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

Verification of users 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 detection of suspicious activity by Users.

KingsExchange performs data collection, filtering, record-keeping, investigation management, and reporting. With regard to 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 this User is engaged in illegal activity.

The above list is not exhaustive, and operations will be monitored on a daily basis to determine whether transactions should be regarded as suspicious.

3. Risk Assessment

KingsExchange, in accordance with international requirements, checks transactions for risk using AML services.

In this regard, a transaction may be rejected if the total risk exceeds 20%. Also, the Service may refuse to provide services to the User if the risk exceeds 1.5% in the following categories:

• Dark Service — coins associated with child abuse, financing of terrorism, or drug trafficking;
• Dark Market — coins that have been used for purchases on the darknet;
• Scam — coins that were obtained by deceiving customers;
• Mixer — coins have been passed through a mixer to make tracking them difficult or impossible. Often used for money laundering;
• Illegal Service — coins associated with illegal activity;
• Ransom — coins obtained through extortion or blackmail;
• Exchange Fraudulent — coins from exchanges associated with fraud, illegal activity, or whose funds have been seized by the government;
• Stolen — stolen coins;
• Gambling — coins associated with unlicensed online casinos.

In the event that a transaction turns out to be high-risk, the User must undergo KYC verification to confirm their identity.

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.