AML & CFT Policy

AML (Anti Money Laundering) and CFT (Counter Terrorist Financing) Policy

IMPORTANT DOCUMENT

In this policy the term “We”, “Our”, “Us” refers to “XBTCINDIA”.

The KYC / AML policy is to prevent our website from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities. The objective of this policy is also to enable us to know / understand our customers and their financial dealings better which in turn will help us to manage its risks prudently.

Money-laundering prevention and knowing your customer are important part of our risk management strategies and not simply as stand-alone requirements that are being imposed by legislation/regulators’.

We reserve the right to request additional forms of identification used for the purpose of understanding more about who clients are. (eg. Pan card, Aadhar card, Passport etc)

We reserve the right to perform due diligence checks against the identification and verification of its users.

We reserve the right to withhold or delay the withdrawal of funds belonging to users who fail to comply.

We reserve the right to file Suspicious Activity Reports (SAR) in confidentiality to relevant government authorities.

We are prohibited from transacting with individuals, companies and countries that are on prescribed Sanctions lists of the government.

 

Customer Acceptance Policy (CAP):

A)   The CAP is to lay down criteria for acceptance of a customer based on the relative risk associated with the transaction and the documentation details required for acceptance of the customer. The category of high risk customer would be:

Ø Non-Resident customers, High net worth individuals, politically exposed persons of foreign origin. Non-face to face customers, Persons with questionable reputation as per public information.

B)    Records have to be created for the customer’s identity, social / financial status, nature, location and information of the customer.

C)    CAP will ensure that:

Ø No transactions with fictitious / anonymous names are entered.

Ø Parameters of risk perception are defined in terms of the location of the customer and mode of payments.

Ø Documentation requirements and other information are collected for different categories of persons as required under PMLA.

Ø No transaction of business where it is unable to verify identity of the customer.

Ø In cases where a customer is represented by another person, to satisfy that the same is genuine.

Ø Necessary checks are adopted before accepting customer to ensure that the customer identity does not match with any person of known criminal background / banned entities such as individual terrorists or terrorist organization.

Ø The customer profile created from the information would be confidential in nature and details shall not be divulged for cross-selling purpose or any other purpose, except as required by law.

 

Customer Identification Procedure:

The identity of the individual customer shall be verified from independent and genuine sources along with recent ID to be kept on record. The customer shall also put his signature on any copy of the ID. The place of residence and of work place of the customer must be verified by employees authorized in this regard, and found to be as per information provided.

The following documents / information shall be obtained for establishing the identity of the customer:

Ø Name of the customer to be verified from any one of the following: Passport/PAN card/Voters identity/Driving Licensee/Employment identity card (after satisfying with the reliability), school leaving certificate

Ø Correct Permanent address to be verified from any one of the following: Telephone Bill/Bank Account statement/Electricity Bill/Ration card/Letter from employer (after satisfying with reliability), Leave and license agreement.



Prevention of Money-laundering (Maintenance of Records) Rules, 2005 as amended up to 2013 (the PMLA Rules)


The PMLA Rules specify the procedure and manner for maintenance and retention of records.

As per Rule 3, every Reporting Entity is required to maintain records of:

(a)   All transactions of the value of more than rupees ten lakhs or its equivalent in foreign currency;

(b)   All series of transactions integrally connected to each other which have been valued below rupees ten lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month and the monthly aggregate exceeds an amount of ten lakh rupees or its equivalent in foreign currency;

(c)   All transactions involving receipts by non-profit organizations of value more than rupees ten lakh, or its equivalent in foreign currency;

(d)   All transactions, where any forgery of a valuable security or a document has taken place facilitating the transactions;

(e)   All suspicious transactions whether or not made in cash;

(f)    All cross border wire transfers of the value of more than five lakh rupees or its equivalent in foreign currency where either the origin or destination of fund is in India.

Under these PMLA Rules, a suspicious transaction means a transaction including an attempted transaction, whether or not made in cash, which to a person acting in good faith:

Ø (a)   gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the PMLA Act, regardless of the value involved; or

Ø (b)   appears to be made in circumstances of unusual or unjustified complexity; or

Ø (c)   appears to have no economic rationale or bona fide purpose; or

Ø (d)   gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.

Under section 12(3) of the PMLA Act, the record referred to above shall be maintained for a period of 5 years from the date of transactions between the clients and the reporting entity.

For which banking transactions do I need to quote my PAN number?

PAN number needs to be quoted for transactions above Rs.50,000 (whether in cash or non-cash), etc. A full list of transactions where PAN number needs to be quoted can be accessed from the website of Income Tax Department at the following URL:  http://www.incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx?grp=rule&cname=CMSID&cval=103120000000007541&searchFilter=&k=114b&IsDlg=0


Rules regarding periodically updating KYC?

Different periodicity has been prescribed for updating of KYC records depending on the risk. KYC is required to be done at least once in two years for high risk customers, once in eight years for medium risk customers and once in ten years for low risk customers.

Periodically updating KYC has to be carried out in respect of customer categorized as ‘low risk’ also, if there is no change in status with respect to the identity (change in name, etc.) and/or address of such customers we may ask such customers to submit only a self-certification about ‘no-change in status’ at the time of periodically updating KYC. We may not ask such customers to submit copies of ‘Officially Valid Documents’ for periodic updating.

In case of change of address of such ‘low risk’ customers, they could merely forward a certified copy of the document (proof of address) by mail/post, etc. Physical presence of such low risk customer is not required at the time of periodically updating KYC.

Information to be preserved

We are required to maintain all necessary information in respect of transactions referred to in Rule 3 of PMLA to permit reconstruction of individual transaction, including the following information:

  1.       the nature of the transactions
  2.       the amount of the transaction and the currency in which it was  denominated;
  3.       the date on which the transaction was conducted; and
  4.       the parties to the transaction.


Annex- I

Customer Identification Procedure

Features to be verified and documents that may be obtained from customers

Features

Documents

Individuals

Legal name and any other 

names used 

 







 Correct permanent address

 

(i) Passport  (ii) PAN card (iii) Voter’s Identity Card (iv) Driving License (v) Job Card issued by NREGA duly signed by an officer of the State Govt (vi) The letter issued by the Unique Identification Authority of India ( UIDAI) containing details of name, address and Aadhaar number (vii) Identity card (subject to the satisfaction) (viii) Letter from a recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of our company.

(i) Telephone bill (ii) Bank account statement (iii) Letter from any recognized public authority (iv) Electricity bill (v) Ration card (vi) A rent agreement indicating the address of the customer duly registered with State Government or similar registration authority. 

Companies

(i) Certificate of incorporation and Memorandum & Articles of Association (ii) Resolution of the Board of Directors (iii) Power of Attorney granted to its managers, officers or employees to transact business on its behalf (iv) Copy of PAN allotment letter (v) Copy of the telephone bill

Partnership firms

(i) Registration certificate, if registered (ii) Partnership deed (iii) Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf (iv) Any officially valid document identifying the partners and the persons holding the Power of Attorney and their addresses (v) Telephone bill in the name of firm/partners

Trusts & Foundations

(i) Certificate of registration, if registered (ii) Power of Attorney granted to transact business on its behalf (iii) Any officially valid document to identify the trustees, settlers, beneficiaries and those holding Power of Attorney, founders/managers/ directors and their addresses (iv) Resolution of the managing body of the foundation/ association (v) Telephone bill