Objective
Having regard to the safety of the users and due to the legal requirements of the Brazilian regulatory bodies, and other countries that eventually the company will expand to, Beta Serviços Digitais LTDA has implemented and started to use KYC policy (customer’s identification), AML / CTF (combating money laundering and terrorist financing) as it is required from banks, financial institutions, and other strategic partners.
The purpose of those policies is an effective combating of money-laundering and terrorist financing (AML / CTF) on our exchange by proper identification of actual users of our accounts and supervision of their transactions. We shall identify and cease transactions made not only to purchase/sell cryptocurrencies, but made mainly to hide the criminal origin of money, finance illegal activity or other unlawful behaviours.
Specific provisions of our policies are confidential and for internal use only, in order to prevent their avoidance by dishonest or fraudulent users. We would like to introduce to you some of the general rules and stipulations of our policies which directly concern you and affect the services we render.
Scope and applicability
The Compliance Policy apply to all professionals who establish legal relationships with Beta and its subsidiaries, such as employees (direct, temporary, interns and service providers), members of the Executive Board and the Board of Directors. All of them have a duty to assess and address the compliance risks to which Beta and its subsidiaries may be exposed.
This Policy must be analyzed and understood together with the Code of Ethical Conduct, and other related Policies and Procedures.
In the event of a conflict between this Policy and other Beta policies, or in the event of situations where the provisions of this Policy are more specific than the Code of Ethical Conduct or other policies, the most restrictive and conservative Policy or procedure must be applied.
In these cases, the Compliance Committee must be informed so that it can immediately deal with the conflict, recommend the appropriate measures to be taken and, if necessary, update the respective policy or procedure.
Regulatory Foundation
The Compliance role is to comply with laws and regulations, as well as policies, standards, manuals, as well as internal procedures, in order to avoid possible sanctions, financial losses or any damage to the reputation in reason for non-compliance or inadequate compliance with the rules.
Beta and its subsidiaries strictly follow the Brazilian laws and reporting rules for the Prevention of Money Laundering:
- Law No. 12,846, of August 1st, 2013, which provides for the administrative liability of legal entities for the practice of acts against the public administration and other measures;
- Law No. 8,420 of 2015 regulates the Anti-Corruption Law – Law No. 12,846 of 2013. Chapter IV of the aforementioned Decree – Articles 41 to 42 – provides for the Integrity Program. Among the pillars of the Integrity Program, it is worth mentioning the commitment of the top management of the legal entity, including the councils, the standards of conduct, the code of ethics, the channels for reporting irregularities, the appropriate steps for hiring, internal controls, among others.
- Law No. 4,595 of August 28th, 2017, Provides guidelines for the compliance policy of financial institutions.
Compliance Program
The Program targets all employees and third parties who provide services of a permanent, temporary, exceptional or occasional nature to Beta.
It is aligned with the Corporate Strategy, reflecting the purpose and values shared among the people who are part of Beta.
The Compliance Program gives Beta the necessary credibility to demonstrate its ethical positioning and responsible and sustainable practices in the conduct of its business.
It is composed of advisors, who guide all of Beta's operational activities and business practices, supported by the pillars of prevention, detection and correction of deviations in relation to external and internal laws, rules and regulations and the Code of Ethical Conduct.
Duties of the Compliance Area
- Risk assessment;
- Definition of Policies, Norms and Procedures;
- Support to the Board;
- Communication and Training;
- Assessing Suppliers and Partners;
- Monitoring and Auditing of the Compliance Program;
- Whistleblower Channel;
- Investigation and Response to Complaints Received; and
- Continuous Improvement.Whistleblower Channel
Through a secure and easily accessible channel, all interested parties will be able to report improper conduct of the company and its professionals, as well as of third parties in the capacity of representatives and third parties in their relations with the company.
In accordance with Beta's “Code of Ethical Conduct”, the company established an official internal communication channel, and through it, complaints are made and managed.
Risk Assessment
To know all the vulnerabilities, risks and objectives of the company are essential to structuring an assertive assessment, combining the probability of occurrence and the impacts that such events would have if they were to be observed.
The compliance area assists managers in managing compliance risk, which can be defined as the possibility of financial or reputational losses resulting from failure to comply with laws, regulations, internal standards, codes of conduct and guidelines established for the organization's business and activities
Defence Lines
Beta's internal auditing and control structure is formalized in specific corporate policies and comprises three different defence lines.
- First line: comprises the business and support units. That they must know and apply the policies and procedures and must execute them efficiently. As part of this first line of defence, all procedures and policies must be made clear to all employees in writing (email, circular, etc). Among the activities carried out in the first line of defence, the identification, assessment, control and mitigation of risks stand out, the results of which are used as a basis for the development of internal policies and procedures.
- Second line: comprises the compliance risk management function. These functions are implemented to ensure that the controls and risk management processes performed by the first line of defence function as established, primarily through continuous monitoring. The second line will also carry out the monitoring of the first line by evaluating the effectiveness of risk management practices.
- Third line: is the internal audit function. Auditors are responsible for providing the body and senior management with objective and comprehensive assessments, with a greater level of independence. They should also promote assessments of possible governance policies.
Compliance risk management framework
Senior Management is responsible for determining all guidelines for Compliance activity, as well as ensuring the effectiveness and proper management of this Policy, providing the necessary material and human means to ensure that Compliance duties are properly performed.
Compliance activities will be communicated on a regular basis, at least every six months, to the Operational Risk Management and Compliance Committee. In turn, the assessment of any identified irregularities or failures and other situations that may impact the compliance risk of Beta will be immediately reported to senior management and the Operational Risk Management Committee and Compliance Team, depending on the case.
Each segment of Beta's Compliance acts as a partner and consultant to the management areas, in a perpetual education process regarding the function and roles necessary to comply with applicable internal and external standards.
Training Program
The Compliance department must provide all interns, employees, service providers, independent agents and partners with training aimed at reviewing the concepts contained in this Policy and encouraging the adoption of appropriate measures in cases of suspected money laundering.
The company requires that all new employees or collaborators receive initial training in Compliance and AML, which aims to review some points and concepts contained in this policy, in addition to encouraging the adoption of correct and appropriate measures to suspected cases of Money Laundering, before starting the practice of their functions and activities.
This training aims to reinforce the importance of combating the crime of money laundering and develop activities that help in the detection of operations that characterize evidence of this crime.
The training will be given immediately after the new employee is hired and annually for all employees and collaborators of the company. The training is given by qualified professionals in the area or by our AML team, aiming to keep employees constantly updated in relation to this policy, in accordance with current regulations and in accordance with the best market practices.
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