Anti-Money Laundering and Anti-Terrorist Financing Policy (AML/ATF)
The Government of Canada has made changes to what services make an individual or an entity an MSB in Canada. This now includes "dealing in virtual currency". These changes in law came into force initially on June 1, 2020, with the remainder coming into force June 1, 2021. Entities such as Localcoin, engaged in the business of dealing in virtual currency services, are considered “Money Services Businesses (“MSBs”) as of the initial ‘coming into force’ date, and are further subject to additional legislative requirements, based on what it means to be ‘engaged in the business of dealing in virtual currency.’
Localcoin - is registered Federally with the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”) as a Money Service Business (“MSB”). We are licensed and regulated by the Autorité des Marchés Financiers (“AMF”) in the Province of Quebec, and in British Columbia through various city-level business licensing requirements. We are constantly adding new locations subject to these requirements, and will update this information periodically to reflect it.
Localcoin has developed internal policies and procedures with respect to AML/ATF requirements and that reflects the company’s commitment to managing money laundering and terrorist financing (“ML/TF”) risks that Localcoin faces.
Localcoin fully cooperates fully with FINTRAC, government, and law enforcement requests to aid in the fight against money laundering and terrorist financing.
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (“PCMLTFA”) and associated regulations
In accordance with the newly-enacted legislative requirements, Localcoin is required to fulfill certain identification, record keeping, and reporting requirements.
Localcoin has implemented a compliance regime which includes the mandated requirements to:
- Appoint a Chief Compliance Officer (“CCO”), who acts as an independent oversight function and who is granted the necessary authority to fulfill their responsibilities under Localcoin’s AML/ATF Policy and who is mandated to;
Develop and implemented a suite of of compliance policies and procedures,
- Conduct an assessment of risks as it relates to ML/TF - both of our business and of each user individually;
- Completing “know your customer” (“KYC”) procedures on users at specified regulatory and risk-based thresholds (including sanction & PEP screening) ;
- Monitor all user transactions for potentially suspicious and attempted suspicious activities for the purposes of filing Attempted/Suspicious Transaction Reports (“A/STRs”) and Terrorist Property Reports (“TPRs”) (including screening for sanctioned wallets);
- Maintain the associated and required records per Localcoin’s record keeping procedures required by law.
- Maintain and provide written, ongoing compliance training for our employees to ensure their understanding of their responsibilities under our compliance regime; and,
- Complete an independent periodic review of our compliance regime to test its effectiveness every two years.
*Please note that transaction limits at Localcoin prevent customers from meeting the value levels that require compliance with the Travel Rule and Large Virtual Currency Transaction Reporting (LVCTR).
Date posted: June 1, 2021