LEGAL

Know Your Client (KYC) / Anti Money Laundering (AML) Policy

Background

Money laundering and terrorist financing have been identified as one of the major threats to CGCX, crypto community and as well as to the international financial services community. Money laundering is the process of transforming the proceeds of crime and corruption into legitimate assets. Anti-money laundering (AML) refers to a set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions. Terrorism financing refers to activities that provide financing or financial support to individual terrorists or terrorist groups. Combating the financing of terrorism (CFT) refers to a set of procedures, laws or regulations designed towards thwarting the financing of terrorism.

Self-Regulation

CGCX recognises that money laundering can have a significant reputation risk on the organisation and its operations and therefore, takes a strict view on non-compliance with AML and CFT regulations. CGCX has an AML/CFT policy, designed to ensure that CGCX Group and its Members comply with the legal and regulatory requirements applicable in the UAE as well as with obligations applicable in other jurisdictions where CGCX Group has business interests. CGCX follows best practice global industry standards, including the globally recognised Financial Action Task Force (FATF) Recommendations on AML/CFT, and strictly adheres to LIBFC regulations on AML/CFT.

CGCX requires its Compliance Department to file Suspicious Transaction Reports (STR) and Suspicious Activity Reports (SAR) to the Management Committee with its recommendation and also to the relevant Regulatory authorities. CGCX Management Committee(MC) would decide on the course of action that may include seeking more information as well as withholding release of funds and or freezing of the client accounts if it deems fit unless until the client proves or identifies the source of funds with supporting documents.

CGCX takes pride in its established measures of self-regulation and also its compliance with relevant Government Regulations, in the wake of the constantly evolving regulatory landscape of digital tokens. We ensure our KYC/AML compliance procedures are aligned with the requirements of Labuan IBFC and with laws of Malaysia. A designated Compliance/AML officer is entrusted with independence and authority to monitor all processes/methods to ensure compliance and she directly reports to the Management Committee. Periodic training programs are planned for all employees on KYC/AML/CFT procedures. A risk based method of screening and approach of monitoring is adopted in our operations.

Technology based screening

CGCX implements automated KYC/AML services from Authenteq, a leading provider of KYC/AML blockchain solutions. All the clients and incoming transactions on CGCX are screened against known offenders databases across the globe. Only KYC/AML cleared prospects can become clients.

Depending upon the verification level passed by the clients, daily deposit and withdrawal limits are progressively increased with each of the completed verification stages.

Adherence to Sanctions and other regulations

CGCX does not deal with anyone who

  • – is listed by various Government bodies, as designated individuals or entities by such other law, regulation or rule as may be prescribed by the LIBFC
  • – is currently the subject of any Sanction;
  • – is located, organised or resident in a country or territory that is the subject of such Sanctions (including, without limitation, the Democratic People’s Republic of Korea, the Democratic Republic of Congo, Eritrea, Iran, Libya, Somalia, South Sudan, Sudan and Yemen); or
  • – has engaged in and is now engaged in any dealings or transactions with any government, person, entity or project targeted by, or located in any country or territory, that at the time of the dealing or transaction is or was the subject of any Sanctions;