Both international and local regulations and laws require that the exchange service KingsExchange implement effective internal procedures to prevent any illegal activity and take all necessary measures to do so.
The service KingsExchange adheres to practices in the field of anti-money laundering (AML) and combating the financing of terrorism, as well as the "Know Your Customer" (KYC) policy.
The AML / KYC policy covers the following issues:
— Verification procedures;
— Transaction monitoring;
— Risk assessment.
1. Verification Procedures
1.1. Identity Verification
The verification procedure at KingsExchange requires the User to provide the service administration with authentic documents (e.g., a passport, bank statement, utility bill, etc.). For these purposes, KingsExchange reserves the right to collect the user's identification information as part of its anti-money laundering and KYC policy.
Additionally, KingsExchange reserves the right to further verify certain Users who raise suspicion. The verification process includes providing documents that confirm the User's identity.
For individuals:
1) To confirm their identity, the User must provide one of the following documents:
— Civil passport;
— International passport;
— ID card.
2) To confirm the address, the User must provide one of the following documents:
— Bank statement clearly showing the address of the User’s actual residence;
— Utility bill clearly showing the address of the User’s actual residence;
— Tax documents clearly showing the address of the User’s actual residence;
— Document confirming the address of the User’s actual residence issued by local authorities, clearly showing the address of the User’s actual residence.
For corporate clients:
1) To confirm their identity, the User must provide one of the following documents:
— Civil passport of the director;
— International passport of the director;
— ID card of the director;
2) To confirm the address, the User must provide one of the following documents:
— Bank statement clearly showing the address of the User’s actual residence;
— Utility bill clearly showing the address of the User’s actual residence;
— Tax documents clearly showing the address of the User’s actual residence;
— Document confirming the address of the User’s actual residence issued by local authorities, clearly showing the address of the User’s actual residence.
3) To confirm that the User is an authorized representative of the organization, they must provide all of the following documents:
— Document confirming the legal address of the company;
— Document of registration of the legal entity;
— Order appointing the director;
— Scanned copy or photo of the letter about the decision to work with KingsExchange
4) Information about the ultimate beneficiary:
— Civil passport of the ultimate beneficiary;
— International passport of the ultimate beneficiary;
— ID card of the ultimate beneficiary;
— Document confirming the address of the ultimate beneficiary. According to Cypriot law, the ultimate beneficiary is a natural person who owns or controls the User's Account and/or a natural person on whose behalf transactions are made.
1.2. Bank Card Verification
Users who wish to perform an exchange involving a bank card must first verify it. A detailed instruction on how to complete the verification can be found here.
2. Transaction Monitoring
User verification is carried out not only by verifying their identity but also by analyzing their transactions. Therefore, KingsExchange relies on data analysis as a tool for risk assessment and detecting suspicious activity by Users.
KingsExchange collects data, filters it, maintains records, manages investigations, and reports. Regarding the AML / KYC policy, KingsExchange may monitor all transactions and reserves the right to:
— Request any additional information and documents from the User in case of suspicious transactions;
— Suspend or block the User's account if KingsExchange has reasonable suspicions that the User is involved in illegal activities.
The above list is not exhaustive, and operations will be monitored daily to determine whether transactions should be considered suspicious.
3. Risk Assessment
KingsExchange , in accordance with international requirements, checks transactions for risks using AML services.
As a result, a transaction may be rejected if the overall risk exceeds 20%. Additionally, the Service may refuse to provide services to the User if the risk exceeds 1.5% in the following categories:
— Dark Service — coins related to child abuse, terrorism financing, or drug trafficking;
— Dark Market — coins used for purchases in the dark web;
— Scam — coins obtained by deceiving clients;
— Mixer — coins passed through a mixer to make tracking difficult or impossible. Often used for money laundering;
— Illegal Service — coins related to illegal activities;
— Ransom — coins obtained through extortion or blackmail;
— Exchange Fraudulent — coins from an exchange associated with fraud, illegal activities, or funds seized by the government;
— Stolen — stolen coins;
— Gambling — coins related to unlicensed online casinos.
If the transaction is deemed high-risk, the User must undergo KYC verification to confirm their identity.
4. Conducting Exchange
The Service KingsExchange warns users against attempting to use KingsExchange for the legalization of funds obtained by criminal means, terrorism financing, fraud of any kind, or for purchasing prohibited goods and services.
To prevent illegal transactions, the Service sets certain requirements for all Requests created by the User:
4.1. The sender and recipient of the Payment in the Request must be the same person. Transfers to third parties are strictly prohibited when using the Service.
4.2. The contact details entered by the User in the Request, as well as other personal data provided to the Service, must be accurate and up-to-date. Upon the User's request, personal data can be removed from the Service's database within 3 years from the date of the User's last completed Request.
4.3. If the Service's administration has reasonable suspicions that the User is attempting to use the Service for money laundering or conducting other illegal operations, the administration has the right to:
— suspend the execution of the User's exchange operation;
— request identity documents from the User;
— request other payment-related information;
4.4. All information provided by the client may be transferred to regulatory authorities in the following cases:
— upon request of law enforcement agencies;
— by court decisions of various instances;
— upon requests from Payment System administrations.
Personal data includes:
— last name, first name, patronymic;
— email address;
— country of residence/citizenship; — wallet details;
— mobile phone number;
— identity document data;
— address of location
4.5. The processing of personal data means recording, systematization, accumulation, storage, clarification (updating, changing), extraction, use, transfer (distribution, provision, access), including cross-border, anonymization, blocking, deletion, destruction of personal data, not falling under special categories, for which written consent from the User is required for processing.
4.6. The processing of personal data is carried out to fulfill the Parties' obligations under the Agreement, to register the User on the Service's Website, provide technical support to the User, process Requests, provide the Service, consider inquiries and complaints, send information and other messages to the User's email address.
4.7. The basis for the Service's right to process the User's data is the User's consent. The consent is given in the form of clear active actions of the User, namely one or a combination of the following actions: registering the User on the Service's Website and independently providing the necessary data during such registration, filling out an online form on the Service's website to make a Request, paying for the Request, and other active actions using the Service's Services.
KingsExchange reserves the right:
1) to require the User to provide additional information revealing the origin of digital assets and/or confirmation that these assets were not obtained through criminal means;
2) to block the User's account and any transactions related to the User, transfer all available information and documents regarding the incident to financial and/or law enforcement authorities at the Service's registration location and, if necessary, at the Client's registration address;
3) to require the User to provide identity documents, video verification, registration address, solvency;
4) to return digital assets only to the details from which the transfer was made, after full verification by the Service's security service, if the legal origin of the Client's funds has been verified;
5) to refuse the User's withdrawal of funds to third-party accounts without explanation;
6) to withhold the User's funds until a full investigation of the incident;
7) to monitor the entire transaction chain to detect suspicious transactions;
8) to refuse the User's service if the Service has reasonable suspicions about the legality of the origin of digital assets or if it is impossible to trace the entire asset movement chain from the moment of their appearance, and withhold the funds in special accounts of the Service.