LLC KUENTECH is firmly committed to the prevention of money laundering, terrorist financing, and the evasion of sanctions. Unwavering compliance with applicable laws and regulations shall serve to safeguard LLC KUENTECH’s reputation and uphold public trust in LLC KUENTECH.

Therefore, it is advisable for LLC KUENTECH to establish an anti-money laundering (AML) policy that delineates the prescribed measures to be observed, aiming to ensure the efficient execution of guidelines that support the attainment of overarching organizational goals, while guaranteeing conformity with the regulatory structure governing designated non-financial businesses and professions (DNFBP) in Georgia. The scope of the AML policy shall encompass all entities in which LLC KUENTECH holds ownership interests.

Policy Objectives

• To establish precise and unambiguous policies for LLC KUENTECH concerning the matters of money laundering, terrorist financing, and the avoidance of sanctions.
• To provide clear and concise explanations of the compliance responsibilities that all employees are obligated to fulfill.
• To offer guidance to employees regarding their daily business activities in alignment with legal requirements.
• To foster a work environment that upholds a culture of adherence to legal regulations in the manner in which employees execute their duties.

Definition of Money Laundering

As per the provisions outlined in Article 194 of the Criminal Code of Georgia and the Anti-Money Laundering (AML) Law, the offense of money laundering is defined as the engagement in any of the following activities with the knowledge that the funds involved are derived from a criminal act:

• Transfers or moves the proceeds, or disposes of the funds/proceeds intending to conceal or disguise their source.
• Conceals or disguises the true nature, source, or location of the proceeds including the manner of disposal.
• Acquires, possesses, or uses the proceeds upon receiving them.
• Assists the person who committed the felony/misdemeanor to escape punishment.

It is essential to note that money laundering is always an intentional act and cannot be committed through mere negligence. However, LLC KUENTECH acknowledges that acts exhibiting gross negligence, particularly those involving the failure to report suspicions of criminality to the Financial Intelligence Unit (FIU), may incur criminal liability.

Laws and Regulations

LLC KUENTECH is subject to and complies with the following laws and regulations:

• Law of Georgia on Facilitating the Prevention of Money Laundering and the Financing of Terrorism (2019) (AML Law).
• Criminal Code of Georgia, in particular Article 194 (Legalization of Illicit Income) and Article 331¹ (Financing of Terrorism).
• Law of Georgia on Combating Terrorism.
• Resolutions and orders issued by the National Bank of Georgia and the Financial Monitoring Service of Georgia concerning anti-money laundering and counter-terrorist-financing procedures.
• Recommendations of the Financial Action Task Force (FATF) and the standards of the Council of Europe’s MONEYVAL Committee.
• Any United Nations Security Council sanctions applicable through ratification by Georgia.
• In accordance with the Regulations, it is mandated for financial institutions and obliged entities in Georgia to adopt a risk-based approach to fulfill their legal obligations. This requirement applies to activities such as customer onboarding and conducting periodic AML assessments. LLC KUENTECH is fully committed to implementing a robust risk-based compliance program in strict alignment with both legal mandates and industry-leading best practices.

Investigatory Powers and Criminal Enforcement

The oversight of reporting and probing suspected illicit financial conduct in Georgia falls under the Financial Monitoring Service of Georgia, which acts as the country’s Financial Intelligence Unit (FIU). The Prosecutor’s Office of Georgia retains the authority to initiate legal proceedings, which are adjudicated in the criminal courts.

Defenses

The Regulations do not provide specific defenses to money laundering charges. Defenses under Georgian law for money laundering charges are not distinct from those available for other criminal offenses.

It is important to note that criminal proceedings related to money laundering cannot be resolved through settlement or plea agreements. Once the Prosecutor determines that actions amount to a money laundering offense, the case must be referred to the criminal courts.

Detection of Unusual/Suspicious Transactions

As an entity operating within the retail business-to-consumer (B2C) model, LLC KUENTECH’s transactions predominantly involve individual transactions ranging from $9 to $999. In adherence to legal obligations, each transaction is subjected to a meticulous manual approval process applying principles of due diligence.

This rigorous approach ensures the detection of transactions that may appear abnormal, irregular, or suspicious. LLC KUENTECH also committed to retaining all relevant records and documents for a minimum of five years, in compliance with legal and regulatory requirements.

Risk Rating

LLC KUENTECH maintains a dedicated risk management unit, responsible for manually examining client profiles and conducting comprehensive risk assessments. Due diligence is performed thoroughly following an evaluation of customer risk ratings, ensuring compliance with applicable frameworks.

Resolutions and Sanctions

Non-compliance with established standards may result in administrative sanctions, including warnings, monetary fines, suspension of business activities, liability of senior management, and the appointment of observers.

In the event of a conviction for money laundering, Georgian law prescribes monetary fines and imprisonment of up to twelve years, depending on the gravity of the offense.

LLC KUENTECH’s Obligations

Identify potential risks associated with criminal activities.

Conduct ongoing risk assessments.

Establish internal controls and policies to manage risks.

Implement appropriate due diligence procedures.

Comply with United Nations directives regarding terrorism financing and weapons proliferation.

Prevent relationships with shell banks or organizations.

Training and Awareness

Employees of LLC KUENTECH shall receive annual AML/CFT training, which includes:

Identification and reporting of suspicious transactions.

Examples of money laundering/terrorist financing related to company products and services.

Internal policies to prevent money laundering and escalation of suspicious activity.

Training records, attendance logs, and instructional materials shall be maintained. Updates to AML/CFT laws and policies shall be communicated to relevant staff.

Designated Compliance Team

The Risk Management team shall perform regular compliance testing. A designated Compliance Officer shall oversee the AML/CFT program and coordinate day-to-day operations to ensure adherence to legal and regulatory requirements.