Anti-Money Laundering & Counter-Terrorist Financing (AML/CFT) Policy

Last Updated: 22 July 2024

1. Introduction and Policy Overview

Andromeda-pay.com (“Andromeda,” “we,” “us,” or “our”) is a financial intermediary registered under applicable law and committed to preventing money laundering (ML), terrorist financing (TF), and other illicit financial activities. This Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) Policy establishes the framework for ensuring compliance with both Swiss and international regulatory standards, including those outlined by the Financial Action Task Force (FATF).

As a provider of non-custodial services facilitating the exchange of virtual assets for fiat currency, Andromeda is dedicated to ensuring that we never knowingly participate in or facilitate any illicit financial transactions. By using our services, you, as a client, acknowledge and agree to comply with the terms outlined in this Policy.

This Policy is applicable to all individuals and entities engaging with Andromeda, including employees, directors, and authorized agents.

2. Regulatory Framework

Andromeda’s operations are governed by strict regulatory standards under Swiss law, and our compliance is aligned with international guidelines. The relevant regulations include:

• Swiss Criminal Code (SCC): Articles 305bis (Money Laundering) and 305ter (Lack of Due Diligence) impose criminal liability for money laundering activities and set the obligation to report suspicious activities.

• Federal Act on Combating Money Laundering and Terrorist Financing (AMLA): This legislation lays out the core framework for identifying and managing risks related to money laundering and terrorist financing.

• Anti-Money Laundering Ordinance (AMLO) and AMLO-FINMA: These regulations implement and clarify the AMLA, outlining detailed obligations, particularly for virtual asset service providers (VASPs) like Andromeda.

• Self-Regulatory Organization (SRO) Regulations: These rules, approved by the Swiss Financial Market Supervisory Authority (FINMA), guide Andromeda’s operations and compliance requirements.

In accordance with these regulations, Andromeda reserves the right to reject or terminate any business relationship that does not comply with the outlined policies.

3. Governance and Internal Controls

To ensure effective implementation of this Policy, Andromeda maintains robust internal controls and governance structures.

• Board of Directors’ Oversight: The Board of Directors is responsible for the approval, review, and oversight of this Policy. They ensure that adequate resources are allocated to compliance efforts.

• AML Compliance Officer (MLRO): The appointed AML Compliance Officer (also known as Money Laundering Reporting Officer or MLRO) ensures day-to-day management of our AML/CFT program. They also liaise with regulatory authorities and oversee investigations.

• Independent Audits: Andromeda’s compliance program is audited annually by an independent third-party firm approved by FINMA and the SRO, ensuring that all internal controls and training procedures meet regulatory standards.

• Employee Training: All staff receive training on AML/CFT laws, which is renewed annually and tailored to specific roles within the organization.

4. Risk-Based Approach (RBA)

In line with FATF and Swiss AMLA guidelines, Andromeda adopts a Risk-Based Approach (RBA) to managing and mitigating risks related to money laundering and terrorist financing. This involves:

• Risk Assessment: We conduct an annual institutional risk assessment to identify and evaluate the risks associated with clients, jurisdictions, and services.

• Risk Rating: Clients are assigned a risk rating (Low, Standard, or High), which determines the level of due diligence required.

• Ongoing Monitoring: The risk rating can be adjusted at any time based on new information or changing transaction patterns.

5. Client Due Diligence (CDD) and Identification Procedures

Before initiating any business relationship, Andromeda ensures that thorough Client Due Diligence (CDD) procedures are followed:

• Identity Verification:

  • Natural Persons: We collect valid government-issued identification documents (e.g., passport or ID card) to verify the client’s identity.

  • Legal Entities: Corporate clients must provide official documentation proving their legal existence, such as a commercial register extract and proof of incumbency for those authorized to act on behalf of the company.

• Ultimate Beneficial Owner (UBO): We require clients to identify and disclose the Ultimate Beneficial Owners (UBOs) of their accounts or entities. In cases of complex ownership structures, we may request additional verification to ensure transparency.

• Purpose and Nature of Relationship: We document the intended purpose of the business relationship and the source of the funds involved, ensuring clarity in every transaction.

6. Enhanced Due Diligence (EDD)

For high-risk clients, Andromeda applies Enhanced Due Diligence (EDD) procedures. These clients include Politically Exposed Persons (PEPs), individuals from high-risk jurisdictions, or those with opaque ownership structures.

• EDD Procedures: These include collecting additional documentation, obtaining management approval, and conducting more frequent and intensive transaction monitoring.

• Source of Wealth (SoW) and Source of Funds (SoF): We rigorously verify the source of wealth and funds for high-risk clients using reliable, independent sources.

7. Virtual Asset Transaction Procedures

Andromeda follows strict protocols for virtual asset transactions, in compliance with FINMA and the Travel Rule.

• External Wallet Verification: Clients must provide cryptographic proof of control over any external wallets used for transactions. This ensures that funds are not intermediated by unauthorized third parties.

• Travel Rule Compliance: When transferring virtual assets to other financial intermediaries or Virtual Asset Service Providers (VASPs), Andromeda ensures that all required originator and beneficiary information is transmitted as per the Travel Rule.

8. Ongoing Monitoring and Screening

All transactions and client activity are continuously monitored for suspicious patterns.

• Transaction Monitoring: We use advanced blockchain analytics tools to detect unusual or suspicious activity, including links to sanctioned addresses or illicit networks.

• Sanctions and PEP Screening: Clients and their representatives are screened against global sanctions lists and databases of PEPs to detect potential risks at the outset and on an ongoing basis.

9. Reporting Suspicious Activities

If Andromeda detects any suspicious activities related to money laundering or terrorist financing, we are required to report them to MROS (Money Laundering Reporting Office Switzerland).

• Internal Reporting: All employees are trained to escalate potential suspicious activities to the AML Compliance Officer (MLRO).

• Suspicious Activity Reports (SARs): The MLRO is responsible for investigating and filing SARs with MROS when necessary.

• Asset Freezing: Upon filing a SAR, Andromeda will comply with any legal orders to freeze assets pending law enforcement decisions.

10. Record-Keeping and Data Protection

In compliance with AMLA and the Swiss Federal Act on Data Protection (FADP), Andromeda retains records related to client identification, transaction history, and due diligence for a minimum of 10 years following the conclusion of the business relationship.

11. Amendments to the Policy

Andromeda reserves the right to amend this policy as necessary to stay compliant with regulatory changes or operational updates. The most current version of this Policy will always be available on our website.

12. Contact Information

For any questions or concerns regarding this AML/CFT Policy, please contact our Compliance Department at:
support@andromeda-pay.com