Elan Future LTD Know Your Customer and Anti-Money Laundering Policy
Elan Future LTD (the “Company”) has adopted this Know Your Customer (“KYC”) and Anti-Money Laundering (“AML”) policy (the “Policy”) to ensure compliance with the KYC and AML laws of Malta, the United States, and other nations in which Elan Future LTD does business.
Elan Future LTD is in the business of issuing digital tokens (the “ELAN Tokens”) and offering them to purchasers according to the terms and conditions of the relevant offering document.
Money laundering is a process by which a person disguises or conceals the illegal source of funds, making it appear that the funds have come from a legitimate origin. Money laundering is used in connection with many types of crimes, including illegal arms sales, drug trafficking, robbery, fraud, racketeering, and terrorism.
Laws and regulations in Malta, the United States, and other nations require Elan Future LTD to implement effective internal procedures and mechanisms to detect, prevent, and report money laundering and other suspicious transactions. Toward that end, Elan Future LTD has implemented the following rules and procedures:
- Purchaser Identification (KYC)
- AML Screening
- Accreditation for Prospective U.S. Purchasers
- Risk Assessment
- Ongoing Monitoring of Transactions
- Suspicious Activity Reports
- AML/KYC Compliance Officer
- Purchaser Identification (KYC)
Elan Future LTD collects identifying information from each prospective purchaser of ELAN Tokens, including:
- First and last names;
- Date of birth;
- Nationality; and
- Current address.
Prospective purchasers will be required to submit the above information, along with one or more of the following at Elan Future LTD’s request:
A copy of the prospective purchaser’s passport;
A photograph of the prospective purchaser holding his or her passport; or
A photograph of the prospective purchaser holding his or her passport and a note with the date written on it.
Elan Future LTD may verify a prospective purchaser’s identity on an ongoing basis, particularly when the prospective purchaser’s identification information has changed or his or her activity seems suspicious. In addition, Elan Future LTD may request updated documents from any prospective purchaser, even though the prospective purchaser may have already passed identity verification.
Elan Future LTD will submit the documents provided to a third-party authentication service, which will verify the documents’ authenticity.
Elan Future LTD will submit any information and documents it has regarding a prospective purchaser to an AML-screening service. The AML-screening service will search for the prospective purchaser in numerous databases and other sources to determine if he or she is included in one of the following categories:
- Global Sanctions List - Prospective purchasers are screened against government-provided lists of sanctioned persons, including those maintained by MFSA in Malta and OFAC in the United States (together, the “Global Sanctions List”).
- Politically Exposed Persons - Prospective purchasers are screened to determine whether any is a politically exposed person (“PEP”). A PEP generally includes current or former senior foreign political figures, their immediate family members, and their close associates.
If a prospective purchaser is matched to any of the above categories, then his or her purchase of ELAN Tokens will be blocked pending review by Elan Future LTD. Elan Future LTD will resolve any AML matches as follows:
- Global Sanctions List - If the prospective purchaser is matched to a person on the Global Sanctions List, the transaction will be declined.
- Politically Exposed Person - If the prospective purchaser is determined to be a PEP, Elan Future LTD may require further verification from the prospective purchaser.
In any event, Elan Future LTD will notify the prospective purchaser of the disposition of its review within a reasonable time.
Accreditation for Prospective U.S. Purchasers
Elan Future LTD will require prospective purchasers located in the United States to submit additional information and documents to prove that they are accredited investors, as that term is used in Rule 501 of Regulation D under the US. Securities Act of 1933.
Elan Future LTD has adopted a risk-based approach in monitoring the purchase transactions of its purchasers. Under a risk-based approach, Elan Future LTD identifies, assesses, and understands the AML risks to which it is exposed, and takes measures commensurate with those risks to mitigate them effectively. This approach enables Elan Future LTD to allocate its resources to KYC and AML matters efficiently and effectively.
Ongoing Monitoring of Transactions
Elan Future LTD will monitor and analyze purchase transactions to detect suspicious behavior and assess potential AML risks. Elan Future LTD, in its sole discretion or as required by applicable law or regulations, may:
- Ensure that transactions of a suspicious nature are reported to the proper law-enforcement agency by the KYC/AML Compliance Officer;
- Request any purchaser or prospective purchaser of ELAN Tokens to provide any additional information and documents in the event Elan Future LTD detects suspicious transactions;
- Decline any prospective purchase transaction that Elan Future LTD reasonably considers suspicious;
- Suspend or terminate a prospective purchaser’s or purchaser’s user account if the
- Company reasonably suspects that the prospective purchaser or purchase is or has engaged in illegal activity; or
- Take any other actions that Elan Future LTD considers appropriate in addressing suspicious transactions, subject to applicable law.
Suspicious Activity Reports
In certain circumstances, Elan Future LTD may be required by law to provide a suspicious-transaction report (“STR”) to the Financial Intelligence Analysis Unit (“FIAU”) being the relevant AML supervision authority in Malta. The KYC/AML Compliance Officer will monitor purchase transactions on a day-to-day basis to determine whether they are suspicious and whether a STR should be filed.
KYC/AML Compliance Officer
Elan Future LTD will appoint a person to serve as its KYC/AML Compliance Officer (the “Compliance Officer”). The Compliance Officer shall ensure the effective implementation and enforcement of this Policy, including by:
- Collecting prospective purchasers’ identifying information and verification documents;
- Establishing and updating internal policies and procedures for the completion, review, submission, and retention of all reports and records required by KYC or AML laws, regulations or policies;
- Training all relevant Company employees with respect to this Policy and their responsibilities under applicable KYC and AML laws;
- Implementing a records-management system to store and retrieve documents, files, forms and logs;
- Updating risk assessments regularly; and
- Reporting information to law enforcement agencies as required under applicable law.
Elan Future LTD will maintain the records of all KYC identity checks for a minimum of 5 years after the transaction or transactions to which they relate. Elan Future LTD will ensure that all documents, data, or information held in evidence of customer identity are kept up to date.
Copies of any STR, together with any supporting documentation will be maintained for 5 years from the date of filing.
All records Will be handled in confidence, stored securely, and will be capable of being retrieved without undue delay.