> For the complete documentation index, see [llms.txt](https://docs.lotusnetwork.net/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lotusnetwork.net/v2-documentation/important/anti-money-laundering-aml-policy.md).

# ANTI-MONEY LAUNDERING (AML) POLICY

**LOTUS INFORMATION TECHNOLOGIES LTD**\
\&#xNAN;*Last Updated: Monday, April 29, 2025*

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### 1. Purpose

This AML Policy outlines the commitment of **LOTUS INFORMATION TECHNOLOGIES LTD** ("the Company") to detect, prevent, and report money laundering and terrorism financing activities in accordance with the **UK Money Laundering Regulations 2017**, the **Proceeds of Crime Act 2002**, and guidance provided by the **Financial Conduct Authority (FCA)**.

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### 2. Scope

This policy applies to all products, services, customers, employees, and business operations of the Company, including the operation of our fintech platform and cryptocurrency wallet services.

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### 3. AML Compliance Officer

We designate an **AML Compliance Officer (MLRO)** responsible for:

* Overseeing the Company’s AML compliance program
* Receiving and investigating internal suspicious activity reports (SARs)
* Filing SARs with the National Crime Agency (NCA)
* Training staff and reviewing AML policies regularly

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### 4. Customer Due Diligence (CDD)

We implement risk-based CDD for all customers:

* **Standard CDD** for regular users
* **Enhanced Due Diligence (EDD)** for high-risk users, including:
  * Politically Exposed Persons (PEPs)
  * Users from high-risk jurisdictions
  * Transactions above defined thresholds

**CDD Process includes:**

* Identity verification (name, address, DOB)
* Document collection (passport, utility bills, etc.)
* Liveness checks and biometric verification
* Ongoing monitoring

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### 5. Know Your Customer (KYC)

We collect and verify user data via reliable, independent sources. Our KYC checks include:

* Name matching against global sanctions lists (e.g., OFAC, UN)
* Proof of address
* Source of funds and wealth when required

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### 6. Ongoing Monitoring

We monitor customer transactions for:

* Large or unusual transfers
* Rapid movement of funds across wallets
* Use of mixing services or privacy coins (e.g., Monero)
* Layering or other suspicious behaviors

Flagged transactions are reviewed manually and may trigger a SAR.

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### 7. Suspicious Activity Reporting (SAR)

If suspicious activity is identified, the AML Officer will:

1. Document the transaction details
2. Evaluate the suspicion internally
3. Submit a SAR to the NCA (UK) using the SAR Online system

**Important:** Staff are prohibited from *"tipping off"* the customer under UK law.

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### 8. Record Keeping

We retain the following records for **at least 5 years**:

* KYC documents and verifications
* Transaction logs
* SARs and internal communications
* AML training records

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### 9. Staff Training

All employees undergo mandatory AML training:

* At onboarding
* Annually
* Whenever regulations or internal procedures change

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### 10. Risk Assessment

We maintain a documented, risk-based approach that considers:

* Customer type
* Transaction type and size
* Delivery channel (e.g., mobile app, web)
* Jurisdiction

Our risk assessment framework is reviewed and updated periodically.

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### 11. Independent Audit

We commission periodic, independent audits of our AML program to ensure compliance with UK laws and internal standards.