ANTI-MONEY LAUNDERING (AML) AND COUNTER-TERRORIST FINANCING (CTF) POLICY

Last updated: 13/02/2025

1. Introduction

This Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Policy outlines the measures implemented by TELIUS UAB (“Company,” “we,” “us,” “our”) to prevent money laundering, terrorist financing, and other financial crimes in compliance with the applicable laws and regulations, including:

• Markets in Crypto-Assets Regulation (MiCA) (Regulation (EU) 2023/1114)

• Lithuanian Law on the Prevention of Money Laundering and Terrorist Financing (AMLL)

• EU Anti-Money Laundering Directives (AMLD 4, 5, and 6)

• Financial Action Task Force (FATF) Recommendations

• Regulatory Guidelines from the Bank of Lithuania (Lietuvos bankas)

TELIUS UAB, as a provider of cryptocurrency OTC (Over-the-Counter) exchange services, recognizes its responsibility to detect, prevent, and report suspicious financial activities and ensure a secure and compliant trading environment.

2. Company Information

• Legal Entity Name: TELIUS UAB

• Registration Number: 306106013

• Registration Date: 23.06.2022

• Registered Address: Klevų g. 25-22, Prienų r., Balbieriškis 59243, Lithuania

• Email: info@teliusuab.io

Regulated Activity: Cryptocurrency OTC exchange (crypto-to-fiat and fiat-to-crypto transactions).

3. AML Governance & Compliance Structure

To ensure AML/CTF compliance, TELIUS UAB has established a structured compliance framework that includes:

3.1 Compliance Officer (MLRO – Money Laundering Reporting Officer)

TELIUS UAB appoints an AML Compliance Officer (MLRO) responsible for:

• Overseeing AML/CTF procedures.

• Ensuring compliance with MiCA, AMLD, and Lithuanian AML laws.

• Investigating and reporting suspicious transactions to the Financial Crime Investigation Service (FCIS) of Lithuania.

• Implementing employee training programs on AML/CTF requirements.

• Conducting internal audits of AML procedures.

3.2 Board of Directors’ Responsibilities

The company’s Board of Directors ensures:

• Effective AML governance and policies.

• Allocation of sufficient resources for AML compliance.

• Implementation of a risk-based approach (RBA) to customer due diligence (CDD).

4. Risk-Based Approach (RBA)

TELIUS UAB applies a Risk-Based Approach (RBA) in accordance with MiCA and Lithuanian AML regulations. This approach involves:

4.1 Customer Risk Categorization

Customers are classified into three risk levels:

1. Low Risk:

• Private individuals with verifiable identity and known transaction history.

• Customers from low-risk jurisdictions (EU, UK, Canada, Japan, Australia, etc.).

2. Medium Risk:

• New customers with limited transaction history.

• Customers from jurisdictions with higher financial crime risk.

3. High Risk (Enhanced Due Diligence – EDD Required):

• Politically Exposed Persons (PEPs) and their associates.

• Customers from high-risk countries (FATF-listed jurisdictions).

• Large-volume transactions or frequent high-value crypto trades.

4.2 Transaction Risk Assessment

We monitor transaction patterns for:

• Structuring (smurfing) – breaking large transactions into smaller ones.

• Unusual behavior – sudden changes in trading volume.

• Mixing services – using Tornado Cash or other anonymization tools.

• Use of high-risk cryptocurrencies – privacy coins like Monero (XMR), Zcash (ZEC).

5. Customer Due Diligence (CDD) and Know Your Customer (KYC)

5.1 Standard Due Diligence (SDD)

For all customers, TELIUS UAB collects:

• Full Name

• Date of Birth

• Nationality

• Valid ID document (Passport/National ID)

• Proof of Address (Utility Bill, Bank Statement)

• Source of Funds & Expected Transaction Volume

5.2 Enhanced Due Diligence (EDD)

For high-risk customers, TELIUS UAB requires:

• Video verification or in-person interview.

• Additional proof of wealth (e.g., tax returns, business records).

• Ongoing transaction monitoring.

5.3 Business Clients (KYB – Know Your Business)

For corporate clients, TELIUS UAB requires:

• Company Registration Certificate

• Beneficial Owner (UBO) Information

• AML Compliance Policies

• Banking Relationships & Financial Statements

6. Ongoing Transaction Monitoring

6.1 Automated & Manual Monitoring

TELIUS UAB employs:

✅ AI-driven transaction monitoring to detect suspicious activity.

✅ Manual compliance reviews for flagged transactions.

6.2 Suspicious Transaction Reports (STRs)

Any transactions suspected of money laundering, fraud, or terrorism financing are reported to the Financial Crime Investigation Service (FCIS) of Lithuania.

7. Sanctions Compliance & PEP Screening

• All customers are screened against:

• EU Sanctions Lists

• FATF Blacklist & Greylist

• OFAC Sanctions (US)

• UN & Interpol Watchlists

• Lithuanian National Risk Lists

• Politically Exposed Persons (PEPs) must undergo Enhanced Due Diligence (EDD).

8. Prohibited Activities & High-Risk Businesses

TELIUS UAB strictly prohibits:

🚫 Anonymous cryptocurrency transactions

🚫 Transactions linked to darknet markets (e.g., Hydra, AlphaBay)

🚫 Use of mixers or tumblers

🚫 Shell companies with no real business activity

🚫 Transactions from sanctioned individuals or countries

9. Employee Training & Internal Audits

9.1 AML Training

All employees undergo:

• Annual AML compliance training.

• Fraud detection & reporting guidelines.

9.2 Internal Audits

TELIUS UAB performs quarterly AML audits to ensure compliance with MiCA & Lithuanian AML regulations.

10. Data Retention & Privacy

• KYC records are stored for 5 years after account closure (Lithuanian AML law).

• Transaction records are kept for 7 years.

• All data is protected under GDPR & Lithuanian Data Protection Law.

11. Reporting & Cooperation with Authorities

TELIUS UAB fully cooperates with:

• Financial Crime Investigation Service (FCIS) of Lithuania

• Lithuanian Financial Supervisory Authority (FSA)

• Europol & Interpol AML Units

12. Policy Review & Updates

This AML policy is reviewed annually and updated to reflect new MiCA regulations, Lithuanian law, and international AML standards.

13. Contact Information

For AML-related inquiries, contact:

TELIUS UAB

Address: Klevų g. 25-22, Prienų r., Balbieriškis 59243, Lithuania

Email: info@teliusuab.io