Risk Management and Compliance Programme
1. Foreword
Ultrafair Limited’s ("UF", “we,” “us,” or “our”) Risk Management and Compliance Programme (“RMCP”) is designed in a manner that will enable UF’s businesses to reasonably (i) identify; (ii) assess; (iii) monitor; (iv) mitigate and (v) manage risks that are associated with Fantasy Sports. This RMCP uses a risk-based approach to determine and manage UF's risk. The RMCP is complemented with internal controls, standard operating procedures and company policies.
2. Definitions
3. Risk Management Compliance Programme
3.1 Approval of the Risk Management Compliance Programme
The RMCP has been approved by Management and has been implemented.
3.2 Review of the Risk Management Compliance Programme
UF will review the RMCP at regular intervals to ensure that it is up to date with industry standards and risks associated to the industry.
3.3 Availability of Risk Management Compliance Programme
UF provides access to or copies of its RMCP to all of its employees by either providing them with a hard copy or through electronic resources.
3.4. Requests for copy of Risk Management Compliance Programme
3.4.1. Upon receiving a request from a supervisory body, UF must make a copy of its RMCP available to the applicable supervisory body who performs regulatory or supervisory functions in respect of Fantasy Sports.
3.4.2. Requests made by the above authorities for copies of the RMCP are to be directed to the UF compliance department.
4. Manner in which UF Determines Prospective Players and Player
4.1 Prospective Player
UF will deem a person to be a Prospective Player if that person intends to enter into a business relationship with UF but:
4.1.1. who has not provided the necessary identification information or documents; or
4.1.2 where the verification of such identification information is still pending; or
4.1.3 where inconsistent information regarding the accuracy or authenticity of his or her identification is received prior to any transactions being concluded; and as a result of the above, the transaction concerned is not concluded.
4.2 Player
UF will deem a person to be a Player when that person has successfully entered into a business relationship after:
4.2.1. providing the necessary identification information or documents; and
4.2.2. the verification of the identification information has been completed; and
4.2.3. where the identification information received regarding the accuracy or authenticity of his or her identification is correct.
5. Establishment and Verification of the Identity of Persons for Certain Transactions
5.1. Establishment of identity
UF will establish the identity of all its players before the commencement of any gaming activity will be allowed and will be required to attain the following information:
5.1.1. National identification number;
5.1.2 Full name and surname;
5.1.3. Physical address; and
5.1.4 Contact details.
5.2 Politically Exposed Persons (PEPs)
Senior management must approve the establishment of a business relationship if the applicant Player is a Foreign Prominent Public Official (PEP) or a high risk Domestic Prominent Influential Person (PIP). PEPs must always be regarded as high risk and following the applicable AML procedures.
5.3. Verification of Identity
The UF verification requirements are as follows:
5.3.1. To enable a Player to have a relationship with UF, UF must verify the identity of the Player concerned.
5.3.2. UF may perform these verifications by comparing the identification document presented against the person presenting the identification document, or by using electronic means to verify the identification information against a suitable third party database.
5.3.3. UF is to retain a copy of the identification document used or make reference to the third party verification. The copy of identification document or electronic third party verification may be retained in electronic or hard copy format.
5.4. Anonymous Players or Players with obviously false or fictitious names
UF shall not establish a relationship or conclude a single transaction with an anonymous Player or a Player who has an obviously false or fictitious name.
5.5. Veracity of Previously Obtained Information
5.5.1. If UF doubts the accuracy or authenticity of information it received previously to conclude a relationship or single transaction, UF must repeat the identification steps to the extent that is necessary to confirm the accuracy or authenticity of the information concerned.
5.5.2. Where UF is unable to verify the previously obtained information, UF shall not conclude further single transactions and it shall terminate any existing relationship with the Player concerned.
5.5.3. Before a relationship is terminated, UF must afford the Player an opportunity to furnish UF with the correct information or UF may use alternative means to verify the information concerned to its satisfaction. If the information cannot be verified, management will terminate the relationship.
5.6. Sanction Screening
5.6.1. UF will confirm that the potential Player and/or an existing Player does not appear on any recognised sanctions list, including but not limited to the United Nations 1267 Sanctions list and any sanctions list provided and recognised by any Regulatory Body where UF provides services and/or products. UF will screen all potential and existing Players against the Sanctions Lists to ensure that the Player and/or potential Player does not appear thereon.
5.7. Geo-blocking for Sanctioned Jurisdictions
5.7.1. UF will employ geo-blocking techniques in order to ensure that its Players are not subject to United States, European Union or other global sanctions or watch lists, including individuals or entities associated with Sanctioned Jurisdictions. UF uses its Player due diligence and transactional monitoring processes and procedures and geo-blocking techniques to ensure Players are not from sanctioned jurisdictions. UF reserves the right to utilize additional on-chain reporting tools in order to further provide appropriate public chain sanction screening.
5.8. Transactional Monitoring
5.8.1. UF will through its onboarding and ongoing due diligence process perform transactional monitoring for sanctioned or prohibited jurisdictions, individuals and/or entities. Through UF customer due diligence procedure, UF may identify “red flag” activities whereby enhanced due diligence and/or further transactional monitoring is required, including but not limited to the screening of wallet addresses to ensure that the funds are not from sanctioned jurisdictions, individuals and/or entities. UF will screen a user’s wallet address against relevant sanction lists and databases and against third party vendors information. As part of UF’s due diligence process, UF will periodically screen the applicable Player wallet addresses on an ongoing due diligence basis.
6. Ongoing Due Diligence and Account Monitoring of the Relationship
6.1 Customer due diligence refers to the knowledge that UF has about its Players, and understanding the business relationship that UF has with the Player and the business the Player conducts with UF.
6.2 UF may consider the following criteria of the Player to ensure that the transactions concluded in the course of the business relationship are consistent with UF’s knowledge of a Player:
6.2.1. Occupation
6.2.2. Risk category applicable to Player
6.2.3. Accuracy and authenticity of the information furnished by the Player
6.2.4. Complexity of the transaction
6.2.5. Unusual patterns of transactions which have no obvious business or lawful purpose
6.2.6. Suspicious or unusual transactions associated with the business relationship
6.3 The intensity and frequency of the ongoing due diligence in respect of relationships will be based on:
6.3.1 UF's understanding of the ML/TF risks associated to its Web3 Fantasy Sports and online gaming activities; and
6.3.2 The risk category of the Player (i.e. customer due diligence will be performed more frequently on high risk Players )
7. Examination of and Keeping of Written Findings Relating to Certain Transactions
7.1 Complex or Unusually Large Transactions
7.1.1 UF shall examine large transactions in at least the manner described herein.
7.1.2 The manner in which complex or unusually large transactions are examined may include:
7.1.2.1. By comparing the routine manner in which the transactions were concluded in the past for the Player against a different or complicated manner requested by the Player in current transaction;
7.1.2.2. By comparing the values of previous transactions concluded by a Player against the values of current transactions where the values are obviously larger.
7.1.3 The examinations concerned shall be made using reasonable and practical methods available to UF, and shall be conducted at regular intervals.
7.2. Unusual Patterns of Transactions Which Have No Apparent Business or Lawful Purpose
7.2.1. UF shall examine transactions in at least the manner described herein.
7.2.2 The manner in which unusual patterns of transaction which have no apparent business or lawful purpose are examined may include:
7.2.2.1. Having regard to prescribed reports relating to suspicious transactions and terror financing that were considered by the compliance department or filed with the Regulatory Body.
7.2.2.2 Having regard as to whether or not the transaction was concluded for purposes of Web3 fantasy sports and/or online gaming activities.
7.2.2.3. By comparing the values of previous transactions concluded by a Player against values of current transactions where the values are obviously larger.
7.2.2.4 Any transactions that a member of UF may deem suspicious in nature.
7.3. Keeping of Written Findings
7.3.1. For the examinations referred to above, UF shall document and keep its written findings, which may be achieved, by filing the appropriate records used for the examination in a suitable manner for future purposes.
7.3.2. Where the findings confirm any suspicion of money laundering or terror financing activities, the relevant prescribed report shall be filed with the Regulatory Body by UF.
8. Customer Due Diligence in Respect of Prescribed Reports Relating to Suspicious or Unusual Transactions or Terror Financing
8.1. Where UF intends filing a prescribed report relating to a money-laundering or terror financing, during the course of a business relationship, it shall perform customer due diligence on the Player to be reported on in instances where UF doubts the accuracy or authenticity of previously obtained information which UF required to verify the Player's identity.
8.2. UF must repeat the relevant steps set out in its RMCP to the extent that is necessary to confirm the information concerned.
8.3. UF does not have to inform the Player in the event of reporting transactions or suspicious activities to the relevant gaming authorities.
9. Termination of an Existing Relationship Due to the Inability to Conduct Customer Due Diligence
9.1. In the event where UF is unable to conduct the customer due diligence it shall first suspend the business relationship preventing the Player from concluding any further business relationship transactions.
9.2. UF shall give notice of a reasonable period to the Player to remedy the deficient information. In the event that the Player does not remedy deficient information within the notice period, UF shall terminate the business relationship accordingly.
9.3. UF may consider re-activating a terminated business relationship when the Player has remedied the deficient information to the satisfaction of UF.
9.4. The records of a terminated business relationship must be retained for at least a period of 5 (five) years from the date of the termination thereof.
9.5 UF shall accordingly consider reporting suspicious behavior to the relevant regulatory authority.
10. Foreign Prominent Public Official and Domestic Prominent Influential Person
10.1. UF may determine whether a Prospective Player in respect of a business relationship is a Foreign Prominent Public Official (“PEP”) or Domestic Prominent Influential Person (“PIP”), both of which includes immediate family members and close associates, by any of the below methods or a combination thereof:
10.1.1. By asking Prospective Players if they are PEPs, PIPs, or Immediate family members and Known close associates of PEPs or PIPs;
10.1.2. By using appropriate third party verification services to determine the above; or
10.1.3. By verifying the Prospective Players information against appropriate external databases containing such information.
10.2. From time to time, UF is to determine or amend the status of PEPs and PIPs, and their immediate family members or close associates in respect of its business relationship Players to keep its records updated.
10.3. In addition to the above, UF may determine the status of PEPs and PIPs, and their immediate family members or close associates of its active Players who have no business relationships with UF.
11. Enhanced Customer Due Diligence and Simplified Due Diligence for Business Relationships
11.1. Enhanced Customer Due Diligence
For high-risk business relationships UF shall conduct enhanced customer due diligence to establish and verify the identity of the Player concerned.
In addition to the requisite identification requirements for a business relationship set out in this RMCP, UF may consider any or a combination of the following methods to perform the enhanced due diligence:
11.1.1. Verifying the identification information against a different source to compare the information provided;
11.1.2. Obtain additional information from the Player
11.1.3. Increased monitoring and scrutiny of business-related transactions
11.1.4. A business relationship that is entered into with a PEP or their immediate family members or close associates will automatically be deemed a high-risk business relationship.
11.1.5. Senior management of UF may determine that a business relationship entered into with a PIP or their immediate family members or close associates is a high-risk business relationship.
11.1.6. Records relating to enhanced customer due diligence shall be maintained by UF.
11.1.7. Requiring the Player to provide source of wealth, source of funds and potentially evidence of the manner in which source of wealth was generated.
11.1.8. All Players with a high risk rating will require senior management approval when opening an account.
11.1.8.1. In the event that a Player becomes high risk during the ongoing due diligence process, the Player will be required to be approved by senior management before prior to engaging with any product offerings further.
12. Record Keeping
12.1. Recording Keeping Period
12.1.1. All prescribed records shall be retained by UF for at least 5 (five) years from the date of transaction of the single transaction or relationship transactions.
12.1.2. If a relationship is terminated, then UF shall maintain the records of the business relationship for at least 5 (five) years from the date on which the business relationship was terminated.
12.2. Storage of Records
12.2.1. UF will maintain all records in electronic format.
12.3. Protection of Records
12.3.1. UF's systems shall comply with all prescribed requirements in respect of security features and user access rights including but not limited to ISO 27001 and GDPR requirements.
12.3.2. Access to Players’ records shall be limited to UF's approved users in line with their user access rights and password controls.
12.3.3. UF shall perform routine back-up recovery procedures of electronically archived Player records.
12.3.4. No person shall have access to any prescribed Regulatory Body reports or any investigation reports in respect of the afore- mentioned reports other than the compliance department or a person who has group compliance function that oversees Regulatory Body compliance.
12.3.5. UF is not obligated to obtain the consent of Players for purposes of filing reports or providing information to the Regulatory Body regarding their gaming activities.
13. Transactions or Activities that are Reportable to the Centre
13.1. Suspicious and Unusual Transactions
13.1.1. UF is obligated to file a suspicious or unusual transaction where it knows or ought reasonably to have known or suspected that:
13.1.1.1. It has received or is about to receive the proceeds of unlawful activities or property connected to an offence relating to the financing of terrorist and related activities;
13.1.1.2. It is a party to a transaction or series of transactions that:
13.1.1.2.1. Facilitate or is likely to facilitate the transfer of the proceeds of unlawful activities or property connected to an offence relating to the financing of terrorist and related activities; or
13.1.1.2.2. Has no apparent business or lawful purpose; or
13.1.1.2.3. Is conducted to for the purpose of avoiding any Regulatory Body reporting duty; or
13.1.1.2.4. May be relevant to an investigation relating to an evasion or the attempt evasion of a duty to pay any tax, duty or levy imposed by the relevant authority; or
13.1.1.2.5 Relates to an offence connected with the financing of terrorist and related activities;
or
13.1.1.3. It has been or is about to be used in any way for money laundering purposes or to facilitate the commission of an offence relating to financing of terrorist or related activities; and
13.1.2 In addition, UF is required to file a STR if it knows or suspects that if it concludes certain payout transactions or series of payout transactions it would result in the consequences referred to above.
13.2. Establishment of Suspicious and Unusual Transactions
13.2.1. A Suspicious and Unusual transaction may involve several factors that may seem insignificant on its own but when viewed together as several or as a whole may give rise to the suspicion.
13.2.2. Case law has developed the meaning of suspicion to mean “I know but I cannot prove”. The general guide is when a transaction or series of transactions raises questions or gives rise to you being uncomfortable, apprehensive or mistrusting the individual conducting the transaction.
13.2.3. It is important to evaluate transactions conducted in UF against what is appropriate and within normal practices for the Web3 fantasy sports and online gaming industry.
13.2.4. The suspicion should be based on a reasonable evaluation of the relevant factors, which may include knowledge of the Player's:
business;
financial history;
background; and
current behaviour and gaming spend against previous behaviour and gaming spend.
13.3. Below are indicators, which are not exhaustive, which is aimed at providing guidelines against which suspicious behaviour should be measured. A single indicator may not necessarily be indicative of reasonable grounds to suspect money laundering, however if several of the indicators are present during transactions then one is required to look closer in order to ascertain whether or not a suspicious and unusual transaction report should be filed.
13.3.1. General Indicators
13.3.1.1. Player admits or makes statements about involvement in criminal activities;
13.3.1.2. Player shows uncommon curiosity about internal systems, controls and policies;
13.3.1.3. Player is involved in activity out-of-keeping for that individual or business; and
13.3.1.4. Player uses aliases and a variety of similar or different addresses.
13.3.2. Industry-specific Indicators
Remember that behaviour is suspicious, not people. Also, it is the consideration of many factors – not any one factor- that will lead to a conclusion that there are reasonable grounds that a transaction is suspicious or unusual. All circumstances surrounding a transaction should be reviewed, within the context of your knowledge of the Player.
13.3.2.1. When a Player requests redemption by a third party;
13.3.2.2. Player requests for payments in respect of prizes in a format that is not offered by UF;
13.3.2.3. Continuous deposits under the threshold amount on a constant basis;
13.3.2.4. Player requests prizes to be paid into name of another Player; and
13.3.3. Knowledge of Reporting or Record Keeping requirements
13.3.3.1. Player attempts to convince employee not to complete any documentation required for the transaction;
13.3.3.2. Player makes inquiries that would indicate a desire to avoid reporting;
13.3.3.3. Player has unusual knowledge of the law in relation to suspicious transaction reporting;
13.3.3.4. Player seems very conversant with money laundering issues; and
13.3.3.5. Player is quick to volunteer that funds are “clean” or “not being laundered”.
13.3.4. Identification Documents
13.3.4.1. Player provides doubtful or vague information;
13.3.4.2. Player produces seemingly false identification or identification that appears to be counterfeited, altered or inaccurate;
13.3.4.3. Player refuses to produce personal identification documents;
13.3.4.4. Player only submits copies of personal identification documents;
13.3.4.5. Player wants to establish identity using something other than his or her personal identification;
13.3.4.6. All identification documents presented appear new or have recent issue dates; and
13.3.4.7. Player attempts to present another individual’s identification document to conclude the transaction.
14. Filing of Prescribed Reports
14.1. Filling of Suspicious Report
14.1.1. To encourage the filing of STRs by employees, a Founding Report shall be made available to all relevant employees.
14.1.2. Employees are to complete the relevant information and submit it directly to the compliance department or obtain the assistance of management to assist in submitting the Founding Report to the compliance department for further investigation.
14.1.3. The compliance department shall investigate each Founding Report and he/she shall determinate whether suspicion is founded.
14.1.4. If suspicion is founded, then the compliance department shall file a STR with the Regulatory Body in the prescribed manner and he/she shall keep records of the filed report.
14.1.5. If suspicion cannot be founded, then the compliance department shall maintain the Founding Report and investigation reports on file.
14.1.6. All records in support of the above reports, whether or not suspicion has been found, shall be maintained for future purposes.
15. Protection and Confidentiality
15.1. Protection of Employees Filing Prescribed Reports
15.1.1. Employees who file prescribed reports with the Regulatory Body are protected against any legal action which could arise out of the submission of such reports provided that the report concerned was submitted in good faith.
15.1.2. Also, due the admissibility of the reported information on basis of a certificate issued by the Regulatory Body, the employees who file these reports are not be obligated to testify in court. The afore-going measures assists in protecting the identity of the employees concerned.
15.1.3. Furthermore, the details of the employee contained in the Founding Report is for internal purposes only. The details of the employee who reported the matter to the compliance department is not reported to the Regulatory Body. The details of the compliance department and UF is contained in the filed reports.
15.2. Confidentiality Regarding the Filing of Reports
15.2.1 It is an offence to disclose the fact to any person, including the person being reported, that a report was filed with the Regulatory Body in respect of any person.
15.2.2 Employees who file prescribed reports or internal Founding Reports are obligated to keep that information confidential and may not disclose the contents thereof to any person, other than persons to whom that employee reports to or the compliance department, in the due of filing a Founding Report or for purposes of an investigation to be conducted.
15.2.3 Appropriate internal disciplinary action will be instituted against any employee who knowingly or negligently discloses the contents of prescribed reports to any person other than as specified above.
15.2.4 In addition to the above, the employee(s) concerned may be prosecuted criminally, and if convicted, may be subject to a fine or imprisonment, or both.
16. Training of Employees
16.1. UF employees are to receive ongoing training to enable them to comply with the provisions of the Regulatory Body and the RMCP which are applicable to them.
16.2. Each relevant employee will complete a test to ensure understanding of the training material.
16.3. Any employee who fails the test may take the test again. If the employee fails more than twice, an oral test may be conducted. If the employee fails the oral test, he/she shall be re- trained.
16.4. Refresher training may occur at least once a year.
16.5. All internal communication, awareness, briefings and correspondence regarding Identification and Verification obligations and the RMCP will also be deemed as refresher training.
17. Anti-Fraud Policy
UF has a strict anti-fraud policy and utilises various anti-fraud tools and techniques. If the Player is suspected of fraudulent actions including, but not limited to:
participating in any type of collusion with other Players;
development of strategies aimed at gaining of unfair winnings of prizes;
fraudulent actions against other fantasy sports or payment providers
chargeback transactions with a credit card or denial of some payments made
creating two or more accounts
providing of forged documents
other types of cheating
or becomes bankrupt in the country of their residence, UF reserves the right to terminate such Player Account and suspend all payouts to the player. This decision is at sole discretion of UF and the player will not be notified or informed about the reasons of such actions. UF also reserves the right to inform applicable regulatory bodies of the fraudulent actions performed by the player. You may not use funds that originates from any illegal activity or source or that is tainted or associated with any illegality or ill- gotten means. UF has zero tolerance to advantage play. Any player who will try to gain advantage of welcome offers or other promotions agrees that UF reserves the right to void bonuses and any prizes from such bonuses, for the reasons of:
use of stolen cards;
chargebacks;
creating more than one account in order to get advantage from promotions;
providing incorrect registration data;
any other actions which may damage UF.
UF reserves the right to close your Player Account at UF's absolute discretion and without any obligation to state a reason or give prior notice. In order to verify player`s account, management require the following documents ID, payment systems, utility bills etc. In case player doesn’t have an opportunity to provide documents in above-mentioned UF reserves the right to demand video verification where player shows his/her documents. UF reserves the right to retain payments, if suspicion or evidence exists of manipulation of the UF system. Criminal charges will be brought against any user or any other person(s) who has/have manipulated the UF system or attempted to do so. UF reserves the right to terminate and/or, change any games or events being offered on the Website.
UF reserves the right to retain payments, if suspicion or evidence exists of manipulation of the UF system. Criminal charges will be brought against any user or any other person(s) who has/have manipulated the UF system or attempted to do so. UF reserves the right to terminate and/or, change any games or events being offered on the Website. Should you become aware of any possible errors or incompleteness in the software, you agree to refrain from taking advantage of them. Moreover, you agree to report to UF any error or incompleteness immediately. Should you fail to fulfil such obligations, UF has a right to full compensation for all costs related to the error or incompleteness, including any costs incurred in association with the respective error/incompleteness and the failed notification.
The Company complies with European laws, regulations and guidelines for the prevention of money laundering and the funding of terrorism. Suspicious transactions can be investigated by UF. UF reserves the right to send a suspicious transaction report to the competent authorities without notice or further reference to you. Besides, in case of any suspicious transactions, UF may block or close the account and withhold all funds as may be required by law and/or by the competent.
18. Compliance with Laws
Any products accessed through UF may be used only for lawful purposes and in a lawful manner. The Player agrees to comply with all applicable laws, statutes and regulations regarding UF and any transactions placed through UF.
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