AML/KYC
The Finex24.io service strictly adheres to international practices and measures in the field of Anti-Money Laundering and Counter-Terrorist Financing (AML/KYC Policy). To identify such transactions, the Finex24.io exchange service uses the GetBlock service.
The purpose of these measures is to clearly demonstrate that Finex24.io takes any attempts to use its service for illegal purposes with the utmost seriousness and aims to prevent such cases.
We warn our users about the inadmissibility of using the service for the following actions:
- Money laundering;
- Terrorist financing;
- Fraud of any kind;
- Purchase of prohibited goods and services.
To prevent illegal transactions, the Service establishes the following requirements for all created Applications:
- The Sender and the Recipient of the Payment within one Application must be the same person. Transfers in favor of third parties using the Service are strictly prohibited.
- All contact details entered by the User in the Application, as well as other personal data, must be current and completely reliable.
- It is strictly forbidden to create Applications using anonymous proxy servers or any other anonymous Internet connections.
KYC verification: what it is and where it is used
What is the KYC procedure and why is it given so much attention? We explain how it can protect you from fraudsters while maintaining anonymity. KYC and AML checks: why identity verification is needed in the cryptocurrency sphere.
KYC (Know Your Customer) is the procedure of verifying a client’s identity and assessing potential risks from them. But why is it needed and why is it practically impossible to buy cryptocurrency today without confirming your identity? Does this contradict the initial principles of anonymity and decentralization of the crypto industry?
Today we will look at why AML and KYC checks are needed and how they work. We will also tell you how verification helps reduce the number of fraudsters while maintaining basic user anonymity.
When KYC verification is required
For new users:
- When exchanging cash, identity verification via passport is required.
- When purchasing cryptocurrency with a card, it is necessary to undergo the KYC procedure to obtain verified status.
The exchange office has the right to request KYC verification if suspicions arise:
- Transactions related to money laundering;
- Operations involving proceeds from terrorist and criminal activities;
- Operations involving proceeds from illegal drug trafficking;
- Transactions related to trade operations with countries with which international trade is prohibited by current legislation;
- Transactions involving proceeds from any other illegal activities.
What is AML and what is it for?
Anti-Money Laundering – a set of measures to combat money laundering, terrorist financing, and the creation of weapons of mass destruction. This procedure includes the identification, storage, and mutual exchange of information about clients, their profits, and transactions between financial institutions and government agencies.
Most classical financial institutions use AML measures to verify businesses that work with cash or use cash as one of their main assets. They also check enterprises that have money in different accounts, regularly transfer it to other countries and banks, and buy futures and other instruments for cash settlements.
In other words, all businesses that could potentially bypass financial monitoring and launder money fall under verification.
Enhanced Due Diligence (EDD)
If you have received an email requesting an Enhanced Due Diligence check, please fulfill the following requirements.
Enhanced Due Diligence (EDD) is a standard AML/CTF check conducted by our compliance team. As a digital service provider, we have developed procedures to comply with standards and measures to prevent money laundering and terrorist financing (“AML/CTF”). We are required to conduct this additional check to better understand your activity, the origins, and the nature of your relationship with us.
If you use the link provided in the email notification, which is intended for submitting information and documents, the automated procedure will guide you through the EDD process.
What documentation do I need to provide?
To complete the EDD check, we may request the following additional information:
- Source of Funds
You need to clearly state the source of your funds and submit evidence supporting your statement. - Origin and Purpose of the Transaction(s)
You need to clearly state the origin and purpose of the transaction(s). - Evidence Supporting Your Claims
You need to provide us with documentation confirming your source of funds and the purpose of the transactions. Please note that, where and when possible, your documents should clearly state your NAME, DATE, and AMOUNT. Please ensure that the provided documentation shows a connection to your data. Furthermore, your source of funds should reflect your recent transactional activity.
What does the address check show?
Overall risk (in percentage) – the probability that the address is associated with illegal activity.
Risk sources – known types of services with which the address has interacted, and the percentage of funds received from / sent to these services, used to calculate the overall risk.
Why do services insist on AML procedures?
If a service does not conduct such checks, fraudsters could use it as a platform for money laundering and terrorist financing. And then the service itself would be held accountable.
That is why exchanges and other large cryptocurrency companies implement AML requirements into their business and conduct regular KYC verifications.
How to understand the risk assessment?
- 0−25% − this is a clean wallet/transaction, and will be processed by the exchange;
- 25−75% − this is a medium level of risk, considered on an individual basis;
- 75%+ − such a wallet/transaction is considered risky and will be blocked by the exchange.
The risk is over 50%, but I am sure the address is reliable. What to do?
The verification results are based on international databases that are constantly updated. Therefore, an address that had 0% risk yesterday could have received or sent an asset to a risky counterparty today. In this case, the risk assessment will change.
Fund refund terms under AML/KYC procedures
In this case, the Finex24.io Service reserves the full right to:
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1. Require the Client to provide additional information disclosing the origin of the digital assets and/or confirmation that these assets were not obtained criminally;
2. Block the account and any operations related to the client, transfer all available incident information and documents to the financial activity control and/or law enforcement agencies at the place of the Service’s registration and, if necessary, at the Client’s registration address;
3. Require the Client to provide documents confirming identity, physical existence, registration address, solvency;
4. Refund digital assets only to the details from which the transfer was made, or switch to other details, after a full check by the Service’s security department, if it was possible to verify the legal origin of the Client’s funds;
5. Refuse the Client to withdraw funds to third-party accounts without giving reasons;
6. Withhold the client’s funds until the incident is fully investigated;
7. The Service reserves the right to monitor the entire transaction chain to identify suspicious transactions;
8. The Service reserves the right to refuse the Client to provide the service if the Service has reasonable suspicions about the legality of the origin of the digital assets and to hold funds in the Service’s special accounts;
9. The Service reserves the right to refuse the Client to provide the service if the Service has reasonable suspicions about the legality of the origin of the digital assets and to hold funds in the Service’s special accounts if it is impossible to trace the entire chain of movement of digital assets from the moment of their appearance;
10. The Service reserves the right not to disclose information about the methods and results of the check.
− Refund of funds to bona fide clients
Clients who have successfully passed the identification procedure (KYC) and show no signs of involvement in money laundering activities (AML) have the right to a full refund of unlocked assets without any commission within 24 hours.
Make sure your wallet is not associated with fraud, hacker attacks, or other suspicious transactions
