§ 1. Meaning of the document

• (1)
  For the purpose of preventing the risk related to legalization of funds from criminal activities and financing of terrorism, the company Finexeble s.r.o. applies the system of internal rules and measures.
• (2)
  In a simplified way: legalization of revenues from criminal activities (in laic terms: „money laundering“) means an activity when a customer uses the services of the company Finexeble s.r.o. for covering lilegal origin of his property or to make its back tracking difficult. Simliar rules as those applied in Finexeble s.r.o. are binding for simliar types of business in the Czech Republic as well as in other countries, because money laundering and terrorism financing is nearly always performed on international level.
• (3)
  The company Finexeble s.r.o. regularly checks whether a customer is subject to international sanctions or not, respectively fulfliment of other procedures as described here below.

§ 2. AML Act

• (1)
  For the purposes of this document, the AML act means Act No. 253/2008 Coll. on some measures against legalization of revenues from criminal activities and terrorism financing, as amended.

§ 3. Legalization of revenues from criminal activities

• (1)
  According to the AML act, legalization of revenues from criminal activities means activities that are to cover lilegal origin of any economic benefit emerging from criminal activities with the aim of establishing an appearance that the property benefits were obtained in compliance with law; the above stated activities include for example:

  • (a)
    change or transfer of property whlie knowing that it originates from criminal activities for the purpose of its secrecy or hiding its origin or with the purpose of helping a person participating in such lilegal activities to avoid legal consequences of his behaviour,
  • (b)
    keeping secret or hiding the real character, source, movement of property or its handling or change of rights related to property whlie knowing that it originates from criminal activities,
  • (c)
    obtaining, keeping, using the property or its handling whlie knowing that it originates from criminal activities, or
  • (d)
    criminal conspiracy of persons or any other form of unification with the purpose of activities specified in previous points.

§ 4. Terrorism Financing

• (1)
  According to the AML act, terrorism financing includes:

  • (a)
    collection or provision of financial means or other property whlie knowing that it wlil be used – even partially – for committing a crime of terror, terrorist attack or a criminal act that should allow or assist in committing of such a criminal act or that should support a person or a group of persons preparing for committing such a criminal act, or
  • (b)
    behaviour leading to provision of remuneration or compensation of an offender of a criminal act of terror, terrorist attack or a criminal act that should allow or help in such a criminal act commitment, or persons close to the offender according to penal law, or collection of means for such a remuneration or compensation.
• (2)
  Terrorism financing also means financing of mass destruction weapons distribution, i.e., collection or provision of financial means or any other property whlie knowing that it wlil be used – even partially – by the distributor of mass destruction weapons or for such weapons distribution in contradiction with international law requirements.

§ 5. Obliged person

• (1)
  According to the AML Act, an obliged person means the company Finexeble s.r.o., with its registered seat in Cimburkova 916/8, Žižkov, 130 00 Praha, company ID: 193 00 735 for activities of providing of services related to a Virtual assets.

§ 6. Customer

• (1)
  For the purposes of this document, a customer means any natural person or legal entity:

  • (a)
    which the company Finexeble s.r.o. established business relation with, or
  • (b)
    which started negotiations with Finexeble s.r.o. on business relation establishment (i.e., it showed interest in a business relation establishment), or
  • (c)
    which the company Finexeble s.r.o. already finished business relations with
  • (d)
    which becomes a virtual assets service user of the company Finexeble s.r.o.
  • (e)
    a person being an agent of services of another customer (e.g., it is entitled – on the basis of a power of attorney that the company must keep – to issue Virtual assets).
• (2)
  It is not decisive whether it is a natural person or a legal entity carrying business or not. In case of a legal entity, it is supposed that one concrete natural person always acts on behalf of it (e.g., a member of the statutory authority, an employee, etc.).

§ 7. Virtual Assets Service

• (1)
  For the purpose of this document, the virtual assets service means any handling of customer’s property or provision of a service to a customer as mentioned in §4(8) of AML Act, and contain next services:

  • (a)
    Virtual assets wallet service:

    • (i)
      means a service in the framework of which keys are generated for customers or customers’ encrypted keys are kept, which can be used for the purpose of keeping, storing and transferring virtual assets;
  • (a)
    Virtual assets exchange service

    • (i)
      means a service with the help of which a person exchanges virtual assets against a fiat currency or a fiat currency against virtual assets or virtual assets against another virtual assets;
  • (c)
    which is not contained in previous point, but it is directly connected with such an activity.

  According to §4(9) of AML Act, virtual asset means an electronically storable or transferable unit that is:

  • a security, an investment instrument, or a monetary instrument under the Act on Payments,
  • an entity referred to in Section 3(3)(c)(4) to (7) of the Act on Payments, or
  • a unit by which a payment is made pursuant to Section 3(3)(e) of the Act on Payments, or

  a unit referred to in point (a)(ii) and which can ultimately be used to pay only for a narrowly defined range of goods or services which includes an electronically storable or transferable unit referred to in point (a).
• (2)
  A virtual assets service also means any service provided without appropriate authorization, registration or license, even though it would be in contradiction with law.

§ 8. Business relation

• (1)
  A business relation means a contractual relation by and between the customer and the company Finexeble s.r.o., by frame contract, based on which the customer is provided with virtual assets service. Customer’s instruction
• (2)
  Customer’s instruction means any instruction issued by the customer or by a person authorized to act in this matter on customer’s account, requiring for the company Finexeble s.r.o. to provide a virtual assets service or to make another act within the scope of the virtual assets service provided, e.g., a Virtual asset order. The instruction can be given electronically, by phone, personally or in any other way.

§ 9. Staff setting

• (1)
  The obligations set out in this document apply to certain groups of employees - in particular the employees, the AML officer and the responsible person. They also apply to any person who may encounter a suspicious transaction (Chapters IV1. – IV.3) or perform any of the activities described in this document, as well as other persons. All of these people may potentially encounter trade suspected of attempting ML-FT.
• (2)
  It is irrelevant whether it is a direct employee or a work performed on the basis of another relationship or without any relationship (even as a free aid).
• (3)
  Unless the company Finexeble s.r.o. is capable of ensuring the full and error-free performance of its obligations under this document and the Risk Assessment, it must reduce or even suspend virtual assets service activity until such a defect ceases, unless this is in conflict with the obligations under the legal regulations. This is the case, for example, in the event of a sudden failure of employees and replacement by temporary under-experienced assistance. Thus, ML-FT prevention activities must at all times be adequately staffed (both qualitatively and quantitatively). Responsibility for meeting this obligation lies with the responsible person.
• (4)
  Furthermore, the responsible person is responsible for selecting the persons who are bound by this document. The responsible person shall always verify that the employee is able to fulfil the obligations laid down in this document before recruiting a new employee for the position concerned by this document or before transferring an existing employee to that position. These abilities / skills include:

  • (a)
    sufficient language and professional communication skills of the employee to handle communication with a typical customer
  • (b)
    sufficient employee awareness of the management and ownership structures of the customer, which is a legal entity, so that he / she can perform his / her duties perfectly for this type of customer
  • (c)
    sufficient computer skills and software that is used to enable the employee to make full use of these resources to fulfil their duties
  • (d)
    sufficient knowledge of all procedures set out in this document and the Employee Risk Assessment achieved by the training under Chapter V.3, which must be carried out no later than the first act mentioned in this document or the Risk Assessment.

§ 10. Employee

• (1)
  For the purposes of this document, an employee means any person who is – in the course of fulfilment of its work tasks – in the name of the company Finexeble s.r.o.:

  • (a)
    authorized to negotiate regarding establishment of a business relation with a potential customer, or
  • (b)
    authorized to establish business relation with a customer, or
  • (c)
    negotiates with the customer on provision of virtual assets service or receives customer’s instructions, or
  • (d)
    performs individual acts in provision of virtual assets service to a customer (even partial ones), or
  • (e)
    participates in any way in negotiations with a customer or in activities connected with provision of virtual assets service.
• (2)
  An employee is a direct employee as well as a person performing such activities on the basis of another relation than the employment contract, including a negotiator.
• (3)
  An employee is also a person who is not an employee at the present moment, but he/she was authorised (even though just temporarily) to perform an activity, the realisation of which is set to an employee by this document.

§ 11. Personal related to the Customer

• (1)
  For the purposes of this document, persons related to customers mean all and any of the following persons (natural persons or legal entities):

  • (a)
    statutory authority of the customer or a member of it
  • (b)
    beneficial owner or controlling person of the customer
  • (c)
    a person authorised to negotiate with the company Finexeble s.r.o. on behalf of the customer
  • (d)
    a person authorised by the customer to make business (to enter virtual asset orders).

§ 12. AML officer

• (1)
  A person identified in this document as an AML officer means a person authorised to arrange compliance of business activities of the company Finexeble s.r.o. with legal regulations in the field of avoidance of proceeds from criminal activities, terrorism financing and application of international sanctions. It concerns mainly arrangement of compliance with the following regulations:

  • (a)
    AML Act
  • (b)
    Act No. 69/2006 Coll. on realisation of international sanctions
  • (c)
    Regulation No. 67/2018 Coll. on selected requirements towards system of internal regulations, procedures and control measures against legalization of proceeds from crime and financing of terrorism
  • (d)
    approved AML standards communicated by the Czech National Bank.
• (2)
  Generally, it is supposed that the AML officer is a person directly governing an employee, authorized to establish business relation or negotiations in the matter of virtual assets service provision.
• (3)
  The person appointed in the company Finexeble s.r.o. and authorised to execute the position of an AML officer is specified in Annex No. 2.

§ 13. Responsible person

• (1)
  The responsible person of the obliged person means – for the purposes of this document – any member of the statutory authority of the obliged person.

§ 14. Virtual assets service value

• (1)
  (1) For the purposes of this document the virtual assets service value value means the general value of property being a subject of the virtual assets service.

§ 15. Conversion of sums

• (1)
  For the purposes of this document, the sum which is set in Euro (EUR) means an equal value in any currency converted based on the exchange rate announced by the Czech National Bank and valid for the day. If the exchange rate is not available that day yet, the exchange rate for the previous day applies. For current Exchange rates list of the Czech National Bank see https://www.cnb.cz/cs/financni-trhy/devizovy-trh/kurzy-devizoveho-trhu/kurzy-devizoveho-trhu/.

§ 16. Binding force for third persons

• (1)
  The procedures set forth in this document are also binding on persons acting in the performance of virtual assets service or in establishing business relationships on behalf of or for the account of the company Finexeble s.r.o. mainly for authorized representatives (hereinafter referred to as “representative”).

§ 17. Politically Exposed Person – definition

• (1)
  According to the AML Act, a Politically Exposed Person („PEP“) means a natural person who is or was in an important public function with regional, national or even higher importance, for example:

  • (a)
    chief representative of municipal authorities – major of a town or village, chief magistrate, region commissioner,
  • (b)
    chief representative of municipal authorities for a foreign country with federative organization – chief representative of country authorities, members of country government and parliament, etc.,
  • (c)
    head of state, prime minister, head of central authority of state administration (e.g., a minister) and his/her representative (deputy minister or secretary of state),
  • (d)
    member of the Parliament, member of the control authority of a political party,
  • (e)
    judge of the supreme court, constitution court or another supreme judicial authority,
  • (f)
    member of the banking council of a central bank,
  • (g)
    high officer of armed forces,
  • (h)
    member of the statutory authority or representative of a member (in case of a legal person to be a member of the statutory authority) of a business corporation controlled by state,
  • (i)
    ambassador or head of a diplomatic mission,
  • (j)
    or a natural person performing or having performed any similar function in another country, EU authority or in an international organization.
• (2)
  A PEP is also considered to be a person close to the above stated person, mainly:

  • (a)
    relatives in direct line – parents, grandparents, etc., children, grandchildren, grand grandchildren, etc.
  • (b)
    siblings, wife, husband, partner
  • (c)
    relatives of wife, husband, partner – son in law, daughter in law, father in law, mother in law
  • (d)
    a person who lives with him/her on permanent basis
  • (e)
    a person in family relation or similar relation to him/her, in case of any detriment suffered by one person to be justifiably considered as own detriment by the other person.
• (3)
  A PEP is also considered to be a person from the "business surroundings", being

  • (a)
    a partner or beneficial owner of the same legal entity or trust fund as the person in the first paragraph,
  • (b)
    known by the obligated person to be in close business relation with the person as per the first paragraph; that means material inter-relations within the scope of business activities, when the success or detriment of one person could be justifiably considered to be own benefit or detriment by the other person,
  • (c)
    a beneficial owner of a legal entity or trust fund, which is the obligated person aware of the fact that they were developed in favor of the person specified in the first paragraph.

§ 18. Beneficial owner of a legal entity

• (1)
  According to the AML Act, a beneficial owner means a natural person with factual or legal possibility of direct or indirect application of decisive influence in a legal entity, in a fiduciary fund or in any other legal organisation without legal personality. It is supposed that in case of fulfilment of conditions contained in previous sentence, the following person is a beneficial owner:

  • (a)
    In case of a business corporation (usually a limited liability company, a joint stock company, etc.), the beneficial owner is a natural person who:

    • (i)
      independently or together with persons acting in compliance manages more than 25 % of voting rights of the business corporation or has a share in basic capital above 25 %, or
    • (ii)
      independently or together with persons acting in compliance controls the person specified in previous point, or
    • (iii)
      is a recipient of at least 25 % of profits of the business corporation, or
    • (iv)
      is a member of the statutory authority, representative of a legal person in the authority or in the position similar to the position of a statutory authority member, if he is not a beneficial owner or if it is not possible to set him according to previous points.
  • (b)
    In case of an association, a non-profit organization, association of unit owners, church, religious association or any other legal entity according to the act dealing with position of churches and religious associations, the beneficial owner is a natural person:

    • (i)
      who manages more than 25 % of its voting rights, or
    • (ii)
      who is recipient of at least 25 % of the means distributed by it, or
    • (iii)
      who is a member of the statutory authority, representative of a legal person in the authority or in the position similar to the position of a statutory authority member, if he is not a beneficial owner or if it is not possible to set him according to previous points.
  • (c)
    In case of foundation, institution, endowment fund, trust fund or any other legal organization without legal personality a natural person or a beneficial owner of a legal entity, the beneficial owner is a person being in position of:

    • (i)
      a founder, and then
    • (ii)
      trustee, and then
    • (iii)
      beneficiary, and then
    • (iv)
      a person, in the interest of whom there was established or works the foundation, institution, endowment fund, trust fund or any other legal organization without legal personality, unless the fiduciary is appointed, and then
    • (v)
      persons entitled to perform supervision over the administration of the foundation, institution, endowment fund, trust fund or any other legal organization without legal personality.

§ 19. Controlling person

• (1)
  According to Section 74 et conseq. Act No. 90/2012 Coll., on Commercial Companies and Cooperatives (Business Corporations Act), a controlling person means a natural person or legal entity who may directly or indirectly apply decisive influence in a business corporation. The indirect corporation means the influence executed through another person or other persons.
• (2)
  The controlling person(s) is/are:

  • (a)
    always a person who is a majority owner, unless specified otherwise in the points below, and then
  • (b)
    always a person who is a controlling person of the concern (Section 79 Act No. 90/2012 Coll.), and then
  • (c)
    a person who may appoint or remove most of the persons being members of the statutory authorities of the business corporation or persons in similar position or members of a control authority of the business corporation, which he/she is a partner of, or he/she may push such an appointment, or
  • (d)
    the person who manages the share in voting rights representing at least 40 % of all the votes in the business corporation, unless the same or higher share is managed by another person or persons, acting in conformity, or
  • (e)
    persons acting in conformity, who jointly manage a share in voting rights representing at least 40 % of all the votes in the business corporation unless the same or higher share is managed by another person or persons, acting in conformity, or
  • (f)
    a person who independently or together with other persons, acting in conformity, obtains a share in voting rights representing at least 30 % of all the votes in the business corporation and the share represented more than one half of voting rights of present persons during 3 recent consequent meetings of the supreme authority of the person.

§ 20. Procedure before business relation establishment

• (1)
  The employee authorized to negotiate the business relation establishment with the customer:

  • (a)
    establishes a file (as a physical and virtual space) to keep all necessary information
  • (b)
    performs the initial identification of the customer
  • (c)
    performs the first check of the customer
  • (d)
    sets up the risk profile of the customer
  • (e)
    provides this information to the AML officer, who assesses customer's risk profile, in particular if it is of type B, C, D or even E.
• (2)
  If it is proved that the customer is a PEP, the establishment of the business relation must be approved by the statutory authority of the company Finexeble s.r.o. (including the case when the customer is a legal entity, towards which obligations are applied as well as towards the PEP).

§ 21. Persons authorised to act on customer’s behalf in the matter of business relation establishment

• (1)
  Only a customer is entitled to act in the matter of a business relation establishment (i.e., the customer himself or his statutory authority or member of the statutory authority) or a person authorised by the customer to do so, customer’s statutory representative or guardian.
• (2)
  The authorization is proved by a power of attorney with legalised signature of the donor or by its legalised copy, containing identification data of the donor of power and the deputy and also the extent in which the deputy may act on behalf of the donor of the power. Original copies of the power of attorney or its legalised copy must be maintained.
• (3)
  Statutory representation is proved by a deed indicating it – for example a certificate of birth of a child, represented by a parent. In case of a different statutory representative or guardian the right to represent a customer is proved by a court resolution. The company does not have to keep such documents – in case of a court resolution it must only record the file number.

§ 22. When the customer conceals acting on behalf of a third person

• (1)
  In case of an employee to suspect for the customer not to act on his own behalf while negotiating on business relation establishment (i.e., that the purpose of the business relation is to provide services to a different person but the customer) or that he conceals that he acts on behalf of a third person, the employee refuses to establish the business relation.

§ 23. Simplified identification and check of the customer

• (1)
  The AML act sets a group of persons generally considered to be of a low risk due to supervision executed over them. In relation to such persons, the company Finexeble s.r.o. does not have to perform identification and checks using the procedures specified in Chapters II.2 and II.5.
• (1)
  It concerns the following persons:

  • (a)
    Clients without the national risk factors, and
  • (b)
    Clients who are not showing the factors for EDD.
• (2)
  National risk factors are as following

  • (a)
    Client risk factors:

    • (i)
      The business relationship is conducted under unusual circumstances,
    • (ii)
      the client is located in a geographic area of heightened risk as set out in point 3,
    • (iii)
      the legal entity or trust is a personal asset holding vehicle,
    • (iv)
      the client is a business corporation in which there may be authorized shareholders or partners or which issues shares in bearer form,
    • (v)
      the client uses cash extensively in its business activities,
    • (vi)
      the ownership structure of the client appears unusual or overly complex given the nature of its business,
    • (vii)
      the client is a beneficiary of a life insurance policy,
    • (viii)
      the client's business involves increased risk.
  • (b)
    Factors relating to products, services, transactions or distribution channels:

    • (i)
      use of private banking services,
    • (ii)
      the use of products or transactions that could facilitate anonymity,
    • (iii)
      business relationships or transactions without the personal presence of the customer or the natural person acting on his behalf and without certain security measures such as electronic signatures,
    • (iv)
      incoming payments from unknown or unrelated third parties; or
    • (v)
      new products and new business practices, including new distribution systems, and the use of new or emerging technologies for new or existing products.
  • (c)
    Geographic risk factors:

    • (i)
      Countries that have been identified by European Union authorities or international institutions dealing with measures against money laundering, terrorist financing or proliferation of weapons of mass destruction as lacking effective systems to combat money laundering and terrorist financing or engaging in illicit proliferation of weapons of mass destruction,
    • (ii)
      countries that have been identified by credible sources as having significant levels of corruption or other criminal activity,
    • (iii)
      countries subject to sanctions, embargoes or similar restrictive measures imposed, for example, by the European Union or the United Nations; or
    • (iv)
      countries that provide funding or support for terrorist activities or in which identified terrorist organisations operate.
• (3)
  It is necessary to write a record about the whole checking procedure, clearly indicating also who, when and on the basis of what performed the checks. The record is maintained and kept as a part of documentation related to the customer or to the business relation.
• (4)
  Moreover, in the course of the business relation duration, the employee must periodically check whether there persist all the conditions for use of simplified verification and check of the customer. In case of any of the conditions to be broken, the customer is considered to be not allowed to be applied the simplified identification and check of customer and the procedures must be immediately performed before provision of any other services to the customer.
• (5)
  Application of the procedure of simplified identification and control / check does not affect other obligations set in this document, mainly the obligation of assessment whether the service provided to the customer does not indicate features of a suspect trade according to Chapter IV.1 List of features and suspect trades and their assessment.

  • a. Enhanced identification and check of the customer
    • (1)
      The AML act sets a group of factors that can mean a high risk of a client. In relation to such persons, the company Finexeble s.r.o. has to perform stronger identification and checks.
• (6)
  Enhanced identification and check should happen in the following cases:

  • (a)
    During establishment and during the course of a business relationship with a person established in a high-risk third country (as per FATF and EU lists that can be found in the Annex 5),
  • (b)
    prior to the execution of a transaction relating to a high-risk third country (as per FATF and EU lists that can be found in the Annex 5),
  • (c)
    prior to or when entering into a business relationship with a politically exposed person.
• (7)
  In enhanced identification and control, Finexeble s.r.o. shall, to the extent necessary to effectively manage the identified risk, go beyond the measures applied in client identification and control:

  • (a)
    obtain additional documents or information about:

    • (i)
      the beneficial owner,
    • (ii)
      the intended nature of the business relationship and
    • (iii)
      the source of the client's and beneficial owner's funds and other assets,
  • (b)
    verify the documents or information obtained from multiple credible sources,
  • (c)
    regularly and intensively monitor the business relationship and the transactions within the business relationship,
  • (d)
    obtain the consent of a member of its statutory body or the person authorised by it to manage the measures against money laundering and terrorist financing to enter into or continue the business relationship,
  • (e)
    requires the first payment under the business relationship or a trade outside the business relationship to be made from an account held in the name of the client with a credit institution or a foreign credit institution which is subject to customer identification and control requirements at least equivalent to those of European Union law, or
  • (f)
    implement other measures taking into account the nature of the obliged person, its activities and its own risk assessment.

§ 24. Initial identification procedure

• (1)
  The initial customer identification means the procedure, when the identity card (as specified here below) is used for check and recording of identification and other data of the customer (for specification see below).

• (2)
  The initial identification of a customer is performed by one of the following ways:

  • (a)
    so called „face to face“ – a personal meeting with the customer or with a person representing him/her
  • (b)
    so called „remote“ – the customer sends the documents and the customer is checked by the first payment without necessity of a personal meeting with the customer.
  • (c)
    so called “technical” – the customer sends the documents and is checked by video verification.

• (3)
  More, the initial identification of a customer always includes:

  • (a)
    establishment whether the customer is a PEP or not using the procedure according to Chapter II.3 and also
  • (b)
    establishment whether the Czech Republic applies international sanctions towards the customer according to Chapter II.4.

• (4)
  In case of the customer’s initial identification to be performed just earlier, it is not necessary to repeat the process. Identification of a natural person „face to face“

  • (1)
    The „face to face“ identification is performed in physical presence of the customer or a person that represents the customer in the course of the business relation establishment (in case of a customer – a legal entity). On the basis of the identity card presented, the employee checks „face to face“ the compliance of customer’s appearance (or the person representing the customer) with the image in the identity card and more, he/she checks and records identification data from the identity card.
  • (2)
    More, in case of a legal entity to be the customer, it is also necessary to perform identification of the legal entity and to find out whether the „face to face“ identified natural person is entitled to act on behalf of the customer, respectively let him/her prove it by a power of attorney.

§ 25. „Remote“ identification of a customer

• (1)
  An employee may perform identification even without physical presence of the customer who is a natural person or a natural person acting on behalf of the customer when establishing the business relation in case of the customer to be a legal entity (i.e.,, without presence of the person signing the contract). The procedure replaces identification of only the specific acting natural person and that is why it is necessary to make other steps in identification as usual (to establish PEP, to check sanctions, respectively to identify a legal entity, to check the right to act on behalf of the customer, etc.).

  • (1)
    If it is not possible to apply the complete procedure as specified here above or there are any doubts regarding real identity of the customer, the employee will not use the identification procedure and he will use some other method.

• (2)
  The identified natural person will send (by e-mail or by post) to the company Finexeble s.r.o. a copy or a scan or photo of two different types of IDs (belonging to the identified person; he follows the list of accepted identity cards), while:

  • (a)
    if it is an ID of the identification card type, the customer sends copies, scans or photos of the front and rear side of the card;
  • (b)
    if it is an ID of a plate type (i.e.,, a „booklet“), the customer will send a copy, scan or a photo of the identification spread respectively also of the page with require data (for example address of stay inside of the residence permit);
  • (c)
    the customer may hide the data that are not require for the identification performance (e.g., wife’s name, etc.);
  • (d)
    both of the IDs must clearly indicate not only the identification data, but also the type and number of the identity card, country and possibly the authority issuing it and the term of validity;
  • (e)
    the copy and the scan may be black-and-white, but there must not emerge any doubts regarding genuineness of the identity cards or the person’s identity.

• (3)
  More, the customer will send to the company Finexeble s.r.o. a proof, confirming existence of an account kept at the customer’s name in a bank or in a savings and loan co-operative or in a foreign bank or in a savings and loan co-operative operating in the territory of a member state of the European Economic Area, while:

  • (a)
    there is accepted a copy, scan, PDF file or a photograph containing the agreement on account keeping or customer’s account statement (that also means a common account of a married couple in case of the customer being a natural person)
  • (b)
    we do not accept images from Internet banking (so called „Print Screens“)
  • (c)
    the customer may hide the data that we do not require, but it must be always seen that the account is kept to customer’s name (i.e., in case of a legal person not to the name of the acting natural person, but beneficiary person in the name of the legal entity).

• (4)
  More, there must be arranged that the first payment from the contract concluded will be performed through the customer’s account from the previous point:

  • (a)
    the first payment means a payment from the customer of the company Finexeble s.r.o.; in such a case the sum of the payment is not significant
  • (b)
    a payment to the account is not supposed to be a cash deposit to the account or payment by a postal order
  • (c)
    the employee is obliged to supervise for the first payment to be done in compliance with the condition; if it is not done so or if the payment is not successfully performed (e.g., it returns back), it is necessary to immediately terminate services provision and perform the identification in a different way.

§ 25. „Remote“ identification of a customer

• (1)
  An employee may perform identification even without physical presence of the customer who is a natural person or a natural person acting on behalf of the customer when establishing the business relation in case of the customer to be a legal entity (i.e., without presence of the person signing the contract). The procedure replaces identification of only the specific acting natural person and that is why it is necessary to make other steps in identification as usual (to establish PEP, to check sanctions, respectively to identify a legal entity, to check the right to act on behalf of the customer, etc.).
• (1)
  If it is not possible to apply the complete procedure as specified here above or there are any doubts regarding real identity of the customer, the employee will not use the identification procedure and he will use some other method.
• (2)
  The identified natural person will send (by e-mail or by post) to the company Finexeble s.r.o. a copy or a scan or photo of two different types of IDs (belonging to the identified person; he follows the list of accepted identity cards), while:

  • (a)
    if it is an ID of the identification card type, the customer sends copies, scans or photos of the front and rear side of the card;
  • (b)
    if it is an ID of a plate type (i.e.,, a „booklet“), the customer will send a copy, scan or a photo of the identification spread respectively also of the page with require data (for example address of stay inside of the residence permit);
  • (c)
    the customer may hide the data that are not require for the identification performance (e.g., wife’s name, etc.);
  • (d)
    both of the IDs must clearly indicate not only the identification data, but also the type and number of the identity card, country and possibly the authority issuing it and the term of validity;
  • (e)
    the copy and the scan may be black-and-white, but there must not emerge any doubts regarding genuineness of the identity cards or the person’s identity.
• (3)
  More, the customer will send to the company Finexeble s.r.o. a proof, confirming existence of an account kept at the customer’s name in a bank or in a savings and loan co-operative or in a foreign bank or in a savings and loan co-operative operating in the territory of a member state of the European Economic Area, while:

  • (a)
    there is accepted a copy, scan, PDF file or a photograph containing the agreement on account keeping or customer’s account statement (that also means a common account of a married couple in case of the customer being a natural person)
  • (b)
    we do not accept images from Internet banking (so called „Print Screens“)
  • (c)
    the customer may hide the data that we do not require, but it must be always seen that the account is kept to customer’s name (i.e., in case of a legal person not to the name of the acting natural person, but beneficiary person in the name of the legal entity).
• (4)
  More, there must be arranged that the first payment from the contract concluded will be performed through the customer’s account from the previous point:

  • (a)
    the first payment means a payment from the customer of the company Finexeble s.r.o.; in such a case the sum of the payment is not significant
  • (b)
    a payment to the account is not supposed to be a cash deposit to the account or payment by a postal order
  • (c)
    the employee is obliged to supervise for the first payment to be done in compliance with the condition; if it is not done so or if the payment is not successfully performed (e.g., it returns back), it is necessary to immediately terminate services provision and perform the identification in a different way.
• (5)
  Except for the above stated conditions, the employee will assess – based on information available to Finexeble s.r.o. whether the customer, product or concrete business relation does not represent an elevated risk of abuse for legalization of proceeds from crimes or terrorism financing – otherwise he will not use this way of identification. He will also use risk assessment.

§ 26. „Technical“ identification of a customer

• (1)
  An employee may perform identification even without physical presence of the customer who is a natural person or a natural person acting on behalf of the customer when establishing the business relation in case of the customer to be a legal entity (i.e., without presence of the person signing the contract). The procedure replaces identification of only the specific acting natural person and that is why it is necessary to make other steps in identification as usual (to establish PEP, to check sanctions, respectively to identify a legal entity, to check the right to act on behalf of the customer, etc.).
• (2)
  If it is not possible to apply the complete procedure as specified here above or there are any doubts regarding real identity of the customer, the employee will not use the identification procedure and he will use some other method.
• (2)
  The identified natural person will send (by e-mail or by post) to the company Finexeble s.r.o. a copy or a scan or photo of two different types of IDs (belonging to the identified person; he follows the list of accepted identity cards), while:

  • (a)
    if it is an ID of the identification card type, the customer sends copies, scans or photos of the front and rear side of the card;
  • (b)
    if it is an ID of a plate type (i.e.,, a „booklet“), the customer will send a copy, scan or a photo of the identification spread respectively also of the page with require data (for example address of stay inside of the residence permit);
  • (c)
    the customer may hide the data that are not require for the identification performance (e.g., wife’s name, etc.);
  • (d)
    both of the IDs must clearly indicate not only the identification data, but also the type and number of the identity card, country and possibly the authority issuing it and the term of validity;
  • (e)
    the copy and the scan may be black-and-white, but there must not emerge any doubts regarding genuineness of the identity cards or the person’s identity.
• (3)
  More, the customer will send to the company Finexeble s.r.o. a proof, confirming existence of an account kept at the customer’s name in a bank or in a savings and loan co-operative or in a foreign bank or in a savings and loan co-operative operating in the territory of a member state of the European Economic Area, while:

  • (a)
    there is accepted a copy, scan, PDF file or a photograph containing the agreement on account keeping or customer’s account statement (that also means a common account of a married couple in case of the customer being a natural person)
  • (b)
    we do not accept images from Internet banking (so called „Print Screens“)
  • (c)
    the customer may hide the data that we do not require, but it must be always seen that the account is kept to customer’s name (i.e., in case of a legal person not to the name of the acting natural person, but beneficiary person in the name of the legal entity).
• (4)
  More, there must be arranged that the first payment from the contract concluded will be performed through the customer’s account from the previous point:

  • (a)
    the first payment means a payment from the customer of the company Finexeble s.r.o.; in such a case the sum of the payment is not significant
  • (b)
    a payment to the account is not supposed to be a cash deposit to the account or payment by a postal order
  • (c)
    the employee is obliged to supervise for the first payment to be done in compliance with the condition; if it is not done so or if the payment is not successfully performed (e.g., it returns back), it is necessary to immediately terminate services provision and perform the identification in a different way.
• (5)
  Except for the above stated conditions, the employee will assess – based on information available to Finexeble s.r.o. whether the customer, product or concrete business relation does not represent an elevated risk of abuse for legalization of proceeds from crimes or terrorism financing – otherwise he will not use this way of identification. He will also use risk assessment.

§ 27. Accepted identity cards (certificates of identity)

• (1)
  The employee of Finexeble s.r.o. will accept for identification purposes mainly the following type of identity cards (certificates of identity):

  • (a)
    passport issued by any country
  • (b)
    identity card issued by a member state of the European Union and Iceland, Norway, Switzerland and Liechtenstein;
  • (c)
    driving license issued by a member state of the European Union and Iceland, Norway, Switzerland and Liechtenstein;
  • (d)
    residence permit proof issued by a member state of the European Union and Iceland, Norway, Switzerland and Liechtenstein.
• (2)
  In addition to the types of identity cards listed here, an employee may also use another identity card issued by a public authority for identification, is valid at the moment of identification, includes images and at least some of the authorized holder's identification data.

§ 28. Features of an identity card not suitable for identification

• (1)
  In case that the customer presents an identity card that shows any of the below stated features, the employee will refuse to make the identification on its basis and he will ask the customer for a different identity card:

  • (a)
    identity card not showing any marks of credibility (mainly in case of identity cards issued abroad)
  • (b)
    identity card, which the employee does not believe to be issued by a public administration authority (mainly in case of identity cards issued abroad)
  • (c)
    identity card after its validity term expiration (if specified)
  • (d)
    identity card which is excessively damaged (i.e., unreadable, overwritten, glued, without pages to be fixed, with missing pages or additionally glued)
  • (e)
    identity card without photograph or with a photograph that was adjusted or changed or that cannot be used for sufficient check of compliance of the photograph and the customer’s appearance
  • (f)
    identity card in which the appearance on the photograph does not correspond with the customer’s appearance
  • (g)
    identity card from which it is not possible to clearly set the authority and the state of the card issue
  • (h)
    identity card which is just a black-and-white or colour copy of the original identity card.
• (2)
  In case of the employee not to be sure whether the identity card presented is valid or authentic, it is possible to check authenticity and protective elements against forgery using the on-line system „PRADO – public registry of valid identity cards and passports“. The system is available for free at http://prado.consilium.europa.eu/. More, the system provides references to national sites of document issuers, where it is possible to check whether the document has not been marked as stolen, missing or otherwise excluded from the evidence.

§ 29. Identification data of a natural person

• (1)
  On the basis of the identity card presented or delivered, the employee checks and records all of the below stated identification data:

  • (a)
    all the names and surnames of the customer (if there may appear any doubts – in case of foreigners – which is the name and which is the surname, the surname is written in capital letters)
  • (b)
    personal number; if it was not assigned, then the date of birth
  • (c)
    place of birth (including the country in case of the place of birth to be outside the Czech Republic)
  • (d)
    sex
  • (e)
    permanent or other residence
  • (f)
    citizenship
  • (g)
    type and number of identity card
  • (h)
    country, respectively authority issuing the identity card
  • (i)
    term of validity of the identity card.

§ 30. Absence of identification data of a natural person

• (1)
  In practice there may occur a situation when some required data are not apparent from the identity card presented or sent, because they are not contained there. In such a situation the employee directly asks the identified person about the missing data and asks the person to communicate the data in written or oral form (unless it has already done so e.g., in an application for use of services) and to supported by a supporting document. In case of the person not to have the supporting document, there is no other possibility but to rely on the statement.
• (2)
  Regarding the individual identification data established only on the basis of oral communication (and possibly verified from some supporting document only) it is necessary to note that they were verified on the basis of an identity card.

§ 31. Initial identification of a natural person - entrepreneur

• (1)
  In case of the customer to conduct in the business relation as a natural person – entrepreneur, it is necessary – together with the above stated process of identification of a natural person – to record and check even all of the below stated data:

  • trade name, differing amendment or other marking
  • place of business
  • identification number of the person.
• (2)
  The employee will verify the above stated data on the basis of a document presented by the customer regarding registration of the natural person in the evidence of natural persons – entrepreneurs or the employee may arrange such a document by himself. The document is most frequently an original or a legalised copy of an extract from the trade registry or commercial registry or some similar evidence. The document must contain currently valid data.
• (3)
  Even those identification data are recorded in the contractual documentation.

§ 32. Procedure for the initial identification of a legal entity

• (1)
  In case of the customer to be a legal entity, the identification of each person acting on its behalf in business relation establishment must be performed, while the employee also identifies the legal person (i.e., the customer himself). More, it is also necessary to identify every person to act on behalf of the customer in the course of the business relation duration (so called agent / managing clerk).
• (2)
  The employee proceeds as follows: the customer presents a proof on existence of a legal entity or the employee obtains it by himself. The document includes mainly:

  • (a)
    original or certified copy of an extract from the trade register in case of legal entities registered in such a registry (mainly business corporations)
  • (b)
    record from initial session of the municipal council in case of a municipality
  • (c)
    extract from the registry of churches and religious organizations as issued by the Ministry of Culture of the Czech Republic
  • (d)
    similar evidences in abroad
  • (e)
    in case that there is not any such evidence in the country of headquarters of a foreign entity, then an officially legalised Articles of incorporation or some other document establishing the foreign entity and containing all the changes.
• (3)
  The employee must always have available an original copy or certified copy of the proof of existence of the foreign entity.
• (4)
  The document on existence of a legal entity must contain the currently valid data and the document may not be older than 6 months
• (5)
  In case of the customer to present a proof of existence of the legal entity issued in another country, it is necessary to pay extra attention to the fact whether it was issued by an entitled authority. It is not possible to consider a private subject to be an entitled authority – just the public administration authority of the foreign country.

§ 33. Identification data of a legal entity

• (1)
  Identification data of a legal entity are all of the below stated data:

  • (a)
    trade name or name, including the differing amendment or other marking
  • (b)
    headquarters of the company (address and country)
  • (c)
    identification number of the company or similar number assigned abroad
  • (d)
    data of each natural person being a statutory authority or its member and allowing its clear identification; it concerns the following data as a minimum: all the names and surnames, dates of birth, permanent or other residence and citizenship.
• (2)
  In case of another legal entity to be the statutory authority, its member or controlling person (see the definition in Chapter I.5), there will be recorded event its identification data as specified above.
• (3)
  In case of the customer to be a trust fund or some other legal organisation without legal personality, the identification data include its marking and identification data of its administrator, manager or person in similar position according to this chapter (these may be natural persons or legal entities).
• (4)
  The document Risk Assessment may (so as to eliminate ML-FT risks) set even other identification data that must be obtained, recorded and possibly also checked. The treasurer must respect the extended list.

§ 34. Initial identification of a customer on the basis of a power of attorney

• (1)
  In case of the customer (a natural person or a legal entity) to be represented on the basis of a power of attorney, the employee proceeds as follows:

  • (a)
    The attorney must present or deliver to the employee the power of attorney he acts upon and he must do so always before the business relation establishment. There is accepted only the original of the power of attorney or its legalised copy, not a standard scan or plain copy. The signature of the donor of powers need not be legalised, but it is recommended in consideration of higher business safety. The employee will keep the document on permanent basis.
  • (b)
    More, the employee performs identification of the attorney using the procedure as described in this chapter. The attorney and the donor of powers may be a natural person or a legal entity and identification may be performed „face to face“ or on „remote“ basis.
  • (c)
    More, the attorney will prove the identification data of the donor of powers. It is not necessary to identify the donor of powers „face to face“, his clear identification should emerge from the power of attorney.
  • (d)
    More, the employee states in the record of identification data of the attorney and the donor of powers that it is representation based on the power of attorney. Only then the identification is finished in full.

§ 35 Initial identification of the represented customer

• (1)
  In case of the customer to be represented by a legal representative or a custodian, the employee proceeds as follows:

  • (a)
    The statutory representative must prove to the employee an appropriate legal relation on the basis of which he acts, always before the deal realization. The statutory representative is responsible for correct identification of the represented person. There is accepted only an original or certified copy of the document, not a standard scan or ordinary copy. The employee need not keep the document, it is sufficient to make a plain copy or – in case of a court resolution – he just records the file number.
  • (b)
    Then, the employee performs identification of the statutory representative. It may be a natural person or a legal entity and the identification may be performed „face to face“ or on „remote“ basis.
  • (c)
    Then, the statutory representative proves the identification data of the donor of powers. It is not necessary to identify the represented per
  • (d)
    More, the employee states in the record with identification data of the statutory representative and the represented person that the customer is represented by a statutory representative. Only then the identification is finished in full.

§ 36. Initial identification of the customer on the basis of the deed of identification

• (1)
  The initial identification of the customer (including a customer represented on the basis of the power of attorney or by a legal representative) may also be performed by the notary public or contact point of public administration (so called CZECH point) by writing so called deed on identification. The deed contains – in the form of non-detachable appendix – the documents on the basis of which the identification was performed and that clearly depict the customer.
• (2)
  In such a case the employee checks the presented original of the identification deed and its appendices, then he checks completeness and readability of data. Then the employee performs the initial identification without physical presence of the customer in such a way as if the original document is presented. The original of the identification deed must be permanently kept. Only then, the initial customer’s identification is performed in full.

§ 37. Establishment of a politically exposed person

• (1)
  In case of the customer to be a natural person, the fact whether it is a PEP or not is established only at the customer himself (i.e., the natural persons) and not at possible attorney, statutory representative or a guardian.
• (2)
  If the customer is a legal entity, the fact whether it is a PEP or not is established for the following persons:

  • (a)
    any person acting on behalf of the customer in the matter of trade or business relationship (acting person) and then
  • (b)
    each statutory representative of the customer - including those who do not act in the matter of business (members of the statutory body and further, if the member of the statutory body of the customer is a legal entity and its representative)
  • (c)
    any beneficial owner of the customer.
• (3) The PEP definition is contained in Chapter I.3.
• (4) The customer that has PEP in its structure is subject of EDD.

§ 38. Establishment procedure

• (1) PEP establishment is performed by declaration of the customer or a person acting on customer’s behalf (statutory representative, proxy, attorney, legal representative, guardian, etc.) or by searching of the fact in the commercially distributed system for control and search for „risk“ customers, based
• (2) In case of the customer to state to be a PEP or in case of the employee to know that from another source, the employee must establish (from the customer or in a different way) the following information:

  • (a)
    identification of function respectively even other details about it
  • (b)
    respectively description of relation to a person in leading position (if it is a person from his/her „family“ or „business“ environment, who is not in any leading position)
  • (c)
    respectively at least approximately date of finishing the function (if the function has been terminated).

§ 39. International Sanctions

• (1)
  International sanctions are a set of restrictive measures that the international communities (UN, EU) use as a tool to maintain or restore international peace and security, protect fundamental human rights, and fight terrorism. They are accepted by the competent authorities (UN Security Council, EU Council or European Commission) in the form of resolutions or decisions and regulations. In addition, the Czech Republic has a local individual list of 'intra-European terrorist groups'.
• (2)
  The Czech Republic applies two types of sanctions:

  • (a)
    sanctions, which it applies towards specific natural and legal persons, listed on the sanction lists (so called sanctioned persons)
  • (b)
    sanctions, which it applies towards certain types of goods (so called sector sanctions).
• (3) The following types of sanction regulations are legally binding (directly applicable) in the Czech Republic:

  • (a)
    resolutions of the United Nations Security Council
  • (b)
    resolutions of the EU Council or Commission (see https://sanctionsmap.eu)
  • (c)
    resolution of the Czech Republic government (see http://www.amlsystems.cz/AML-dokumenty).
• (4)
  Carrying out of international sanctions in the Czech Republic is partially regulated by the AML Act and also by Act No. 69/2006 Coll., on Carrying out of International Sanctions.
• (5)
  For more information on the application of international sanctions, please consult the Financial Analytical Office website at: http://www.financnianalytickyurad.cz/mezinarodni-sankce.html.
• (6)
  The obligation to enforce international sanctions also applies to any other activities of Finexeble s.r.o., not only to those covered by this document.

§ 40. Sanction lists

• (1)
  The Czech Republic applies two types of sanctions:

  • (a)
    sanction regulations coming out from EU law accessible through EUR-Lex - access to European Union law at http://eur-lex.europa.eu.
  • (b)
    Government Decree No. 210/2008 Coll., On Implementation of Special Measures to Combat Terrorism, as amended, located eg at http://www.amlsystems.cz/AML-documents.
• (2)
  The responsible person shall give employees access to these lists.

§ 41. Screened persons

• (1)
  Prior to establishing each business relationship and then with the specified periodicity, the employee must verify whether the Czech Republic does not apply international sanctions against the customer or the persons associated with the customer. The verification periodicity of international sanctions should be set so that no service is ever provided to a customer that is subject to international sanctions - i.e., ideally prior to the provision of each virtual assets service or at least once a day, or possibly whenever the sanction lists are updated.
• (2)
  If the customer is a natural person, the screening includes the customer himself / herself and, if applicable, also all the persons acting on behalf of the customer (proxy, legal representative, guardian).
• (3)
  If the customer is a legal person, this screening includes the following persons (both natural and legal):

  • (a)
    the customer itself (a legal person in this case); and also
  • (b)
    all members of the statutory body (these may be natural or legal persons); and
  • (c)
    all controlling persons (see the definition in the Chapter I.5); and
  • (d)
    all persons that are the beneficial owners of the legal person (which is identified during the initial check of the customer, according to the Chapter II.5, these may be natural persons only); and
  • (e)
    possibly also an agent, proxy, legal representative, and guardian
  • (f)
    with all the persons the identity of which the company established within the scope of identification or control (mainly all the persons from the management and control structure of the customer).
• (4)
  Furthermore, in the duration of the business relationship, it is always necessary to verify the international sanctions against the counterparty of the customer's transaction (if the counterparty of the company is known), especially if Finexeble s.r.o. ensures the execution of payments, taking into account all the information accompanying these transactions (e.g., the requisites of SWIFT messages, SEPA payments and letters of credit etc.)

§ 42. Search for a person in sanction lists

• (1)
  The employee looks for all the aforementioned persons (both natural and legal) up in the currently valid and available sanction lists.
• (2)
  The employee has the obligation to create a record about the screening and the result, which corresponds to the requirement of reconstructability according to Chapter V.6, i.e., it contains at least the following information:

  • (a)
    date of verification and name of the person who performed the verification (if performed by a specific employee and not automated)
  • (b)
    a list of natural and legal persons that have been reviewed in the sanction lists
  • (c)
    information on the sanction lists under which the verification was carried out
  • (d)
    result of verification (negative or positive finding).

§ 43. Sanction programs

• (1)
  In addition to verification of the persons' presence on the sanction lists, the AML officer and the employee must be familiar with the currently effective EU sanction programs. The Czech Republic, as a member country of the EU, does not only apply sanctions to certain persons only, but also to certain types of goods or services. It may happen (even during a business relationship) that the inspection of the customer indicates, based on the customer's communication or based on the submitted documents, that the customer uses the services of the company to trade or transfer (on the customer's own behalf or on another person's behalf ) goods or services subject to international sanctions, e.g., the customer states that the payment relates to the movement of the goods and it turns out that it concerns so called dual-use goods that can also be used for military purposes and the expedition of such goods to some countries is forbidden).

  The list of currently applicable sanctions is included in the "Consolidated list of sanctions" section: https://eeas.europa.eu/topics/sanctions-policy/8442/consolidated-list-of-sanctions_en

§ 44. Procedure in case of a person to which the international sanctions apply

• (1)
  In case the Czech Republic applies international sanctions against the customer or the persons associated with the customer or if the virtual assets service are in any way related to international sanctions, such negotiation regarding establishment of a business relationship or provision of virtual assets service is inevitably a suspicious transaction, and it is necessary to take all the steps listed in the Chapter IV.2.
• (2)
  It is also necessary for the employee to ensure that the company proceeds in accordance with the specific sanction and in accordance with Act No. 69/2006 Coll., on Carrying out of International Sanctions. For this purpose, contact both the AML officer and the statutory body of Finexeble s.r.o. and coordinate the next step with it.

§ 45. Initial customer check

• (1)
  The purpose of the initial customer check is to obtain information about the customer, necessary for the assessment, in particular:

  • (a)
    whether the customer does not represent any risk for Finexeble s.r.o. from the point of view of money laundering and financing of terrorism and in the preparation of its risk profile and whether fulfils the criteria of acceptability.

§ 46. Procedure during the initial customer check

• (1)
  The initial customer check is performed by the employee, who will:

  • (a)
    find out and record what is the purpose of the intended business relationship (the purpose for which the customer will use the services); and
  • (b)
    find out, verify, and record the source of funds or other assets that will be the subject of the business relationship; and
  • (c)
    if the customer is a natural person, find out and record the list of all countries where the customer has a nationality and also a permanent or other stay; and
  • (d)
    if the customer is a legal entity, find out and record the list of all countries where the customer has its registered office, branches; and
  • (e)
    if the customer is a legal entity, find out and record information about the customer's ownership and management structure and further identify and record its beneficial owner so that it can be identified and always
  • (f)
    if the customer is a legal entity or a natural person doing business, it also detects and records a detailed description of all the customer's activities (not only those related to virtual assets service) - in order to fully understand his / her activities
• (2)
  In addition, the employee will also find out whether the customer will act or act solely on his / her own behalf or whether he / she represents or will represent another person (especially the so-called Agency Agreement). If this is the case, the employee will perform a review to identify, understand and document the activities of the represented person, their ownership and management structure, and the beneficial owner as if they were the customer himself. In addition, the employee obtains representation documents.

§ 47. Procedure for finding and verification of data

• (1)
  The employee finds out the data necessary for the check primarily by the means of his / her own investigation and from the available documents and also from the customer's statement.
• (2)
  The purpose of the business relationship is often understood from the interview with the customer, or the customer declares it.
• (3)
  The source of funds is often implied by the accounting documents entered into the collection of documents of the customer registered in the Commercial Register in the Czech Republic, by the published annual reports, and by the trade licenses that the customer has and through which the customer generates funds. The employee must always obtain sufficient information in order to verify the source of funds, In the case of one-time sums, the employee must find out more details (such as from whom the inheritance was inherited and in what amount, which property and for what amount was sold, the amount of the winnings and by which game operator it was paid). In the case of repeated income, its source, i.e., denomination of the business or the employer, and the approximate amount of such regular income.
• (4)
  The list of all countries where the customer (natural person) has a nationality and a permanent or other residence, as well as the list of all countries where the customer (legal person) has its registered office, branches, organizational units, or premises, from the customer's website, or from the customer's statement.
• (5)
  Information about the ownership and management structure and about the beneficial owner of the customer, legal persons will be found by the employee, in particular, by his / her own research of publicly available information (information contained in the extract from the Commercial Register, documents from the of the General Meetings based on the collection of documents kept by the registry court, etc.). If this information cannot be found, the employee will ask the customer for his statement and possibly a proof. The method of obtaining the ownership and management structure data and the beneficial owner will also be recorded by the employee (i.e., the source and the procedure by which the employee obtained the information). The management structure is determined by the employee to the second level: the first level is the management structure of the customer itself; the second level is the management structure of the controlling person (the parent company). Identification of the management structure does not apply to "sister" companies, unless it is necessary from the risk assessment point of view.

§ 48. Verification of the data obtained during the check

• (1)
  If the employee assesses that there are doubts about the truthfulness or completeness of the data that the customer has stated during the check, he / she will ask the customer to prove the data obtained during the check by the relevant documents:

  • (a)
    The source of funds and the purpose of the business relationship can usually be verified from accounting documents, statements from the person managing the customer's accounts, statements from the statutory body (in case of a legal person), confirmation issued by a bank or other third party, etc.
  • (b)
    The beneficial owner of the legal person can be verified, in particular, from the last minutes of the general meeting. Only originals or certified copies of the submitted documents are accepted.
• (2)
  Only originals or certified copies of the submitted documents are accepted. The employees will make regular copies of these documents and he / she will keep them permanently.

§ 49. Creation of the Customer’s risk profile

• (1)
  Prior to establishing the business relationship, the employee will create a risk profile of the customer. This is a characteristic of the particular customer.
• (2)
  If a business relationship has been established in the past and it lasts (the customer uses other company services), the risk profile will be updated when establishing any further business relationship.

§ 50. Risk profile

• (1)
  The customer's risk profile means the assessment of the customer that represents a potential risk that the services of Finexeble s.r.o. may be misused by the customer for the purpose of legalizing proceeds of crime or for financing of terrorism. As part of the risk profile, the customers are classified into the following groups according to the risk factor that has occurred in their case:

  • (a)
    a customer with the type A risk profile – i.e., a customer without an identified risk factor
  • (b)
    a customer with the type B risk profile – i.e., a customer with a low identified risk factor
  • (c)
    a customer with the type C risk profile – i.e., a customer with an identified risk factor
  • (d)
    a customer with the type D risk profile – i.e., a customer with a high identified risk factor
  • (e)
    a customer with the type E risk profile C – i.e., an unacceptable customer.
• (2)
  The risk profile is crucial in two respects:

  • (a)
    influences the periodicity and intensity of the actions performed under this document
  • (b)
    serves as an essential piece of information when assessing suspicious transactions.

§ 51. Risk factors

• (1)
  The risk factor means the characteristic of the customer, the product provided to the customer, or the way it is provided to the customer, which increases the risk that the services of Finexeble s.r.o. may be misused by the customer for the purpose of legalizing proceeds of crime or for financing of terrorism. Based on the existence of specific factors, the client is given a risk profile of A,B,C,D, or E.

§ 52. Risk profile - type A

• (1)
  A customer with a risk profile of type A does not represent for the company Finexeble s.r.o. no, or only very small (negligible) risk in terms of money laundering and terrorism financing, in case of:

  • (a)
    The jurisdiction of the client is low risk (as per Annex 5),
  • (b)
    The country of origin of the beneficial owner and representative is low risk (as per Annex 5),
  • (c)
    The monthly turnover of the client is less than 5 000 EUR,
  • (d)
    The client's business activity is low or medium risk (as per Annex 6).
  • (e)
    Where there are no known risk factors to assign a risk profile of type B, C, D or E.