PROCEDURAL RULES AND INTERNAL CONTROL REGULATIONS

Anti-Money Laundering, Countering the Financing of Terrorism & Sanctions Policy
Jurisdiction: Republic of Seychelles

Corporate Directory & Compliance Metadata

Company Name NexGen Tech Incorporated
Registration Number 227642
Registered Address Seat at House of Francis, Room 303, Ile Du Port, Mahe, Seychelles
Regulatory Framework Baseline Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020 (as amended up to 2025/2026)

1. Core Client Identification & KYC Verification Standards

1.1 Natural Persons (Individual Verification)

Primary Identification: To verify individual identities, applicants must upload an unaltered, valid, high-resolution scan of their government-issued International Passport or National Identity Card. All fields must be readable and in Latin/English alphabet characters.

Biometric Liveness Verification: Applicants must provide a clear photographic image or live biometric video capture of themselves holding their primary identification document. The document text and the user's face must be simultaneously visible and readable. If technical interface or camera errors occur during standard web form submission, applicants are permitted to securely transmit this imagery via email.

Data Quality Standards: Submissions that display poor resolution, blurriness, or obfuscated data fields will be rejected, resulting in an 'Incomplete KYC Profile' status until remediation.

Prohibited Documents: Standard Motor Vehicle Driving Licenses are explicitly disallowed as a valid standalone document for verifying identity.

1.2 Corporate Persons (Legal Entity Verification)

Legal entities pose a structurally higher risk due to multi-layered operational transparency constraints. NexGen Tech Incorporated mandates the comprehensive collection and verification of foundational corporate documents prior to account activation or fund execution.

Seychelles-Domiciled Legal Entities:

  • Certificate of Incorporation
  • Memorandum and Articles of Association
  • Corporate Business Plan outlining operational scope and expected corporate cash flows
  • Certified Resolution of the Board of Directors to open an account and confer authority on those who will operate it
  • Independent fresh Registry Search Extract from the Seychelles Companies Registration Office

Foreign (Non-Seychelles) Domiciled Legal Entities:

  • All comparable corporate constitutional documents similar to Seychelles entities, officially issued by the appropriate registry authority in that jurisdiction
  • Formal corporate file search extract at the Companies Registration Office in that country
  • Certified English translations for any foundational corporate documentation generated in alternate alphabets or languages

1.3 Ultimate Beneficial Ownership (UBO) Tracking

Mandatory Control Investigation: In full alignment with Seychelles Beneficial Ownership Regulations, NexGen Tech Incorporated conducts rigorous tracing to reveal the individual natural persons holding ultimate controlling interest or ownership in any legal entity client. Control thresholds isolate individuals exercising control through ownership percentage, vote orchestration, or senior executive management roles. No corporate relationship will be finalized or permitted to process fund transactions until every underlying UBO has been fully identified and verified.

2. Prohibited or Restricted Relationships (FATF Risk Matrix)

NexGen Tech Incorporated applies a strict automated country risk metric synchronized dynamically with the Financial Action Task Force (FATF) Plenary updates up to June 2026.

2.1 High-Risk Jurisdictions Subject to a Call for Action (FATF Blacklist)

Protocol (Risk Score 12): Systems will automatically refuse registration requests or transactions stemming from these jurisdictions. Immediate files are passed to the MLRO/Compliance Officer to log a Suspicious Activity Report (SAR).

Active Country Registry (June 2026): Iran, Democratic People’s Republic of Korea (DPRK), and Myanmar.

2.2 Jurisdictions Under Increased Monitoring (FATF Greylist)

Protocol (Risk Score 6): Applications originating from these jurisdictions will not have their registrations automatically rejected, but will initially fall under the Medium Risk category and have a baseline score of 6 applied on the risk scale, requiring mandatory Enhanced Due Diligence (EDD) and manual approval.

Active Country Registry (June 2026): Angola, Bolivia, Bosnia and Herzegovina, Bulgaria, Cameroon, Côte d'Ivoire, Democratic Republic of the Congo, Haiti, Iraq, Kenya, Kuwait, Lao PDR, Lebanon, Monaco, Nepal, Papua New Guinea, South Sudan, Syria, Venezuela, Vietnam, British Virgin Islands (BVI), and Yemen. (Note: Following the June 2026 FATF Plenary, Algeria and Namibia have been officially removed from the monitored list and are no longer subject to baseline score-6 constraints).

2.3 Regional Baseline Risk Weights

  • Latin America and Africa Domiciles: Assigned an introductory score of 4 on the risk register.
  • Asia-Pacific and Rest of World Domiciles: Assigned an introductory score of 3 on the risk register.
  • European Union (EU) Nationals & Domiciles: Assigned a baseline score of 0 on the risk register.

3. Compliance Screening Models & Web-Integration

The company maintains automated web-based screening integrations alongside manual search tools via established databases (e.g., WorldCompliance) to run full-scope name matching at onboarding and on an ongoing daily batch routine.

  • Global Sanctions Lists (Risk Score 12): Encompasses active cross-checking against OFAC, HM Treasury, EU Terrorism Lists, Bureau of Industry and Security, Department of State, UN Consolidated Indices, and related enforcement registers. Match confirmations result in instant account deactivation, asset freezing, and immediate FIU communication.
  • Adverse Media & Enforcement Registries (Risk Score 12): Continuous monitoring for records linking entities or individuals to financial crime, fraud, money laundering, or illicit operations.
  • Politically Exposed Persons (PEP Register - Risk Score 5): Screens for current or former senior legislative, military, administrative, or judicial government officials, senior political party figures, or executives of state-owned enterprises, including immediate family members and close associates. PEP matches trigger mandatory Enhanced Due Diligence (EDD) status.

4. Financial Standing & Transaction Architecture

4.1 Income-to-Investment Variance Logic

During onboarding, metrics regarding Net Worth, Gross Annual Income, and Expected Investment sizes are captured. The compliance matrix evaluates variations via automated calculations:

If Planned Investment > Gross Annual Income:
- If Net Worth > Planned Investment: Apply a minor risk modifier of +4.
- If Net Worth <= Planned Investment: Apply an elevated risk modifier of +7.
If Planned Investment <= Gross Annual Income: Apply a risk modifier of 0.

4.2 Crypto-Asset Tracking Specifics

Exclusion of Anonymity & Threshold Rules: To mitigate the systemic anonymity and cross-border segmentation risks inherent to virtual asset environments, transactions involving unidentifiable users or mixing platforms are strictly blocked. Virtual currency transactions exceeding 15,000 EUR (or equivalent) require documented confirmation of the sender's wallet address history, transaction provenance, and balances.

4.3 Transaction Tier Restrictions & SCR Limits

The operational environment manages account behavior based on three distinct risk tiers derived from the final calculated risk scores:

Client Risk Tier Total Risk Score Auto-Processing Limits Declaration of Source of Funds (DSF) Required Update Frequency
Low Risk 0 to 4 Transactions < 50,000 SCR Discretionary / Triggered if > 50,000 SCR At least once every 4 Years
Medium Risk 5 to 8 Transactions < 50,000 SCR Discretionary / Triggered if > 50,000 SCR At least once every 3 Years
High Risk 9 to 12 0% (100% Manual Review) Mandatory for any transaction > 50,000 SCR At least once every 1 Year (Annually)

Remediation for Failed Validation: If a requested Declaration of Source of Funds (DSF) is missing, rejected, or cannot be traced to a verified bank account under the name of a registered client, the fund transfer will be reversed, and a formal SAR will be drafted by the Compliance Officer.

5. Reporting Channels & Audit Trails

5.1 Financial Intelligence Unit (FIU) Directives

Reporting Obligation: When compliance operations identify a definitive high-risk event, clear criminal activity, or a confirmed sanctions hit, information must be transmitted to the Seychelles Financial Intelligence Unit (FIU) within two business days.

  • Agency Destination: Financial Intelligence Unit, P.O. Box 7021, Ile Perseverance, Mahe, Seychelles
  • Communications Desk: Tel: +248 4383 400 | Email: [email protected] | Beneficial Ownership Support: [email protected]

5.2 Anti-Tipping-Off Provisions

Legal Prohibition: Pursuant to Section 50 of the AML/CFT Act 2020, NexGen Tech Incorporated, its corporate officers, and its operational staff are legally prohibited from disclosing to a client, UBO, or associated third party that an investigation is active, or that an STR/SAR has been transmitted to the FIU. Any breach of this confidentiality provision will result in severe internal disciplinary action and immediate referral to local law enforcement authorities.

5.3 Corporate Record Retention Schedule

Retention & Accessibility: All foundational identity documentation, wallet addresses, transaction files, internal review logs, and cross-checking reports will be archived securely within encrypted corporate servers for a minimum period of 7 years following the official termination of the client relationship. Data access parameters guarantee that records can be compiled and made accessible to the Seychelles FIU within two business days of a formal production request.