🔎KYC/AML Policy
Effective date: 01 August 2023
KNOW YOUR CUSTOMER AND ANTI-MONEY LAUNDERING POLICY
Introduction
Solex Limited is committed to maintaining a strong compliance framework to prevent illegal activities, such as money laundering, terrorist financing, fraud, and other financial crimes. Considering this and having regard for the safety of our users and due to the legal requirements of the British Virgin Islands, the United Kingdom, the European Union, the United States of America and other countries and organizations, we have introduced certain KYC and AML policies.
The purpose of the policies is the effective prevention and combating of money laundering and terrorist financing through our platform by proper identification of actual users of accounts and supervision of their transactions. We will identify and cease transactions which may have been initiated with a view to hiding proceeds of crimes, financing illegal activities or maintaining other unlawful behaviours.
Specific provisions of our policies are confidential and for internal use only, in order to prevent their avoidance by dishonest or fraudulent users. This policy, therefore, outlines the general procedures and guidelines we follow to verify the identity of our user and detect and mitigate any potential risks, which a user should be aware of for the purposes of using our platform, receiving payments from or making payments to Solex Ltd. or taking part in certain other activities on our platform.
Definitions
AML (Anti-Money Laundering) means measures taken to prevent, detect, and report any suspicious activities related to money laundering and terrorist financing.
KYC (Know Your Customer) means the process of verifying the identity and assessing the potential risks associated with our users.
Restricted Country means a Sanctioned Country, New Zealand, the United States of America and its territories (including American Samoa, Guam, Puerto Rico, the Northern Mariana Islands and the US Virgin Islands), and Canada.
Sanctioned Country means a country, region or territory which is itself the subject or target of any Sanctions.
Sanctioned Person means, at any time, any person (including any entity) which is the subject or target of any Sanctions and any/or operating, organized or resident in a Sanctioned Country.
Sanctions means all economic or financial sanctions or similar restrictions imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or the United Nations Security Council, the European Union, His Majesty’s Treasury of the United Kingdom or other relevant sanctions authority.
Customer Due Diligence (CDD)
Identification and Verification: We will collect and verify specific user information, such as name, residence address, date of birth, and government-issued identification documents.
Verification Standard: We are obliged to identify, beyond a reasonable doubt, the identity of persons enabled to do transactions on our platform. This is the reason why we collect ID scans, whose authenticity is verified with the special software of professional external providers. We may require sending a “selfie” or a recording with an ID document in order to preclude the possibility of using a user’s documents by someone else. Verification of a user’s likeness to the photo from their ID is made with the use of special software of professional external providers or, in case of doubts, done manually by our user support services.
Risk Assessment: We will assess the potential risks associated with each user based on their profile, transaction history, and jurisdiction. This assessment will help us determine the appropriate level of due diligence required. In case of any doubts, our user support team may contact a user to explain any concerns and solve the issues that arose. If we cannot determine, beyond a reasonable doubt, that the documents a user has provided belong to them and are authentic, we will not be able to let the user execute any transactions.
Enhanced Due Diligence (EDD): In cases where higher risks are identified, we may conduct additional checks, such as verifying the source of funds and assessing the user's background.
Politically Exposed Persons (PEPs): We will screen users against domestic and international PEP lists to identify any individuals who may hold prominent public positions or have a higher risk of involvement in corruption or money laundering.
Entities: In the case of entities (whether incorporated or not), the procedure is more stringent and depends on, among other things, the entity’s nature, structure, and jurisdiction. Primarily, we need to establish who is the ultimate beneficial owner of the entity, who can represent it, where the entity is based and what the entity’s business is. Since standards regarding governmental documentation of entities differ across countries, the verification of such users is done “manually” and, therefore, is considerably more time-consuming.
Ongoing Monitoring
Transaction Monitoring: We will employ robust systems and technologies to monitor user transactions for any suspicious activities or unusual behaviors. Unusual or large transactions, sudden changes in transaction patterns, and frequent transfers to high-risk jurisdictions will be subject to enhanced scrutiny.
Additional Verification: When a user’s payment volume rises, our AML verification duties increase as well. We may analyse selected transactions to evaluate if they do not pose significant AML risks or if they need to be ceased and clarified with the relevant user. The same is the case when a transaction is identified as suspicious or unusual, or our verification of a user results in qualifying that user as a person with a significant AML risk. In that case, we may require additional documentation proving the user’s real, exact place of residence, education, and occupation, as well as the source of money they use on the Solex.ai platform.
Periodic Reviews: We will periodically review and update user information to ensure its accuracy and verify the continued legitimacy of the user’s activities.
Reporting: If we conclude that the information received from a user does not clarify our doubts, we may be required to cease our relationships and transactions with the user and report their transaction to the relevant authorities where required to do so by law. In accordance with the applicable law, we are not obliged to inform our user if we report their behaviour as suspicious to the relevant authorities, and sometimes we are required not to disclose the fact of such reporting to the relevant user.
Sanctions
Sanctions Policy: We will not process any transactions for a Sanctioned Person or a person who is a citizen of, or is domiciled, resident or present in, a Sanctioned Country or a country which based on various criteria selected by our compliance team represents a high AML high risk.
Inbound Payments: We will not accept payments from or on behalf of any Sanctioned Person, any person who is a citizen of, or is domiciled, resident or present in, a Restricted Country or any account or wallet located in a Restricted Country.
Outbound Payments: We will not make payments to any Sanctioned Person, any person who is a citizen of, or is domiciled, resident or present in, a Sanctioned Country or any account or wallet located in a Sanctioned Country. We may refuse to make a payment to any person who is a citizen of or is domiciled, resident or present in, a Restricted Country which is not a Sanctioned Country or any account or wallet located in a Restricted Country which is not a Sanctioned Country.
Data Protection and Privacy
Confidentiality: We will maintain the confidentiality and security of user information, only sharing it with authorized personnel and third parties when necessary for regulatory compliance or as required by law.
Data Retention: User information will be retained for the required period as mandated by applicable regulations and disposed of securely when no longer needed.
Consent: We will obtain user consent for collecting and processing their personal information in accordance with applicable data protection laws.
Privacy Policy: For further details on how we collect, process and use personal data, please see our Privacy Policy.
Staff Training and Awareness
Training: Our employees will receive regular training on KYC/AML policies and procedures to ensure their understanding of the requirements and to keep them updated with the evolving regulatory landscape.
Awareness: We will foster a culture of compliance by promoting awareness of the importance of KYC/AML measures and encouraging employees to report any suspicious activities.
Compliance Officer
Designation: Where required by applicable law, we will appoint a designated Compliance Officer responsible for overseeing and implementing our KYC/AML policies, conducting internal audits, and ensuring compliance with regulatory obligations.
Reporting: The Compliance Officer will report any suspected violations, breaches, or significant deficiencies to senior management and regulatory authorities if and when required.
Record Keeping
Documentation: We will maintain accurate records of customer due diligence, transaction monitoring, and any other relevant information as required by applicable laws and regulations.
Retention: Records will be retained for the period mandated by regulatory authorities and promptly provided to authorities upon request.
Cooperation with Authorities
We will fully cooperate with law enforcement agencies, regulatory authorities, and other government bodies in their efforts to combat money laundering, terrorist financing, and other financial crimes.
Review and Updates
This KYC/AML policy will be reviewed periodically and updated to reflect changes in regulatory requirements, industry best practices, and the evolving risk landscape.
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