This document, together with our Terms of Use and its other essential parts, governs Labelrails Solutions restrictions and limits.
This document outlines the general restrictions and limits that apply to our Services or Partner Services provided or made available to End Users by Labelrails.
- KYC REQUIREMENTS AND THRESHOLDS
Labelrails shall ascertain that the KYC form is properly filled and signed for all customers to enhance the AML processes and assesses in managing risk prudently by better understanding its customers’ profile and their related financial status.
The AML Department shall verify the customer information provided in the KYC form by obtaining information and documentation including, but not limited to the following:
- Identification and verification of the customer
- Permanent residential address and other addresses
- Financial information – (source of funds, expected yearly inflows, expected yearly profits, expected yearly sales, etc…)
- Nature and type of the business
- Other
Know Your Customer (KYC) and Customer Due Diligence (CDD) needs to be carried out prior to any business relationship or transaction or acceptance of customer transactions.
Know Your Customer (KYC) and Customer Due Diligence (CDD) needs to be carried out prior to any business relationship or acceptance of customer transactions from time to time
Conducting Enhanced Due Diligence (EDD) for high-risk clients
Screening information of customers and ultimate beneficial owners with designated persons or sanctions lists (regarding terrorism and proliferation of weapon of mass destruction financing), watch lists (regarding money laundering and/or terrorism and proliferation of weapon of mass destruction financing), and any additional lists which will be further announced by supervisor authority, including additional lists under AML/CTPF laws as provided by external providers.
Evaluating client information and evidence of identification process to determine client risk levels prior to any business relationship or customer acceptance.
Senior management needs to consider and make the final decision to engage in any business relationship or accept customer transactions with high-risk customers.
Prohibited customers include:
– Persons who have refused to provide required information or documentation, fail to provide sufficient information, fail to provide information regarding their identity, or KYC cannot be conducted.
– Persons who use alias or conceal their true names, or provide false information to conceal themselves.
– Financial institutions that are residents of countries or territories without being physically present in such countries or territories (also referred to as shell banks).
– Correspondent banks that do not have any policies or measures on AML/CTPF, or the same fail to comply with global standards or international laws.
– A person or group of persons or entity that triggers sanctions lists
– Persons suspected of using the institution as a money laundering channel or using the transactions to finance terrorism and proliferation of weapon of mass destruction financing.
Regular and continuous review of customer information needs to be conducted until a relationship with the customer is terminated.
Transaction movements need to be tracked continuously until a relationship with the customer is terminated.
Transaction reporting needs to be carried out in accordance with AML/CTPF laws. Once suspicious transactions that may constitute money laundering and terrorism financing are detected, supervisor authority needs to be notified immediately.
The client’s risk levels on money laundering and terrorism financing need to be reviewed in accordance with the results of customer information review and customer transaction monitoring
2. PROHIBITED JURISDICTIONS
2.1. Currently, we are unable to provide our Services to the citizens or residents of the following jurisdictions:
Abkhazia, Afghanistan, Albania, Armenia, Artsakh Xocavend (territory of Azerbaijan), Azerbaijan, Barbados, Belarus, Botswana, Burkina Faso, Burundi, Cambodia, Central African Republic, Congo (Democratic Republic of the), Cuba, Ghana, Guinea, Guinea-Bissau, Haiti, Iran (the Islamic Republic of), Iraq, Jamaica, Japan, Jordan (the Hashemite Kingdom of), Kazakhstan, Kyrgyzstan (the Kyrgyz Republic), Lebanon (the Lebanese Republic), Libya (the State of), Mali, Morocco (the Kingdom of), Mozambique, Myanmar / Burma (the Republic of the Union of Myanmar), Nicaragua, Northern Ireland, North Korea (Democratic People’s Republic of Korea / DPRK), Northern Cyprus (Turkish Republic of), Pakistan (the Islamic Republic of), Palestine (the State of), Panama, Philippines, Russia (the Russian Federation), Senegal, Somalia (the Federal Republic of), Somaliland, South Ossetia, South Sudan, Sudan (the Republic of the), Syria (the Syrian Arab Republic), Tajikistan, Tanzania (the United Republic of), Transnistria (Pridnestrovian Moldavian Republic), Trinidad and Tobago, Tunisia, Türkiye (Turkey), Turkmenistan (Turkmenia), Uganda, occupied regions of Ukraine (Luhansk, Donetsk, Zaporizhzhia, Kherson), United Kingdom, United States of America, Uzbekistan, Vanuatu, Venezuela (the Bolivarian Republic of), West Bank & Gaza Strip, Western Sahara (the Sahrawi Arab Democratic Republic), Xankendi (territory of Azerbaijan), Xocali (territory of Azerbaijan), Xocavend (territory of Azerbaijan), Yemen, Zimbabwe.
2.2. We are able to provide our Services to the End-Users registered/resides in the following jurisdictions:
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.
2.3. Jurisdiction restrictions outlined in Article 5.1 apply to all individuals within the corporate structure of the End-User’s company, including Ultimate Beneficial Owners (UBOs), shareholders, and directors.
6. PROHIBITED BUSINESS ACTIVITIES
6.1. We are unable to provide our Services to the corporate End-Users and Clients offering the following activities/services:
| Business Sector | Activity |
| Adult/Dating | Pornography featuring children, rape, humiliation, or bestiality |
| Subscription-based dating sites that do not have genuine, underlying matches or products | |
| Escort/Prostitution Agencies | |
| Any other form of pornography depicting sexual intercourse | |
| Bail Bondsman | |
| CBD Marijuana dispensaries | |
| CFD Trading/Spread | Betting |
| Unregulated CFD/FX traders | |
| Unlicensed Binary Options | |
| CFD Brokers licensed within the following jurisdictions: | |
| – Marshall Islands | |
| – Cayman Islands | |
| – Vanuatu | |
| – United Arab Emirates (UAE) – where regulatory regime is part of Sharia Law | |
| – Belize | |
| Cryptocurrency / Blockchain | Unregulated cryptocurrency exchanges (or any other related services) where licensing or registration for AML/CFT purposes is a legal requirement |
| Cryptocurrency businesses with insufficient KYC & CDD practices | |
| ICOs/IEOs/IDOs ATMs | |
| Financial Services | Lending, including Pay-day lenders |
| Unregulated or inadequately licensed financial institutions/money service businesses | |
| Unregulated account aggregation | |
| Fortune Tellers | Any fortune telling activities, including but not limited to tarot cards, horoscope readers and psychics |
| Gambling | Unlicensed gambling activities |
| Unlicensed Binary Options | |
| Skins/loot box trading | |
| Get-rich-quick Schemes | Any schemes marketed as get-rich-quick Pyramid Schemes |
| Multi-level marketing | |
| Pharmaceuticals | Drug related paraphernalia, e.g., selling bongs, hookah Illegal/synthetic drugs or prescription drugs without a prescription |
| Regulated Services | Non-licensed counseling centers |
| Unlicensed lawyers or legal services | |
| Speciality Retail | Counterfeit goods |
| Human body parts | |
| Offensive goods related to crime, e.g. photographs memorabilia | |
| Weapons (including firearms) | |
| Tobacco & electronic cigarettes | |
| Pyrotechnic devices and hazardous materials, e.g. fireworks, explosives, toxic/flammable goods | |
| Animals and Livestock | |
| Stolen Property | |
| Police-related items | |
| Mailing lists and personal information | |
| Government documents and IDs | |
| Lock picking devices | |
| Embargoed goods from prohibited countries | |
| Streaming | Illicit streaming of copyright media and software |
| Telecommunications | Illegal telecommunications devices |
| Timeshare | Any type of timeshare service/product |
7. RESTRICTED BUSINESS ACTIVITIES
7.1. The provision of the Services to the End-Users and Clients offering the business/services listed below is the subject for the additional approval:
| Business Sector | Activity |
| Adult/Dating | Subscription-based dating websites where users may message, chat and/or arrange interactions with other genuine users |
| Merchants offering webcams or any other interactive services with models | |
| (Must have clear policy and controls about age limits, human trafficking, escorting and prostitution prevention.) | |
| Claims Institutions | Tax refund services |
| PPIs | |
| (Must come from an acquirer – no direct customer payments.) | |
| Collection Agencies | Customers must be well established, reputable and with a history of trading (Must come from an acquirer – no direct customer payments.) |
| Company Service Providers | Trust Services |
| Company Service Providers | |
| Asset Managers | |
| (Must be regulated under local AML regulation, such as a supervisory body or by an accountancy body if they are a chartered accountant. Must be capable of producing CDD/EDD information relating to their customers upon request. Direct customer Pay-Ins approved only on a case-by-case basis) | |
| Computing/Information Technology | Hardware and Software Sales (including maintenance and repair) |
| Computer Programming | |
| Data Processing | |
| Integrated Systems Design Services | |
| (Must come from an acquirer – no direct customer payments) | |
| Contract for Differences (CFDs) | Must be within a licensable jurisdiction. CFD Brokers licensed from the following jurisdictions will be reviewed and accepted on a case-by-case basis: |
| – Mauritius | |
| – South Africa | |
| – British Virgin Islands | |
| – Seychelles | |
| – Bahamas | |
| – St. Vincent and the Grenadines | |
| – United Arab Emirates (where licensing regime forms part of the Free Financial Zones) | |
| Cryptocurrency/Blockchain | Non-Fungible Tokens (NFTs) – only allowed if bought/sold on an exchange or a marketplace where due diligence on customers is conducted fully |
| Cryptocurrency Mining – reviewed on a case-by-case basis | |
| Peer-to-Peer Trading (P2P) – only allowed as part of an exchange where due diligence on participants is fully conducted Cryptocurrency Derivatives (including futures, options and perpetual contracts) – reputable jurisdiction required together with adequate licensing. | |
| Financial Services | Money Service Businesses/Cash Based/Currency Exchange services |
| Debit and Credit Cards | |
| (Legal opinion may be requested to support licensing requirements dependent on business model. Subject to full compliance review of policies, procedures and controls.) | |
| Gambling | Gambling operators licensed and operating from an offshore jurisdiction. |
| High-value | Dealers Dealers other than diamonds and precious metals |
| Art Dealers | |
| (Must be regulated under local AML regulation. Must be capable of producing CDD/EDD information relating to their customers upon request.). | |
| Marketplaces | Must be selling general marketplace goods |
| Must have strong controls around selling prohibited/restricted goods, including the following: | |
| PROHIBITED: | |
| – Intellectual property right violation | |
| – Animals and wildlife | |
| – Stolen property | |
| – Police related items | |
| – Mailing lists and personal information | |
| – Government, transit, and shipping-related items | |
| – Government documents, IDs, and licenses | |
| – Hazardous, restricted, or regulated materials | |
| – Human remains and body parts | |
| – Lock picking devices | |
| – Embargoed goods and prohibited countries | |
| – Encouraging illegal activity | |
| – Firearms, weapons, and knives | |
| – Drugs and drug paraphernalia | |
| RESTRICTED: | |
| – Adult items | |
| – Alcohol | |
| – Selling art, artifacts, cultural heritage, and grave-related items | |
| – Autographed items | |
| – Credit and debit cards | |
| – Digitally delivered goods | |
| – Gift cards | |
| – Coupons | |
| – Medical drugs, devices, and healthcare | |
| – Personal relationships and services | |
| – Real estate | |
| – Product safety | |
| – Event tickets | |
| – Slot machines | |
| – Stamps | |
| – Currency and coins | |
| – Stocks and other securities | |
| – Travel | |
| – Used cosmetics | |
| (No sale of any goods listed in the Prohibited list) | |
| Medical Services | Non-face-to-face and face-to-face medical services – must come from an acquirer |
| – no direct customer payments | |
| All other medical-related services | |
| (The following information might be requested in addition to the normal documentation: details about any insurance the merchant has regarding their provision of services, i.e., the liability cover in the event of complications that may occur as a result of procedures, treatment price list, full details of all doctors and nurses registered and operating at the business, including General Medical Council Reference numbers or equivalent, details of license held by practice medical services.) | |
| Membership | Services Customers must clearly outline on the website, the name of the company, location, terms of billing and details about how to cancel an order or subscription (Must come from an acquirer – no direct customer payments.) |
| Nutraceuticals | Websites selling Nutraceutical products (including those with a subscription service) – must clearly outline the name of the company, location, terms of billing and details about cancellation policy |
| (Must come from an acquirer – no direct customer payments.). | |
| Pharmaceuticals | Licensed merchants who sell prescription drugs online – selling of drugs online must come from an acquirer licensed and regulated by the state regulator of an EEA country. |
| Precious Stones/Metals | Diamonds |
| All Precious Metals – e.g. gold and silver | |
| (Must be regulated under local AML regulation. Merchants must provide an AML policy and must be capable of producing CDD/EDD information relating to their customers on request. | |
| Direct customer Pay-Ins approved only on a case-by-case basis. All Belgian diamond dealers are subject to the following: | |
| • All traders with diamond trading activities (traders dealing in loose diamonds, as well as diamond brokers and polishers) are obliged to register with the Licensing Service of the Federal Public Service Economy (in Dutch, abbreviated as FOD Economie). Diamond jewelers are not obliged to register. However, jewelers that want to import loose diamonds to set in jewelry thus trade in loose diamonds, do need a registration number. | |
| • All Belgian registered diamond companies are required to be registered on the website: www.registereddiamondcompanies.be | |
| • All traders must have an AML policy | |
| • All traders must undergo annual stock declarations | |
| • All traders must undergo Kimberly process declarations | |
| • All traders must not accept any cash payments over 3K Euros) | |
| Real Estate Brokers/Agents | Real Estate Agents and Brokers must be regulated under local AML regulation, such as a supervisory body or by an accountancy body if they are a chartered accountant |
| (Must come from an acquirer – no direct customer payments. Must be capable of producing CDD/EDD information relating to their customers upon request.) | |
| Speciality Retail | Alcohol – must be regulated and have clear policy and controls about age limits |
| (Must come from an acquirer – no direct customer payments.) | |
| Ticket Brokers/Agents | Ticket brokers and agencies – must come from an acquirer, no direct customer payments |
| Travel Airlines | |
| Cruise ships | |
| Car Hire | |
| Hotel bookings | |
| (Corporate accounts may be permissible on a case-by-case basis. Direct customer payments may be permissible for established companies with a history of trading.) |
8. PERMITTED BUSINESS ACTIVITIES
8.1. The following list of business activities is permitted by our Terms:
| Business Sector | Activity |
| Contract for Differences (CFDs)/FX Brokers | Brokers licensed within EEA. Other allowed jurisdictions include: |
| Australia | |
| Switzerland | |
| New Zealand | |
| Japan | |
| Bermuda | |
| Cryptocurrency/Blockchain Exchanges | Custodial Wallets |
| Non-custodial Wallets | |
| Over-The-Counter (OTC) | |
| Payment Gateways | |
| Liquidity Provision/Proprietary Trading/Market Making | |
| (The above are subject to them being adequately licensed if required by the jurisdiction they are based in.) | |
| Entertainment Services | Services within the entertainment sector such as restaurants, bars, and is not included in the Prohibited/Restricted list. |
| Telecom operators including fixed-network services and mobile services regulated within EEA. | |
| Financial Services | Financial institution regulated and adequately licensed within EEA jurisdictions |
| (Subject for the additional approval) | |
| Gambling | Licensed and regulated gambling operators within a reputable jurisdiction (EEA) |
| Gift Cards | The sale of branded gift cards/vouchers with the ability to use the stored value at a future date. |
| Introducer | Introducer to third party business for commission. |
| Retail | Sale of merchandise that is not included in the Prohibited/Restricted list. |
| Skill Game | Skill Game operators operating from reputable jurisdictions |