Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 158

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 158
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Anti-Money Laundering (AML)
and Sanctions Laws

Although Fold is not directly
subject to the Bank Secrecy Act or other regulations related to anti-money laundering, our relationships with Sutton Bank and the Bitcoin
Service Providers, together with our obligations under applicable sanctions laws, require us to comply with AML requirements. This is
because both Sutton Bank and the Bitcoin Service Providers are considered “financial institutions” subject to the Bank Secrecy
Act. Because we act as an intermediary between our customers and Sutton Bank and the Bitcoin Service Providers, we must take certain actions
to facilitate their compliance, as described below.

Fold is required to stay updated
with constantly changing AML regulations, including those set by the intergovernmental organization the Financial Action Task Force, local
laws, and our partners. As a mobile application, we face significant challenges, such as remote onboarding of our customers, which makes
it difficult to verify the identity of customers submitting applications for the Fold products thoroughly. In addition, the high volume
of transactions both in our debit card and bitcoin buying and selling makes it difficult to monitor transactions for AML purposes. To
mitigate these risks, Fold has implemented a risk-based approach Anti-Money Laundering program to measure customer identification practices,
monitoring (real-time monitoring) and escalate questionable activities, and maintain records to prevent illicit financial activities in
our platforms.

As for counter-terrorism financing,
Fold ensures that it adheres to all OFAC regulations and ensures that no transactions are involved with a sanctioned country to the best
of our ability. Fold is dedicated to maintaining a high standard of compliance with international regulations, and our proactive approach
to sanctions screening is an integral part of our commitment to prevent any engagement with sanctioned individuals or entities. We prioritize
the safety and compliance of our platform to ensure a secure environment for all users. As part of our commitment to regulatory compliance,
we proactively conduct screening against the Office of Foreign Assets Control (OFAC) and sanctions lists for all users during the onboarding
process. This screening is performed using the data points provided by users during the registration phase.

Our automated screening process
aims to identify potential matches with individuals or entities listed on sanctions lists; information such as IP address and true location
is used at this phase to ensure compliance with all OFAC regulations. In addition to the initial screening conducted during onboarding,
Fold is committed to maintaining a vigilant and ongoing compliance posture. We perform continuous OFAC and sanctions screenings on all
users with a