AML and restricted countries

1. What this page is

This page describes the rights Boxwind CR has under the Master Crypto-Backed Advance Agreement to check the businesses, individuals and other people it deals with and the assets they pledge.

It does not set out our internal procedures. It does not state which law or authority applies to Boxwind CR, or describe any compliance programme. For an AML query, write to notices@boxwind.io.

2. Who we may check

Under the agreement we may check:

• the client applying: a company, or an individual (a high-net-worth individual or a professional investor);
• for a company, its beneficial owners, meaning the people who ultimately own or control it;
• for a company, its directors and officers, and its authorised persons, who may act for it;
• any person related to the client;
• the collateral the client pledges, and any wallet or account it uses.

For an individual client, these checks apply to the person directly.

3. What we ask for

Before an advance, where they apply, we need, for a business client:

• certified copies of the company's constitutional documents;
• a resolution of its board authorising the agreement;
• evidence of its beneficial owners;
• specimen signatures of its authorised persons;
• a signed Risk Disclosure Statement.

The agreement also makes an advance conditional on due diligence that Boxwind CR requires and finishes to its satisfaction. We may ask for more, including identity documents and contact details for owners, directors and authorised persons. For an individual client, the same personal checks apply to the individual directly: identity, address, source of wealth and source of funds, with the identity documents and contact details we ask for. See onboarding.

4. Source of funds and source of the collateral

Due diligence includes source-of-funds and source-of-wealth checks and blockchain analysis of the collateral. We may analyse the origin and history of any virtual asset.

The client promises that the collateral was lawfully acquired, is not derived from or connected with criminal activity, and has not been associated with a sanctioned address, a mixer or an illicit service.

5. Screening

Under the agreement, at any time while an advance is open and without notice to the client, we may screen the client, its related persons and any wallet or account against sanctions and other lists. We use this to decide whether we can work with a client. See restricted countries and persons.

6. Wallets and transfers

We pay and release only to whitelisted accounts in the client's name. A new account takes effect only after our verification checks, which may include a test transfer. We accept assets only from whitelisted wallets or wallets we have approved after due diligence.

Under the agreement we may collect and send originator and beneficiary information with any transfer of virtual assets.

7. While an advance is open

The rights in sections 2 to 6 can be used at any time while an advance is open. While any amount is owed, the client must give us the information and documents we request to comply with the law or our internal policies, keep its due diligence information current, and tell us within five business days (a day banks are open in San José, Costa Rica, and New York) of a change in its name, address, ownership, control, directors or authorised persons.

8. Our right to refuse, delay, freeze or end

We may refuse to accept an asset, refuse or delay an advance, release or transfer, freeze the collateral, or end the agreement, if we reasonably consider that the law or our internal policies require it. We are not in breach of the agreement by doing so.

Every application is subject to due diligence, and we may decline any application or request.

9. Reporting

Under the agreement we may keep records of, and report, any transaction to the relevant authority, including reports of suspicious transactions. We do not have to tell the client about a report, and we will not where the law forbids it.

10. Records

We keep records connected to the agreement for at least seven years, or for any longer period the law requires.

11. What we need from you

The client undertakes to cooperate fully with our compliance obligations. Please give accurate and complete information and answer our requests promptly. Delay or incomplete information can delay or stop an advance. Not giving requested information within 30 days of the request is an event of default once an advance is open.

12. Restricted countries and persons

We do not serve a client that is based in, incorporated in, resident in, owned from or controlled from a jurisdiction that is subject to comprehensive sanctions, or that we have chosen to restrict. We do not serve a client that is owned or controlled by a person who is subject to sanctions. This applies to the client and, for a company, its beneficial owners, its directors and officers and its authorised persons, and to the origin of the collateral.

Restricted countries and jurisdictions

Box Advance is not offered to persons in, or connected with, countries subject to comprehensive sanctions or that Boxwind CR has decided to restrict. The current list is available on request: ask us at notices@boxwind.io. We keep the list under review and may change it at any time, without notice. The reasons for a restriction may include sanctions, legal requirements and our own risk decisions. Being outside the list does not guarantee we can serve you.

Sanctioned persons

"Sanctions" means economic or financial sanctions, trade embargoes or export controls imposed by Costa Rica, the United Nations or any other authority with power over a party to the agreement.

The client promises that neither it nor, for a company, any of its directors, officers, beneficial owners or authorised persons is subject to sanctions or owned or controlled by someone who is. If that becomes untrue after an advance is made, it is an event of default. If a country, owner or person becomes restricted or sanctioned after you are onboarded, sections 7 and 8 apply.

Check before you apply

If you, your owners (if you are a company) or the collateral you would pledge connect to a restricted place or person, we cannot serve you. The eligibility checker gives a first indication. It is not a decision. Only onboarding, and our decision under the agreement, settles it.