KYC & AML Compliance Policy

Torca’s aim is to provide a compliant infrastructure for issuing blockchain-ledgered assets and regulatory onboarding, whilst enhancing the industry with extra credibility and reduced risk.

Torca takes a highly proactive and informed approach in order to operate conservatively and entirely within the bounds of current law.  Torca has engaged with a London-based multinational law firm to design and implement legal and compliance measures that allow for constant monitoring and evaluation of our legal stance in the face of regulatory developments; the goal is to be able to anticipate changes before they occur and ensure legal compliance.

Torca works with DLT businesses to ensure that regulatory obligations are met when managing the collection of funds.

Torca believe that Strong Know-Your-Customer (KYC) processes during the fund-raising event will make it easier to work with banks and follow Anti Money Laundering (AML) regulations. The message from Torca to a DLT business  is that a better reputation leads to more investors and that voluntary compliance should afford it a stamp of legitimacy. Clients feel safer when you have good Know-Your-Customer (KYC) practices as it is tangible evidence that your company is serious and capable.

Torca undertakes checks on the DLT business, above and beyond KYC/AML checks, to ensure that the business is viable. This information is gathered and presented to an internal Due Diligence committee, who consider the viability of the business relationship.  Torca has put in place the appropriate legal and regulatory-compliant processes for its business model.

Principles of Business

Torca have set out the following fundamental principles of business. Torca will:

  1. Leverage technology and online verification solutions to meet KYC/AML requirements
  2. Maintain records of the information used to verify such identity, including name, physical address, and other identifying information
  3. Be transparent especially when dealing with Regulators/potential Regulators, and
  4. Constantly monitor the market trends, to improve processes and the client experience

Policy

It is the Policy of Torca to identify and assess the money laundering and terrorist financing risks represented by the business we conduct so that we can mitigate that risk by applying appropriate levels of client due diligence.

Torca will ensure that:

  • All clients are identified via automated KYC checks, with a manual process for exception management
  • Clients will be screened against relevant sanctions-lists (OFAC, UN, HMT, EU), politically exposed persons (PEPs) lists and lists of persons, entities or countries issued by government or competent authorities
  • Any matches against the aforementioned sanctions lists are reported to the National Crime Agency (NCA) and services to the client suspended with immediate effect
  • Identification of relevant adverse information and negative news data takes place where applicable
  • All relevant individuals related to clients who are entities (e.g. Directors, and those with authority to act on behalf of the entity) undergo the same KYC/AML process as direct individual clients do
  • All funds received are screened and verified from an anti-money laundering (AML) perspective
  • The AML compliance program and monitoring regime in place is appropriate to Torca business
  • The above regime is reviewed on an annual basis to ensure new and emerging risks are addressed and new information supplied by the UK regulatory authority is reflected
  • The AML compliance regime is approved by the board on an annual basis
  • A risk-based assessment of its client base is undertaken at least annually
  • An up-to-date written record of all steps taken in relation to the ML risk assessment is kept, along with the information on which it was based
  • Written processes are in place documenting how Torca prevent, detect and report suspicious transactions and/or transactions that are required to be reported to the authorities
  • All policies and procedures are audited on a regular basis by an internal compliance officer, who is an FCA approved person
  • Record-retention procedures comply with any and all applicable laws
  • There will be a clear delineation of responsibilities between senior management in a firm (i.e. the “governing body”) and the firm’s designated officer or Money Laundering Reporting Officer (MLRO)
  • The designated officer or MLRO is responsible for overseeing the AML framework and ensuring that Torca applies a risk-based approach to matters of KYC and Customer Due Diligence (CDD)
  • Any unlawful activity or prohibited business, e.g. activity which would violate, or assist in violation of, any law, statute, ordinance, or regulation, sanctions programs administered in the countries where Torca conducts business is identified and the individual suspended
  • Any and all suspicious transactions or suspicious activity will be reported to the NCA
  • All staff undertake AML training and receive periodic refresher training in relation to the different forms of ML and to remind them of their obligations to promptly report any matters of AML knowledge or suspicion

Approach to Risk

The business activities of Torca have been assessed against the inherent customer/client ML risk, the service risk (e.g.. the different types of business services provided and their inherent ML risks), the delivery risk (the potential ML risks arising from how the service is delivered) and the geographic risk or potential risk generated by or attributable to other individual jurisdictions).

Torca’s risk-based strategy includes:

  • Assessing where, as a firm, it falls within the risks faced by the UK financial sector as a whole
  • Assessing the risk that is posed by its services, the ways in which they are delivered and how they are used
  • Assessing what risk is posed by its customers/clients (including the means by which new relationships are acquired) during the new client acceptance process
  • Designing and having in place the systems, controls and procedures to manage and mitigate the ML and counter terrorist financing (CTF) risks that have been determined, and meeting compliance obligations for AML and CTF throughout the customer lifecycle
  • Monitoring transactions and activity against known and expected behavior and characteristics
  • Recording the results of the risk assessment and the controls that have been put in place
  • Regularly monitoring and reviewing its risks and keeping this information relevant and up-to-date

Torca will update its risk assessments regularly in accordance with the Money Laundering Regulations and the Criminal Finances Act guidance. Particular attention will be given to evolving market changes, changing in products and emerging risks.