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Status: Unreviewed

Compliance Assessment

Compliance review scope, concerns, and areas under legal review.

Assessment Objective​

PropertyDetail
ScopeComprehensive, end-to-end global compliance review
CoverageAll facets of business operations
PurposeEnsure practices meet highest regulatory standards
JurisdictionsGlobal operations

Scope of Review​

Multi-Level Marketing Regulations​

AreaFocus
MLM structureEnsure compliance with international MLM laws
Compensation plansVerify legitimacy
Pyramid scheme testConfirm differentiation from prohibited schemes

Cryptocurrency and Blockchain​

AreaFocus
Regulatory adherenceCryptocurrency regulations
AML/CFTAnti-money laundering, counter-terrorism financing
CSR tokensIssuance and management compliance

Financial Transactions​

AreaFocus
DepositsProcess compliance
WithdrawalsProcess compliance
Fund managementBanking and financial service regulations

Tax Compliance​

AreaFocus
Local tax lawsCompliance verification
International taxObligations across jurisdictions
Key regionsUS, Europe, Canada

Data Protection and Privacy​

AreaFocus
GDPREuropean data protection
Global regulationsOther privacy laws
Data practicesCollection, storage, processing

Environmental Claims​

AreaFocus
RepresentationEnvironmental contributions accuracy
VerificationClaims backed by verifiable actions
StandardsAdvertising and environmental law compliance

Identified Compliance Concerns​

Licensing Concerns​

ConcernDetail
CSRnow (Wallet)Licensing requirements for wallet services
CSRnow (Savings)Licensing for savings/staking features
MLM licensingJurisdiction-specific MLM licenses

Sanctions and Embargoes​

ConcernDetail
Embargo countriesOperations in sanctioned territories
Sanctioned countriesOFAC, EU, UN sanctions compliance

Financial Operations​

ConcernDetail
Member transfersLicensing for member-to-member transfers
Holding fundsLicensing for holding member funds
Exchanging fundsLicensing for currency exchange

Terms and Conditions​

ConcernDetail
Draconian termsReview of potentially harsh terms

Data Concerns​

AreaSpecific Concern
Data protectionGeneral data protection compliance
GDPREuropean regulation compliance
Storage locationData residency requirements

VAT/Sales Tax​

ConcernDetail
VAT handlingCorrect VAT application and reporting
Sales taxRegional sales tax compliance

KYC Concerns​

AreaSpecific Concern
AmbiguitiesUnclear cases (incomplete DOB, addresses)
Managerial discretionCEO approval of edge cases
Expiry of approvalKYC validity duration

Partner Concerns​

AreaSpecific Concern
Independent statusConfirmation of non-employee status
Employment rightsEnsure no implied employment
RetirementPartner retirement handling
Shared positionsJoint account/position management
TaxPartner tax obligations clarity
VATPartner VAT obligations

KYC Special Cases​

Incomplete Date of Birth​

ScenarioDetail
RegionSome regions don't traditionally record exact DOB
ExampleCameroon member knew birth year (1966) but documents showed varying dates
Current handlingApproved with 1/1/[year]
StatusLegal advice welcomed

Incomplete Addresses​

ScenarioDetail
RegionAreas where many are unbanked
IssueAddresses without house numbers, location descriptions instead
Current handlingKYC not approved for such addresses
RiskForeign language addresses may appear complete
StatusLegal advice welcomed

Fake Documents​

ScenarioDetail
DetectionEncountering fake documents
Current handlingRejection, request for resubmission
DebatePermanent ban vs. authority reporting
StatusLegal advice welcomed

Outdated IDs​

ScenarioDetail
IssueTechnically expired IDs
ExampleFrance applied 5-year automatic extension
Current handlingAccepted when aware of regional policy

US Residents​

ScenarioDetail
Current statusKYC verifications suspended
ExceptionsSome approved under CEO instructions
StatusUnder legal review

Compliance Review Methodology​

Approach​

PropertyDetail
MethodRigorous joint review
PrincipleOpenness and transparency
InvitationAdditional inquiries welcomed
GoalIdentify potential compliance gaps
ResponsibilityDetail
Scope guidanceAdvise on focus areas
InterpretationComplex regulation interpretation
Best practicesAdvisory on industry standards
Scope expansionSuggest deeper investigation areas

Desired Outcomes​

Compliance Assurance​

OutcomeDetail
GoalClear assurance of compliance
DeliverableDetailed reporting on each aspect

Risk Mitigation​

OutcomeDetail
GoalIdentify potential risk areas
DeliverableRecommendations for addressing risks

Strategic Compliance Planning​

OutcomeDetail
GoalComprehensive compliance strategy
AlignmentLong-term business goals
ConsiderationRegulatory trends
OutcomeDetail
PrerequisiteAddress compliance uncertainties first
PurposeFormal opinion on company and operations
BenefitStrategic positioning, credibility

Regulatory Compliance Objectives​

ObjectiveDescription
Regulatory assuranceConfirm adherence to MLM and crypto regulations
Operational transparencyHigh transparency in CSR management and finances
Risk identificationIdentify regulatory, market, and operational risks
Risk mitigationStrategies for long-term sustainability
Ethical verificationVerify environmental claims and CSR issuance ethics
Confidence buildingAssurance for investors, partners, regulators
Future roadmapSteps to maintain/enhance compliance
AreaQuestion
KYC incomplete DOBHow to handle members without exact birth dates?
KYC incomplete addressesHow to handle location descriptions vs. addresses?
Fake documentsPermanent ban or authority reporting?
US residentsKYC approval policy?
Member transfersLicensing requirements?
Holding fundsLicensing requirements?
Exchanging fundsLicensing requirements?
Withdrawal of transferred fundsBest practice?
Duplicate account discretionTransparency concerns?
Gift code resaleVAT and compliance implications?
CSRnow wallet/savingsLicensing requirements?
Commissions Wallet (US)Required for US compliance?
CSR stakingLegal requirements to reinstate?