What are the consequences of refusing to submit a statement of revenue sources?
In the event that, without the support and participation of the Customer (i.e. by providing the relevant documentation), BitBay is unable to determine and confirm the sources of the funds deposited at the exchange, in accordance with the Act (Estonian Act on Prevention of Money Laundering and Terrorist Financing of 26.10.2017), BitBay fails to implement one of the required financial security measures. A licensed entity such as BitBay is required to fulfil these obligations. The Act (the Estonian AML Act) States that when an entity is unable to implement any of the financial security measures, it is required:
• not to establish a business relationship (if the relationship has not been established) • to terminate the business relationship without notice (in the case of an existing relationship)
If an existing business relationship is terminated, and the customer has funds in a BitBay account, the regulations stipulate that these funds may be repaid to the customer only by bank transfer to an account in the European Economic Area. In practice, this means converting the existing cryptocurrency into a FIAT currency (at the current rate) and returning it to the bank account (§ 42(4) and § 44(1) of the Estonian Act on Prevention of Money Laundering and Terrorist Financing of 26.10.2017).