AML Policy
Since the 2d of September 2020 Kanberry has become a Registered Digital Currency Exchange Provider, we are bound by Australian law requirements of Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (“AML/CTF Act”)’s and the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No.1) (“Rules”). to ensure the service we provide does not facilitate money laundering or terrorism financing.
Various anti-money laundering (AML), counter-terrorism financing (CTF) and fraud prevention measures are in place designed to articulate our commitment to detecting, preventing and reporting attempts to use our platform to illegally launder money, to finance illegal activities such as terrorism and drug trafficking, or to commit fraud.
As part of complying with AUSTRAC’s reporting guidelines, we will report any event suspected to be involved with Money Laundering, Proceeds of Crime, Terrorism, Fraud or Trafficking.
Our measures include, but are not limited to, the following:
- Members opening and operating account with Kanberry, depositing or withdrawing fiat currency to/from their account must undergo a identification/verification check to confirm their identity.
- Verified members are checked against DFAT Consolidated Sanctions List.
- Fiat currency withdrawals can only be made to a bank account held in the same name as the Kanberry account.
- Fiat currency deposits can only be accepted from a bank account held in the same name as the Kanberry account.
What is Money Laundering?
Money laundering (“ML”) is the process used to disguise the illegal origin of the proceeds of illegal activities such as drugs trafficking, tax evasion, smuggling, theft, terrorism, arms trafficking and corrupt practices. It is the name given to the process by which illegally obtained funds are given the appearance of having been legitimately obtained.
What is Terrorism Financing?
Terrorism financing (“TF”) is often the reverse of ML whereby funds within a legitimate source are put into the financial system and redirected into the hands of terrorist organisations. Where those funds are the proceeds of illegal activities including fraud and criminal activities they may also be captured by AML controls.
Terrorist organisations obtain money from a number of legitimate and illegitimate sources, such as:
(a) Illegal Activities – terrorists obtain funds from illegal activities, such as drug trafficking, smuggling, kidnapping and extortion.
(b) Rich Individuals – it is increasingly apparent that rich individuals are a critical source of terrorist financing.
(c) Charitable and Religious Institutions – charitable and religious institutions can be a source of terrorist funding. They are ideal conduits because they are very lightly regulated and do not need to provide a commercial justification for their activities.
(d) Commercial Enterprise – terrorist organisations may run or own otherwise legitimate commercial enterprise to generate profits and commingle illegal funds. These include jewellery businesses, trading companies, convenience stores, real estate ventures and investment management firms.
(e) State Sponsors – a number of rogue nations have been known to provide assistance, financial support and safe harbour to terrorist
What is Fraud?
Fraud is a type of criminal activity, defined as an abuse of position, or false representation, or prejudicing someone’s rights for personal gain. Put simply; fraud is an act of deception intended for personal gain or to cause a loss to another party. The general criminal offense of fraud can include deception whereby someone knowingly makes a false representation, fails to disclose information or abuses a position.