AML/KYC
Service Finex24.io strictly adheres to international practices and measures in the field of combating money laundering and 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 extremely seriously and works to prevent such cases.
We warn our users about the inadmissibility of using the service for the following activities:
- Money laundering;
- Terrorist financing;
- Fraud of any kind;
- Purchase of prohibited goods and services.
To prevent illegal operations, 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 provided by the User in the Application, as well as other personal data, must be current and completely reliable.
- It is strictly prohibited 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 so much attention paid to it? We explain how it can protect you from fraudsters while preserving anonymity. KYC and AML checks: why identity verification is needed in the cryptocurrency sphere.
KYC (Know Your Customer) is the procedure for verifying a client’s identity and assessing potential risks from them. But why is it needed and why is it almost impossible to buy cryptocurrency today without confirming your identity? Doesn’t 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 can help 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 buying cryptocurrency with a card, it is necessary to undergo the KYC procedure to obtain a verified status.
The exchange office has the right to request KYC verification if suspicious:
- Transactions related to money laundering;
- Operations involving income received from terrorist and criminal activities;
- Operations involving income received from illegal drug trafficking;
- Transactions related to trade operations with countries with which international trade is prohibited by current legislation;
- Transactions that involve income from any other illegal activities.
What is AML and what is it for?
Anti-Money Laundering is 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 check 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, buy futures, and other instruments for cash settlement.
In other words, all businesses that could potentially circumvent financial monitoring and launder money fall under verification.
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 that the address has interacted with, and the percentage of funds received from / sent to these services, based on which the overall risk is calculated.
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.
This is why exchanges and other major 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 it 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 more than 50%, but I am sure the address is reliable. What to do?
The verification results are based on international databases, which 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 by criminal means;
2. Block the account and any operations related to the client, transfer all available information and documents on the incident 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, and solvency;
4. Return 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 service, if it was possible to verify the legal origin of the Client’s funds;
5. Refuse the Client to withdraw funds to a third-party account 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 in order to identify suspicious transactions;
8. The Service reserves the right to refuse the Client the provision of service if the Service has reasonable suspicions about the legality of the origin of the digital assets and to hold the funds in the Service’s special accounts;
9. The Service reserves the right to refuse the Client the provision of service if the Service has reasonable suspicions about the legality of the origin of the digital assets and to hold the 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 verification.
− 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) are entitled to a full refund of unblocked assets without any fees.
− Refund of high-risk assets
In case the client’s assets are classified as high risk (according to internal AML procedures), a fee of up to 5% of the refund amount, but not more than 100 US dollars, may be deducted upon their return.
Make sure your wallet is not associated with fraud, hacker attacks, or other suspicious transactions
