Anti-money laundering and counter-terrorist financing policy

Last Update: 25th of October, 2023

Administrative Information

  • Republic of Lithuania:
    • Legal name: UAB KUNA Pro
    • Registered address: Eišiškių Sodų 18-oji g. 11, LT-02194 Vilnius
    • Company number: 306041195
  • Canada:
    • Legal name: FlexyPay Inc.
    • Registered address: 398-416 Main st, Vancouver, BC, Canada, V5T3E2
    • Company number: BC1341302

1. General information

This Anti-Money Laundering and Counter-Terrorist Financing Policy ("Policy") of KUNA (or the "Company") was prepared in accordance with the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing, Proceeds of Crime (Money Laundering) and Terrorist Financing Act of Canada and other applicable AML legislation.

The purpose of this Policy is to provide the Customers with a high-level overview of the Company's AML/CTF compliance regime elements and procedures. By no means this Policy shall not be read as an entire set of all policies, procedures and controls in place implemented by the Company for prevention of money laundering, financing of terrorism and other forms of illicit activity.

All definitions are used within the meaning of the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing and Proceeds of Crime (Money Laundering) and Terrorist Financing Act of Canada.

2. Obligation of the company

2.1 Obliged entity in Lithuania

The Company is subject to supervision by the Government of the Republic of Lithuania and Financial Crime Investigation Service under The Ministry of the Interior of the Republic of Lithuania "FCIS".

Responsibilities of the Company:

  1. Implementation of the Customer Due Diligence Measures and identification procedure.
  2. Reporting to the FCIS if the daily value of transaction(s) is equal to or exceeds EUR 15,000.
  3. Reporting to the FCIS if the Company identifies any transaction as suspicious.
2.2 Obliged entity in Canada

The Company is a holder of Canada MSB License. The Company is interested in a safe and legal provision and use of its services and for these purposes, cooperates with local, national and international police and law enforcement authorities.

The Company is subject to supervision by the Government of Canada and Financial Transactions and Reports Analysis Center of Canada "FINTRAC".

Responsibilities of the Company:

  1. Implementation of the Customer Due Diligence Measures and "Know Your Customer" procedure.
  2. Reporting to the FINTRAC if the Company records a large virtual currency transaction in the amount of $10,000 (canadian dollars) or more.
  3. Reporting to the FINTRAC if the Company identifies any transaction as suspicious.

3. Customer due diligence

Customer due diligence ("CDD") forms an integral part of a global effort to combat money laundering, terrorist financing and fraudulent activities. Under this approach, KUNA will collect information upon account opening, as well as on a periodic basis and from time to time, as required, to identify our Customers and develop an understanding of their normal, expected financial activities.

Depending on the Customer’s risk profile KUNA applies different levels of CDD.
3.1. Application of Standard Due Diligence Measures

Standard due diligence measures are applied to all Customers, if CDD measures must be applied.

In the course of applying standard due diligence measures, the Customer, who is a natural person, is obliged to provide at least the following identification information:

  • Passport data: full name, date of birth, citizenship, etc.
  • In the course of applying standard due diligence measures, the Customer, which is a legal entity, is obliged to provide at least the following information and documents:
  • Proof of address.
  • Liveness check.

The information, listed above, must be verified by KUNA by reference to documents, data or information provided by a reliable and independent source, examples of which include:

  • Canada/Lithuania identity card or another national identity card;
  • proof of address (please, follow the link to read more about what documents KUNA accepts as proof of address
  • a residence permit in the Republic of Lithuania (applied only to UAB KUNA Pro Customers);
  • a driving license issued in a state of the European Economic Area in accordance with the requirements laid down in Annex I to Directive 2006/126/EC of the European Parliament and of the Council of 20 December 2006 on driving licenses (recast);
  • other relevant documents, data or information provided by a reliable and independent source (e.g. document issued by a government body).

The Customer, who is a natural person, cannot use a representative in the course of business relationship with the Company.

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  • Articles of association;
  • Passport of the director(s), shareholder(s), beneficial owner, and official representative;
  • Proof of address of the director(s), shareholder(s), beneficial owner, and official representative;
  • Liveness Check and proof of address of official representative;
  • Confirmation of the right to representation;
  • Register of directors/shareholders;
  • License confirmation (if available);
  • AML policies and other applicable policies;
  • Proof of source of funds;
  • Top 5 business partners and contracts with them;
  • Website link and proof of domain ownership;
  • Description of the product/service.

In verifying the identity of a customer that is a legal person, KUNA should normally verify:

  • name, legal form, proof of existence and constitution based on certificate of incorporation, certificate of good standing, partnership agreement, constitutional document, certificate of registration or any other documentation from a reliable independent source; and
  • powers that regulate and bind the legal person based on memorandum and articles of association, and board resolution authorizing the opening of an account and appointment of authorized signatories.

The Company verifies the correctness of the Customer’s data specified above, using for this purpose information obtained from a reliable and independent source. If the Company has access to the relevant register of legal entities, the submission of the above documents is not required from the Customer.

Please note that KUNA may require you to provide documents and information not specified in this Policy if it deems that the documents you have provided are insufficient for full and proper verification. If you refuse to provide the requested documents, KUNA will not be able to provide services to you.

To prevent possible illegal transactions, KUNA requires that the sender of the payment be the same person as the recipient of the payment. Any payments to third parties are strictly prohibited.
3.2. Application of Enhanced Due Diligence Measures

In addition to Standard due diligence measures, KUNA applies Enhanced Due Diligence (" EDD ") measures in order to manage and mitigate an established risk of ML and TF in the case where the risk is established to be higher than usual.

The Company always applies EDD measures, when:

  • identifying the Customer or verifying the information provided, there are doubts about the veracity of the data provided, the authenticity of documents or the identification of the Beneficial Owner;
  • where cross-border correspondent relationships are commenced with the Customer, which is the financial institution of the Third Country;
  • in the case of performance of transaction or Business Relationship with the PEP, the family member of the PEP or a person known to be the close associate of the PEP;
  • where transaction or Business Relationship are carried out with natural persons residing or legal persons established in high-risk Third Countries as identified by the European Commission and other relevant authorities;
  • the Customer is from such country or territory or their place of residence or seat or the seat of the payment service provider of the payee is in a country or territory that, according to credible sources such as mutual evaluations, reports or published follow-up reports, has not established effective AML/CFT systems that are in accordance with the recommendations of the Financial Action Task Force (" FATFFATF.

Crucial to the integrity of KUNA’s EDD process are the reliability of information and information sources, and the type and quality of information sources used, as well as the deployment of properly trained analysts who know where and how to look for information, and how to corroborate, interpret and decide upon results.

What the EDD procedure actually entails is dependent on the nature and severity of the risk. The additional due diligence could take many forms, from gathering additional information to verifying the customer’s identity or income source(s), or perhaps an adverse media check. These checks are relative and proportionate to the level of risk identified, providing confidence that any risk has been mitigated and that the risk is unlikely to be realized.

One or more of the following enhanced customer due diligence measures may be taken in order to manage and mitigate the ML/TF risk that is higher than usual:

obtain additional identification documents, data or information from credible and independent sources;

  • gather additional information or documents on the purpose and nature of the business relationship;
  • gather information or documents for the purpose of identifying the source of funds and wealth of the customer;
  • gather information on the underlying reasons of planned or executed transactions;
  • increasing the number and frequency of control measures in monitoring customer relationships and/or transactions.
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3.3. Establishing the source of funds

The source of funds used in the transaction is the reason, explanation and basis (legal relationship and its content) why the funds were transferred. The origin of the funds used in the transaction is the activity by which the funds were earned or received.

The Company identifies the source and origin of the funds used in transaction(s) if necessary. The need to determine the source and origin of funds depends on the previous activities of the Customer, as well as other known information. Thereby the identification of the source and origin of funds used in the operation is carried out in the following cases:

  • transactions exceed the limits set by the Company;
  • transactions do not correspond to previously known information about the Customer;
  • the Company is willing or should reasonably consider it necessary to evaluate whether the transactions correspond to information previously known about the Customer;
  • the Company suspects that the transactions indicate criminal activities, Money Laundering or Terrorist Financing or that the relation of transactions to Money Laundering or Terrorist Financing is probable, incl. complicated, high-value and unusual transactions and transaction patterns that do not have any reasonable or obvious economic or legitimate purpose or are uncharacteristic of the specific features of the business in question.

4. Politically exposed persons identification

The Company understands the increased risks of providing services to PEPs. The Company shall take measures to ascertain whether the Customer, the Beneficial Owner of the Customer or the representative of this Customer is a PEP, their family or close or if the Customer has become such a person. When the Сompany identifies a Customer as a PEP such Customer will automatically be subject to enhanced due diligence measures and increased monitoring.
4.1 Identification by obliged entity in Lithuania

The Company shall request from the Customer information to identify if the Customer is a PEP, their family member or close associate (e.g., providing the Customer with an opportunity to specify the relevant information when collecting data about the Customer).

The Company shall verify the data received from the Customer by making inquiries in relevant databases or public databases or making inquiries or verifying data on the websites of the relevant supervisory authorities or institutions of the country in which the Customer has place of residence or seat.

The Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing in paragraph 19 of Article 2 contains a list of persons considered as PEPs. Please follow the link to get acquainted.
4.2 Identification by obliged entity in Canada

A domestic PEP is a person who currently holds, or has held within the last 5 years, a specific office or position in or on behalf of the Canadian federal government, a Canadian provincial (or territorial) government, or a Canadian municipal government.

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act of Canada in Article 9.3 contains a list of persons considered as PEPs. Please follow the link to get acquainted.

5. Not acceptable customers

The following list predetermines the type of Customers who are not acceptable for establishing a Business Relationship with the Company:

  • Customers who fail or refuse to submit, the requested data and information for the verification of their identity;
  • Shell Banks;
  • Customers from the jurisdictions which are being banned by internal policies from the Company or international sanctions;
  • any other that the Company considers risky to its business or suspicious in regards to Money Laundering and Terrorist Financing.

The Company will not accept as Сustomers, persons or entitled from the following countries and territories: Afghanistan, Algeria, Belarus (except persons, who has valid EU entry visa or EU residence permit), Benin, Burkina Faso, Cabo Verde, Cambodia, Central African Republic, China, Cuba, Crimea (region of Ukraine), Côte d'Ivoire, Congo, Democratic People's Republic of Korea, Dem. Rep. of Ethiopia, Dominican Republic, Donetsk (region of Ukraine), Eritrea, Federal Republic of Ambazonia, Ghana, Guatemala, Guyana, Guinea, Guinea-Bissau, Haití, Honduras, Iran, Iraq, Jamaica, Jordan, Kenya, Kosovo, Laos, Liberia, Lebanon, Libya, Luhansk (region of Ukraine), Mali, Morocco, Mozambique, Myanmar, Nagorno-Karabakh (temporarily occupied by Russia), Nicaragua, Nigeria, Northern Cyprus, Pakistan, Philippines, Russia, Senegal, South Sudan, Syria, Somalia, Sri Lanka, Trinidad and Tobago, Transnistria (temporarily occupied by Russia), territories of Georgia temporarily occupied by Russia (Abkhazia and South Ossetia), Uganda, Vanuatu, Venezuela, Yemen, Zimbabwe.

In addition, due to regulatory purposes, the Company does not currently serve customers in Japan, the United States or the United Kingdom.

6. Cooperation and exchange of information

The Company cooperates with supervisory and law enforcement authorities in preventing money laundering and terrorist financing, thereby communicating information available to the Company and replying to queries within a reasonable time, following the duties, obligations and restrictions arising from legislation. For any relevant requests please contact us

at: [email protected].