(updated 28th of April 2022)
Senit has put in place appropriate systems and controls to combat money laundering and terrorist financing under current UK and EU Anti-Money Laundering (“AML“) and Anti-Terrorist Financing (“CTF“) regulations, more specifically:
- UK Proceeds of Crime Act 2002 (“POCA“)
- UK Terrorism Act 2000
- UK The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“MLR 2017”).
- EU 6th Directive on Anti-Money Laundering (“AMLD6“), which is an extension of AMLD5 and came into effect for EU member states on 3 December 2020.
Senit is currently in the process of receiving its Regulatory approval with the Financial Conduct Authority (the “FCA“) in the UK. The Company has already obtained its EU crypto licences in Lithuania (see below). Its next step is to obtain a Canadian MSB licence.
We believe that combined, these services will provide a protective umbrella for users on our platform, and enable us to serve them in the best way possible by ensuring that we comply with all local regulations.
1. Crypto Asset Registration in the UK
From 10 January 2020, the FCA became the AML & CTF supervisor for these crypto firms, which includes firms that exchange money to and from cryptoassets and those that safeguard their customers’ cryptoassets. From this date, ‘existing cryptoasset businesses’ (i.e. firms operating immediately before 10 January 2020) have had to comply with the Money Laundering Regulations; such firms were required to be registered with the FCA by 10 January 2021.
New businesses (who began operating after 10 January 2020), are required to obtain full registration with the FCA before conducting business. The Temporary Registration Regime is for existing cryptoasset businesses which have applied for registration before 16 December 2020, and whose applications are still being assessed. This is to enable those existing businesses to continue to trade after 9 January 2021 until 9 July 2021, pending the FCA’s determination of their application.
Senit Pay Ltd, a wholly-owned UK subsidiary of Senit App Ltd, with the UK Companies House registration number 13454888, has submitted an application to obtain a crypto-currency business registration with the FCA, in October 2021. The application number is 0002554600.
The FCA is still not able to assess and register all firms that have applied for this crypto registration, due to the complexity and standard of the applications received, and the pandemic restricting the FCA’s ability to visit firms as planned. Many cryptoassets are highly speculative and can therefore lose value quickly. The FCA does not have consumer protection powers for the cryptoasset activities of firms. Even if Senit is registered with the FCA, we are not responsible for ensuring cryptoasset businesses protect client assets (i.e. customers’ money), among other things.
2. Lithuanian Crypto Currency Licence
Financial Crimes Investigation Service (“FCIS”) is an independent structural unit of the Lithuanian Police and Border Police Department. Its mission is to protect the public financial system by uncovering criminal acts and other violations of the law.
The Company holds the below authorisations obtained with Lithuanian regulatory authority FCIS after the consideration by the Bank of Lithuania since 11th of January 2022.
1. Depository Virtual Currency Wallet Operator;
2. Virtual Currency Exchange Operator.
The purpose of the FCIS is to develop methods of combating criminal activities against the public financial system. In pursuance of this objective, the Service is actively involved in the implementation of the National Crime Prevention and Control Programme, the National Anti-Corruption Programme, and is preparing a public relations strategy, through which it seeks to involve society in preventive activities against financial crimes.
The FCIS pursues its objective by taking operational measures, detecting and conducting pre-trial investigations and preventing criminal acts, implementing measures to combat money-laundering, as well as the means to guarantee the legality of the receipt and use of financial support from the European Union and other countries, by conducting an assessment of their commercial and financial activities and submitting an expert opinion thereon, as well as measures to ensure that hidden taxes can be reimbursed in order to maximize their impact on the actual revenues to be paid into the State budget.
Cryptocurrency companies are regulated by the Republic of Lithuanian Law on the Prevention of Money Laundering and Financing of Terrorism (the “Prevention Law”), in particular Order No V-5 of January 2020.
3. Canadian Money Services Business Licence
The Canadian Money Services Business License (“MSB“) was amended in December 2001 and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) has come into effect to deter financial crimes within the land of Canada.
With the aim of enhancing the regulatory framework for money services businesses, the Act also serves to combat transnational crimes, particularly in money laundering and terrorist activities. Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, companies are required to register with the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC“). As of 1st June 2020, foreign money services businesses are also required to register with FINTRAC and thereby, comply with their reporting and record-keeping requirements.
Non-compliance with the Act may result in criminal or administrative penalties. Generally, non-compliance will be followed with an assessment by FINTRAC to determine a suitable response. Administrative monetary penalties are commonly used to address repeated non-compliant behavior, and facilitate future compliance with the Act. In extreme cases where non-compliance to the Act is extensive or otherwise deemed to be impossible, criminal penalties may ensue. Criminal penalties such as a fine or imprisonment can be issued under these cases.
Please contact us with questions, comments, or concerns regarding our Regulatory Status via our contact form or by sending a email to firstname.lastname@example.org.