Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT) and Know Your Client (KYC) Policy
1. Introduction
LEVELS Ltd. ("LEVELS", the "Company") is committed to maintaining effective systems and controls designed to prevent the misuse of its business, services, products, and infrastructure for money laundering, terrorist financing, sanctions evasion, fraud, corruption, or any other unlawful activity.
The Company recognizes that the integrity of the financial system depends upon the implementation of robust Anti-Money Laundering ("AML"), Counter-Terrorist Financing ("CFT"), Know Your Client ("KYC"), sanctions compliance, and risk management procedures.
Accordingly, the Company has adopted this AML/CFT and KYC Policy (the "Policy") to establish the framework through which clients are identified, verified, monitored, and assessed throughout the business relationship.
This Policy applies to all clients, beneficial owners, authorised representatives, introducers, business partners, and any person or entity interacting with the Company where AML/CFT considerations may arise.
2. Regulatory Framework
This Policy has been developed having regard to applicable laws of Saint Lucia and internationally recognised AML/CFT principles and standards, including, where applicable:
- The Proceeds of Crime Act of Saint Lucia;
- The Money Laundering (Prevention) Act of Saint Lucia;
- Applicable regulations, guidelines, directives, notices, and guidance issued by competent authorities in Saint Lucia;
- Recommendations issued by the Financial Action Task Force ("FATF");
- International best practices relating to AML, CFT, sanctions compliance, and financial crime prevention.
The Company may also consider sanctions lists, watchlists, and international compliance standards maintained by governmental authorities, international organisations, and recognised compliance service providers as part of its risk management framework.
Nothing in this Policy shall be interpreted as limiting the Company's ability to apply standards that exceed minimum legal requirements where it considers such standards appropriate for risk management purposes.
3. Purpose of This Policy
The objectives of this Policy are to:
- a) prevent the Company's services from being used for money laundering, terrorist financing, sanctions evasion, fraud, corruption, or other unlawful activities;
- b) establish appropriate client due diligence and verification procedures;
- c) identify and assess AML/CFT risks associated with clients and business relationships;
- d) ensure ongoing monitoring of client activity;
- e) detect, investigate, and escalate suspicious activity where appropriate;
- f) protect the Company's reputation, operations, and legitimate business interests;
- g) promote compliance with applicable legal and regulatory obligations.
4. Risk-Based Approach
The Company applies a risk-based approach to AML/CFT compliance.
The extent of due diligence, monitoring, and review conducted by the Company may vary depending upon the level of risk associated with a client, transaction, business relationship, jurisdiction, or activity.
When assessing risk, the Company may consider factors including:
- country of residence or incorporation;
- nationality;
- beneficial ownership structure;
- source of funds;
- source of wealth;
- expected trading activity;
- transaction patterns;
- payment methods;
- business activities;
- sanctions exposure;
- politically exposed person status;
- adverse media findings;
- complexity of ownership arrangements;
- any other factor reasonably considered relevant.
The Company reserves the right to apply enhanced due diligence measures whenever it considers such measures necessary or appropriate.
5. AML Governance
The Board of Directors and senior management of the Company are responsible for ensuring that appropriate AML/CFT controls are implemented and maintained.
The Company may appoint a Money Laundering Reporting Officer ("MLRO"), Compliance Officer, or other designated person responsible for overseeing the implementation of this Policy and related compliance procedures.
Such persons may be responsible for:
- AML/CFT oversight;
- internal reporting;
- risk assessment;
- monitoring activities;
- suspicious activity reviews;
- regulatory communications;
- employee guidance and training;
- maintenance of compliance records.
All employees, officers, consultants, and representatives of the Company shall cooperate with AML/CFT procedures and report concerns through appropriate internal channels.
6. Definitions
For the purposes of this Policy:
"Money Laundering"
Means any activity intended to conceal, disguise, convert, transfer, acquire, possess, use, or otherwise deal with the proceeds of criminal conduct.
"Terrorist Financing"
Means the provision, collection, movement, use, or facilitation of funds, assets, or economic resources intended to support terrorist activities, terrorist organisations, or terrorist acts.
"Beneficial Owner"
Means the natural person who ultimately owns, controls, or benefits from a client, transaction, account, legal entity, trust, arrangement, or business relationship.
"Politically Exposed Person (PEP)"
Means an individual who is or has been entrusted with a prominent public function, as well as immediate family members and close associates where applicable.
"Suspicious Activity"
Means any activity, transaction, pattern, behaviour, or circumstance that reasonably warrants further review, investigation, escalation, or reporting under this Policy.
7. Customer Due Diligence (CDD)
The Company shall undertake Customer Due Diligence ("CDD") measures prior to establishing a business relationship with a client and may conduct additional due diligence throughout the duration of the relationship.
The Company reserves the right to determine the extent of due diligence required based upon the level of risk associated with the client, account, transaction, jurisdiction, ownership structure, or activity.
No account shall be approved until the Company has obtained information and documentation considered satisfactory for identification and verification purposes.
7.1 Identification of Individual Clients
For individual clients, the Company may obtain and verify information including:
- full legal name;
- date of birth;
- nationality;
- residential address;
- contact details;
- occupation or business activity;
- source of funds;
- source of wealth where applicable;
- tax residency information;
- any other information reasonably required by the Company.
The Company may require supporting documentation to verify such information.
7.2 Verification of Identity
The Company may verify the identity of an individual client using one or more of the following:
- passport;
- national identity card;
- driver's licence;
- residence permit;
- government-issued identification document;
- electronic verification systems;
- independent databases;
- third-party verification providers;
- any other reliable and independent source.
The Company reserves the right to request additional verification where necessary.
7.3 Proof of Address
The Company may require proof of residential address, including:
- utility bills;
- bank statements;
- government correspondence;
- tax documents;
- residence certificates;
- other reliable documentation accepted by the Company.
The Company may specify acceptable document age requirements from time to time.
8. Corporate and Legal Entity Clients
Where the client is a company, partnership, trust, foundation, association, or other legal arrangement, the Company shall undertake appropriate due diligence to identify and verify the legal entity and persons associated with it.
The Company may request:
- certificate of incorporation;
- constitutional documents;
- memorandum and articles of association;
- certificate of good standing;
- register of directors;
- register of shareholders;
- proof of business activities;
- organisational structure charts;
- authorised signatory information;
- beneficial ownership information;
- tax registration documents;
- any other information reasonably required.
8.1 Authorised Representatives
The Company may require evidence of authority for any individual acting on behalf of a legal entity.
Such evidence may include:
- board resolutions;
- powers of attorney;
- authorisation letters;
- corporate approvals;
- other documentation acceptable to the Company.
The Company may refuse to act upon instructions where authority is not satisfactorily established.
9. Beneficial Ownership
The Company shall take reasonable measures to identify and verify the natural persons who ultimately own, control, or benefit from a client relationship.
The Company may request information relating to:
- ownership structures;
- voting rights;
- control arrangements;
- trust arrangements;
- nominee arrangements;
- ultimate beneficial ownership;
- sources of control and influence.
Where ownership structures are complex, layered, unusual, or insufficiently transparent, the Company may require enhanced due diligence.
The Company reserves the right to reject, suspend, or terminate a relationship where beneficial ownership cannot be satisfactorily established.
10. Source of Funds and Source of Wealth
The Company may require clients to provide information regarding the origin of funds deposited with the Company and, where appropriate, the origin of the client's overall wealth.
Acceptable evidence may include:
- bank statements;
- salary records;
- business income documentation;
- audited financial statements;
- sale agreements;
- inheritance documentation;
- investment records;
- tax documentation;
- other supporting evidence acceptable to the Company.
The Company may request additional information where the source of funds or source of wealth cannot be reasonably understood or verified.
11. Ongoing KYC Obligations
Clients shall ensure that information provided to the Company remains accurate, complete, and up to date.
Clients must promptly notify the Company of material changes relating to:
- identity information;
- residential address;
- contact details;
- beneficial ownership;
- authorised representatives;
- source of funds;
- source of wealth;
- business activities;
- tax residency;
- any other relevant information.
The Company may periodically request updated documentation and information as part of its ongoing due diligence procedures.
Failure to provide requested information may result in restrictions being applied to the account, suspension of services, or termination of the business relationship.
12. Reliance on Third Parties
Where permitted by applicable law and considered appropriate, the Company may rely upon information, verification services, compliance providers, databases, professional advisers, or third-party service providers when conducting due diligence.
The Company retains ultimate discretion regarding whether the information obtained is sufficient for onboarding or continuing a business relationship.
13. Enhanced Due Diligence (EDD)
The Company shall apply Enhanced Due Diligence ("EDD") measures where it determines that a client, transaction, business relationship, jurisdiction, ownership structure, or activity presents a higher level of AML/CFT risk.
EDD may be applied before onboarding, during the business relationship, or whenever new information becomes available.
The Company reserves the right to determine the extent of EDD measures required in each case.
13.1 Circumstances Requiring Enhanced Due Diligence
EDD may be applied where:
- the client is identified as a Politically Exposed Person ("PEP");
- the client is connected to a high-risk jurisdiction;
- the ownership structure is unusually complex;
- beneficial ownership is difficult to verify;
- large or unusual transactions occur;
- account activity is inconsistent with the client's profile;
- adverse media information is identified;
- sanctions concerns arise;
- fraud concerns arise;
- suspicious activity is detected;
- the Company otherwise considers enhanced scrutiny necessary.
13.2 Enhanced Due Diligence Measures
EDD measures may include:
- obtaining additional identification documents;
- obtaining additional beneficial ownership information;
- obtaining enhanced source of funds information;
- obtaining source of wealth evidence;
- conducting enhanced adverse media searches;
- obtaining senior management approval;
- increased monitoring of account activity;
- periodic compliance reviews;
- additional verification procedures.
The Company may apply one or more EDD measures as it considers appropriate.
14. Politically Exposed Persons (PEPs)
The Company applies additional scrutiny to clients identified as Politically Exposed Persons.
A PEP may include:
- current or former senior government officials;
- senior members of legislative bodies;
- senior judicial officials;
- senior military officials;
- senior executives of state-owned enterprises;
- senior political party officials;
- persons entrusted with prominent public functions.
The Company may also apply enhanced due diligence to:
- immediate family members of PEPs;
- close associates of PEPs;
- entities connected to PEPs.
The existence of PEP status does not automatically prevent the establishment of a business relationship; however, additional review and approval procedures may apply.
15. High-Risk Jurisdictions
The Company may classify certain countries, territories, or regions as higher risk based on factors including:
- sanctions exposure;
- AML/CFT deficiencies;
- corruption indicators;
- terrorist financing concerns;
- international regulatory findings;
- FATF publications;
- geopolitical risks;
- other relevant risk factors.
Clients connected to high-risk jurisdictions may be subject to:
- enhanced due diligence;
- increased monitoring;
- additional source of funds verification;
- additional approval procedures;
- transaction restrictions where appropriate.
The Company reserves the right to decline or terminate relationships involving jurisdictions that present unacceptable risk.
16. Sanctions Compliance
The Company is committed to maintaining appropriate sanctions compliance controls.
The Company may screen clients, beneficial owners, authorised representatives, transactions, counterparties, and other relevant parties against sanctions lists, watchlists, and screening databases.
The Company reserves the right to:
- reject applications;
- refuse transactions;
- suspend accounts;
- freeze activity where legally required;
- terminate business relationships;
where sanctions concerns arise.
The Company shall not be liable for any loss arising from actions taken in order to comply with sanctions obligations or sanctions risk management requirements.
17. Adverse Media Screening
The Company may conduct adverse media and reputational screening as part of its risk assessment procedures.
Such screening may include reviews relating to:
- fraud;
- corruption;
- financial crime;
- money laundering;
- terrorist financing;
- sanctions violations;
- regulatory enforcement actions;
- criminal proceedings;
- reputational concerns.
The existence of adverse media does not automatically result in rejection of a client; however, the Company may require additional review and verification before proceeding.
18. Higher-Risk Accounts and Transactions
The Company may apply additional monitoring and controls to accounts or transactions that present elevated risk.
Factors that may increase risk include:
- unusually large deposits or withdrawals;
- unusual transaction patterns;
- rapid movement of funds;
- unexplained account activity;
- inconsistent client behaviour;
- unusual ownership structures;
- unusual payment methods;
- frequent third-party funding attempts;
- other circumstances reasonably considered relevant.
The Company reserves the right to request explanations, supporting documentation, or additional verification before processing transactions or continuing the business relationship.
19. Senior Management Approval
Where required by the Company's risk assessment procedures, certain higher-risk relationships may require approval from senior management before onboarding or continuation of the business relationship.
Senior management may consider:
- overall risk profile;
- due diligence findings;
- source of funds information;
- source of wealth information;
- sanctions screening results;
- adverse media findings;
- other relevant risk factors.
Approval may be granted subject to conditions, restrictions, or enhanced monitoring requirements.
20. Ongoing Monitoring
The Company shall conduct ongoing monitoring of client relationships to ensure that account activity remains consistent with the information known about the client, the client's risk profile, source of funds, source of wealth, and expected business activities.
Monitoring may include:
- account activity reviews;
- deposit and withdrawal reviews;
- transaction monitoring;
- trading activity monitoring;
- sanctions screening;
- adverse media screening;
- periodic KYC reviews;
- beneficial ownership reviews;
- risk reassessments.
The frequency and intensity of monitoring may vary depending on the client's risk profile.
21. Suspicious Activity Detection
The Company shall maintain procedures designed to identify activity that may be unusual, suspicious, inconsistent, or indicative of financial crime.
Examples may include:
- unusual funding activity;
- unexplained deposits or withdrawals;
- transactions inconsistent with the client's profile;
- use of third-party payment methods;
- attempts to conceal beneficial ownership;
- unusual account structures;
- sanctions-related concerns;
- suspected fraud;
- suspected money laundering;
- suspected terrorist financing;
- any activity that appears unusual in the circumstances.
The examples above are illustrative only and do not limit the Company's ability to review any activity it considers appropriate.
22. Internal Reporting and Investigation
Employees, officers, consultants, and representatives of the Company who become aware of suspicious activity shall promptly report such concerns through the Company's internal reporting procedures.
The Company may investigate:
- suspicious transactions;
- unusual account activity;
- unusual trading activity;
- sanctions concerns;
- adverse media findings;
- fraud concerns;
- compliance concerns;
- any other matter considered relevant to AML/CFT risk management.
The Company may appoint internal or external specialists, advisers, consultants, auditors, investigators, or compliance professionals to assist in such reviews.
23. Restrictions and Refusal of Services
The Company reserves the right, at any time and without providing reasons, to:
- refuse an application;
- refuse a transaction;
- suspend account activity;
- delay processing instructions;
- request additional documentation;
- reject deposits or withdrawals;
- restrict services;
- terminate a business relationship;
where the Company considers such action necessary for AML/CFT, sanctions, fraud prevention, compliance, risk management, legal, regulatory, or operational purposes.
The Company shall not be obliged to disclose the reasons for any review, investigation, restriction, refusal, or termination where such disclosure may be inappropriate or prohibited by law.
24. Record Retention
The Company shall maintain records relating to:
- client identification;
- verification documents;
- beneficial ownership information;
- account activity;
- transactions;
- compliance reviews; investigations;
- internal reports;
- risk assessments;
- communications relating to AML/CFT matters.
Such records may be maintained in electronic, digital, written, scanned, recorded, or any other form.
The Company shall retain records for a minimum period required by applicable law and, where appropriate, for longer periods where necessary for legal, regulatory, compliance, operational, or business purposes.
25. Confidentiality
Information obtained for AML/CFT purposes shall be treated as confidential and shall only be disclosed where:
- required by law;
- required by a competent authority;
- required by a court or regulatory body;
- necessary for compliance purposes;
- necessary for the protection of the Company's legitimate interests.
Nothing in this Policy shall prevent the Company from sharing information with professional advisers, compliance providers, auditors, legal advisers, investigators, or service providers where reasonably necessary.
26. Employee Training and Awareness
The Company may provide AML/CFT training, guidance, and awareness programs to relevant personnel.
Training may cover:
- money laundering risks;
- terrorist financing risks;
- sanctions compliance;
- client due diligence procedures;
- suspicious activity identification;
- internal reporting procedures;
- regulatory developments;
- financial crime prevention.
The Company may determine the frequency and scope of such training according to its operational requirements and risk profile.
27. No Reliance on Account Approval
The acceptance of a client, approval of an account, completion of verification procedures, processing of transactions, or continuation of a business relationship shall not prevent the Company from conducting future reviews, requesting additional information, applying enhanced due diligence measures, or taking action under this Policy.
The Company's AML/CFT obligations are ongoing and continue throughout the duration of the business relationship.
28. Reservation of Rights
Nothing in this Policy shall limit any rights, powers, remedies, protections, or actions available to the Company under:
- the Client Agreement;
- the Abuse & Market Manipulation Policy;
- the Best Interest & Order Execution Policy;
- the Risk Disclosure & Warning Notice;
- applicable laws;
- regulatory obligations.
The rights contained in this Policy are cumulative and may be exercised independently or together.
29. Amendments
The Company reserves the right to amend, supplement, replace, or update this Policy from time to time.
Any amendment may become effective upon publication on the Company's Website, Client Portal, Platform, or upon notification to Clients.
Continued use of the Company's services following such publication or notification shall constitute acceptance of the revised Policy.
30. Effective Date
This AML, CFT & KYC Policy shall become effective on the date determined and published by the Company and shall remain in force until amended, replaced, or withdrawn by the Company.
