Ref:
9865179
23 September 2019
Caleb Seng Puay Yeoh
Director
Level 3, TCB Building
315 Brunswick Street
Fortitude Valley QLD 4006
By email: s 22
Dear Caleb,
Re: Compliance Assessment
The purpose of this letter is to confirm that AUSTRAC will conduct a compliance assessment of
Act 1982 on 21 October 2021
InvestbyBit Pty Ltd, trading as Binance lite (
Binance Lite). AUSTRAC will liaise with you as to a suitable
date and time to conduct the on-site assessment. This letter sets out the assessment objectives and
the records and information that AUSTRAC requests to support its assessment
Assessment Objective and Scope
The objective of AUSTRAC’s compliance assessment is to review the systems and controls Binance Lite
has implemented to meet certain obligations under The
Anti-Money Laundering and Counter-
Terrorism Financing Act 2006 (Cth) (
AML/CTF Act). These obligations are associated with the
amendments to The
Anti-Money Laundering and Counter
by AUSTRAC under the FOI
-Terrorism Financing Rules Instrument 2007
(No.1) (Cth) (
AML/CTF Rules).
The assessment will review Binance Lite’s Part A and Part B of the Anti-money laundering and counter-
Released
terrorism financing program (
AML/CTF program). The assessment will include inspecting the
identification records for customers on-boarded in the period of 01 June 2019 to 31 August 2019.
Correspondence: PO Box 5516, West Chatswood NSW 1515
P: 02 9950 0055
www.austrac.gov.au
The scope of the assessment will include the following:
Part 2 of the AML/CTF Act – Identification procedures
Section 32 – carrying out the applicable customer identification procedures (ACIP) before the
commencement of the provision of a designated service.
Section 36 – ongoing customer due diligence.
Part 3 of the AML/CTF Act – Reporting obligations
Section 41 – reports of Suspicious Matters.
Section 43 – reports of Threshold Transactions.
Chapter 18 of the AML/CTF Rules - Reportable details for suspicious matters
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Chapter 19 of the AML/CTF Rules - Reportable details for threshold transactions
Part 7 of the AML/CTF Act – AML/CTF program
October
21
Section 81 – requirement to have an AML/CTF program.
on
Section 82 – compliance with Part A of an AML/CTF program.
Chapter 4 of the AML/CTF Rules - Applicable Customer Identification Procedures (ACIP).
1982
Chapter 8 of the AML/CTF Rules – Part A of a standard anti-money laundering and counter-
Act
terrorism financing (AML/CTF) program.
Chapter 15 of the AML/CTF Rules – Ongoing custo
FOI mer due diligence.
the
Part 10 of the AML/CTF Act – Record keeping requirements
Section 106 – records of designated services.
under
Section 107 – transaction records to be retained.
Section 108 – customer-provided transaction documents to be retained.
Section 112 – making of records of identification procedures.
Section 113 – retention of records
AUSTRAC of identification procedures.
by
Section 114 – records of identification procedures deemed to have been carried out by a
reporting entity.
Released
During the course of the assessment, AUSTRAC will discuss the above and any other matters arising
with the appropriate senior executives and key staff responsible for discharging Binance Lite’s
obligations under the AML/CTF Act and AML/CTF Rules. It would be helpful if a representative of
Binance Lite could be nominated as a liaison person during the assessment.
Correspondence: PO Box 5516, West Chatswood NSW 1515
P: 02 9950 0055
www.austrac.gov.au
Prior to the on-site component
Prior to conducting the on-site assessment at Binance Lite’s business premises, AUSTRAC would like
to review some of Binance Lite’s records and information in relation to the AML/CTF Act and AML/CTF
Rules. Details of the information AUSTRAC requires are listed at
Annexure A. AUSTRAC will advise you
if anything further is required.
Please provide items listed in Annexure A by 3:00pm Monday 7 October 2019.
Further Information
2021
If you have any questions in relation to the assessment processes, please do not hesitate to contact
s 22
on s 22
or via email at s 22
.
October
21
Yours sincerely
on
s 22
1982
Act
FOI
the
Manger, Regulatory Supervision
under
AUSTRAC
AUSTRAC
by
Released
Annexure A
Binance Lite’s Compliance Assessment
Correspondence: PO Box 5516, West Chatswood NSW 1515
P: 02 9950 0055
www.austrac.gov.au
Records and information required by 3:00pm Monday 7 October 2019
Where possible please provide readable, electronic copies of the information requested. The
preferred format is on USB with the documents in order of the item numbers below. Public access or
non-sensitive documents may be emailed. AUSTRAC’s security and privacy provisions apply equally to
all records and information provided regardless of the format they are provided in.
Please present the documentation suitably indexed for easy reference by our assessment team
and ensure that the documentation provided succinctly addresses the topics below.
Documentation should be posted to s 22
at PO Box 5516 West Chatswood NSW; and for
2021
public access/non-sensitive documents by email to s 22
copying in
s 22
.
October
21
DEFINITIONS
on
For the purpose of this notice:
All terms have the same meaning as in the AML/CTF Act and/or AM
1982 L/CTF Rules.
Act
Relevant period means 01 June 2019 to 31 August 2019.
FOI
Digital currency exchange services
the
1. Products and services
under
1.1. Provide a list of products and services offered by Binance Lite that are regulated by the
AML/CTF Act and provide details on the designated services to which they relate.
AUSTRAC
1.2. Provide a list of all of
by the digital currencies traded.
1.3. Provide a list of the delivery channels Binance Lite use to provide digital currency exchange
services to customers (i.e. website, mobile application, telephone, in person, ATM/Kiosk).
Released
1.4. Provide details of the locations where designated services are provided, including names of
business and locations, and the functions performed at each location.
1.5. Provide a summary of the transaction volume and transaction value per week for the
relevant period. Include details of any anomalous transactions, for example, a transaction
that is more than 20% of the average value of transactions.
2. Does Binance Lite allow transactions between fiat and digital currency? If so:
2.1. Provide Binance Lite’s written procedures, policies and training material that staff follow to
facilitate this service.
Correspondence: PO Box 5516, West Chatswood NSW 1515
P: 02 9950 0055
www.austrac.gov.au
3. Provide Binance Lite’s wallet address for all digital currencies transacted.
4. Provide the details of Binance Lite’s bank and financial accounts used to provide digital currency
exchange services during the relevant period, including the following information:
4.1. bank name;
4.2. account name;
4.3. account type;
4.4. account opening date;
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4.5. account closure date (if applicable); and
October
4.6. the purpose of the account.
21
on
Part A AML/CTF Program
1982
5. Provide all versions of the AML/CTF program adopted
Act and maintained by Binance Lite for the
relevant period for the purposes of the AML/CTF Act (include dated version control records).
FOI
5.1. Include evidence of the board and/or seni
the or management’s approvals and adoption of all
versions of the AML/CTF program in the relevant period.
under
6. Provide evidence that Binance Lite has considered the money laundering and terrorism financing
(ML/TF) risk that its business may face, including the ML/TF risk associated with the designated
services it provides, the delivery channels, its customer types and the jurisdictions with which it
deals.
AUSTRAC
by
6.1. Provide information on any risk matrix prepared or utilised and any relevant
software/platform used in the process.
Released
6.2. Provide information on how Binance Lite’s risk assessment model is updated, including
governance over the process.
6.3. Provide documentation evidencing how the ML/TF risk assessment was undertaken and
substantiation of the conclusions reached.
7. Provide a copy of Binance Lite’s:
7.1. Risk awareness-training program;
7.2. Employee due diligence program;
Correspondence: PO Box 5516, West Chatswood NSW 1515
P: 02 9950 0055
www.austrac.gov.au
7.3. National Police History Checks (or equivalent) for all key personnel and employees of
Binance Lite, which have not previously been supplied to AUSTRAC as part of the
registration process; and
7.4. Provide details of whether any of Binance Lite’s key personnel and/or employees have ever
owned, operated, or been involved in the management of any other businesses who
currently or have previously provided digital currency exchange services. If yes, please
provide the following details:
7.4.1. name;
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7.4.2. date of Birth;
7.4.3. related entity name and Australian Company number (ACN);
October
21
7.4.4. the designated service(s) provided by the entity; and
on
7.4.5. the current enrolment or registration status of t
1982 he entity with AUSTRAC.
Act
8. Provide a copy of all internal and external audit reviews (including independent review reports
FOI
pursuant to rule 8.6 of the AML/CTF Rules) with respect to Binance Lite’s compliance with its
the
AML/CTF obligations.
under
8.1. Provide a copy of any management action plans established to remediate any findings.
Include evidence to demonstrate the independence of reviewer/s for each independent
review report.
AUSTRAC
8.2. If an internal or exte
by rnal audit review has not been carried out, provide details of when the
review is scheduled to be carried out, and the scope of the review.
9. Provide a copy of Binan
Released ce Lite’s transaction monitoring program for the relevant period. Include
dated version control records for each document provided.
9.1. Provide a copy of the procedures or operating guidelines relevant to transaction
monitoring.
9.2. Provide a copy of the business or transaction monitoring rules used in Binance Lite’s
transaction monitoring system. Also provide details of how the business rules were
developed, approved and the processes for amending them over time.
9.3. Provide the total number of alerts generated by the transaction monitoring program for
the relevant period.
Correspondence: PO Box 5516, West Chatswood NSW 1515
P: 02 9950 0055
www.austrac.gov.au
9.4. Provide any statistics or analysis on the number of alerts generated for the relevant period
and the action taken against such alerts.
9.5. List any transaction monitoring obligations which are outsourced.
9.6. How often does Binance Lite review its transaction monitoring rules and alerts?
9.7. What triggers Binance Lite to review its transaction monitoring rules and alerts?
9.8. Provide a copy of any documents evidencing management oversight of the transaction
monitoring program.
2021
Customer identification procedure and ongoing customer due diligence (OCDD)
10. Provide a copy of all versions of the Part B AML/CTF program for the relevant period.
October
10.1. List any customer identification obligations which are outs
21 ourced.
on
10.2. Provide a copy of Binance Lite’s procedure manual or operating guidelines indicating
when further applicable customer identification
1982 procedure (ACIP) information is
collected. Include circumstances under which ACIP information would be updated or
Act
verified for OCDD purposes.
FOI
10.3. Provide information on the trigger events for Binance Lite to undertake reasonable
the
measures to review and update customer information including obtaining further
information on the source of the customer’s funds and source of wealth.
under
10.4. Provide a copy of procedure manuals or operating guidelines indicating when further
ACIP information and beneficial owner information would be collected, and
circumstances under which beneficial owner information would be updated or verified
AUSTRAC
for OCDD purposes.
by
10.5. Provide a copy of the risk methodology used to risk rate customers. (If this is the same
as the information provided in response to item 6, please note this and only supply the
copy once.)
Released
11. Provide a copy of Binance Lite’s Enhanced Customer Due Diligence (ECDD) program.
11.1. Include details and procedures of how Binance Lite undertakes monitoring to identify a
politically exposed person.
12. Provide records of all customers who were on-boarded in the relevant period and include the
following information:
12.1. Customer name;
12.2. Customer type (i.e. individual, company etc.);
Correspondence: PO Box 5516, West Chatswood NSW 1515
P: 02 9950 0055
www.austrac.gov.au
12.3. Customer risk rating;
12.4. On-boarded date;
12.5. Where the customer was on-boarded;
13. For each customer in item 11 provide the following information about their transactions in the
relevant period:
13.1. Date of transaction;
13.2. Digital Currency transaction type (e.g. Bitcoin, Litecoin etc.);
2021
13.3. Total amount of the transaction in Australian Dollars;
October
13.4. Total quantity of digital currency for the transaction; 21
on
13.5. Digital currency public key/wallet address (where a digital currency service was
provided);
1982
Act
13.6. Any dates that ECDD has been carried out and any future dates that ECDD will be
performed; and
FOI
the
13.7. If ECDD has been carried out, a copy of the record of all instances of ECDD that has been
completed within the relevant period.
under
14. Provide information on the Applicable Customer Identification Procedure and Customer Due
Diligence undertaken on any commercial enterprise and/or Digital Currency Exchange Provider
that you may purchase cryptocurrenc
AUSTRAC y from.
by
Organisational structure
15. Provide a copy of an organisational chart and information relating to the structure, number of
Released
employees, activities and responsibilities of all areas that have obligations under the AML/CTF
Act.
15.1. Provide any supporting information relating to the operational structure, activities and
persons who have responsibility for Binance Lite meeting its obligations under the
AML/CTF Act.
15.2. Provide any supporting information relating to the operational structure, activities and
persons who have responsibility for Binance.com meeting its obligations under the
AML/CTF Act.
Correspondence: PO Box 5516, West Chatswood NSW 1515
P: 02 9950 0055
www.austrac.gov.au
15.3. If relevant, provide details of Binance Lite’s branches in foreign countries. Include full
addresses, telephone numbers, and Binance Lite’s method/s to balance payment with
overseas counterparts.
Reporting obligations
16. Provide a copy of any written operating guidelines, policies, procedures and training materials
relating to Binance Lite’s reporting of threshold transactions.
16.1. Provide details of systems and controls to ensure compliance with threshold transaction
reporting obligations.
2021
17. Provide a copy of any written operating guidelines, policies, procedures and training materials
relating to Binance Lite’s reporting of suspicious transactions.
October
21
17.1. Provide details of systems and controls to ensure compliance with threshold transaction
on
reporting obligations.
1982
Record keeping procedures
Act
18. Provide a copy of any written procedures to ensure
FOI records are made and retained as prescribed
in the AML/CTF Act.
the
under
AUSTRAC
by
Released
Correspondence: PO Box 5516, West Chatswood NSW 1515
P: 02 9950 0055
www.austrac.gov.au
