Top Hedge Finance Ltd Legal Disclosures

Last updated: November 12, 2020

Bank Secrecy Act and Anti-Money Laundering Compliance Program

Welcome to the Top Hedge Finance Ltd digital asset platform. The platform is owned and operated by Top Hedge Finance Ltd Markets LLC (“we,” “us” or “our”). We have developed a Bank Secrecy Act and Anti-Money Laundering Compliance Program (“BSA/AML Program”) in an effort to maintain the highest possible compliance with applicable laws and regulations relating to anti-money laundering in the United States and other countries where we conduct business. This includes, but is not limited to:

• Establishing robust internal policies, procedures and controls that combat any attempted use of the platform for illegal or illicit purposes and that are designed to ensure our customers basic protections under consumer protection laws;
• Complying with the applicable regulations and guidance set forth by the Financial Crimes Enforcement Network (“FinCEN”);
• Filing Suspicious Activity Reports (“SARs”);
• Filing Currency Transaction Reports (“CTRs”);
• Maintaining comprehensive records of orders and other transfers and following record retention requirements;
• Employing a Chief Compliance Officer (“CCO”) to act as our Bank Secrecy Act Officer and be responsible for the implementation and oversight of our BSA/AML Program;
• Executing Know Your Customer (“KYC”) procedures on all customers;
• Performing regular, independent audits of our BSA/AML Program; and
• Implementing a formal and ongoing compliance training program for employees.

Our BSA/AML Program has been reviewed and approved by our Managers. Our BSA/AML Program is regularly reviewed and, if necessary, revised in an effort to comply with applicable rules, regulations and policies. We are regulated by the US state departments of financial institutions identified in the “Licenses” section of this webpage and our BSA/AML Program is subject to their review and approval.

We have developed robust internal policies, procedures, and controls designed to comply with applicable BSA/AML laws and regulations, some of which are outlined here on this page including, but not limited to, our Customer Identification Program (“CIP”), the filing of SARs and CTRs, as well as other reporting requirements and audits.

Our employees and officers receive ongoing broad-based BSA/AML training, as well as position-specific training. They must repeat this training at least once every twelve (12) months, and all new employees receive training, to ensure they are knowledgeable and in compliance with all pertinent laws and regulations. All documentation related to compliance training including materials and attendance and date are maintained. In addition, our compliance training program is updated as necessary to reflect current laws and regulations.

Our CCO is responsible for developing and enforcing the policies and procedures of our BSA/AML Program. Our CCO is required to report any violations of our BSA/AML Program directly to our CEO and our Managers. In addition, our CCO is responsible for recording and filing SARs, CTRs and performing a BSA/AML Program audit at least annually.

Our Customer Identity Program (“CIP”) is an important part of our BSA/AML Program, and helps us detect suspicious activity in a timely manner and prevent fraud.

In order to open an account and use the platform, your identity must be verified, authenticated, and checked against government watchlists, including the Office of Foreign Assets Control (“OFAC”). Failure to complete any of these steps will result in your inability to use our platform.

• Individual customers - Prior to opening an account for an individual customer, we attempt to collect, verify, and authenticate the following information:
• Full legal name;
• Date of birth;
• Home address (not a P.O. Box);
• Occupation;
• Email address;
• Mobile phone number;
• Social Security Number (“SSN”) or any comparable identification number issued by government;
• Proof of identity (e.g., driver’s license, passport or government-issued ID);
• Additional information or documentation at the discretion of our Compliance Team.
• Non-US customers are required to provide an additional proof of identity

If you successfully meet and complete our CIP requirements, we will complete your account onboarding.

• Institutional customer - Prior to opening an account for an institutional customer, we attempt to collect, verify, and authenticate the following information:
  • Institution legal name;
  • Registration information (state and date of registration)
  • Proof of legal existence (e.g., state certified articles of incorporation or certificate of formation, unexpired government-issued business license, trust instrument or other comparable legal documents as applicable);
  • Address (principal place of business and/or other physical location);
  • Statement of good standing
  • Employer Identification Number (“EIN”) or any comparable identification number issued by government;
  • For the account authorized signatory, the information required of natural person customers set forth above.
  • For all natural persons who own 25%+ of the institutional customer: name; date of birth; residential address; government issued ID number; and proof of identity.
  • Documentation that verifies the beneficial ownership (eg - capitalization table, operating agreement, etc);

If your institution successfully meets and completes our CIP requirements, we will complete your account onboarding.

Over the course of your customer experience on the platform, our team may reach out to you for additional information in order to ensure the safety and integrity of our customer base and our trading platform, and as required for ongoing compliance with our regulatory obligations. Please be aware that your failure to comply with these requests may result in restrictions on your account.

We file SARs if we know, suspect or have reason to suspect suspicious activities have occurred on our platform. A suspicious transaction is often one that is inconsistent with a customer’s known and legitimate business, personal activities or personal means. We leverage our compliance department, which performs transaction monitoring to help identify unusual patterns of customer activity. Our CCO reviews and investigates suspicious activity to determine if sufficient information has been collected to justify the filing of a SAR.

In addition, all currency transactions over a determined USD value are reported to FinCEN via a CTR filing.

Our CCO maintains records and supporting documentation of all SARs and CTRs that have been filed.

All records are retained for seven (7) years and are readily available upon official request by an applicable examiner, regulator, or law enforcement agency.

• Internal. The CCO is responsible for overseeing our BSA/AML Program and presenting findings to our CEO and Managers.
• Independent. Our CCO oversees the performance of an independent test of our BSA/AML Program at least annually. Results are shared with the Managers.