Article 1 Purposes and Basis.
In view of the fact that money laundering will undermine the development of the digital asset trading, facilitate and breed corruption, pollute social morality, damage the legitimate rights and interests of Users, destroy the foundation for the sound operation of digital assets trading the Platforms, increase the legal and operational risks of digital assets trading the Platforms, Shubao Co.Ltd. formulates these Rules in accordance with the User Agreement of the Shubao Co.Ltd. Website, the User Agreement of Shubao Co.Ltd. APP and other documents of the company, so as to prevent money laundering and terrorist financing, fully perform relevant regulations against money laundering and terrorist financing.
Article 2 Scope of Application. These Rules shall apply to all Users trading on the website of Shubao Co.Ltd. and the APP thereof (hereinafter referred to as "the Platform"). The Users shall implement the provisions of these Rules in accordance with the anti-money laundering and anti-terrorist financing laws and regulations of the country or region where they are located and within the scope prescribed by the laws and regulations of the region or country where they are located. Where there are stricter requirements in the country or region where the Users are located, such requirements shall prevail.
Article 3 Fight Against Money Laundering and Terrorist Financing. It refers to the activities in which measures are adopted pursuant to relevant laws and relevant rules and regulations of the Platform, for the purpose of preventing money laundering activities that are carried out by offenders through the Platform for the purpose of covering up and concealing the source and nature of the proceeds and profits that such offenders obtain through such crimes as those relating to narcotics, organized crimes, terrorism, smuggling, graft, bribery, financial fraud, breach of financial regulation and order, inter alia.
Article 4 Relevant Rules and Regulations of the Platform against Money Laundering. The rules and regulations of the Shubao Co.Ltd. against money laundering (including terrorist financing; the same hereafter) include this Guidelines, sections concerning money laundering in the User Agreement of Shubao Co.Ltd. Website and the User Agreement of the Shubao Co.Ltd. APP. In the event of any conflict between this Guidelines and the money laundering sections of sections concerning money laundering in the User Agreement of Shubao Co.Ltd. Website and the User Agreement of the Shubao Co.Ltd.APP, this Guidelines shall prevail.
Article 5 Basic Principles of the Platform against Money Laundering.
The Platform monitors User risks according to the following principles:
Article 6 Responsible Organ. The Platform carries out operations against money laundering via a guidance group for money laundering affairs and a team for advancing the fight against money laundering, each of which shall consist of members from the risk control department and compliance department of the Platform.
Article 7 Functions of the Responsible Organ.
The guidance group for money laundering affairs is responsible for planning, guiding and coordinating the money laundering affairs of the Platform, with its specific responsibilities including the following:
The staffing structure of the team for advancing the fight against money laundering shall be determined on the basis of the regulatory requirements and local specific conditions. The main responsibilities thereof include:
Article 8 Due Diligence.
Following the principles of diligence and understanding your Users, the Platform conducts due diligence on all Users first. For high-risk Users, the Platform has the right to conduct more detailed due diligence.
Article 9 Documents Submitted by Individual Users
As is required by the laws and regulations of different jurisdictions, the information that the Platform collects on individual Users from different countries or regions may vary. In principle, an individual User shall submit the following information and data in accordance with relevant regulations of the Platform against money laundering:
Article 10 Documents Submitted by Institutional Users
As is required by the laws and regulations of different jurisdictions, the information that the Platform collects on institutional Users from different countries or regions may vary. In principle, an institutional User shall submit the following information and data in accordance with relevant regulations of the Platform against money laundering:
Article 11 Languages of the Submitted Documents.
The Platform only accepts documents prepared in Chinese or English. Users who submit documents prepared in any language other than Chinese or English shall engage a properly qualified translator to translate such documents into Chinese or English and have the translated version thereof properly notarized.
Article 12 Submission of Document Copies. Where a copy of a document is submitted, the copy shall be properly checked against the original of such document. The copy of a document may be submitted if such copy is notarized and certified as a full and true copy of the original document. The certification mentioned under this Clause includes, but is not limited to, certification by an embassy, judicial certification, certification by local magistrate, or certification by a notary public.
Article 13 Photograph-based Certification.
A User shall complete a photograph-based certification procedure as is required by the Platform: the User shall have a photograph of himself/herself taken, which shows the User holding his/her identity document and a statement that the User opens his/her account with the Platform according to his/her free will. If the photograph of the User is not clear enough or fails to conform to the requirements of the Platform, the Platform shall have the right to refuse to reject the User’s registration.
Article 14 Identification of the Beneficiary and the Controller.
The Platform has the right to identify the actual beneficiary or actual controller of the account of a User. In the case of the registration of an institutional User, the shareholder(s) holding more than 10% of the shares of the institution shall provide relevant materials and undergo identity verification according to the requirements of the Platform.
Article 15 Identity Authentication by an Entrusted Third Party.
Where a sub-website of the Platform entrusts a third party institution to authenticate a User's identity, the third party institution shall meet the following requirements:
Article 16 Review of User Documents.
The Platform will verify and record the relevant information submitted by the Users in accordance with the User identification system under the relevant regulations of the Platform against money laundering. If the Platform has any doubt about the information submitted by a User, it has the right to ask the User to provide other documents or consult with relevant competent authorities or departments for verification.
Article 17 Classification of User Risk Levels.
The Platform classifies Users into three categories, i.e., low-risk Users, medium-risk Users and high-risk users according to the materials submitted by the Users, and on the basis of such factors as the geographical location of the Users, the industries they are involved in, background of the shareholders of Users, if any, whether Users are well-known figures, inter alia. The Platform reserves the right to adjust the grading of Users.
Article 18 Identification of High-risk Users.
High risk Users refer to Users who involve any of the following high-risk factors and are identified as high-risk users after a comprehensive evaluation by the Platform. High-risk Users include:
Article 19 Identification of Low-risk Users.
Low-risk Users refer to those Users that are identified as low-risk Users after a comprehensive evaluation by the Platform. Low-risk factors include:
Article 20 Identification of Medium-risk Users.
Medium-risk Users refer to Users other than those specified under Articles 17 and 18 of these Rules.
Article 21 Adjustment of Risk Level Grading.
After the establishment of business relations with a User, the Platform will pay sustained attention to the identity and transaction status of such User. Should there be any change or abnormality in such identity or status, or the Platform becomes suspicious about any of the information that it has by then obtained on the User, the Platform will re-identify the User identity and adjust the risk level grading of the User in a timely manner. The Platform has the discretion to adjust the User’s risk level grading and may do so without providing the User with any reason.
Article 22 Monitoring of High-risk Users
For Users in the high-risk category, the Platform will conduct a review every six months, to update the basic information on the Users’ identity and ascertain their sources of funding, uses of fund, financial standing or business status. If the Platform, on the basis of a comprehensive assessment in the regular review of a high-risk User, deems that such User and transactions in such User’s account with the Platform are normal, it may lower the risk level of such User.
Article 23 Continuous User Identification.
During the term of business relationship with a User, the Platform will adopt continuous User identity verification measures, so as to keep following the User's transaction status, and if the Platform finds that the User's identity information or information has expired and the User fails to update such information or data within a reasonable period of time without
providing any justifiable reason, the Platform will take measures to suspend the service for the User.
Article 24 Re-identification of Users
Under any of the following circumstances, the Platform has the right to re-identify a User’s identity:
Article 25 Trading Limits.
The Platform has the right to set and adjust at any time the maximum amount of currency that may be withdrawn for scheduled transactions, according to the transaction security and actual conditions.
Article 26 Identification of Suspicious Transactions.
The Platform has the right to verify the following suspicious transactions and suspicious accounts:
Article 27 Identification of Terrorist Financing.
If the Platform suspects that a User' transaction or attempted transaction is related to terrorism, terrorist crime, any terrorist organization, terrorist or people engaged in terrorist financing activities, it shall adopt appropriate measures, regardless of the amount of fund or value of assets involved.
Article 28 Handling of Suspicious Conducts.
When the Platform identifies the identity of a User, it shall have the right to adopt such responsive measures as suspending any suspicious transaction, rejecting transaction applications, reversing transactions, freezing suspicious accounts, and reporting to the competent authorities if the Platform uncovers any of the following conducts on the part of the User:
Article 29 User Data storage System.
The Platform establishes a system for the storage of Users’ identity information and transaction records, and properly keeps documents and data such as User identity information and transaction records, so as to facilitate money laundering investigation and supervision and regulation, and prevent the loss, damage and disclosure of the Users’ identity information and transaction records.
Article 30 Scope of the storage of the Users’ Data and Transaction Records.
The User identity information and transaction data saved by the Platform include the uploaded User identity information, data and various records and data reflecting the User identity identification carried out by the Platform, as well as the data and information of each transaction and other data reflecting the actual circumstances of the transactions.
Article 31 Term for the Storage of User Identity information and Transaction Records.
The Platform shall keep User identity information and transaction records for specific terms depending on the following circumstances:
Article 32 Assistance to Judicial Investigation.
If a judicial organ, law enforcement organ or other competent authority of a country or region submits a request to the Platform for assistance in connection with any investigation, the Platform shall have the right to cooperate with such investigation and provide relevant information and materials as is requested by such organ or authority, as the case may be.
Article 33 Confidentiality in Anti-money Laundering.
Any staff member of the Platform that comes into any information relating to anti-money laundering through his or her performance of duties relating to money laundering or his or her work shall strictly comply with confidentiality requirements and keep confidential all the User identity information, suspicious transactions, terrorist financing transactions and other information that he or she may obtain. Such staff member may not provide such information to any organization, individual or any irrelevant staff member of the Platform.
Article 34 Cautions to the Users.
The Users shall pay attention to the following cautions:
Article 35 Reports of Suspicious Conducts.
Users of the Platform may report to the Platform if they find that any account may be engaged in money laundering or terrorist financing activities during trading on the Platform.
Article 36 Interpretation.
These Rules shall be interpreted by the Platform.
Article 37 Effective Date.
These Rules shall come into effect on the date of promulgation thereof.