Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)
Transactions involving crypto-assets may expose service providers and users to risks of money laundering and terrorist financing.
For this reason, Sheik sp. z o.o., a crypto-asset service provider duly licensed and operating under applicable Polish and European Union law (the "Company"), has implemented internal Anti-Money Laundering and Counter-Terrorist Financing policies, procedures, and controls (the "AML/CFT Framework").
The Company applies a risk-based approach to the prevention of money laundering and terrorist financing and undertakes all measures required under applicable AML/CFT legislation.
Beneficial Owner
A Beneficial Owner is a natural person who ultimately owns or controls a customer and/or on whose behalf a transaction or activity is conducted, including a person who exercises control through direct or indirect ownership or by other means.
In the case of a legal entity, a Beneficial Owner is a natural person who directly or indirectly holds more than 25% of the shares, voting rights, ownership interests, or otherwise exercises control over the legal entity, in accordance with applicable AML/CFT legislation.
Money Laundering
Money Laundering (ML) refers to activities intended to conceal or disguise the illicit origin of funds derived from criminal activity in order to make such funds appear legitimate.
Money laundering typically involves the following stages:
- Placement – introducing proceeds of crime into the financial system;
- Layering – carrying out complex transactions to obscure the origin of funds;
- Integration – reintroducing the laundered funds into the economy as ostensibly legitimate assets.
Terrorist Financing
Terrorist Financing (TF) refers to the provision, collection, or use of funds or assets with the intention or knowledge that they will be used, in whole or in part, to carry out terrorist acts or to support terrorist organisations or activities, as defined under applicable law.
Customer Due Diligence Measures
The Company applies Customer Due Diligence (CDD) measures to verify the identity of its customers and to monitor business relationships on an ongoing basis, in accordance with a risk-based approach.
Depending on the assessed risk level, the Company applies:
- simplified due diligence,
- standard due diligence, or
- enhanced due diligence.
As part of CDD, the Company may collect and retain information and documentation necessary to:
- identify natural person customers;
- identify legal entity customers;
- identify and verify authorised representatives and their powers of representation;
- identify beneficial owners;
- determine whether a customer, beneficial owner, or representative is a politically exposed person (PEP), a family member, or a close associate;
- understand the purpose and intended nature of the business relationship or transaction;
- monitor transactions and update customer information, including verification of the source of funds and, where required, source of wealth.
The Company does not establish or continue a business relationship and does not execute transactions where:
- required CDD measures cannot be completed;
- there is suspicion of money laundering or terrorist financing;
- the customer structure is inconsistent with transparency requirements (e.g. bearer shares);
- the customer acts on behalf of an undisclosed beneficial owner;
- the customer or transaction risk exceeds the Company's risk appetite.
Sanctions
The Company complies with all applicable international, European Union, and national sanctions regimes.
Prior to establishing a business relationship and on an ongoing basis, the Company screens customers, beneficial owners, and relevant counterparties against applicable sanctions lists.
Where a sanctions match or exposure is identified, the Company takes appropriate measures in accordance with applicable law, including restriction or termination of services.
Reporting Obligations
The Company is subject to statutory reporting obligations and is required to notify the competent authority [e.g. Polish Financial Intelligence Unit / GIIF] where:
- a transaction is identified as suspicious;
- there is knowledge or suspicion that funds are derived from criminal activity;
- transactions meet or exceed applicable reporting thresholds.
The Company is prohibited from disclosing to customers or third parties the fact that a report has been submitted or is planned to be submitted to the competent authority, or that an investigation is underway (tipping-off prohibition).
Data Retention
The Company retains customer identification data, transaction records, and related documentation in accordance with applicable AML/CFT and data protection legislation.
Unless otherwise required by law:
- AML/CFT records are retained for at least 5 years following the end of the business relationship or completion of a transaction;
- records related to suspicious activity reports are retained for the statutory period;
- personal data is processed lawfully, securely, and only for legitimate purposes.
Internal Control
The Company maintains internal control mechanisms, including periodic reviews and audits, to ensure the effective implementation of its AML/CFT Framework and ongoing compliance with applicable legal and regulatory requirements.