EAST OCEAN HOLDINGS LIMITED
Bank Transaction Agreement

When a customer is doing business with EAST OCEAN HOLDINGS LIMITED (hereinafter, the Company), for any online banking services, wealth management services or other transactions, the Company treats the customer as having confirmed and agreed to the following terms, as well as to the agreements, etc. regarding transactions set forth separately.

Important Notice Concerning Taxation

Because the Company is based in a ‘country or area that strategically provides tax incentives to companies outside the area’, i.e. is offshore, or in a tax haven, it continuously monitors the appropriateness of customers’ (particularly foreign companies’) use of taxation systems, even after transactions have taken place. In addition, with respect to individual customers, in their dealings with the Company, they shall not neglect their obligations to pay taxes to their country of residence, and the customers themselves shall bear the responsibility for taking care of (declaring and paying taxes on) these transactions, including any interest, dividends and capital gains earned through the Company, in accordance with the statutes and ordinances of their country of residence for tax purposes.

Important Notice Concerning AML/CFT

The Company has declared its desire to take international anti-money laundering (AML*) measures and measures in combating the financing of terrorism (CFT*). In addition, the Company is receiving assistance from a specialist agency certified by CAMS* in the U.S. When a customer is opening a new account, we verify their identity in the organisation’s database, check their personal references (sponsors) and require submission of some official documents. Even after a new account is opened, the Company may hire this specialist agency to analyse and make decisions in the event that the Company has suspicions about a client or notices suspicious activity. It is therefore possible that some or all of the client’s transactions are suspended. In addition, the Company may unilaterally cancel a business relationship. Moreover, in taking the aforementioned measures, the Company shall bear no responsibility for any losses incurred by the customer.

AML Anti-money laundering
CFT Combating the Financing of Terrorism
CAMS ACAMS® (Association of Certified Anti-Money Laundering Specialists®) is an international specialist certification established to deal with AML efforts.

Article 1. Acceptance of transactions

Customers who may be involved in transactions with the Company or who meet all of the following requirements shall be limited to those approved by the Company. (For corporations and other bodies, the customer shall be a representative of that organisation.)

  • (a) Individuals must be at the least 18 years old.
  • (b) The person must have a single nationality.
  • (c) The person must be in a location where it is possible to use the services available on the Company’s website.
  • (D) The following people are not eligible:
    • Those who are unable to submit the required documentation when applying to open an account
    • Those who possess U.S. citizenship
    • Those who are not legal residents of any country, i.e. whose country of residence for tax purposes is unclear, or those defined as ‘perpetual travellers’
    • Those who are citizens or residents of drug zones or areas engaged in civil war, wars of independence or international conflicts
    • Anti-social forces
    • Those in a position regarded as effectively participating in the management of anti-social forces
    • Those in a position regarded as improperly utilising anti-social forces
    • Those cooperating with or contributing to the maintenance or operation of anti-social forces by providing funds to these anti-social forces or through equivalent actions
    • Those in a position that would be publicly criticised as being an anti-social force
    • Those affiliated with or belonging to organised crime syndicates
    • Those subject to asset freezes or other economic sanctions
    • Those with a history of financial crimes
    • Those with a record of crime other than financial crimes and whose sentences were completed within the past five years
    • Public figures (those serving as heads of state or as cabinet, central bank or other ministers and vice-ministers of state, as well as their spouses, parents, children and siblings)

Article 2. Setting up PRIMARY accounts and new accounts

When a customer starts transacting with the Company, that customer must first open a PRIMARY account—a type of ordinary deposit account. This account is non-interest bearing and can be denominated in either U.S. dollars (USD) or Japanese yen (JPY). A customer may apply to open an account by sending the required documentation to the Company and filling in either the Company’s designated application form or entering the required information on the Company’s website. Upon receipt and approval by the Company, the customer will be able to open an account. The following information and documents are required to open an account. (For corporations and other bodies, the customer shall be a representative of that organisation.) Moreover, all documents that are submitted must be in English. Furthermore, a customer may not forego the designated procedure, even if they have been introduced by a sponsor or someone who can vouch for them.

  • (a) A copy of the person’s passport and identity proof that has been certified by a public or quasipublic institution
  • (b) Proof of address certified by a public or quasi-public institution
  • (c) Proof of transactions between the person and another financial institution through a deposit account in their name
  • (d) The following customer information
    • Email address
    • Home telephone and fax number(s)
    • Mobile number
    • Current occupation, sector, affiliation (name of company, body or organisation) and position, including address and contact information
    • Curriculum vitae and employment history (when required for additional review)
    • Tax payment certificate issued by a public or quasi-public institution in the country of residence for tax purposes(when required for additional review)
    • Any other items or documents deemed necessary by the Company
  • (e) If the account is in the name of a corporation or organisation, the following additional items and documentation are required.
    • A transcript or other copy of the certificate of incorporation of the corporation or the group
    • Proof of the representative’s position within the organisation
    • Articles of association or other documents describing the organisation’s business and other activities
    • Proof that the organisation remains a going concern
    • Tax payment certificate issued by a public or a quasi-public institution in the country of residence for tax purposes
      (when required for additional review)
    • Letters of reference from the external auditor and the external legal advisor (when required for additional review)
    • Any other items or documents deemed necessary by the Company

Important Notice Concerning Identity Verification

The Company will not proceed to open an account if it is unable to verify identity using its designated method or is unable to contact the customer. Furthermore, in the event that the Company deems the information in the customer’s account application to be questionable, the Company may suspend or cancel the account opening procedure. Moreover, in declining to open an account, the Company shall bear no responsibility for any losses incurred by the customer.

Article 3. Other transaction accounts

When the Company has completed the opening of a PRIMARY account, it regards the customer as possessing the qualifications for applying for ‘other transaction accounts’. The customer may apply for ‘other transaction accounts’, as necessary. A customer may apply to open ‘other transaction accounts’ by sending the required documentation to the Company, filling out either the Company’s designated application form or entering the required information on the Company’s website. Upon receipt and approval by the Company, the customer will be able to open such accounts. As of March 2018, ‘other transaction accounts’ included the following. Additionally, please note the relevant stipulations regarding these transactions.

  • (a) Joint accounts
  • (b) Time deposit accounts
  • (c) Financial futures accounts
  • (d) Discretionary investment accounts
  • (e) XRP (Ripple transaction) accounts
  • (f) Escrow accounts
  • (g) Foreign exchange margin trading accounts (margin trading accounts)

Article 4. Description of transactions

After setting up a PRIMARY account, the customer may use such conventional services as ordinary account transactions, funds transfers, currency transactions, account information inquiries and other transactions designated by the Company. In addition, after ‘other transaction accounts’ are opened, transactions relevant to those accounts may be utilised. (Hereinafter, these are referred to as ‘online banking services’.) Online banking services are services that can be accessed by logging in to the Company’s user screen with a personal computer or smartphone (hereinafter, ‘terminal’) that is connected to the Internet, and for which the customer themselves input the necessary information regarding the transaction.

Article 5. Transaction hours

Transaction hours (business hours) for online banking services are 24 hours a day, seven days a week. However, in the event of a system or other outage or if system maintenance, etc. is required, the Company may temporarily suspend or halt its provision of online banking services without advance notice to customers.

Article 6. Activity Identity Documents (IDs) and passwords

When the Company has completed setting up the PRIMARY account (when commencing transactions with the customer), it will issue the customer an Activity ID and a password. These will be sent to the designated email address submitted by the customer to the Company. The customer will then log in for the first time by entering the Activity ID and password on the Company’s login screen.

Article 7. Login ID and password

Immediately after logging in for the first time as in the preceding article, the customer shall set up an official login ID and password by entering and confirming a new personal ID and password on the Company screen. It is recommended (1) that customers refrain from using their date of birth, street address number, telephone number (including work number), auto licence number, repeating letters/numbers or other numbers that could easily be guessed as their login ID or password by another person, and (2) that they change these regularly.

Important Notice Concerning Login IDs and Passwords

Customers shall not give third parties the authorisation to set up and/or use their login ID and password. In addition, customers are responsible for strictly managing their accounts so that the accounts are not subject to misappropriation, misuse, etc. by third parties. If you suspect any misappropriation, misuse, etc., please notify the Company immediately through its designated means. In response to such notification, the Company will take the designated actions to suspend such usage as a temporary emergency measure. In this case, the login ID and password must be reset using the Company’s designated resetting procedure. Moreover, if the customer does not follow the reset procedure, some or all of the customers’ transactions may be suspended or cancelled; the Company may also unilaterally abrogate its business relationship with the customer. Additionally, the Company shall bear no responsibility in the event that the customer incurs any loss or damages as a result of the measures described above.

It is the customer’s responsibility to protect their login ID and password and never disclose them to a third party (employees of the Company will never ask for customers’ passwords, etc.). In the event that a customer forgets their password, etc. or a third party finds out this information, the customer shall immediately begin the login ID and password change procedure using the Company’s designated method. The Company shall bear no responsibility for any losses incurred prior to this procedure.

If an incorrect login ID or password is entered more than the consecutive number of times determined by the Company, the Company shall suspend the provision of online banking services. To re-initiate online banking services, the customer shall follow the procedure designated by the Company.

Article 8. One-time passwords (OTPs)

Customers must enter an OTP to execute certain online banking transactions. This password is randomly generated by the Company’s computer system and sent to the designated email address that the customer has given to the Company. By entering this password, the customer will be able to execute the transaction.

Article 9. Identity verification during a transaction

The Company shall verify the user’s identity by checking whether the login ID and password entered when the customer logs in or uses online banking services correspond with those registered with the Company. In addition, notwithstanding the forgoing, there may be instances when the Company will ask for personal identification documents in connection with online banking services or ancillary procedures in order to check whether the documents submitted are the same as those previously submitted to the Company, and thus verify the person’s identity. Furthermore, the Company may designate an identity verification process that uses a method other than that set forth in this article.

Important Notice Concerning Identity Verification during a Transaction

Due to the policy of verifying a person’s identity using the procedure described in this article, the Company shall bear no responsibility for any loss or damages incurred from treating the relevant transaction as valid, even in the event of misuse or other incident involving the relevant login ID and/or password.

Article 10. Transaction method

Requesting a transaction
To request a transaction with the Company, the customer shall confirm their identity with the Company by using their terminal and then send the Company the designated items required for the transaction.

Confirmation of order details

  • (a) The Company receives the transaction request from the customer, and if the identity verification process concludes that the request has actually been initiated by the customer, the Company shall send an OTP to the customer’s terminal, along with the transaction details that it received.
  • (b) The customer verifies the information, and if it is correct, they shall put through the transaction by entering the OTP in accordance with the Company’s designated procedure. Moreover, if the details of the request have been changed or invalidated, we ask the customer to either change or invalidate the said request by following the designated procedure.
  • (c) In the event that the OTP is not entered or the transaction is not put through within the time frame designated by the Company, the Company shall treat the said transaction request as having been invalidated. Please respond to the Company promptly.

Settlement of request details
Once the OTP is entered, the Company receives the transaction go-ahead within the designated time frame and the Company’s computer system finishes processing the transaction, the Company shall regard the customer’s transaction order has having settled.

Transaction implementation

  • (a) Please ensure that the transaction details are correct because the Company shall perform the transaction after the customer transaction details are settled and will send a notification of the outcome. If there are any questions regarding the outcome notification, or if you are unable to receive this information, please contact the Company.
  • (b) In the event that the transaction was not performed in accordance with the customer’s request (including such cases as insufficient funds and cancellation of payment at the customer’s request), the said order shall be regarded as not having been made and the Company shall not bear responsibility for any resultant losses.

Article 11. Fees

Fees for online banking services shall be as set forth separately, and our fee schedule is disclosed on the Company website. In addition, the Company shall withdraw all the fees from the relevant customer transaction account with the Company by the Company’s designated method and without the customer entering their login ID and password. Moreover, the Company may change these fees or establish new fees without prior notice to the customer.

Article 12. Non-issuance of passbooks, transaction schedules, etc.

Transaction schedules may be checked on the designated transaction detail screen on the Company’s website. As a rule, we do not issue deposit passbooks, deposit certificates, etc. Moreover, the Company retains customer transaction records for a reasonable period. In the unlikely event that the Company and the customer disagree about the details of a transaction, the Company’s ledger and ticket records, etc. (including electromagnetic records) shall be considered correct.

Article 13. Issuance of paper transaction schedules/balance statements

If a customer desires a paper copy of their transaction schedule or balance statement, please ask the Company by using the designated method. The Company shall use its designated method to issue transaction schedules or balance statements and shall mail them to the address reported to the Company by the customer. Moreover, when issuing a transaction schedule or balance statement, the Company shall withdraw its designated fee from the customer’s applicable transaction account using the Company’s designated method, whether or not the documents reach the customer.

Important Notice Concerning Mailed Documents

In the event that the Company mails transaction schedules, balance statements or other documents to the address reported by the customer and the said documents are returned as undeliverable, the Company is under no obligation to retain the documents. Even if the customer incurs losses for reasons of late delivery, non-delivery or other circumstances beyond the control of the Company, the Company shall not bear any responsibility.

Article 14. Changes in reported information

When a customer changes their name, address, telephone number, email address or other reportedinformation, please promptly report the changes through the change in reported information procedure by using the method designated by the Company.

Important Notice Concerning Changes in Reported Information

Whenever the customer’s reported information has changed, the Company shall bear no responsibility in the event of losses caused by a delay in changing one’s reported information or by the incompleteness of one’s reported information. In addition, in the event that the Company sends notices or other mailings to the person or address provided as reported information and those documents are returned to the Company as undeliverable, the Company may cancel mailings of notices or other documents and shall bear no responsibility for any losses incurred by the customer as a result.

Article 15. Handling of notices and disclosures

Customers are considered as having given consent to receive notices, communications and disclosures from the Company through posts on the Company’s website, electronic mail and other means. In addition, when the Company sends a notice to the physical address or email address provided by the customer, if the documents are delayed or do not reach the customer because the customer did not submit complete contact information, did not update such information or other circumstances beyond the Company’s control occurred, the Company shall regard whatever would normally be delivered to the customer as having been delivered.

Important Notice Concerning the Handling of Notices and Disclosures

Except in the case of an error by the Company, if the electronic mail address provided by the customer is the electronic mail address of a third party who is not the customer, the Company shall bear no responsibility for any losses incurred by the customer.

Article 16. Prohibition on transfers, loans, etc.

Without the Company’s consent, no transfer, no lending or no other third-party authority may be established or used by a third party with respect to these transactions, including the customer’s transaction status (including status with respect to deposit agreements), deposits, etc.

Article 17. Cancellations and transaction restrictions

In the event that the customer cancels a transaction with the Company, the customer shall follow the procedure designated by the Company. In addition, if the PRIMARY account has been cancelled, it follows that all other transactions with the Company shall be cancelled as well. Moreover, a PRIMARY account cannot be cancelled if any balances remain in other transaction accounts. In addition, if the customer experiences any of the following, the Company shall, without notice, immediately suspend all or some transactions, or may cancel the customer’s account.

  • (a) When the customer is deemed not to have fulfilled the transaction requirements given in Article 1
  • (b) When the Company deems that the reporting items given when the account was being opened or the representations or covenants made when applying to open the account are false, or when the Company deems that the materials submitted when the account was being opened are not true
  • (c) When the Company deems that various transaction accounts are, or may be, engaging in behaviour that is contrary to laws and ordinances or public policy
  • (d) When it becomes clear that the person whose name is on the transaction account does not exist or that a deposit account was opened without the consent of the person whose name is on the account
  • (e) When the customer’s whereabouts are unknown
  • (f) When a violent demand has been made or there has been threatening behaviour regarding a transaction, or when violence has been used
  • (g) When an inappropriate demand that is outside the bounds of legal responsibility has been made
  • (h) The use of rumour-mongering, fraud or force to impugn the Company’s credibility, or behaviour that interferes with the Company’s business
  • (i) At the beginning of a succession
  • (j) When a payment has been stopped, or there has been a bankruptcy filing, civil rehabilitation, corporate reorganisation or the commencement of special liquidation proceedings
  • (k) When an order or notice of provisional seizure, restraining order or seizure has been issued
  • (l) When the relevant fees have not been paid
  • (m) When no deposit transactions (including with prepaid cards) have occurred for more than one year
  • (n) In any other circumstances that are tantamount to cancelling a transaction agreement, etc. with the Company
  • (o) When there is a violation of these agreements, agreements pertaining to particular transactions, etc.
  • (p) When any other circumstances occur that are sufficient to require cancellation of the Company’s services

Important Notice Concerning Discharge upon Cancellation

Balances remaining after cancellation shall be transferred by the Company to the deposit account in the customer’s name at another financial institution as reported to the Company. In doing so, the Company shall be relieved of all responsibility vis-a-vis the customer. Even if the Company is unable to perform a transfer to the deposit account in the customer’s name at another financial institution that it has on file, the Company shall bear no responsibility for any losses incurred therefrom. In addition, even if the customer incurs losses due to the suspension of a transaction or the cancellation of their deposit account, the Company shall bear no responsibility.

Article 17. Report of an adult guardian, etc.

If a customer has already received an order for the commencement of assistance, curatorship or guardianship, or if the customer has voluntarily chosen a guardian, or if assistance, curatorship or guardianship has already commenced under a court order, please immediately report the name and other required information pertaining to the guardian by using the Company’s designated method. In addition, please follow the same procedure if such information is no longer applicable or has changed. Moreover, the Company shall bear no responsibility for any losses incurred prior to such reporting.

Article 18. Handling of paperwork outsourcing

The Company shall be permitted to outsource administrative paperwork, including the handling of customer transaction information, to a third party outside the Company. In addition, the Company and the third parties to which the Company outsources shall strictly manage the customer information in their possession and, with full awareness of protecting customers’ privacy, shall not use customer information for any other purposes.

Article 19. Handling of personal information

With respect to customer information, the Company handles such information in accordance with its privacy policy and the European Union’s General Data Protection Regulation. In addition, when required to submit customer information by law, court procedure, other legal procedure or the regulatory authorities, the Company shall be able to comply with such request at its discretion. Moreover, the Company’s privacy policy is posted on its website.

Article 20. Exceptions concerning systems failures, disasters, etc.

Under the following circumstances, the Company shall bear no responsibility for delays, failure, etc. to provide its services, or any losses incurred therefrom:

  • (a) In the event of a disaster, emergency, terrorism, epidemic, measures taken by a court of other public institution or other unavoidable circumstances
  • (b) In the event of damage to terminals, telecommunication circuits or computers, despite sufficient safety measures having been taken by the Company (including its outsourcing clients) or the managing entity of a system shared by financial institutions
  • (c) In the event that the circumstance is attributable to a financial institution other than the Company or to a third party

Article 21. Application mutatis mutandis of agreements, etc.

As for matters not set forth in the transaction agreement with the Company, these shall be handled in accordance with the separately established agreements, etc. for each transaction. The Company’s agreements, etc. may be found on the Company’s website.

Article 22. Changes in agreements

The Company may revise the content of its agreements. In such a case, the Company shall disclose the details of such changes by posting them on its website, and transactions shall be handled according to the revisions starting on the date of such revision.

Article 23. Governing law and jurisdiction of agreements

The Company’s transactions shall be governed by the laws of Moheli, Union of the Comoros.