Bank Secrecy Act and Anti-Money Laundering Compliance Plan
The INX Digital Company, Inc and its wholly-owned, separately operated subsidiaries have developed a Bank Secrecy Act and Anti-Money Laundering Compliance Plan (“BSA/AML Plan”) in an effort to maintain the highest possible compliance with applicable laws and regulations relating to anti-money laundering in the United States and other countries where we conduct business.
The elements of our plan include, but are not limited to, the following:
- We have established robust internal policies, procedures and controls that are designed to combat attempted use of our platform for illegal or illicit purposes and that are intended to ensure our customers basic protections under consumer protection laws;
- Compliance with the applicable regulations and guidance that have been set forth by the Financial Crimes Enforcement Network (“FinCEN”);
- Filing Suspicious Activity Reports (“SARs”);
- Maintaining comprehensive records of orders and other transfers and following record retention requirements;
- We have employed a Chief Compliance Officer (“CCO”) to act as our Bank Secrecy Act/AML Compliance Officer and is responsible for the implementation and oversight of our BSA/AML Plan;
- Executing Know Your Customer (“KYC”) procedures on all customers;
- We will conduct both regular, internal and independent external audits of our BSA/AML Compliance Plan; and
- Implementing a formal and ongoing plan for compliance training for all employees.
Our BSA/AML Compliance Plan has been reviewed and approved by our Managers. Our BSA/AML Compliance Plan is regularly reviewed and, if necessary, revised in an effort to comply with applicable rules, regulations and policies. We are regulated by the US state departments of financial institutions identified in the “Licenses” section of this webpage and our BSA/AML Compliance Plan is subject to their review and approval.
We have developed robust internal policies, procedures, and controls designed to comply with applicable BSA/AML laws and regulations, some of which are outlined here on this page including, but not limited to, our Customer Identification Program (“CIP”), the filing of SARs and CTRs, as well as other reporting requirements and audits.
Our employees and officers receive ongoing broad-based BSA/AML training, as well as position-specific training. They must repeat this training at least once every twelve (12) months, and all new employees receive training, to ensure they are knowledgeable and in compliance with all pertinent laws and regulations. All documentation related to compliance training including materials and attendance and date are maintained. In addition, our compliance training program is updated as necessary to reflect current laws and regulations.
Our CCO is responsible for developing and enforcing the policies and procedures of our BSA/AML Compliance Plan. Our CCO is required to report any violations of our BSA/AML Compliance Plan directly to our CEO and our Managers. In addition, our CCO is responsible for recording and filing SARs, CTRs and performing a BSA/AML Compliance Plan audit at least annually.
Our Customer Identification Program (“CIP”) is an important part of our BSA/AML Compliance Plan, and helps us detect suspicious activity in a timely manner and prevent fraud.
In order to open an account and use the platform, your identity must be verified, authenticated, and checked against government watchlists, including the Office of Foreign Assets Control (“OFAC”). Failure to complete any of these steps will result in your inability to use our platform.
To verify the identity of individuals, we must receive, for each person:
- Full Name
- Permanent Residence Address
- Date of Birth
- SSN or TIN for US Persons
Additionally, in order to verify the information provided, we must receive the following documentation for each person
- Valid (non-expired) Government Issued ID Document such as
- Drivers license
- National identity card (front + back)
- Other valid government-issued ID may be accepted if it has your full legal name, photo, date of birth and issue and expiry dates all on the front of your ID.
- Firearm licenses are not accepted.
Additional documentation we may request
- “Selfie” Face Photo and ID Confirmation Photo
- Proof of residence address documentation
Must contain the person’s name, address and be dated less than 3 months ago from the date of submission. Valid documents include, but are not limited to:
- Bank statement
- Credit card statement
- Utility bill (water, electricity, gas, internet, phone)
- Payroll statement -or- Official salary document from employer
- Tax return document
- Brokerage statement
- Current driver license or national identification card with address.
We do NOT accept:
- USPS change-of-address letters.
- P.O. Box addresses from any country.
For documents in languages that use non-Latin characters (such as Russian, Chinese, Thai, Hebrew, etc.), a notarized translation of your proof of residence document will greatly speed up processing time.
Entity or Institutional customers
Prior to opening an account for an entity or institutional customer, we attempt to collect, verify, and authenticate the following information:
- Entity Account Name and E-mail
- Entity Physical Address
- Federal Tax ID Number (TIN)
- State/Country of Organization
- Authorized Signer Name(s), Title, Phone, and E-mail
- Authorized Trader(s) Name(s), Title, Phone, and E-mail
Authorized Signers vs. Authorized Traders
While Authorized Signers have full authority, an Authorized Trader can perform trades (purchases & redemptions) and obtain account information; any changes to the account (changes to wiring instructions, address, Authorized Signers & Traders, etc.) can only be made by an Authorized Signer.
- Each individual, if any, who owns, directly or indirectly, 25% or more of the equity interests of the legal entity customer (e.g., each natural person that owns 25% or more of the shares of a corporation); and
- An individual with significant responsibility for managing the legal entity customer (e.g., a Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer).
To verify an institutional account, INX Digital must receive the following documentation:
- Articles of Incorporation / Articles of Organization or a charter or similar legal document that indicates when the entity was formed.
- Memorandum and Articles of Association or equivalent governance documents.
- Details of Ownership and Control Structure.
- Company’s proof of physical address (Preferably a banking statement dated within the last 90 days).
- Authorized Signatory List (listing those authorized to handle trade on INX on behalf of the company).
- (US Only) The entity’s Employer Identification Number (EIN) Verification Letter issued by the IRS.
Additional information we may request:
- Organizational Chart displaying ownership structure (if the entity is owned by another entity)
- Current Officer Register List
- Company Share Registry
- Current Director Register List
- Names of Ultimate Beneficiary(-ies)
- Shareholder List
- Certificate of Incumbency
- Certificate of Good Standing from the jurisdiction in which the company was incorporated.
- One form of identification document for authorized signatories, all directors, and shareholders who hold at least 25% or more legal or beneficial interest in the Company.
- Proof of residential address from authorized signatories, all directors, and shareholders who hold at least 25% or more legal or beneficial interest in the Company.
- Proof of Tax identification number (SS/4)
It’s important to note that entity documentation may vary significantly depending on the country of incorporation. If your institution successfully meets and completes our CIP requirements, we will complete your account onboarding.
Over the course of your customer experience on the platform, our team may reach out to you for additional information in order to ensure the safety and integrity of our customer base and our trading platform, and as required for ongoing compliance with our regulatory obligations. Please be aware that your failure to comply with these requests may result in restrictions on your account.
Suspicious Activity / Currency Transaction Reports Process
We file SARs if we know, suspect or have reason to suspect suspicious activities have occurred on our platform. A suspicious transaction is often one that is inconsistent with a customer’s known and legitimate business, personal activities or personal means. We leverage our compliance department, which performs transaction monitoring to help identify unusual patterns of customer activity. Our BSA/AML Compliance Officer reviews and investigates suspicious activity to determine if sufficient information has been collected to justify the filing of a SAR.
In addition, all currency transactions over a determined USD value are reported to FinCEN via a CTR filing.
Our BSA/AML Compliance Officer maintains records and supporting documentation of all SARs and CTRs that have been filed.
All records are retained for seven (7) years and are readily available upon official request by an applicable examiner, regulator, or law enforcement agency.
BSA/AML Compliance Plan Audit
Internal Review and Audit
The BSA/AML Compliance Officer is responsible for overseeing our BSA/AML Compliance Plan and presenting findings to our CEO and Managers.
Independent Annual Audit
Our BSA/AML Compliance Officer oversees the performance of an independent test of our BSA/AML Compliance Plan at least annually. Results are shared with the Managers.