AML Act and customer identification

The amendment to Act No. 253/2008 Coll., on certain measures against the legalisation of proceeds of crime and the financing of terrorism (the AML Act), has extended the range of obliged persons to include precious-metals dealers. Baumann Group a.s., operator of the GOLDU® brand, is therefore an obliged person under this Act and is required to verify the customer's identity for transactions worth EUR 10,000 or more. The purpose of these measures is to protect customers, ensure transparency of transactions and comply with the laws of the Czech Republic and the European Union.

When the value of a purchase, sale or buy-back reaches EUR 10,000 in total, we carry out customer identification: we record the customer's identification details, verify the origin of the funds used and make a copy of an identity document (identity card or passport). We do not send these documents anywhere – the law only requires us to keep them securely for 10 years. Identification applies to transactions at our branch as well as to e-shop orders delivered by carriers; if it cannot be carried out, the order cannot be processed.

1. Customer identification and due diligence

1.1 Scope of identification and due diligence

We carry out identification and due diligence in particular for transactions worth EUR 10,000 or more – including where several consecutive transactions clearly belong together (linked transactions are added up) – and for any suspicious transaction regardless of the amount. In line with AML legislation, when buying, selling or buying back precious metals the customer may be asked in particular to:

present a valid identity document (e.g. an identity card or passport),
verify personal data and provide proof of permanent or temporary residence,
verify the beneficial owner or authorisation to act for a legal entity,
verify the ownership and control structure of the legal entity,
provide information on the purpose and nature of the transaction,
prove the origin of the funds or assets,
undergo checks in databases of politically exposed persons (PEP), in sanctions lists, in public registers and in other databases used to meet AML obligations.

1.2 The customer's duty to cooperate

Identification and due diligence require the customer's cooperation. If the customer fails to provide the necessary information, does not submit the documents or does not provide other necessary cooperation, the transaction cannot be carried out; the specific grounds for refusing, suspending or terminating a transaction are summarised in Part 6.

2. Verifying the origin of funds and assets

2.1 Proof of origin

In cases stipulated by law or on the basis of an internal risk assessment, GOLDU requires information or documents proving the origin of the funds used to purchase investment gold, investment silver or other precious metals. In justified cases, GOLDU may also require information about the wider origin of the customer's assets, where necessary to meet AML obligations or to assess the risk of the transaction.

2.2 Examples of relevant documents

a bank account statement,
proof of taxable income from employment or business activity,
a tax return or other tax documents,
a contract for the sale of assets (e.g. real estate, a vehicle or a business share),
a final decision from inheritance proceedings,
a gift agreement,
accounting documents,
other official documents proving the legal origin of the funds or assets.

2.3 Purpose of processing this information

We process this information solely to the extent necessary to meet statutory AML obligations, keep statutory records, assess the risk of the transaction and protect the company's legitimate interests. GOLDU is entitled to require proof of the origin of funds or assets repeatedly, where required by AML legislation, the nature of the transaction, a change in circumstances or the internal risk assessment.

3. Payments and cashless transactions

3.1 Payments only from an account held in the customer's name

GOLDU accepts cashless payments exclusively from a bank account held in the customer's name (for a legal entity, in the name of that legal entity). Payments from third parties or from accounts held in the name of a person other than the customer are not accepted, unless, in justified cases, the payer's relationship to the customer and the origin of the funds are duly documented and GOLDU expressly accepts such a payment on the basis of a risk assessment.

3.2 Refund of payments

Any refund of funds is made, as a rule, back to the same bank account from which the payment was received.

3.3 Restriction of cash payments

We accept cash payments only up to the statutory limit under Act No. 254/2004 Coll. on the restriction of cash payments, i.e. up to CZK 270,000 per day between the same persons. Payments above this limit may be made only by cashless transfer, from an account held in the customer's name.

3.4 Purpose of these rules

These rules serve to verify the customer's identity, to document the origin of funds and to prevent the legalisation of proceeds of crime and the financing of terrorism. They form part of the internal risk-management system of Baumann Group a.s.

4. Politically exposed persons (PEP) and international sanctions

4.1 Increased attention to higher-risk transactions

We pay special attention to higher-risk transactions. This concerns in particular:

politically exposed persons (PEP) within the meaning of the AML Act,
persons on international sanctions lists,
persons linked to a sanctioned person or a sanctioned enterprise,
customers from high-risk countries,
customers with a complex or non-transparent ownership structure,
customers who represent an increased AML, sanctions, security or reputational risk.

4.2 Enhanced identification and due diligence

In certain circumstances, enhanced identification and due diligence under the AML Act may be applied to the customer. In justified cases, GOLDU reserves the right to require additional documentation, additional verification of the customer, proof of the origin of funds or assets, or to refuse the transaction.

4.3 Sanctions screening

GOLDU is entitled to screen customers, beneficial owners, persons authorised to represent the customer and other relevant persons against sanctions lists and databases. If any of these persons is on a sanctions list, or if there is a suspicion of a link to a sanctioned person or enterprise, GOLDU is entitled to refuse or suspend the transaction, or to proceed in accordance with the law and internal risk-management rules.

5. Personal data protection and GDPR

5.1 Confidentiality and data protection

All personal and identification data collected is processed confidentially and in accordance with applicable law, in particular:

Regulation (EU) 2016/679 of the European Parliament and of the Council (GDPR),
Act No. 253/2008 Coll.,
other legislation on the protection of personal data.

5.2 Scope of use and retention period

We use personal data only to the extent necessary to meet statutory and contractual obligations, keep statutory records, protect the company's legitimate interests and fulfil AML/KYC obligations. Completed declarations, copies of documents and related data are not sent anywhere; we keep them securely and with restricted access for the statutory period of 10 years and then destroy them. Details are provided in the document Privacy Policy (GDPR).

6. Grounds for refusing a transaction

6.1 Situations in which a transaction may be refused

GOLDU reserves the right to refuse to carry out a transaction, suspend its processing or terminate the business relationship, in particular in the following cases:

the customer does not provide the necessary cooperation during identification or due diligence,
the customer does not provide the requested information or submit the required documents,
the identity of the customer, the beneficial owner or the person authorised to represent the customer cannot be reliably verified,
the origin of the funds or assets cannot be verified,
the payment was not made from an account held in the customer's name, or was made by a third party without documented evidence of the payer's relationship to the customer and the origin of the funds,
the customer, the beneficial owner or another relevant person is on a sanctions list, or there is a suspicion of a link to a sanctioned person or enterprise,
the transaction shows signs of a suspicious transaction within the meaning of the AML Act,
carrying out the transaction would be contrary to the law or internal risk-management rules.

6.2 Procedure upon refusal and statutory obligations

Refusing, suspending or terminating a transaction on the grounds set out above does not give rise to any liability of Baumann Group a.s. for damages. If GOLDU identifies a suspicious transaction, it fulfils its statutory reporting obligations to the Financial Analytical Office (FAÚ) and proceeds in accordance with the AML Act.

7. Final information

Baumann Group a.s., Company ID (IČO) 22263284, with its registered office at Vyskočilova 1481/4, Michle, 140 00 Prague 4, carries out the purchase and sale of investment gold as an unregulated trade, is duly registered with the Assay Office under reg. no. 15961 and fulfils the obligations of an obliged person under Act No. 253/2008 Coll., including registration with the Financial Analytical Office (FAÚ). This information is of an informative nature; the specific scope of measures is governed by applicable law and internal risk-management rules.