Sweepstakes Central Anti-Money Laundering Compliance Program
Effective Date: June 25, 2021
In order to prevent itself from being used for money laundering and funding of terrorism, Sweepstakes Central (Company) hereby establishes this compliance program. Company will comply with all provisions of the Bank Secrecy Act (Act) and any/all regulations created by the Department of Treasury in order to enforce the Act. This program shall be made available to the Department of Treasury upon request.
1. Designation of Compliance Officer Company hereby designates Kyle McGorisk as its anti-money laundering compliance officer (compliance officer). Compliance officer will be responsible for implementing and maintaining this program and training necessary employees on Company’s internal rules and regulations related to anti-money laundering and prevention of terrorism funding. Should a new compliance officer be designated in the future, this compliance program will be updated to reflect the name of the new compliance officer.
2. General Rules for Customer Accounts
No customers shall be allowed to share accounts.
Accounts shall be owned by individual persons only. No account shall be owned by a business and no account shall be owned by more than one individual person.
3. Rules for Customer Identification and “Know Your Customer”
No person shall be allowed to open an account without first presenting valid government issued photo ID, providing name, date of birth, a valid Social Security Number (SSN), address, and telephone number. An image of the photo ID and all the other identifying information outlined above shall be maintained by Company in both electronic and physical databases that are accessible to necessary employees and safely secured.
Before any account is opened, Company shall cross-reference the account applicant against the Office of Foreign Asset Control (OFAC)’s Specially Designated Nationals and Blocked Persons list (SDN list), which is available for cross-reference at the following website: https://sanctionssearch.ofac.treas.gov/. Should the cross-reference result in a positive match, the applicant shall be denied an account and Company shall file a report of rejected/blocked transaction with OFAC.
All current customers shall be cross-referenced against the OFAC SDN list once annually. Should any cross-reference result in a positive match, the subject customer’s account shall be closed/blocked and Company shall file a report of rejected/blocked transaction with OFAC.
4. Rules for Customer Transactions Exceeding $10,000
No deposits/withdrawals exceeding $10,000 in lump sum or in the aggregate within a 24-hour period for any one customer, in one account or multiple accounts, shall be processed without first confirming customer’s identity by checking photo ID and confirming the customer’s, address, account number, address, and SSN.
Any deposits/withdrawals exceeding $10,000 in lump sum or in aggregate within a 24-hour period for any one customer, in one account or multiple accounts, shall generate a Currency Transaction Report (CTR), which shall be filed with Financial Crimes Enforcement Network (FinCEN) on FinCEN Form 112 within 15 days of the deposit/withdrawal.
5. Rules for Suspicious Activity
The rules for suspicious activity shall apply both to the activities of customers and the activities of Company employees.
Any suspicious activity involving $2,000 or more in funds or assets shall generate a Suspicious Activity Report (SAR), which shall be filed with FinCEN on FinCEN Form 111 within 30 days of detection of the suspicious activity. Suspicious activities include:
Any transaction or pattern of transactions derived from illegal activities.
Any transaction or pattern of transactions designed to evade reporting requirements.
Any transaction or pattern of transactions having no apparent lawful purpose.
Any transaction or pattern of transactions facilitating criminal activity.
Examples of suspicious activity include but are not limited to:
Reducing withdrawal/deposit to slightly below $10,000 when identification is required.
Use of agent(s) for withdrawals/deposits.
Withdrawing funds shortly after depositing them with little or no play.
Multiple withdrawals in a day.
Using false, altered, expired, or stolen identification.
Any of the above activity, whether committed by customers or assisted by Company staff, along with any other activity deemed to be suspicious, shall be brought to the attention of the compliance officer, who shall make the ultimate determinations as to whether to file an SAR.
Any reports to FinCEN shall remain confidential and shall not be shared with any customers, nor will any customers be made aware of the filing of any reports with FinCEN. Should any customers request a copy of an SAR, Company shall deny that request and report the request to FinCEN.
Only necessary employees shall be made aware of and have access to FinCEN reports. Any FinCEN report concerning a Company employee shall not be shared with that employee.
7. Compliance with Law Enforcement Authorities
Company shall comply with all lawful orders, letters, subpoenas, and directions from federal and local law enforcement authorities relative to investigations into suspected money laundering and/or terrorism funding crimes, including but not limited to FinCEN, the Federal Bureau of Investigation, the Office of Foreign Asset Control, and others, and Company shall keep any such orders, letters, subpoenas, or other communications confidential and only share the same internally with employees whose involvement is necessary to comply with the investigating authority.
8. Maintaining Records
All customer identifying information shall be maintained by Company in both electronic and physical databases for any person who is an active and current customer and for five years after any former customer’s last transaction.
All FinCEN reports filed by Company shall be maintained in both electronic and physical databases for a period of five years.
Company shall prepare and maintain a list of all its agents, which shall be kept in both electronic and physical databases and shall include all agents’ names and/or d/b/a’s, addresses, telephone numbers, the types of services provided by each agent, the names and addresses of any depository institutions at which each agent maintains an account, the year in which each agent first became an agent of Company, and the number of branches or subagents each agent has.
Company shall maintain a record of all transactions conducted by all customers for a period of five years.
9. Reporting Procedures and Enforcement
Any employee who detects suspicious or reportable activity shall bring such activity to the compliance officer’s attention immediately upon detection of the activity.
In order to ensure Company is not being used for money-laundering or funding of terrorism, the compliance officer shall have authority in his/her sole discretion to deny any suspicious customer an account, block or refuse any suspicious transaction requests, and cancel current customer accounts based upon suspicious activities, structured transactions, unverifiable identification of the customer, or any other reasonable grounds.
Compliance officer, with the involvement and approval of Company’s human resources department and/or CEO/President has authority to discipline any employee who engages in prohibited or suspicious activity or who fails to detect reportable or suspicious activity. Such employee discipline may include termination.
The compliance officer shall timely notify Company’s CEO/President of any FinCEN reports filed and the underlying circumstances which prompted the filing of said reports.
10. Training Program
The compliance officer shall implement and maintain a training program that trains necessary employees on the following:
Definitions of money laundering and terrorism funding and the consequences of non-compliance under the Bank Secrecy Act (BSA).
How to identify suspicious and reportable activity.
How to proceed under this program once suspicious or reportable activity is detected.
How to maintain necessary records under this program.
11. Annual Testing
The efficacy of this program shall be subject to independent testing no less than one time per year to ensure suspicious and reportable activities are being detected and properly handled by necessary employees. Testing shall be conducted by someone other than the compliance officer.