Let's start with the broader terms:
AML- Anti Money Laundering: The practice of ensuring that no money is being laundered or washed through our products and services, or used to hide criminal origins and providence or to avoid taxation.
CTF- Counter Terrorism Funding: A set of regulations and procedures that will guarantee to make it near impossible to use assets from transactions to fund terrorism or other illegal activities.
KYT- Know Your Transaction: A set of internal rules and procedures set up to have a clear point of reference on where the transaction came from, or where it is going.
All of these points are very important to us here at CoinMetro. Nobody wants to find out that their company was involved with, even second handedly, to illegal, criminal, unclear or terrorist activities.
Here we will detail some measures we use to counter these issues and ensure maximum compliance and fund transparency. We shall not go into specific details on these procedures, as this is sensitive information.
You are probably aware of our profile verification procedure, and we completely understand that it might be different from others. It is also exceptionally well planned and designed, as it is vital to the integrity of your account and our environment in adherence with regulatory compliance.
Profile verification helps to properly document the account and who it belongs to. Additionally, KYT or additional transfer verification, allows us to know who we are transacting & conducting business with.
On top of that we have 3 Verification Tiers, which further details where the client is from and where funds are being accumulated from. You can check your "risk score" in the profile verification status window.
Having a higher risk score could warrant additional profile verification documentation to get on boarded onto the exchange, or some clarifications that would be asked from the client by our Compliance department. Mainly, the Source of Wealth.
How does it benefit you?
- Peace of mind - we can see regulations are coming to exchanges that will need to adhere to standards that are compatible with long-standing banking regulations and procedures that help counter bad practices and ensure the continuation of our services as a fiat on-ramp exchange with lots of potential. For more information on that see this note here.
Possible account flags
An account could be flagged for a due diligence procedure if something in the system has flagged it. These are standard banking procedures in line with AML and CTF practices.
Reasons on why an account can get flagged:
- Activity on the exchange contradicts the questionnaire answers,
- Irregular deposit/withdrawal activity,
- Exposure to p2p exchanges, off-shores, casinos or similar entities,
- Wallet is exposed to illicit activities or clandestine websites or exchanges,
The due diligence that is followed up by our Compliance department depends on the risk factors and why the account got flagged. Every incident is reviewed on a case by case basis, with proper adherence to law and regulations.
This ensures that we are doing our part to vet and protect ourselves and our clients from unwanted exposure or activity as per AML and CTF regulations.
Here is an example of one of our clients wallets that was exposed to multiple P2P clandestine gambling, trading related wallets and sites.
In summary, unlike many other exchanges we intend to be a compliant bridge over many seas, continents and borders of cryptocurrencies and fiat. And we cannot do so unless we remain compliant with the latest banking verification requirements that are requested from us.
If you have any other questions for us, please don't hesitate to contact us.
-CoinMetro's Customer Support