusually large or shows unusual patterns or with no apparent business purpose.
Activity Inconsistent With Business
– Transactions patterns show a sudden change inconsistent with normal activities.
– Unusual transfers of funds or journal entries among accounts without any apparent business purpose.
– Maintains multiple accounts, or maintains accounts in the names of family members or corporate entities with no apparent business or other purpose.
– Appears to be acting as an agent for an undisclosed principal, but is reluctant to provide information.
Other Suspicious Customer Activity
– Unexplained high level of account activity with very low levels of securities transactions.
– Funds deposits for purchase of a long-term investment followed shortly by a request to liquidate the position and transfer the proceeds out of the account.
– Law enforcement requests.
c. Responding to Red Flags and Suspicious Activity
When an employee of LSNI Solutions Inc. detects any red flag, or other activity that may be suspicious, he or she will notify the MLRO.
Under the direction of the MLRO, LSNI Solutions Inc. will determine whether or not and how to further investigate the matter.
This may include gathering additional information internally or from third-party sources, contacting the government, freezing the account and/or informing the authorities.
a. Filing a report with the FINTRAC
We will file a report with the authorities for any transactions (including deposits and transfers) conducted or attempted by, at or through LSNI Solutions Inc. involving USD/CAD 10,000 or more of funds (either individually or in the aggregate) where we know, suspect or have reason to suspect:
(1) the transaction involves funds derived from illegal activity or is intended or conducted in order to hide or disguise funds or assets derived from illegal activity as part of a plan to violate or evade law or regulation or to avoid any transaction reporting requirement under law or regulation;
(2) the transaction is designed, whether through structuring or otherwise, to evade any requirements of the regulations;
(3) the transaction has no business or apparent lawful purpose or is not the sort in which the customer would normally be expected to engage, and after examining the background, possible purpose of the transaction and other facts, we know of no reasonable explanation for the transaction; or
(4) the transaction involves the use of LSNI Solutions Inc. to facilitate criminal activity.
We will also file a report and notify the appropriate law enforcement authority in situations involving violations that require immediate attention, such as terrorist financing or ongoing money laundering schemes.
We may file a voluntary report for any suspicious transaction that we believe is relevant to the possible violation of any law or regulation but that is not required to be reported by us. It is our policy that all suspicious activities will be reported regularly to the Board of Directors and appropriate senior management.
b. Currency Transaction Reports LSNI Solutions Inc. only allows FIAT currency transactions once accounts are activated. Any transfers over USD/CAD 10,000 may be reported to the authorities.
c. Currency Transportation
LSNI Solutions Inc. prohibits both the receipt of currency or other monetary instruments that have been transported, mailed or shipped to us.
LSNI Solutions Inc. only accepts currency transactions through financial institutions and internationally recognized payment platforms.
d. Monetary Instrument Purchases
We do not issue bank checks or drafts, cashier’s checks, money orders or traveler’s checks in the amount of $3,000 or more.
a. Responsibility for Required AML Records
Our MLRO and his or her designee will be responsible for ensuring that AML/CFT records are maintained properly.
In addition, as part of our AML/CFT program, LSNI Solutions Inc. will create and maintain all relevant documentation on customer identity and verification (See Section 4 above) and funds transmittals.
We will maintain all documentation for at least five years.
b. AML/CFT Reporting Maintenance and Confidentiality
We will hold reports and any supporting documentation confidential.
We will not inform anyone outside of the authorities or other appropriate law enforcement or regulatory agency about a report.
We will segregate report filings and copies of supporting documentation from other firm books and records to avoid disclosing information. Our MLRO will handle all requests for reports.
We may share information with another financial institution about suspicious transactions in order to determine whether we will jointly file a report according to the rules and regulations of the authorities.
In cases in which we file a joint report for a transaction that has been handled both by us and another financial institution, both financial institutions will maintain a copy of the filed report.
c. Additional Records
We shall retain either the original or a microfilm or other copy or reproduction of each of the following:
– A record of each advice, request or instruction received or given regarding any transaction resulting (or intended to result and later cancelled if such a record is normally made) in the transfer of currency or other monetary instruments, funds of more than USD/CAD 10,000;
– A record of each advice, request or instruction given to another financial institution (which includes broker-dealers) or other person, regarding a transaction intended to result in the transfer of funds, or of currency, other monetary instruments, of more than USD/CAD 10,000;
– Each document granting signature or trading authority over each customer’s account;
– A record of each remittance or transfer of funds, or of currency of more than USD/CAD 10,000 to a person, account or place; and
– A record of each receipt of currency and of each transfer of funds of more than USD/CAD 10,000 received on any one occasion directly and not through a domestic financial institution, from any person, account or place.
We will work closely with all collaborating institutions to detect money laundering. We will exchange information, records and data as necessary to comply with AML/CFT laws.
We will develop ongoing employee training under the leadership of the MLRO and senior management. Our training will occur on at least an annual basis.
It will be based on our firm’s size, its customer base, and its resources and be updated as necessary to reflect any new developments in the law.
Our training will include, at a minimum:
(1) how to identify red flags and signs of money laundering and/or the financing of terrorism that arise during the course of the employees’ duties;
(2) what to do once the risk is identified (including how, when and to whom to escalate unusual customer activity or other red flags for analysis and, where appropriate, the filing of reports to the authorities;
(3) what employees’ roles are in LSNI Solutions Inc. compliance efforts and how to perform them;
(4) LSNI Solutions Inc. record retention policy; and
(5) the disciplinary consequences (including civil and criminal penalties) for non-compliance with the FINTRAC regulations. We will develop training in our firm, or contract for it.
Delivery of the training may include educational pamphlets, videos, intranet systems, in-person lectures and explanatory memos.
We will maintain records to show the persons trained, the dates of training and the subject matter of their training.
We will review our operations to see if certain employees, such as those in compliance, margin and corporate security, require specialized additional training. Our written procedures will be updated to reflect any such changes.
The testing of our AML/CFT program will be performed at least annually (on a calendar year basis) by the testing officer, personnel of LSNI Solutions Inc., who is not the MLRO nor does he perform the AML/CFT functions being tested nor does he report to any such persons.
His qualifications include a working knowledge of applicable requirements under the FINTRAC rules and regulations.
To ensure that he remains independent, we will separate his functions from other AML/CFT activities.
Independent testing will be performed more frequently if circumstances warrant.
b. Evaluation and Reporting
After we have completed the independent testing, staff will report its findings to an internal audit committee.
We will promptly address each of the resulting recommendations and keep a record of how each noted deficiency was resolved.
We will subject employee accounts to the same AML/CFT procedures as customer accounts, under the supervision of the MLRO. We will also review the AML/CFT performance of supervisors, as part of their annual performance review. The MLRO’s accounts will be reviewed by the testing officer.
Employees will promptly report any potential violations of LSNI Solutions Inc. AML/CFT compliance program to the MLRO, unless the violations implicate the MLRO, in which case the employee shall report to the testing officer.
Such reports will be confidential, and the employee will suffer no retaliation for making them.
LSNI Solutions Inc. has reviewed all areas of its business to identify potential money laundering and/or financing of terrorism risks that may not be covered in the procedures described above. The major additional areas of risk include future changes to regulations and hacking attempts on LSNI Solutions Inc. servers.
Additional procedures to address these major risks are maintaining constant contact with the FINTRAC and performing daily security checks on LSNI Solutions Inc. server security procedures, performed by a dedicated server security specialist.
Senior management has approved this AML/CFT compliance program in writing as reasonably designed to achieve and monitor our firm’s ongoing compliance with the requirements of the FINTRAC and the implementing regulations under it.
This approval is indicated by the companies owners.