Anti-Money Laundering and Terrorist Financing Policy

Chapter 1 — Introduction

Zplnn Casino (the “Company”) is committed to continuously improve its governance practices and hereby adopts this Anti-Money Laundering and Terrorist Financing Policy (AMLTF) (the “Policy”).

The following definitions shall apply:

• “Appropriate Government Agency” (“AGA”) — refers to the Tobique Gaming Commission, the Company’s governing body;
• “Gaming Operators” — refers to a business authorized by the appropriate government agency to engage in gaming operations;
• “Suspicious Transaction” — refers to transactions with covered persons, regardless of the amounts involved, where any of the following exist:
  • There is no underlying legal or trade obligation, purpose or economic justification;
  • The client is not properly identified;
  • The amount involved is not commensurate with the business or financial capacity of the client;
  • Taking into account all known circumstances, it may be perceived that the client’s transaction is structured in order to avoid being the subject of reporting requirements under the AMLTF Policy;
  • Any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or the client’s past transactions with the covered person;
  • The transaction is in any way related to an unlawful activity or any money laundering activity or offense that is about to be committed, is being committed or has been committed; or
  • Any transaction that is similar, analogous or identical to any of the foregoing.

Chapter 2 — Description of Money Laundering

Money laundering is a process intended to mask the benefits derived from serious offenses or criminal conduct so that they appear to have originated from a legitimate source. Generally, the process comprises three stages, during which there may be numerous transactions that could alert the Company to the money laundering activity:

• Placement — the physical disposal of cash proceeds derived from illegal activity.
• Layering — separating illicit proceeds from their source by creating complex layers of financial transactions designed to disguise the audit trail and provide anonymity.
• Integration — the provision of apparent legitimacy to criminally derived wealth. If layering has succeeded, integration schemes place the laundered proceeds back into the economy so that they re-enter the financial system appearing to be normal business funds.

Due diligence must therefore be exercised to prevent the use of the Company as an instrument for money laundering. The Company shall apply enhanced due diligence measures to customers who present high or elevated risk for money laundering or terrorist financing. Enhanced Due Diligence includes:

• Taking reasonable measures to establish the customer’s source of revenue and funds;
• Ascertaining and confirming the risk factors of the customers;
• Identifying patrons who should be escalated to the AML Committee to decide whether to establish or continue (for existing patrons) such business relationships; and
• Identifying patrons who should be subject to enhanced monitoring of the business relationship.

Chapter 3 — Basic Principles and Policies to Combat Money Laundering

The Company seeks to combat money laundering by requiring its employees to apply the following principles:

• Know your customer: The Company is responsible for knowing its customers and aims to ensure the integrity and veracity of any sensitive data it obtains. When a customer enters into a contract or registers as a player with the Company, they shall be required to submit and disclose information for due diligence. The Company reserves the right to immediately suspend its service if it appears that a customer is engaged or is trying to engage in suspicious transactions and/or criminal activities.
• Compliance with laws: The Company shall ensure that business is conducted in conformity with high ethical standards, that laws and regulations are adhered to, and that service is not provided where there is good reason to believe that transactions are associated with money laundering activities.
• Cooperation with law enforcement agencies: Should there be reasonable grounds for suspecting money laundering, the Company shall cooperate fully with law enforcement agencies as may be required under pertinent laws.
• Dissemination of policies and procedures: Policies and procedures to prevent and detect possible money laundering activities are properly disseminated to the officers and staff of the Company.

Chapter 4 — Customer Identification

A. General

The Company shall obtain satisfactory evidence of the true and full identity of its customers through the use of documents such as, but not limited to:

• Certified copies of passports;
• Certified copies of other government-issued IDs; and
• Certified copies of utility bills (dated within the last 6 months);
• Other pertinent and reasonable documents as may be deemed necessary under the prevailing circumstances.

B. Customers

The Company shall endeavor to obtain from its customer the following information:

• Name and/or alias names used;
• Date and place of birth;
• Registered address;
• Contact number;
• Nature of business;
• Sources of funds;
• Bank account details.

Chapter 5 — Record Keeping

The Company shall prepare and maintain documentation on its customer relationships and transactions such that:

• Any transaction effected via the Company can be reconstructed, and from which the appropriate government agency will be able to compile an audit trail for suspected money laundering when such a report is made to it;
• The Company can satisfy, within a reasonable time, any inquiry or order from the appropriate government agency for the disclosure of information, including whether a particular person is the customer or beneficial owner of a transaction conducted through the Company.

The following document retention periods shall be followed:

• All KYC documents, such as the Due Diligence Documentation Forms as may be applicable, as well as copies of the customer’s identification records, shall be maintained and safely stored for five (5) years from the date of transactions;
• With respect to inactive customers, the records on customer identification, account files and business correspondence shall be preserved and safely stored for at least five (5) years from the date the account was terminated.

Transaction documents may be retained as originals or copies, on microfilm, or in electronic form, provided that such forms are admissible in court. Notwithstanding the retention periods above, if the records relate to ongoing investigations or transactions that have been the subject of a disclosure, they shall be retained beyond the stipulated period until it is confirmed that the case has been closed.

Chapter 6 — Suspicious Transactions

The Company shall file a Suspicious Transaction Report (STR), regardless of the amount of the transaction, where any of the following circumstances exists:

• There is no underlying legal or trade obligation, purpose or economic justification;
• The client is not properly identified;
• The amount involved is not commensurate with the business or financial capacity of the customer;
• Taking into account all known circumstances, it may be perceived that the customer’s transaction is structured in order to avoid being the subject of reporting requirements under the Act;
• Any circumstance relating to the transaction which is observed to deviate from the profile of the customer and/or the customer’s past transactions with the covered institution;
• The transaction is in any way related to an unlawful activity or any money laundering offense under the Act that is about to be, is being, or has been committed; or
• Any transaction that is similar or analogous to any of the foregoing.

As a general principle, a suspicious transaction relates to any transaction wherein there is a feeling of apprehension or mistrust considering the unusual nature or circumstances of the transaction and the behavioral factors of the persons with whom the transaction may be connected with an unlawful activity. The list of suspicious transactions is not exhaustive, and it is left to the better judgment of the Company to gauge the nature of each and every transaction it is involved in.

Chapter 7 — Reportorial Requirements

The Company shall institute a system for the mandatory reporting of suspicious transactions by appointing the Compliance Officer, who shall be responsible for reporting to the Tobique Gaming Commission.

The obligation to make the suspicious transaction report rests with the Compliance Officer. Such reporting must be done within five (5) working days after the initial detection of facts that may constitute a basis for filing such reports, unless the appropriate government agency prescribes a different period not exceeding fifteen (15) working days from the occurrence thereof.

The Company, its directors, officers and employees shall not warn their customers when information relating to them is being reported to the appropriate government agency, nor communicate, directly or indirectly, such information to any person other than the appropriate government agency. Any violation of this confidentiality provision shall render them liable for criminal, civil and administrative sanctions under the Act.

• Where any employee, personnel, director or officer of the Company knows that a customer has engaged in any of the predicate crimes, the matter must be promptly reported to the Compliance Officer, who in turn must immediately report the details to the appropriate government agency.
• If there are reasonable grounds to suspect that a customer has engaged in unlawful activity, the Compliance Officer receiving such a report must promptly evaluate whether reasonable grounds exist and must then immediately report the case to the Tobique Gaming Commission, unless the Compliance Officer considers and records an opinion that such reasonable grounds do not exist.

The Company shall maintain a complete file on all transactions brought to the attention of the Compliance Officer, including transactions that are not reported to the Tobique Gaming Commission.

Chapter 8 — Internal Control and Procedures

The Company shall establish and implement control procedures aimed at preventing and impeding money laundering and terrorist financing. Such procedures shall ensure that the Company and its employees are aware of the provisions of the law, its implementing rules and regulations, and all reportorial and compliance controls and procedures established by the Tobique Gaming Commission, the Supervising Authority and the Company.

Policies and procedures should cover:

• Communication of firm policies relating to money laundering, including timely disclosure of information and internal audits to ensure compliance with policies, procedures and controls;
• Customer identification, including requirements for proper identification;
• Maintenance of records;
• Compliance with the requirements of the appropriate government agency;
• Cooperation with relevant authorities.

The Company shall establish written internal reporting procedures which shall:

• Enable all its directors, officers, employees and key staff to know to whom they should report any knowledge or suspicion of money laundering activity;
• Ensure a clear reporting chain under which suspicions of money laundering activity will be passed to the appropriate person(s)/unit, duly identified and designated as the Compliance Officer;
• Require the Compliance Officer to consider any report in light of all relevant information available, to determine whether or not it gives rise to a knowledge or suspicion of money laundering;
• Ensure that the Compliance Officer has reasonable access to any other information which may be of assistance and which is available to the relevant person;
• Require that the information contained in a report is disclosed promptly where the Compliance Officer knows, suspects, or is made aware of any suspicious transactions;
• Maintain a register of all reports, including those made by its own staff relative to suspicious transactions. The register shall contain the date on which the report is made, the person who makes the report, and information sufficient to identify the relevant papers.

Chapter 9 — Compliance

The Company shall appoint one or more senior persons, or an appropriate unit, to advise its management and staff on issuing and enforcing in-house instructions to promote adherence to the Act and its Rules, including personnel training, reporting of suspicious transactions, and all matters relating to the prevention of money laundering and terrorist financing.

The Company shall appoint a senior officer as the Compliance Officer, or set up a designated compliance unit headed by a senior officer. The Compliance Officer shall be different from the Reporting Officer(s)/Unit, and shall be:

• A senior officer with relevant qualifications and experience to respond sufficiently well to inquiries relating to the relevant person and the conduct of its business;
• Responsible for establishing and maintaining a manual of compliance procedures in relation to the business of the Company;
• Responsible for ensuring compliance by the staff of the Company with the provisions of the Act and these Rules;
• Act as the liaison between the Company and the appropriate government agency in matters relating to compliance with the provisions of the Act and these Rules;
• Prepare and submit to the appropriate government agency written reports on the Company’s compliance with the provisions of the Act and its Rules, in such form and at such times as the appropriate government agency may determine.

Chapter 10 — Training

The Company shall provide education and training for all its staff and personnel, including directors and officers, to ensure they are fully aware of their personal obligations and responsibilities in combating money laundering and are familiar with its system for reporting and investigating suspicious matters.

The Compliance Officer shall oversee an Anti-Money Laundering Training Program which is segmented and risk-based to suit the level of AML knowledge required for different groups of employees. All employees or personnel designated by the Compliance Officer to perform AML-related responsibilities shall receive training no less frequently than annually. The Compliance Officer shall maintain records of training completion and escalate non-completion to the relevant line management.