Anti-Money Laundering Policy

Both international and local rules and regulations require the KingsExchange exchange service to implement effective internal procedures to prevent any illegal activity and to take all necessary measures to that end.

The KingsExchange service adheres to practices in the field of combating the legalization (laundering) of proceeds of crime and the financing of terrorism (AML — Anti Money Laundering), as well as the "Know Your Customer" (KYC) policy.

The AML / KYC Policy covers the following matters:

• Verification procedures;
• Transaction monitoring;
• Risk assessment.

1. Verification Procedures

1.1. Identity Verification

The verification procedure on KingsExchange requires the User to provide the service administration with genuine documents (for example, an international passport, account statement, utility bill, etc.). For such purposes, KingsExchange reserves the right to collect the user's identification information as part of the anti-money laundering and "Know Your Customer" policies.

Additionally, KingsExchange reserves the right to further verify certain Users who have raised suspicion. The verification process includes the submission of documents confirming the User's identity.

For individuals:

• To confirm identity, the User must provide one of the following documents:
  • civil passport;
  • international passport;
  • ID card.
• To confirm address, the User must provide one of the following documents:
  • a bank statement that clearly shows the address of Your actual residence;
  • a utility bill that clearly shows the address of Your actual residence;
  • tax documents that clearly show the address of Your actual residence;
  • a document confirming the address of Your actual residence, issued by local authorities, that clearly shows the address of your actual residence.

For corporate clients:

• To confirm identity, the User must provide one of the following documents:
  • civil passport of the director;
  • international passport of the director;
  • ID of the director;
• To confirm address, the User must provide one of the following documents:
  • a bank statement that clearly shows the address of Your actual residence;
  • a utility bill that clearly shows the address of Your actual residence;
  • tax documents that clearly show the address of Your actual residence;
  • a document confirming the address of Your actual residence, issued by local authorities, that clearly shows the address of your actual residence.
• To confirm that the User is an authorized representative of the organization, they must provide all of the following documents:
  • a document confirming the legal address of the company;
  • a document on the registration of the legal entity;
  • an order on the appointment of the director;
  • a scanned copy or photograph of the letter of decision to work with KingsExchange.
• Information about the ultimate beneficiary:
  • civil passport of the ultimate beneficiary;
  • international passport of the ultimate beneficiary;
  • ID of the ultimate beneficiary;
  • a document confirming the address of the ultimate beneficiary. The ultimate beneficiary, according to Cypriot legislation, means a natural person who owns or controls the User's Account and/or a natural person on whose behalf the transactions are carried out.

1.2. Bank Card Verification

Users who wish to perform an exchange involving a bank card must verify it in advance. Detailed instructions on completing the verification can be found here.

2. Transaction Monitoring

Before accepting an exchange request, the responsible KingsExchange Compliance employee reviews the Client and the request using internal risk criteria, including the BestChange blacklist.

After cryptocurrency is received, the address and transaction are subject to AML/KYC and transaction monitoring by connected third-party cryptocurrency platforms, including WhiteBIT.

KingsExchange and the connected cryptocurrency platform reserve the right to:

• request additional information and documents from the User, including KYC/SoF information and proof of the origin of funds;
• suspend the exchange operation while the review is in progress;
• refuse to provide services if there are reasonable grounds to suspect unlawful activity.

If the cryptocurrency platform identifies increased risk, the funds may remain held on that platform and are not processed further until the requested information has been provided and the review has been completed.

3. Risk Assessment

Risk is assessed based on the combined results of internal Compliance checks and the monitoring systems of connected third-party cryptocurrency platforms. A decision may take into account the category and severity of the identified risk, the information provided by the User, and the results of KYC/SoF verification.

High-risk categories may include:

• Dark Service and Dark Market;
• terrorist financing and sanctions-related risks;
• Scam, Illegal Service, Ransom, and Exchange Fraudulent;
• Mixers and services used to conceal the origin of funds;
• Stolen funds and unlicensed Gambling services.

If increased risk is identified, the User may be required to undergo KYC/SoF verification and provide documents confirming their identity, the origin of funds, and the purpose of the transaction. The operation remains suspended until the review is completed.

4. Conducting an Exchange

The KingsExchange service warns users against attempts to use KingsExchange for the legalization of funds obtained by criminal means, the financing of terrorism, fraud of any kind, as well as against using the service to purchase prohibited goods and services.

To prevent operations of an illegal nature, the Service establishes certain requirements for all Applications created by the User:

• The sender and recipient of the Payment under the Application must be the same person. The use of the Service for transfers in favor of third parties is strictly prohibited.
• The contact data entered by the User in the Application, as well as other personal data transmitted by the User to the Service, must be reliable and up to date. At the User's request, personal data may be deleted from the Service's database within 3 years from the date of the User's last completed Application.
• If the Service administration has reasonable suspicions that the user is attempting to use the Service for money laundering or for the purpose of conducting any other illegal operations, the administration has the right to:
  • suspend the execution of the user's exchange operation;
  • request identification documents from the user;
  • request other information related to payments;
• All information provided by the client may be transferred to supervisory authorities in the following cases:
  • at the request of law enforcement agencies;
  • by decision of courts of various instances;
  • at the requests of Payment system administrations.

KingsExchange reserves the right to:

• require the User to provide additional information disclosing the origin of digital assets and/or confirmation that these assets were not obtained by criminal means;
• block the account and any operations associated with the User if they violate the terms of use of the Service.