What are the consequences of refusing to submit a statement of sources of funds deposited to our platform?

In the event that, without the support or involvement of the Customer (i.e. providing relevant documentation), zondacrypto is unable to determine and confirm the source of funds deposited on the exchange, in accordance with the law (Estonian Anti-Money Laundering and Terrorist Financing Act of 26.10.2017), zondacrypto fails to implement one of the financial security measures to which it is obliged. Implementation of these measures is the responsibility of a licensed entity, and zondacrypto is such an entity. The law (Estonian AML Act) states that in a case when an entity is unable to implement any one of these financial security measures, it is obliged:

• not to establish a business relationship (if a relationship has not been established)
• to terminate a business relationship without notice where it is already ongoing

In the event that an existing business relationship is terminated and the customer has funds in their zondacrypto account, the regulations state that funds can only be returned to the customer by wire transfer to an account in the European Economic Area. In practice, this means converting your crypto currency holdings to FIAT (at the current exchange rate) and returning it to your bank account (Article 42(4) and Article 44(1) of the Estonian Anti-Money Laundering and Terrorist Financing Act of 26.10.2017).