Compensa Life Vienna Insurance Group SE money laundering and terrorist financing prevention policy 

Compensa Life Vienna Insurance Group SE, operating through its branch in Lithuania (Compensa Life), as an insurance company engaged in life insurance activities, is a financial institution (i.e., an obliged entity) responsible for combating money laundering and the financing of terrorism.

Money laundering refers to actions aimed at legitimizing proceeds obtained through criminal activities or concealing their origin.

Terrorist financing is any form of financial assistance provided for terrorist activities or to persons inciting, planning, or directing such activities.

Financial institutions must ensure that their services and systems are not used to commit financial crimes, identity theft, or transfer or store proceeds obtained through criminal means or funds intended to finance criminal activities. Compliance with international sanctions and ensuring that they are not violated is also mandatory.

Compensa Life implements a policy for the prevention of money laundering and the financing of terrorism in accordance with the laws of the Republic of Lithuania and international legal acts regulating this area.

International sanctions refer to the set of restrictions and obligations established by European Union legal acts, decisions of the United Nations, and other international organizations of which the Republic of Lithuania is a member or participates in, that are applied directly in the Republic of Lithuania or implemented in accordance with the procedures set out in the International Sanctions Law.

To achieve these objectives, we must know our customers, i.e., understand their business activities and the potential source of their funds. With this information, it is easier to identify and prevent suspicious operations, thereby protecting clients' funds and preventing potential financial crimes, money laundering, terrorist financing, or violations of sanction requirements. For this purpose, the Company may request certain personal information both before establishing business relationships and during their continuation.

FATCA and CRS

The Common Reporting Standard (CRS) is a global standard for the automatic exchange of information on financial accounts, adopted by the OECD in 2014 and effective from January 1, 2016. The aim of the CRS is to combat international tax evasion. Under this standard, financial institutions must identify financial accounts held by clients whose tax residence is in a country or jurisdiction that is not the country or jurisdiction of the financial institution.

The Government of the Republic of Lithuania has signed an agreement with the US tax collection authority—the Foreign Account Tax Compliance Act (FATCA). The purpose of the FATCA is to ensure that US taxpayers comply with the requirements of relevant US tax laws and do not misuse foreign bank services to evade tax obligations. Under this agreement, financial institutions operating in Lithuania must identify accounts held by US taxpayers (in the case of companies, including the beneficial owners of the companies) and provide information about these accounts and their holders to the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania, which then forwards the information to the US tax administrator.

The Company is obliged to collect information about the country of residence of its clients and, if a client indicates that their country of residence for tax purposes is different, to provide information about such client's accounts or assets to the State Tax Inspectorate.