AML/KYC Policy
The policy of the AML/KYC BitFlaming service
By using the services of the Web resource, the Client agrees to undergo the identity verification procedure.
The web resource may request any personal data in any format and volume that it deems necessary for full verification within the framework of international AML standards.
The Sumusb service is used as a tool for user verification (KYC checks)
The Client provides consent to the Web Resource to carry out the necessary checks directly or through third parties to confirm the identity or protect the Client and/or the Web Resource from financial crimes such as fraud. Such third parties may be KYC services and/or other systems, the choice of which is not limited to the Client. To verify addresses and transactions, the exchange platform uses the BitOK and CoinKyt tools, designed to control, record and analyze cryptocurrency transactions. If, when compared with data from other anti-money laundering (AML) services, discrepancies in risk assessment arise, the exchange service is guided solely by the results obtained from BitOK and CoinKyt.
By using the services of the Web Resource, the Client agrees to AML verification of all online addresses used in transactions on the Web Resource.
The web resource has the right to request verification of the Client if the online address of the Client’s wallet participating in the transaction is associated with the following categories:
• Illegal Service
• Mixing Service
• Fraudulent Exchange
• Darknet Marketplace
•Darknet Service
• Ransom
• Scam
• Stolen Coins
• Terrorism Financing
• Sanctions
• Illicit Actor/Organization
• High-Risk Jurisdiction
• Gambling
• Fraud Shop
• Enforcement action
•Child Exploitation
As part of the AML verification procedures, each transaction is assigned an individual risk score (Risk Score). If the value of this indicator goes beyond the acceptable threshold, the exchange operation may be suspended for the time required for in-depth analysis. In such cases, additional verification measures are applied, including requesting information about the client (KYC) and sources of funds (SoF).
The following criteria have been established for risk assessment: the permissible share of funds in the High Risk category is no more than 5%, in the Medium Risk category is no more than 20%, and the final Risk Score should not exceed 50%.
Sources for verification are international databases that are updated on a regular basis. The analysis is carried out for each operation separately, and the risk profile can be adjusted taking into account the parameters of a specific user. Therefore, even an address that previously had zero risk may change its Risk Score as a result of interaction (receiving or sending) with a high-risk counterparty.
If the risk values after the AML check are higher than acceptable, then it becomes necessary to verify the identity:
To do this, the User must provide:
1. Identity document
One of the following documents:
o passport;
o ID card;
o driver's license;
Upload a photo or scan of the front and back sides of the document (or passport spread).
2. Selfie / Liveness check
Photo or short video of a face in real time according to the instructions of the Sumsub system.
3. Proof of Address
One of the documents issued no earlier than 3 months ago:
o utility receipt;
o Internet or telephone bill;
o bank statement;
o an official letter from a government agency.
The document must contain:
o Client's full name;
o full residential address;
o data matching the identity document.
4. Confirmation of the origin of funds (Source of Funds / SoF)
When checking, the client must also provide:
o screenshots of exchange accounts or crypto wallets;
o transaction history;
o confirmation of income (salary, freelancing, dividends, etc.);
o asset purchase and sale agreements;
o other documents confirming the legal origin of funds.
Procedure and duration of verification
• Processing data manually (including AML, KYC, SoF) takes no more than 24 hours from the moment the full set of documents is received.
• The decision to carry out an exchange or return funds is made within 24 hours after completion of the specified verification.
• Thus, the maximum review period is approximately 48 hours. After the identity verification procedure, the Service will refund the funds to the User, minus the network commission for sending. In case of refusal of verification, the User must report this via an email to BitFlaming, also indicating the application number and details. In this case, the Service will return the funds to the User minus 5% (no more than $100) if there are additional expenses in addition to the network commission.
If funds were blocked at the initiative of partners or authorized bodies, their return is carried out only after the blocking is completely lifted. The processing fee for such a transaction is charged in accordance with the general procedure: no more than 5%, but not more than 100 USD. Refunds are made within 12 to 24 hours from the moment the decision is made.
If the client does not provide the required information or does not get in touch within 90 calendar days, the funds may be blocked until an official request is received.