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Eligibility & Restricted Jurisdiction Policy

Working draft v0.1-draft — presented for review; final wording follows legal review.

ARCBDS ELIGIBILITY & RESTRICTED JURISDICTION POLICY

Document No.: 11 of 14

Version: 1.0

Effective Date: [●]

Last Updated: [●]

Policy Owner: Legal / Compliance

Approved By: [●]

IMPORTANT NOTICE

Access to the ARCBDS Website does not mean that ARCBDS or participation in the ARCBDS Founding Circle is legally available in every country.

Participation is available only to persons who satisfy:

applicable age and legal-capacity requirements;

KYC/KYB requirements;

AML/CFT/CPF requirements;

sanctions requirements;

beneficial-ownership requirements;

jurisdictional requirements;

applicable regulatory requirements; and

ARCBDS eligibility criteria.

ARCBDS may reject, restrict, suspend or terminate participation where providing access would:

a. violate Applicable Law;

b. expose ARCBDS to sanctions;

c. require an authorisation that has not been obtained;

d. create unacceptable financial-crime risk;

e. conflict with ARCBDS's approved regulatory perimeter; or

f. otherwise create material legal or compliance risk.

1. PURPOSE

This Policy establishes the eligibility rules governing:

a. Website access;

b. Account registration;

c. Founding Circle participation;

d. individual Participants;

e. corporate Participants;

f. institutional Participants;

g. beneficial owners;

h. authorised representatives;

i. jurisdiction screening;

j. restricted countries and territories;

k. sanctions;

l. high-risk jurisdictions;

m. FATF-listed jurisdictions;

n. PEP treatment;

o. VPN and geo-circumvention;

p. residency changes;

q. nationality and citizenship;

r. dual residence;

s. corporate place of incorporation;

t. source-of-funds jurisdictions;

u. wallet jurisdictions where identifiable; and

v. ongoing eligibility monitoring.

2. SCOPE

This Policy applies to:

a. prospective ARCBDS Participants;

b. Account holders;

c. Founding Circle Applicants;

d. existing Founding Circle Participants;

e. natural persons;

f. corporations;

g. partnerships;

h. trusts;

i. foundations;

j. family offices;

k. investment vehicles;

l. institutions;

m. authorised representatives;

n. UBOs;

o. referrers where participation eligibility is relevant;

p. business partners where applicable; and

q. any other person whose eligibility must be determined.

3. RELATED DOCUMENTS

This Policy should be read together with:

ARCBDS Founding Circle Participation Agreement;

ARCBDS Founding Circle Terms & Conditions;

ARCBDS Risk Disclosure Statement;

ARCBDS Participant Protection Reserve Terms;

ARCBDS Website Terms of Use;

ARCBDS Privacy Policy;

ARCBDS Cookie Policy;

ARCBDS KYC, AML & Sanctions Policy;

ARCBDS Payment, Allocation & Blockchain Transaction Policy;

ARCBDS Cancellation & Refund Policy;

this Eligibility & Restricted Jurisdiction Policy;

ARCBDS Electronic Communications & E-Sign Consent;

ARCBDS Legal & Marketing Disclaimer; and

ARCBDS Referral & Rewards Terms.

Mandatory Applicable Law shall prevail where required.

4. DEFINITIONS

For purposes of this Policy:

4.1 “Applicant”

means any person seeking to create an Account or participate in the Founding Circle.

4.2 “Applicable Law”

means all applicable laws, regulations, sanctions, regulatory rules, orders and legally binding requirements.

4.3 “Eligible Jurisdiction”

means a jurisdiction in which ARCBDS has determined that the relevant service may lawfully and operationally be made available.

4.4 “Eligible Participant”

means a person satisfying all applicable eligibility requirements.

4.5 “High-Risk Jurisdiction”

means a country or territory assessed as presenting elevated AML/CFT/CPF, sanctions, corruption, regulatory or other relevant risks.

4.6 “Participant”

means an individual or legal entity accepted into an applicable ARCBDS relationship.

4.7 “Prohibited Person”

means a person that ARCBDS may not lawfully or properly accept under this Policy.

4.8 “Restricted Jurisdiction”

means a country or territory in which access to some or all ARCBDS services is prohibited or restricted.

4.9 “Sanctioned Person”

means a person or entity subject to applicable targeted financial sanctions or other legally binding restrictions.

4.10 “UBO”

means Ultimate Beneficial Owner.

5. GENERAL ELIGIBILITY REQUIREMENT

An Applicant must satisfy all applicable eligibility requirements before participation may be accepted.

No Applicant has an automatic right to participate merely because they:

a. received an invitation;

b. received a referral link;

c. created an Account;

d. completed part of KYC;

e. transferred USDT;

f. attended an ARCBDS event;

g. are an existing ARCB community member; or

h. were introduced by an existing Participant.

6. MINIMUM AGE

An individual Applicant must be at least:

18 YEARS OLD

or such higher age as may be required by Applicable Law in the relevant jurisdiction.

ARCBDS shall not knowingly accept minors into the Founding Circle.

7. LEGAL CAPACITY

An individual must possess legal capacity to enter into binding contracts.

A person may be ineligible where they:

a. lack contractual capacity;

b. are legally incapacitated;

c. are acting without authority;

d. are subject to a legal restriction preventing the transaction; or

e. otherwise cannot validly enter the Participation Agreement.

8. PARTICIPATION FOR OWN ACCOUNT

An individual Participant must ordinarily participate for their own account.

Where a person acts for another person or entity, that relationship must be disclosed.

ARCBDS may require verification of:

a. principal;

b. agent;

c. representative;

d. beneficial owner;

e. power of attorney; and

f. legal authority.

9. PROHIBITION ON FALSE IDENTITIES

Applicants must not:

a. impersonate another person;

b. use false documents;

c. use stolen identity information;

d. use nominee identities to avoid restrictions;

e. misstate residence;

f. conceal nationality where lawfully requested;

g. conceal beneficial ownership; or

h. create fictitious entities.

10. KYC/KYB REQUIREMENT

Eligibility requires successful completion of applicable:

a. KYC;

b. KYB;

c. UBO verification;

d. sanctions screening;

e. AML/CFT/CPF controls; and

f. other due diligence.

Completion of KYC does not itself guarantee eligibility.

11. INDIVIDUAL ELIGIBILITY

An individual may be eligible where the person:

a. satisfies minimum age;

b. has legal capacity;

c. provides truthful KYC information;

d. is not a Prohibited Person;

e. is not subject to applicable sanctions;

f. is not resident in a prohibited jurisdiction;

g. satisfies local legal requirements;

h. can lawfully hold and transact in digital assets;

i. provides lawful source of funds where required; and

j. accepts applicable ARCBDS legal documentation.

12. CORPORATE ELIGIBILITY

A legal entity may be eligible where:

a. it is validly incorporated;

b. it remains legally active;

c. it has authority to participate;

d. its business activity is legitimate;

e. its directors and UBOs can be identified;

f. its authorised representative has authority;

g. it satisfies KYB;

h. it is not sanctioned or prohibited;

i. it is not incorporated in a prohibited jurisdiction;

j. participation is lawful for the entity; and

k. required internal approvals have been obtained.

13. INSTITUTIONAL PARTICIPANTS

Institutional Participants may be subject to enhanced requirements including:

a. legal opinion;

b. regulatory-status verification;

c. investment mandate;

d. board approval;

e. authorised signatories;

f. beneficial ownership;

g. source of funds;

h. source of wealth;

i. tax information;

j. suitability or classification information where legally required; and

k. institutional contractual documentation.

14. FAMILY OFFICES

Family offices may participate only through:

a. an eligible legal entity;

b. an authorised investment vehicle; or

c. another legally recognised structure

approved through KYB and applicable compliance procedures.

The term “family office” does not exempt an Applicant from identifying UBOs.

15. TRUSTS AND FOUNDATIONS

Trusts, foundations and similar arrangements may be accepted only where:

a. legally permitted;

b. their purpose is understood;

c. required controlling persons are identified;

d. beneficiaries are identified where required;

e. source of funds is satisfactory; and

f. Compliance approves the structure.

16. ULTIMATE BENEFICIAL OWNERS

A corporate Applicant is not eligible unless ARCBDS can identify and verify UBOs to the extent required by Applicable Law.

Attempts to conceal UBOs may result in rejection.

17. AUTHORISED REPRESENTATIVES

A person acting for an entity must provide evidence of authority where required.

This may include:

a. board resolution;

b. mandate;

c. power of attorney;

d. corporate authorisation; or

e. another legally valid authority.

18. PARTICIPANT CLASSIFICATION

Where required by applicable regulation, ARCBDS may classify Participants according to categories such as:

a. retail;

b. professional;

c. qualified;

d. institutional;

e. accredited;

f. sophisticated; or

g. another legally recognised category.

Classification requirements depend on jurisdiction and the final legal characterisation of ARCBDS.

19. RETAIL PARTICIPATION

Retail participation shall be permitted only where:

a. legally available;

b. relevant approvals permit it;

c. required disclosures are provided;

d. risk warnings are accepted; and

e. applicable consumer protections are observed.

20. PROHIBITED PERSONS

ARCBDS shall not knowingly accept a person where participation is prohibited under Applicable Law.

A Prohibited Person may include:

a. a Sanctioned Person;

b. a person acting on behalf of a Sanctioned Person;

c. a person whose assets are legally frozen;

d. a person using false identity;

e. a person attempting sanctions circumvention;

f. a person whose participation would be unlawful;

g. a person whose required UBO cannot be established;

h. a person using criminal proceeds;

i. a minor;

j. a person prohibited by regulatory order; or

k. another person legally prohibited from participating.

21. SANCTIONED PERSONS

ARCBDS shall screen relevant persons against sanctions requirements applicable to the ARCBDS operating entity.

This may include:

a. Participant;

b. UBO;

c. director;

d. shareholder;

e. authorised representative;

f. payer;

g. recipient;

h. wallet; and

i. relevant counterparty.

22. UAE TARGETED FINANCIAL SANCTIONS

Where UAE sanctions requirements apply, ARCBDS shall screen against applicable:

a. United Nations Consolidated sanctions lists; and

b. UAE Local Terrorist List.

Where a confirmed match exists, legally required freezing and reporting measures shall be followed.

23. OWNED OR CONTROLLED ENTITIES

Restrictions may extend beyond a directly listed person where Applicable Law covers:

a. entities owned by a designated person;

b. entities controlled by a designated person;

c. persons acting on behalf of a designated person; or

d. persons acting at the direction of a designated person.

24. SANCTIONS OVERRIDE ELIGIBILITY

A person who otherwise satisfies all commercial eligibility criteria remains ineligible where sanctions legally prohibit the relationship.

No employee, executive, referral leader or commercial partner may override mandatory sanctions restrictions.

25. POTENTIAL SANCTIONS MATCH

A potential match shall not automatically be treated as a confirmed match.

Compliance shall investigate using information such as:

a. full name;

b. date of birth;

c. nationality;

d. identification number;

e. address;

f. aliases;

g. company registration; and

h. ownership.

26. SANCTIONS CIRCUMVENTION

An Applicant is ineligible where ARCBDS reasonably determines that the person is deliberately attempting to evade sanctions through:

a. nominees;

b. shell companies;

c. related parties;

d. third-party wallets;

e. false residence;

f. false ownership;

g. intermediaries; or

h. other circumvention techniques.

27. JURISDICTIONAL ELIGIBILITY

ARCBDS may provide services only in jurisdictions that have been legally and operationally approved.

Approval should consider:

a. legality of ARCBDS offering;

b. token classification;

c. securities laws;

d. virtual-asset laws;

e. marketing restrictions;

f. licensing requirements;

g. consumer laws;

h. tax considerations;

i. AML/CFT risks;

j. sanctions;

k. data-protection requirements; and

l. enforcement risk.

28. NO GLOBAL AVAILABILITY ASSUMPTION

The ARCBDS Website may be globally accessible.

Global technical accessibility does not mean the Founding Circle is legally offered globally.

29. RESTRICTED JURISDICTION CATEGORIES

ARCBDS shall maintain the following categories:

CATEGORY A — PROHIBITED

Participation is not permitted.

CATEGORY B — RESTRICTED / LEGAL REVIEW REQUIRED

Participation requires specific Legal and Compliance approval.

CATEGORY C — HIGH-RISK / EDD REQUIRED

Participation may be permitted subject to Enhanced Due Diligence.

CATEGORY D — STANDARD APPROVED

Participation may be offered subject to ordinary eligibility requirements.

30. CATEGORY A — PROHIBITED JURISDICTIONS

A jurisdiction should be classified as prohibited where:

a. Applicable Law prohibits ARCBDS from providing the service;

b. sanctions prohibit the relevant relationship;

c. ARCBDS lacks a legally required licence or registration;

d. applicable law prohibits the relevant token offering;

e. a regulator has prohibited the activity;

f. applicable banking or settlement rules prohibit servicing the jurisdiction;

g. ARCBDS risk appetite prohibits the jurisdiction; or

h. Legal and Compliance determine that participation cannot safely be offered.

31. CATEGORY B — LEGAL REVIEW REQUIRED

A jurisdiction may require individual legal review where:

a. ARCBDS classification is uncertain;

b. digital-asset marketing is restricted;

c. private-placement exemptions may apply;

d. only certain Participant classes may participate;

e. local registration may be required;

f. solicitation restrictions exist;

g. local consumer rules materially affect participation; or

h. cross-border offering rules are unclear.

32. CATEGORY C — HIGH-RISK / EDD

A jurisdiction may be treated as high risk where:

a. FATF identifies material AML/CFT deficiencies;

b. corruption risk is elevated;

c. sanctions risk is elevated;

d. financial-crime controls are weak;

e. terrorism-financing risk is elevated;

f. proliferation-financing risk is elevated;

g. beneficial-ownership transparency is weak;

h. substantial cybercrime risk exists; or

i. ARCBDS's risk assessment identifies elevated exposure.

33. HIGH-RISK DOES NOT AUTOMATICALLY MEAN PROHIBITED

High-risk classification does not automatically require blanket rejection unless:

a. Applicable Law requires rejection;

b. sanctions apply;

c. regulatory guidance requires prohibition; or

d. ARCBDS's approved risk appetite prohibits the relationship.

Higher-risk jurisdictions may instead require EDD.

34. FATF HIGH-RISK JURISDICTIONS

ARCBDS shall consider current FATF statements concerning jurisdictions subject to a Call for Action.

Treatment shall follow:

a. applicable UAE requirements;

b. FATF recommendations;

c. sanctions requirements;

d. regulatory instructions; and

e. ARCBDS risk appetite.

Current FATF information shall be maintained in the Restricted Jurisdiction Register rather than relied upon solely from this static Policy.

35. FATF INCREASED MONITORING

Jurisdictions under FATF Increased Monitoring shall be considered in the Participant risk assessment.

Their presence on the FATF grey list does not automatically mean every resident or business is prohibited.

ARCBDS shall apply a risk-based approach.

36. DYNAMIC COUNTRY LISTS

ARCBDS shall not rely on a permanently fixed country list embedded only in this Policy.

The Compliance Department shall maintain a controlled:

RESTRICTED JURISDICTION REGISTER

which can be updated as laws, sanctions and regulatory positions change.

37. RESTRICTED JURISDICTION REGISTER

The Register should state:

a. jurisdiction;

b. status;

c. effective date;

d. legal reason;

e. sanctions status;

f. FATF status;

g. permitted Participant types;

h. EDD requirements;

i. marketing restrictions;

j. payment restrictions;

k. responsible reviewer;

l. legal opinion reference; and

m. next review date.

38. PUBLIC VS INTERNAL LIST

ARCBDS may maintain:

Public Restricted Jurisdiction List

containing jurisdictions users need to know are unavailable.

Internal Jurisdiction Risk Register

containing more detailed legal, sanctions and risk analysis.

The internal register may contain confidential compliance information.

39. NATIONALITY

Nationality may be relevant to:

a. sanctions screening;

b. local legal restrictions;

c. tax;

d. eligibility; or

e. identity verification.

Nationality alone should not automatically determine risk where Applicable Law requires a more nuanced assessment.

40. RESIDENCE

Residence may be relevant because the legal offering may depend on where a Participant resides.

Applicants must accurately disclose their ordinary country of residence.

41. PHYSICAL LOCATION

ARCBDS may consider the Applicant's physical location at the time of:

a. registration;

b. KYC;

c. participation;

d. transaction; or

e. other relevant activity.

Temporary travel does not necessarily change legal residence.

42. DUAL RESIDENCY

A person with residence in multiple jurisdictions may be subject to requirements from more than one jurisdiction.

ARCBDS may request:

a. primary residence;

b. tax residence;

c. citizenship;

d. current location; and

e. legal advice where necessary.

43. DUAL NATIONALITY

Dual nationality does not automatically make a person ineligible.

However, both nationalities may need to be considered where relevant to:

a. sanctions;

b. legal restrictions;

c. regulatory obligations; or

d. identity verification.

44. CORPORATE INCORPORATION

Corporate eligibility may depend on:

a. place of incorporation;

b. principal place of business;

c. management location;

d. UBO residence;

e. UBO nationality;

f. business activity; and

g. transaction location.

A company incorporated in an approved jurisdiction may still be rejected if controlled from a prohibited jurisdiction.

45. SHELL COMPANIES

An unexplained shell company may be rejected where:

a. legitimate business purpose cannot be established;

b. beneficial ownership cannot be established;

c. source of funds cannot be established; or

d. the structure appears designed to evade restrictions.

46. OFFSHORE ENTITIES

An offshore structure is not automatically prohibited.

However, it may require enhanced verification concerning:

a. ownership;

b. control;

c. tax residence;

d. source of funds;

e. source of wealth;

f. purpose; and

g. jurisdictional legality.

47. UBO JURISDICTION

Eligibility does not depend only on the legal entity's incorporation jurisdiction.

ARCBDS may assess the jurisdictions associated with:

a. UBOs;

b. controlling shareholders;

c. directors;

d. authorised representatives; and

e. funding sources.

48. SOURCE-OF-FUNDS JURISDICTION

Funds originating from a High-Risk or Restricted Jurisdiction may trigger:

a. EDD;

b. rejection;

c. source-of-funds verification;

d. bank or exchange verification;

e. wallet analysis; or

f. compliance escalation.

49. WALLET RISK AND JURISDICTION

Blockchain wallet addresses do not inherently identify a country.

Where reliable information indicates association with:

a. sanctioned services;

b. prohibited jurisdictions;

c. high-risk exchanges; or

d. unlawful services,

ARCBDS may apply enhanced controls.

50. VPNs AND PROXIES

ARCBDS may permit ordinary privacy technology where lawful.

However, Applicants must not use:

a. VPNs;

b. proxies;

c. remote servers;

d. location spoofing; or

e. other technology

to deliberately misrepresent location or circumvent eligibility restrictions.

51. GEO-CIRCUMVENTION

Where ARCBDS determines that an Applicant deliberately bypassed a geographic restriction, ARCBDS may:

a. reject the application;

b. suspend the Account;

c. request enhanced verification;

d. terminate participation where legally permitted; or

e. take another appropriate compliance action.

52. GEOLOCATION CONTROLS

The ARCBDS Website may use:

a. IP address;

b. browser information;

c. KYC country;

d. declared residence;

e. device information; and

f. other lawful technical information

to implement jurisdictional restrictions.

53. GEO-BLOCKING

ARCBDS may prevent users in certain jurisdictions from:

a. opening participation pages;

b. creating transactional Accounts;

c. accessing payment screens;

d. participating in marketing campaigns;

e. making Contributions; or

f. using certain functions.

Informational pages may remain available where lawful.

54. MARKETING RESTRICTIONS

Eligibility to view marketing may differ from eligibility to use a service.

ARCBDS shall not intentionally market participation in a jurisdiction where such marketing is prohibited.

55. NO TARGETING OF RESTRICTED JURISDICTIONS

ARCBDS marketing teams should implement reasonable controls to avoid knowingly targeting Restricted Jurisdictions.

Controls may include:

a. advertising exclusions;

b. location filtering;

c. campaign restrictions;

d. landing-page restrictions;

e. referral controls; and

f. partner instructions.

56. REFERRAL LINKS

A referral link does not override jurisdictional restrictions.

A referrer must not knowingly invite a person where the referrer knows participation is prohibited.

57. REFERRER RESPONSIBILITY

Referrers must not advise an Applicant to:

a. use a VPN;

b. provide a false address;

c. create a foreign company solely to evade restrictions;

d. use another person's KYC;

e. conceal beneficial ownership; or

f. otherwise circumvent eligibility controls.

58. TRAVEL

A Participant temporarily travelling through a Restricted Jurisdiction may have limited Website access for legal or security reasons.

Temporary location restrictions do not necessarily terminate an existing lawful participation.

59. RELOCATION

Participants must notify ARCBDS of a material change in country of residence where required.

Relocation may affect:

a. Account access;

b. future Contributions;

c. withdrawals;

d. marketing;

e. token transfer;

f. referral rights;

g. Protection Reserve processing; or

h. other services.

60. CHANGE TO RESTRICTED JURISDICTION

If an existing Participant moves to a jurisdiction where ARCBDS cannot legally provide ongoing services:

a. the Account may be restricted;

b. new participation may be prohibited;

c. transactions may be limited;

d. legally permitted withdrawal arrangements may be provided;

e. existing rights shall be considered; and

f. Applicable Law shall determine the required treatment.

61. JURISDICTION BECOMES RESTRICTED

A jurisdiction may become restricted after a Participant joins.

This may result from:

a. new sanctions;

b. new legislation;

c. regulatory action;

d. licensing changes;

e. FATF developments;

f. political events; or

g. ARCBDS risk changes.

62. EXISTING PARTICIPANTS

Where a jurisdiction becomes restricted after acceptance, ARCBDS shall assess:

a. whether existing relationships must terminate;

b. whether assets must be frozen;

c. whether new transactions must cease;

d. whether exit-only treatment is appropriate;

e. whether transfers may continue;

f. regulatory reporting; and

g. existing contractual rights.

63. SANCTIONS AFTER ONBOARDING

If an existing Participant later becomes a Sanctioned Person, ARCBDS shall follow applicable sanctions law.

This may include:

a. immediate freeze;

b. transaction blocking;

c. suspension;

d. reporting; and

e. prohibition on making assets available.

64. PEP STATUS

PEP status does not automatically make an Applicant ineligible.

PEPs may be eligible subject to:

a. Enhanced Due Diligence;

b. source-of-funds verification;

c. source-of-wealth verification;

d. Senior Management approval; and

e. enhanced ongoing monitoring.

65. CRIMINAL OR REGULATORY HISTORY

An Applicant may be subject to enhanced review where credible information indicates involvement in:

a. financial crime;

b. fraud;

c. corruption;

d. sanctions evasion;

e. cybercrime;

f. market manipulation;

g. serious regulatory misconduct; or

h. other relevant unlawful activity.

Eligibility shall be assessed according to Applicable Law and risk.

66. ADVERSE MEDIA

Adverse media alone is not automatic proof of misconduct.

Compliance should consider:

a. source credibility;

b. seriousness;

c. recency;

d. corroboration;

e. relevance; and

f. legal outcome.

67. BANKRUPTCY OR INSOLVENCY

Personal bankruptcy or corporate insolvency does not automatically determine eligibility.

However, it may be relevant where:

a. legal restrictions apply;

b. authority to invest is limited;

c. funds belong to creditors;

d. a liquidator controls assets; or

e. fraud concerns exist.

68. PROFESSIONAL FIDUCIARIES

Lawyers, accountants, trustees, corporate-service providers and other professional fiduciaries acting for clients may require additional due diligence.

Underlying beneficial ownership must not be concealed merely because an intermediary is regulated.

69. NOMINEES

Nominee shareholders or directors may trigger additional verification.

ARCBDS must identify the ultimate beneficial owner where required.

70. GOVERNMENT ENTITIES

Government, sovereign, state-owned or public-sector entities may be subject to:

a. enhanced authority verification;

b. PEP analysis;

c. sanctions review;

d. procurement restrictions;

e. investment mandate verification; and

f. specific contractual requirements.

71. CHARITIES AND NON-PROFIT ORGANISATIONS

Charities and NPOs may be accepted only where:

a. legally permitted;

b. purpose is understood;

c. relevant registration is verified;

d. authorised persons are verified;

e. source of funds is understood; and

f. terrorism-financing risks are appropriately addressed.

ARCBDS should not apply unnecessary blanket de-risking solely because an entity is an NPO.

72. MONEY SERVICE AND CRYPTO BUSINESSES

Applicants operating:

a. exchanges;

b. brokers;

c. OTC services;

d. money-service businesses;

e. payment companies;

f. VASPs; or

g. similar regulated financial businesses

may require verification of their regulatory status.

73. UNLICENSED FINANCIAL BUSINESSES

Where an Applicant conducts activity requiring a licence but does not possess one, ARCBDS may reject the relationship.

74. PROHIBITED BUSINESS ACTIVITIES

ARCBDS may reject Applicants materially involved in unlawful activities.

Internal risk appetite may additionally restrict certain lawful but high-risk sectors subject to management and legal approval.

Such sector restrictions should be maintained separately from the public jurisdiction list.

75. SOURCE OF FUNDS

Eligibility may require confirmation that the Contribution comes from lawful sources.

A Participant whose source of funds cannot reasonably be verified may be rejected.

76. SOURCE OF WEALTH

Source of wealth may be required for:

a. PEPs;

b. high-risk persons;

c. high-value Participants;

d. complex structures; or

e. other EDD cases.

77. THIRD-PARTY CONTRIBUTIONS

Third-party Contributions may affect eligibility.

ARCBDS may require verification of both:

a. Participant; and

b. payer.

An unexplained third-party funding arrangement may be rejected.

78. ACCOUNT OWNERSHIP

An Account is personal to the verified Participant or legal entity.

Accounts may not be:

a. sold;

b. rented;

c. leased;

d. transferred;

e. shared to evade eligibility; or

f. used as a nominee account.

79. MULTIPLE ACCOUNTS

ARCBDS may restrict multiple Accounts belonging to the same Participant where they appear designed to:

a. bypass limits;

b. bypass jurisdiction restrictions;

c. manipulate referrals;

d. avoid KYC; or

e. conceal activity.

80. INVITATION CODES

Possession of an invitation or referral code does not prove eligibility.

All Applicants remain subject to full onboarding controls.

81. FOUNDING CIRCLE CATEGORY ELIGIBILITY

Access, Growth and Legacy may be made available subject to:

a. general eligibility;

b. programme capacity;

c. jurisdiction;

d. regulatory classification;

e. minimum participation; and

f. any category-specific criteria.

82. MINIMUM PARTICIPATION

The current Stage 1 minimum is:

US$100 EQUIVALENT

unless a higher legal, regulatory or operational minimum applies.

Meeting the minimum amount does not guarantee acceptance.

83. HIGH-VALUE PARTICIPATION

Large Contributions may require:

a. EDD;

b. source of funds;

c. source of wealth;

d. Senior Management approval;

e. legal review; or

f. Participant classification.

84. PARTICIPATION LIMITS

ARCBDS may establish maximum limits based on:

a. jurisdiction;

b. Participant category;

c. regulatory requirements;

d. risk rating;

e. source of funds;

f. programme capacity; or

g. other lawful criteria.

85. ELIGIBILITY DECISION

Possible eligibility outcomes include:

APPROVED

Applicant may proceed.

APPROVED WITH CONDITIONS

Additional restrictions apply.

EDD REQUIRED

Further verification required.

LEGAL REVIEW REQUIRED

Jurisdiction or classification requires legal analysis.

TEMPORARILY RESTRICTED

Participation paused.

REJECTED

Participation unavailable.

PROHIBITED

Relationship cannot legally proceed.

86. NO DUTY TO ACCEPT EVERY ELIGIBLE APPLICANT

Even where a person appears to satisfy minimum eligibility requirements, ARCBDS may decline an application where:

a. programme capacity is exhausted;

b. risk exceeds approved appetite;

c. required services are unavailable;

d. regulatory uncertainty exists;

e. required documentation cannot be completed; or

f. another legitimate reason exists.

Any discretion must not be exercised unlawfully or discriminatorily.

87. NO UNLAWFUL DISCRIMINATION

Eligibility decisions must be based on legitimate:

a. legal;

b. regulatory;

c. sanctions;

d. financial-crime;

e. contractual; or

f. operational considerations.

Nothing in this Policy authorises unlawful discrimination.

88. EVIDENCE OF RESIDENCE

ARCBDS may request:

a. utility bill;

b. bank statement;

c. government correspondence;

d. tenancy record;

e. residence permit;

f. tax record; or

g. other reliable evidence

to verify residence.

89. EVIDENCE OF CORPORATE JURISDICTION

ARCBDS may verify:

a. certificate of incorporation;

b. registry extract;

c. business licence;

d. constitutional documents;

e. tax records; or

f. official corporate databases.

90. IP ADDRESS IS NOT SOLE PROOF

An IP address alone should not automatically determine a person's legal residence.

ARCBDS may combine:

a. IP;

b. KYC information;

c. documents;

d. device signals;

e. tax residence; and

f. other evidence.

91. INCONSISTENT LOCATION DATA

Where an Applicant claims residence in one country but technical and KYC information indicates another, ARCBDS may:

a. request explanation;

b. require additional proof;

c. conduct EDD;

d. restrict access; or

e. reject the application.

92. ONGOING JURISDICTION SCREENING

Eligibility does not end after onboarding.

ARCBDS may periodically re-screen:

a. residence;

b. citizenship where relevant;

c. sanctions;

d. UBOs;

e. entity jurisdiction;

f. regulatory developments; and

g. geographic risk.

93. JURISDICTION REGISTER REVIEW

The Restricted Jurisdiction Register should be reviewed:

a. regularly;

b. after FATF statements;

c. after sanctions updates;

d. after regulatory changes;

e. after major geopolitical developments;

f. after a legal opinion changes; and

g. before entering a new market.

94. LEGAL MARKET ENTRY

Before ARCBDS actively markets or launches in a new jurisdiction, Legal and Compliance should assess:

a. token classification;

b. offering restrictions;

c. licensing;

d. marketing law;

e. consumer protection;

f. AML/CFT;

g. sanctions;

h. privacy;

i. tax;

j. local-language requirements;

k. dispute-resolution implications; and

l. regulatory reporting.

95. NO PASSIVE-WEBSITE ASSUMPTION

ARCBDS should not assume that simply placing material on a website means no local offering or marketing rules apply.

Digital marketing, referral campaigns and targeted advertising may create jurisdictional exposure.

96. MARKETING TEAM CONTROLS

Marketing teams should receive the current:

a. Public Restricted Jurisdiction List;

b. approved marketing territories;

c. advertising restrictions;

d. risk-warning requirements; and

e. prohibited claims.

97. COMMUNITY AND REFERRAL CONTROLS

Community leaders should receive clear instructions identifying where they may and may not promote participation.

They must not create unofficial country exemptions.

98. LOCAL LANGUAGE DOES NOT CREATE APPROVAL

Providing a translation into a particular language does not necessarily mean ARCBDS is legally available in every country where that language is spoken.

99. CHINESE LANGUAGE MATERIALS

Providing Simplified Chinese or Traditional Chinese materials is for communication convenience and does not, by itself, mean the Founding Circle is legally offered in:

a. Mainland China;

b. Hong Kong;

c. Taiwan;

d. Singapore;

e. Malaysia; or

f. any other Chinese-speaking market.

Each jurisdiction requires separate eligibility review.

100. ENGLISH LANGUAGE MATERIALS

Likewise, English-language material does not mean participation is automatically offered in:

a. the United States;

b. United Kingdom;

c. Canada;

d. Australia;

e. Singapore;

f. European jurisdictions; or

g. other English-speaking markets.

Each jurisdiction requires legal approval.

101. REGULATORY EXEMPTIONS

ARCBDS shall not rely on:

a. private placement;

b. sophisticated investor;

c. reverse solicitation;

d. accredited investor;

e. professional investor; or

f. other regulatory exemptions

without confirming that the exemption legally applies.

102. REVERSE SOLICITATION

A person independently approaching ARCBDS does not automatically eliminate local regulatory requirements.

Any reliance on reverse solicitation must be approved by Legal where relevant.

103. TAX ELIGIBILITY

ARCBDS does not determine whether participation is tax-efficient for an Applicant.

Applicants remain responsible for their own tax obligations.

Tax residency may nevertheless be collected where legally required.

104. DATA PROTECTION

Jurisdiction screening may involve processing:

a. nationality;

b. residence;

c. IP address;

d. identity documents;

e. corporate information; and

f. other Personal Data.

Such information shall be processed under the ARCBDS Privacy Policy.

105. AUTOMATED GEO-SCREENING

Automated systems may assist with:

a. IP restrictions;

b. sanctions screening;

c. residency checks;

d. jurisdiction risk; and

e. Account restrictions.

Material adverse decisions should receive human review where required by Applicable Law.

106. FALSE POSITIVES

Automated geo or sanctions controls may produce false positives.

Applicants should be provided an appropriate method to:

a. submit clarification;

b. provide documents; or

c. request review

where legally permitted.

107. CONFIDENTIALITY OF RESTRICTION REASONS

ARCBDS may be unable to disclose every reason for rejection where disclosure would:

a. violate sanctions law;

b. create tipping-off risk;

c. expose confidential risk systems;

d. violate regulatory instruction; or

e. compromise security.

108. REJECTION AND REFUNDS

Where an Applicant is rejected after transferring funds, treatment shall follow the ARCBDS Cancellation & Refund Policy.

Refunds remain subject to:

a. sanctions;

b. AML;

c. Return-to-Source; and

d. Applicable Law.

109. SANCTIONS FREEZE IS NOT A REFUND REJECTION

Where law requires assets to be frozen, ARCBDS may be legally prohibited from processing a Refund.

This is different from an ordinary commercial Refund rejection.

110. TERMINATION OF EXISTING RELATIONSHIP

An existing Participant's relationship may be restricted or terminated where they later become ineligible.

Treatment of existing ARCBDS rights shall depend on:

a. reason;

b. sanctions law;

c. Participation Agreement;

d. token release status;

e. Applicable Law; and

f. regulatory instructions.

111. NO AUTOMATIC FORFEITURE

Loss of future eligibility does not automatically mean ARCBDS may confiscate lawfully owned assets.

Asset treatment must follow Applicable Law and applicable agreements.

112. LEGAL HOLD

Assets or transactions may remain restricted while:

a. sanctions are reviewed;

b. ownership is disputed;

c. a court order applies;

d. regulatory instructions apply;

e. AML investigation is ongoing; or

f. another lawful hold exists.

113. ELIGIBILITY APPEAL

An Applicant may request internal review of an eligibility decision unless:

a. law prohibits disclosure or review;

b. sanctions require immediate prohibition; or

c. the decision concerns a purely commercial programme-capacity issue.

114. REVIEW REQUEST

A request should include:

a. Applicant name;

b. Account ID;

c. disputed status;

d. relevant country;

e. supporting documents; and

f. explanation.

115. REVIEW DOES NOT GUARANTEE APPROVAL

Internal review may result in:

a. approval;

b. conditional approval;

c. EDD;

d. continued restriction; or

e. rejection.

116. GOVERNANCE

The Restricted Jurisdiction framework should be owned jointly by:

Legal

for local offering and regulatory law.

Compliance

for AML/CFT, sanctions and FATF risks.

Marketing Compliance

for promotional restrictions.

Operations

for geo-controls and onboarding implementation.

Technology

for geo-blocking and system enforcement.

117. APPROVAL TO ADD A JURISDICTION

A jurisdiction should not be activated for participation without documented approval from appropriate:

a. Legal;

b. Compliance;

c. management; and

d. regulatory personnel where required.

118. APPROVAL TO RESTRICT A JURISDICTION

A restriction may be implemented urgently where required by:

a. sanctions;

b. regulator;

c. law;

d. national-security requirements; or

e. material emerging risk.

Ordinary commercial restrictions should follow governance procedures.

119. RECORDKEEPING

ARCBDS should maintain records of:

a. jurisdiction classification;

b. legal advice;

c. approval;

d. restriction date;

e. reason;

f. affected Participants;

g. geo-control configuration;

h. exceptions;

i. Participant reviews; and

j. later changes.

120. POLICY REVIEW

This Policy should be reviewed:

a. at least annually;

b. following material regulatory change;

c. following sanctions changes;

d. after FATF updates;

e. before material geographic expansion;

f. following a compliance incident; or

g. where ARCBDS's legal structure changes.

121. CHANGES TO THIS POLICY

ARCBDS may update this Policy when necessary.

No change shall permit activity prohibited by Applicable Law.

Existing contractual rights shall be handled in accordance with the Participation Agreement and Applicable Law.

122. GOVERNING LAW

This Policy shall be governed by the same governing law identified in the ARCBDS Founding Circle Participation Agreement.

Final Governing Law: [●]

123. DISPUTE RESOLUTION

Disputes shall follow the dispute mechanism contained in the Participation Agreement, subject to mandatory regulatory and legal remedies.

124. CONTACT

ARCBDS ELIGIBILITY & JURISDICTION COMPLIANCE

Official Website:

www.arcbds.com

Legal Entity:

[●]

Compliance:

[●]

Eligibility Support:

[●]

Legal:

[●]

Registered Address:

[●]

SCHEDULE 1

INDIVIDUAL ELIGIBILITY CHECKLIST

An individual Applicant should satisfy:

☐ Age 18+ or higher applicable legal age

☐ Legal capacity

☐ Identity verified

☐ Residence verified where required

☐ Nationality recorded where required

☐ KYC completed

☐ Sanctions clear

☐ Jurisdiction eligible

☐ PEP reviewed

☐ Source of Funds acceptable where required

☐ Wallet screening acceptable

☐ Applicant acting for own account or representation disclosed

☐ Risk Disclosure accepted

☐ Participation Agreement accepted

☐ No evidence of restriction circumvention

Decision

☐ Eligible

☐ Eligible with Conditions

☐ EDD Required

☐ Legal Review Required

☐ Restricted

☐ Prohibited

SCHEDULE 2

CORPORATE ELIGIBILITY CHECKLIST

☐ Valid incorporation

☐ Active legal status

☐ Registered jurisdiction approved

☐ Business activity understood

☐ Directors identified

☐ Shareholders identified

☐ UBOs identified

☐ UBO jurisdictions reviewed

☐ Authorised representative verified

☐ Corporate authority confirmed

☐ Sanctions clear

☐ PEP review completed

☐ Source of Funds acceptable

☐ Source of Wealth where required

☐ Corporate wallet screened

☐ Regulatory status checked where relevant

☐ No prohibited ownership/control

Decision

☐ Eligible

☐ Eligible with Conditions

☐ EDD Required

☐ Legal Review Required

☐ Restricted

☐ Prohibited

SCHEDULE 3

JURISDICTION CLASSIFICATION MATRIX

Status

Meaning

Participation

Category A — Prohibited

Legally or policy prohibited

No

Category B — Legal Review

Regulatory uncertainty/restrictions

Only after approval

Category C — High Risk

Elevated AML/CFT or related risk

EDD required

Category D — Standard Approved

Approved market

Normal controls

SCHEDULE 4

CURRENT FATF JURISDICTION AWARENESS

This Schedule is for risk assessment and must be checked against the latest FATF publication before operational reliance.

FATF CALL FOR ACTION

Current as of 19 June 2026

Democratic People's Republic of Korea

Iran

Myanmar

Treatment is not identical for all three jurisdictions.

The FATF calls for countermeasures concerning DPRK and Iran and enhanced due diligence proportionate to risk concerning Myanmar.

ARCBDS shall apply the actual requirements of UAE law, sanctions, regulatory instructions and its risk appetite.

FATF JURISDICTIONS UNDER INCREASED MONITORING

Current as of 19 June 2026

Angola

Bolivia

Bosnia and Herzegovina

Bulgaria

Cameroon

Côte d'Ivoire

Democratic Republic of the Congo

Haiti

Iraq

Kenya

Kuwait

Lao PDR

Lebanon

Monaco

Nepal

Papua New Guinea

South Sudan

Syria

Venezuela

Vietnam

British Virgin Islands

Yemen

Important: FATF expressly states that increased monitoring does not automatically require blanket Enhanced Due Diligence or de-risking of all persons from these jurisdictions.

ARCBDS shall assess such relationships on a risk basis.

The latest official FATF publication always supersedes this static Schedule.

SCHEDULE 5

RESTRICTED JURISDICTION REGISTER

The operational register should contain:

Jurisdiction

Status

Reason

Participation

Marketing

EDD

Effective Date

[●]

A/B/C/D

[●]

[●]

[●]

[●]

[●]

[●]

A/B/C/D

[●]

[●]

[●]

[●]

[●]

[●]

A/B/C/D

[●]

[●]

[●]

[●]

[●]

Source References

Legal Opinion: [●]

Sanctions Review: [●]

FATF Status: [●]

Regulator: [●]

Next Review: [●]

SCHEDULE 6

JURISDICTION LEGAL REVIEW

Before activating a country:

Jurisdiction: [●]

Token / Asset Classification

[●]

Is Founding Circle Participation Permitted?

[●]

Licence Required?

[●]

Registration Required?

[●]

Private Placement Available?

[●]

Retail Permitted?

[●]

Professional / Institutional Only?

[●]

Marketing Restrictions?

[●]

Mandatory Risk Warning?

[●]

Consumer Law?

[●]

Data Protection?

[●]

AML / Sanctions Requirements?

[●]

Tax / Reporting Issues?

[●]

Geo-Blocking Required?

[●]

Legal Recommendation

☐ Approve

☐ Approve with Conditions

☐ Institutional Only

☐ Professional Only

☐ No Active Marketing

☐ Restricted

☐ Prohibited

Legal Counsel: [●]

Date: [●]

SCHEDULE 7

GEO-CONTROL RULES

The ARCBDS Platform should support:

☐ Country detection

☐ IP screening

☐ KYC country comparison

☐ Restricted country block

☐ Payment-page restriction

☐ Marketing landing-page restriction

☐ VPN/proxy risk detection where appropriate

☐ Manual Compliance override with audit trail

☐ Jurisdiction-change alert

☐ Sanctions-list updates

☐ Country-register version control

SCHEDULE 8

USER JURISDICTION DECLARATION

Before participation, the Applicant should confirm:

Country of Residence: [●]

Nationality: [●]

Current Location: [●]

Tax Residence where required: [●]

Declaration

☐ I confirm that my residence information is accurate.

☐ I confirm that I am not using a false address to bypass ARCBDS restrictions.

☐ I confirm that I am not deliberately using a VPN or proxy to misrepresent my location.

☐ I understand that Website access does not mean participation is lawful in my jurisdiction.

☐ I understand that ARCBDS may request proof of residence.

☐ I understand that my eligibility may change if I relocate or if Applicable Law changes.

☐ I agree to notify ARCBDS of material changes to my eligibility information where required.

SCHEDULE 9

CORPORATE JURISDICTION DECLARATION

Company: [●]

Incorporation Jurisdiction: [●]

Principal Place of Business: [●]

Tax Residence: [●]

Management Location: [●]

UBO Jurisdictions: [●]

Declaration

☐ The company is validly incorporated.

☐ The company has authority to participate.

☐ All UBOs have been disclosed.

☐ The company is not being used to circumvent a jurisdictional restriction.

☐ Participation does not breach the company's governing documents.

☐ Required corporate approvals have been obtained.

☐ The information provided is accurate.

SCHEDULE 10

JURISDICTION CHANGE FORM

Participant: [●]

Participant ID: [●]

Previous Residence: [●]

New Residence: [●]

Effective Date: [●]

Evidence

[●]

Review

☐ New Jurisdiction Approved

☐ EDD Required

☐ Legal Review Required

☐ Future Participation Restricted

☐ Account Restrictions Required

☐ Existing Assets Require Special Treatment

☐ Sanctions Review Required

Decision

[●]

SCHEDULE 11

PROHIBITED CIRCUMVENTION

Applicants must not:

use VPNs to falsely claim residence;

submit another person's KYC;

submit false proof of address;

conceal nationality where legally required;

conceal UBOs;

use shell companies solely to bypass restrictions;

use nominee Participants;

use unrelated third-party wallets to disguise origin;

misstate current location;

use referral leaders to bypass Compliance;

create multiple Accounts to bypass controls;

deliberately route transactions through intermediaries to avoid sanctions;

provide false corporate information; or

otherwise evade jurisdiction restrictions.

SCHEDULE 12

ELIGIBILITY DECISION RECORD

Applicant: [●]

Account ID: [●]

Residence: [●]

Nationality: [●]

Entity Jurisdiction: [●]

UBO Jurisdiction: [●]

FATF Status: [●]

Sanctions Status: [●]

Jurisdiction Category: A / B / C / D

KYC Status: [●]

Risk Rating: [●]

Legal Review: [●]

Decision

☐ Approved

☐ Approved with Conditions

☐ EDD

☐ Legal Review

☐ Restricted

☐ Rejected

☐ Prohibited

Reason: [●]

Reviewer: [●]

Date: [●]

SCHEDULE 13

PERIODIC JURISDICTION REVIEW

For every jurisdiction enabled for active participation:

☐ Current law reviewed

☐ Token classification reviewed

☐ Licensing position reviewed

☐ Marketing law reviewed

☐ Consumer law reviewed

☐ Sanctions reviewed

☐ FATF status reviewed

☐ AML/CFT risks reviewed

☐ Privacy requirements reviewed

☐ Tax considerations reviewed

☐ Local regulatory developments reviewed

☐ Geo-controls tested

☐ Marketing campaigns checked

Status

☐ Continue Approved

☐ Change to Restricted

☐ EDD Required

☐ Suspend New Participants

☐ Prohibit

Review Date: [●]

Next Review: [●]

SCHEDULE 14

WEBSITE RESTRICTED-JURISDICTION NOTICE

The ARCBDS Website should display substantially:

JURISDICTION NOTICE

ARCBDS services and Founding Circle participation are not available in every jurisdiction.

Your ability to participate depends on your:

location;

residence;

legal status;

KYC/KYB;

sanctions status;

applicable law; and

ARCBDS eligibility requirements.

Access to this Website does not constitute an offer in a jurisdiction where the relevant activity is unlawful.

Do not attempt to bypass geographic restrictions using false information, VPNs, nominees or other circumvention methods.

SCHEDULE 15

ONBOARDING JURISDICTION FLOW

Step 1

Collect residence and identity.

Step 2

Determine jurisdiction classification.

Step 3

Screen sanctions.

Step 4

Check FATF/risk status.

Step 5

Check UBO jurisdictions where applicable.

Step 6

Check payment/wallet risk.

Step 7

Apply:

Standard / EDD / Legal Review / Prohibited

Step 8

Complete KYC/KYB.

Step 9

Issue eligibility decision.

Step 10

Permit payment only after appropriate eligibility stage.

SCHEDULE 16

KEY PRINCIPLES

1. Website Access ≠ Legal Availability

The Internet is global; legal offerings are jurisdiction-specific.

2. Invitation ≠ Eligibility

Referral links cannot override law.

3. Nationality ≠ Automatic Risk

Risk must be assessed lawfully and appropriately.

4. High Risk ≠ Automatically Prohibited

Unless law or risk appetite requires prohibition.

5. Sanctions Override Commercial Decisions

Mandatory sanctions cannot be waived.

6. FATF Grey List ≠ Automatic Ban

Apply a risk-based approach.

7. No Circumvention

False location or nominee participation is prohibited.

8. Corporate Jurisdiction Alone Is Not Enough

UBO and control jurisdictions matter.

9. Eligibility Can Change

Law, sanctions and residence may change.

10. Maintain a Live Register

Country restrictions must be actively maintained.

FINAL ELIGIBILITY NOTICE

ARCBDS is intended to operate as an international digital-capital ecosystem.

International does not mean unrestricted.

Participation must occur within a legally compliant framework.

ARCBDS therefore reserves the right to determine:

where participation may be offered;

which Participant categories may participate;

what KYC/KYB is required;

when EDD is necessary;

when geo-blocking is required; and

when participation must be rejected.

No Participant should attempt to circumvent these controls.

END OF ARCBDS ELIGIBILITY & RESTRICTED JURISDICTION POLICY

Eligibility & Restricted Jurisdiction Policy — ARCB Digital Share