Anti Fraud

Policy Statement

BITTRUST creates opportunities for people and builds trust between them worldwide. BITTRUST is committed to conducting business by the highest ethical, professional, and legal standards. The public, BITTRUST’s partners, and Users’ have the right to expect that professional, competent, and trustworthy people are employed by BITTRUST.

BITTRUST will comply with applicable legislation. In line with applicable legislation, BITTRUST has a ‘zero-tolerance policy towards fraud, corruption, collusion, money laundering, financing of terrorism and other criminal conduct (jointly “Prohibited Conduct”) and will thoroughly investigate and seek to take disciplinary and/or legal action against those who perpetrate, are involved in, or assist with fraudulent or other improper actions in all BITTRUST activity and related transactions.

BITTRUST will provide adequate and appropriate resources to implement the Anti-Fraud Policy and will ensure it is communicated and understood.

Legalisation Compliance

The Anti-Fraud Policy has been drafted to comply with the current applicable local and international legislation, including, but not limited to applicable Canadian legislation.

Adherence to the Anti-Fraud Policy BITTRUST will ensure compliance with all relevant legislation and internal policies.

Definitions

In pursuance of the Anti-Fraud Policy, Prohibited Conduct includes fraud, corruption, collusion, money laundering, financing of terrorism, and other criminal conduct defined as follows:

1. Fraud: any act or omission, including a misrepresentation that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation.
2. Corruption: offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the action of another party.
3. Collusion: arrangement between two or more parties designed to achieve an improper purpose, including improperly influencing another party’s actions.
4. Money laundering: (a) the conversion or transfer of property, knowing that such property is derived from criminal activity or from an act of participation in such activity, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the commission of such activity to evade the legal consequences of his action; (b) the concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or ownership of property, knowing that such property is derived from criminal activity or from an act of participation in such activity; (c) the acquisition, possession or use of property, knowing, at the time of receipt, that such property was derived from criminal activity or from an act of participation in such activity; (d) participation in, association to commit, attempts to commit and aiding, abetting, facilitating and counselling the commission of any of the actions mentioned in the foregoing points.
5. Terrorist financing: provision or collection of funds, by any means, directly or indirectly, with the intention, that they should be used or in the knowledge that they are to be used, in full or in part, to carry out any of the offenses within the meaning of Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act).
6. Criminal conduct: conduct, which constitutes an offense in any part of the world or would constitute an offense in any part of the world if it occurred there.

Key Responsibilities

BITTRUST performs a “Know-Your-Customer Policy” (KYC) due diligence on all new Users and due diligence on all transactions to detect possible compliance or integrity concerns. Such due diligence is performed by the requirements of the money laundering and terrorist financing activities regulations, under the terms of KYC.

Given the Anti-Fraud Policy BITTRUST is responsible for:

• ensuring efficient and effective systems, procedures and internal controls are in place to enable the prevention and detection of Prohibited Conduct.
• ensuring the Anti-Fraud Commissioner identifies Prohibited Conduct risks in their areas of business and that all systems, procedures, and internal controls are properly implemented and enforced.
• ensuring all members of the operational anti-fraud department have a duty to report any internal and external suspicions or incidents of Prohibited Conduct.
• reviewing continuously its systems, procedures, and internal controls through risk management processes and audit arrangements.
• reporting any suspicions regarding Prohibited Conduct to the relevant state authorities.

Fraud Detection and Investigation

BITTRUST’s Operational Anti-Fraud Department, in particular, the Anti-Fraud Commissioner, is the first line of detection, investigation, and protection in preventing Prohibited Conduct through the Users and transactions appraisal process. The Anti-Fraud Commissioner will be responsible for the proper fulfillment of the Anti-Fraud Policy.

(a) Authority

The Anti-Fraud Commissioner, through the Operational Anti-Fraud Department, working in close collaboration with the Nominated Officer (cf. Know-Your-Customer Policy), shall be responsible for the:

• receiving reports of alleged or suspected Prohibited Conduct involving BITTRUST, its Users, and/or related transactions.
• investigating such matters and cooperating directly with the Nominated Officer to facilitate the investigations.
• reporting its findings to the BITTRUST management, relevant authorities, and any other third party on a need-to-know basis.

For situations requiring an urgent response, the Anti-Fraud Commissioner may take any necessary measures required for the investigation, notably to preserve evidence.

(b) Independence

The Operational Anti-Fraud Department shall enjoy complete independence in the exercise of its responsibilities. The Anti-Fraud Commissioner shall have full authority to open, pursue, close, and report on any investigation of Prohibited Conduct within its remit without prior notice to, the consent of, or interference from any other person or entity.

(c) Professional Standards

All Prohibited Conduct investigations conducted by the Operational Anti-Fraud Department shall be fair and impartial, with due regard to the rights of the Users and persons or entities involved. The presumption of innocence applies to those alleged to have engaged in misconduct. Those involved in the Prohibited Conduct investigation (be those under investigation or those conducting the investigation) should be aware of their rights and obligations and ensure they are fully respected.

(d) Cooperation

All Users are required to cooperate with the Operational Anti-Fraud Department and the Anti-Fraud Commissioner promptly, fully, efficiently and in the manner specified by the Operational Anti-Fraud Department, including by answering relevant questions and complying with requests for information and records.

(e) Confidentiality

Under BITTRUST internal rules on access to information, all information and documents collected and generated during a Prohibited Conduct investigation, not already in the public domain, shall be kept strictly confidential. The confidentiality of the information collected will be respected both in the interests of those concerned and in the integrity of the investigation.

In particular, during the Prohibited Conduct investigation confidentiality will be respected in so far as it would not be contrary to the interests of the investigation.

The Operational Anti-Fraud Department shall disclose such information and documents only to those persons or entities authorized to receive them or otherwise on a need-to-know basis.

Changes To This Document

BITTRUST will review the Anti-Fraud Policy to reflect new legal and regulatory developments and ensure good practice.