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Government and Law Enforcement Requests Policy

1. INTRODUCTION

This Government and Law Enforcement Requests Policy (hereinafter – “Policy”) describes the general standards and practices applied by Frapex Inc. (hereinafter – “Company”, “We”, “Us” or “Our”) for receiving, validating, handling and responding to government, regulatory, judicial, supervisory and law enforcement requests.

The Company is registered with the Financial Transactions and Reports Analysis Centre of Canada (hereinafter – “FINTRAC”) as a money services business (hereinafter – “MSB”) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (hereinafter – “PCMLTFA”) and the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Certain payment-related Services may be subject to the Retail Payment Activities Act (hereinafter – “RPAA”) and the related requirements applicable to payment service providers in Canada. The Company does not represent that any Service requiring registration with the Bank of Canada is available unless and until the applicable registration, legal, regulatory and operational requirements have been satisfied.

This Policy applies to official requests received by the Company in connection with the Website, the Services, Customers, prospective Customers, transactions, payments, payouts, settlement, compliance records, records maintained by the Company or other information within the Company’s possession or control.

This Policy is provided for general informational purposes only. It does not disclose internal security controls, investigation methods, confidential compliance procedures, regulatory reporting arrangements, escalation measures or other information that the Company is not permitted or required to disclose.

2. TERMS AND DEFINITIONS

For the purposes of this Policy, unless the context requires otherwise, the following terms have the meanings set out below.

Applicable Law means any law, regulation, rule, regulatory requirement, order, directive, guidance or other legal or regulatory requirement applicable to the Company, the Website, the Services, the Customer, the relevant request or the relevant transaction.

Authority Request means any request, demand, inquiry, notice, order, subpoena, warrant, production order, court order, regulatory request, supervisory request, examination request, law enforcement request or other official communication submitted by or on behalf of a government, regulatory, supervisory, judicial or law enforcement authority.

Company means Frapex Inc., a company incorporated under the laws of Alberta, Canada under company registration number 2027786017, with its registered office at 700-602 12 Ave SW, Calgary, Alberta, T2R 1J3, Canada.

Customer means a person or entity that has been accepted by the Company for onboarding, transaction discussions, provision of Services or another customer relationship, as applicable.

Money Transfer Services means transaction-specific fiat transfer services made on a Customer’s instruction to an identified payee, recipient or beneficiary, subject to the Company’s approval, compliance procedures and operational requirements.

OTC Virtual Currency Exchange and Settlement Services means over-the-counter virtual currency exchange and related settlement services that may include fiat-to-Virtual Currency, Virtual Currency-to-fiat or Virtual Currency-to-Virtual Currency transactions, where supported by the Company.

Payroll Payment Services means services involving transaction-specific payment or payout instructions related to payroll or similar payment flows, subject to the Company’s approval, compliance procedures and operational requirements.

Services means the services that may be provided by the Company from time to time, including Money Transfer Services, OTC Virtual Currency Exchange and Settlement Services, Payroll Payment Services and other related services, in each case to the extent legally permitted, registered, authorized or otherwise available to the Company.

Virtual Currency means a digital representation of value that may be used for payment or investment purposes and that is not fiat currency, including crypto-assets where they fall within the meaning of virtual currency under applicable Canadian AML/ATF requirements.

Website means the website available at https://frapex.exchange/ and any pages, content, communication tools, forms or functionality made available through that website.

3. REQUESTS COVERED BY THIS POLICY

The Company maintains a structured process for handling Authority Requests, including, where applicable:

  • subpoenas, warrants, production orders, court orders and other compulsory legal process issued or recognized under applicable Canadian law;
  • requests, inquiries, compliance examination requirements and other communications received from FINTRAC;
  • requests, inquiries, information requests, supervisory communications, examination requests or other communications received from the Bank of Canada, where applicable to the Company’s payment-related activities, registration status, application status or obligations under the RPAA;
  • requests, inquiries and notices from competent federal, provincial or territorial government, regulatory, supervisory, tax, sanctions, privacy, consumer protection or law enforcement authorities acting within their applicable legal authority;
  • preservation, production or information requests relating to Customer records, transaction records, payment records, wallet information, blockchain-related records, compliance records or other information within the Company’s possession or control;
  • requests relating to fraud, cybercrime, sanctions, money laundering, terrorist financing, proliferation financing, scams, unauthorized transactions, stolen funds, misdirected payments, suspicious activity or other unlawful conduct; and
  • direct requests received from foreign authorities that relate to the Company or information within the Company’s possession or control.

This Policy does not apply to ordinary customer support requests, privacy requests, complaints or commercial inquiries unless such matters involve an Authority Request or official legal, regulatory, supervisory or law enforcement process.

4. VALIDATION AND HANDLING OF REQUESTS

The Company reviews Authority Requests before any substantive response is provided.

Depending on the nature of the request, the Company may review:

  • the identity and authority of the requesting authority or representative;
  • whether the request is authentic and properly issued;
  • whether the request is properly addressed to the Company;
  • the legal basis relied upon for the request;
  • whether the requesting authority has appropriate jurisdiction or legal authority;
  • the scope, specificity and proportionality of the request;
  • the categories of information or records requested;
  • applicable response deadlines;
  • confidentiality, non-disclosure or investigation-related restrictions;
  • privacy, data protection, banking, payment, AML/ATF, sanctions, regulatory and contractual restrictions;
  • whether the requested information is within the Company’s possession or control; and
  • whether legal, compliance or senior management review is required before responding.

The Company responds only to Authority Requests that are legally valid, appropriately addressed, issued or submitted by an authority with appropriate jurisdiction or legal authority, and permissible to answer under Applicable Law and the Company’s internal procedures.

The Company may refuse, limit, seek clarification regarding, or otherwise challenge an Authority Request that is incomplete, overbroad, unclear, improperly addressed, directed to another legal entity, not supported by a sufficient legal basis, seeks information that the Company is not legally permitted to disclose, or is otherwise inconsistent with Applicable Law or the Company’s internal procedures.

Where appropriate or required, the Company may seek legal review before responding to an Authority Request.

5. FINTRAC REQUESTS AND COMPLIANCE EXAMINATIONS

As a FINTRAC-registered MSB, the Company is subject to applicable requirements under the PCMLTFA and related regulations.

FINTRAC may conduct compliance examinations and assessments for the purpose of determining whether reporting entities are complying with their obligations under applicable AML/ATF legislation.

In connection with such examinations or other lawful requests, the Company will provide FINTRAC with the assistance, information, records and access required under Applicable Law.

Requests received from FINTRAC are handled through appropriate internal channels. Access to related information is restricted to personnel, advisers or service providers whose involvement is reasonably necessary to respond to the request or comply with Applicable Law.

A FINTRAC compliance request is distinguished from a law enforcement request. Information submitted to FINTRAC, including regulatory reports and related records, is handled in accordance with the specific confidentiality, reporting, disclosure and record-keeping requirements applicable to such information.

6. BANK OF CANADA AND RPAA-RELATED REQUESTS

Where the Company is subject to requirements under the RPAA, including in connection with payment-related Services, registration, application, supervisory communications, compliance monitoring or other RPAA-related matters, the Company may receive requests, notices, inquiries or information requests from the Bank of Canada.

The Company will review and respond to such requests in accordance with Applicable Law, the scope of the request, the Company’s regulatory status and the Company’s internal procedures.

Where a request concerns prescribed supervisory information or other information subject to specific statutory confidentiality, privilege, non-disclosure or use restrictions, the Company will handle such information in accordance with the applicable restrictions.

Nothing in this Policy requires the Company to disclose RPAA-related supervisory information, correspondence, reports, plans, assessments, audit materials, supervisory communications or other protected information where such disclosure is prohibited, restricted or otherwise not permitted under Applicable Law.

7. LAW ENFORCEMENT AND JUDICIAL REQUESTS

The Company may receive Authority Requests from law enforcement agencies, courts, prosecutors, judicial authorities or other competent authorities in connection with investigations, proceedings or enforcement matters.

The Company may disclose information in response to such requests only where the request is legally valid, properly issued, appropriately directed to the Company and disclosure is required or permitted under Applicable Law.

Where a request seeks personal I-information, Customer information, transaction records, payment information, wallet information, Virtual Currency-related information or other confidential records, the Company will assess whether the request is supported by a valid legal basis, such as a warrant, subpoena, production order, court order, statutory authority or another basis recognized under Applicable Law.

The Company may request clarification, narrowing or additional legal process where the request is unclear, overbroad, unsupported, informal, inconsistent with Applicable Law or insufficient to permit disclosure.

8. FOREIGN AUTHORITY REQUESTS

Direct requests from foreign law enforcement, prosecutorial, judicial, regulatory, supervisory or governmental authorities relating to the Company or information within its possession or control are not treated as automatically binding solely by virtue of their foreign origin.

Unless a valid Canadian legal basis or another clearly permissible basis for disclosure is established, the Company may decline to disclose information directly in response to such requests and may require the request to proceed through an appropriate legally recognized channel.

Such channels may include mutual legal assistance procedures, letters rogatory, cooperation through Canadian authorities, or another mechanism recognized under Applicable Law.

The Company may nevertheless review a foreign request and take appropriate internal measures where the request raises security, fraud, sanctions, AML/ATF, cybercrime, consumer protection, regulatory or operational concerns, provided that any disclosure is made only where permitted by Applicable Law.

9. VOLUNTARY DISCLOSURES AND EMERGENCY REQUESTS

The Company does not voluntarily disclose personal information or confidential Customer information to authorities unless such disclosure is permitted or required by Applicable Law and consistent with the Company’s internal procedures.

Where an Authority Request is made without compulsory legal process, the requesting authority should identify the lawful authority or other legal basis relied upon for requesting and receiving the information.

In exceptional cases involving an imminent risk of serious harm, fraud, cybercrime, sanctions exposure, money laundering, terrorist financing or other urgent legal or security concern, the Company may assess whether limited disclosure, preservation or internal action is permitted or required under Applicable Law.

Any voluntary or emergency-related disclosure will be reviewed for legal basis, necessity, proportionality, scope and record-keeping requirements.

10. PRESERVATION AND RETENTION OF RECORDS

The Company may preserve records, restrict deletion, place legal holds or retain relevant information where required or permitted by Applicable Law, a valid Authority Request, court order, regulatory request, investigation, audit, dispute, enforcement matter or internal compliance review.

The Company will preserve only the records reasonably relevant to the matter, unless a broader preservation obligation applies under Applicable Law or the relevant legal process.

Preservation of records does not necessarily mean that the Company will disclose those records. Disclosure remains subject to validation of the Authority Request, Applicable Law and the Company’s internal procedures.

Records relating to Authority Requests, internal reviews, legal holds, disclosures and responses may be retained for the period required or permitted under Applicable Law and the Company’s internal record-keeping framework.

11. CONFIDENTIALITY AND NON-DISCLOSURE

The Company maintains strict confidentiality in relation to Authority Requests and related internal reviews.

The Company may be prohibited or restricted from notifying a Customer, User, counterparty, payee, recipient, beneficiary or other person about an Authority Request, investigation, legal process, regulatory request, internal review, disclosure or preservation measure.

The Company does not disclose that it has made, is making or will make a Suspicious Transaction Report, or disclose the contents of such a report, where such disclosure is prohibited under Applicable Law, including where the disclosure is made with the intent to prejudice a criminal investigation.

The Company may also be restricted from disclosing information relating to sanctions reviews, AML/ATF reviews, law enforcement inquiries, regulatory examinations, Bank of Canada supervisory communications, FINTRAC communications, fraud investigations, cyber investigations or other confidential compliance matters.

Access to information relating to Authority Requests is restricted to authorized personnel, advisers and service providers on a need-to-know basis and subject to applicable confidentiality, legal, regulatory and compliance requirements.

Nothing in this Policy requires the Company to disclose information where such disclosure is prohibited, restricted or otherwise not permitted under Applicable Law.

12. PERSONAL INFORMATION AND PRIVACY

The Company handles personal information in connection with Authority Requests in accordance with Applicable Law and the Company’s Privacy Policy.

Personal Information may be disclosed to government, regulatory, supervisory, judicial or law enforcement authorities where such disclosure is required or permitted under Applicable Law.

The Company may also process personal information for purposes including validating Authority Requests, responding to legal process, cooperating with competent authorities, complying with regulatory obligations, preventing fraud, maintaining security, preserving records, establishing or defending legal claims, and meeting AML/ATF, sanctions, payment, privacy or other legal obligations.

Where a request concerns personal information, the Company assesses applicable privacy and confidentiality requirements before making any disclosure, unless disclosure is clearly required by Applicable Law.

13. RECORD KEEPING

The Company maintains records of Authority Requests and related handling activities as required or permitted under Applicable Law and the Company’s internal record-keeping framework.

Such records may include, where applicable:

  • the original Authority Request or legal process;
  • correspondence with the requesting authority;
  • validation and legal review notes;
  • internal approvals and escalation records;
  • information or records disclosed;
  • response dates and response materials;
  • preservation or legal hold records;
  • confidentiality or non-disclosure instructions; and
  • records of any challenge, clarification request, limitation or refusal.

Records are maintained in a manner designed to preserve confidentiality, integrity, accessibility and retrievability and to support legal compliance, audit, regulatory review, dispute resolution and the establishment, exercise or defence of legal claims.

14. CONTACT FOR AUTHORITIES

Government, regulatory, supervisory, judicial and law enforcement authorities seeking to submit official requests, legal process or related inquiries to the Company should direct their communications to: officialfrapexinc@gmail.com. 

Requests should be submitted by a competent government, regulatory, supervisory, judicial or law enforcement authority, or its duly authorized representative, and should include, where applicable:

  • the requesting authority’s name, identity and contact details;
  • the name, title and contact details of the requesting officer or representative;
  • the legal basis and nature of the request;
  • the relevant statute, order, warrant, subpoena, production order, court order or other legal authority relied upon;
  • any applicable response deadline;
  • sufficient identifiers to allow the Company to locate the relevant records, such as Customer name, email address, transaction identifier, wallet address, blockchain transaction hash, payment reference, bank account details, date range or other relevant information;
  • the specific categories of information requested;
  • any confidentiality, non-disclosure or preservation requirements; and
  • any other information reasonably necessary to assess the validity, scope and urgency of the request.

Where information is requested without compulsory legal process, the requesting authority should identify the lawful authority or other legal basis relied upon for requesting and receiving the information.

The Company reserves the right to request additional information, clarification, verification of authority or supporting legal process where reasonably necessary to validate or assess a request.

Receipt of a request does not, by itself, establish that the request is properly addressed to the Company or that the Company is legally required or permitted to respond.

15. UPDATES TO THIS POLICY

The Company may update, amend, supplement or replace this Policy from time to time to reflect changes in Applicable Law, regulatory guidance, legal process requirements, the Website, the Services, business activities, payment or settlement arrangements, technologies used, third-party providers, supervisory requirements or the Company’s legal and compliance practices.

Any updated version of this Policy will be made available through the Website and will indicate the date on which it was last updated.

Where required by Applicable Law, the Company may provide additional notice of material changes.

16. CONTACT INFORMATION

Questions, notices, requests and other communications relating to this Policy or to government, regulatory, supervisory, judicial or law enforcement requests concerning the Company may be directed using the following contact details:

Company name: Frapex Inc.

Registered address: 700-602 12 Ave SW, Calgary, Alberta, T2R 1J3, Canada.

Website: https://frapex.exchange/

Email: officialfrapexinc@gmail.com

Where a communication relates to a specific Authority Request, Customer, Service, transaction, payment, payout, settlement, wallet, account, payee, recipient, beneficiary or regulatory matter, the communication should include sufficient information to allow the Company to identify the relevant matter.