Anti-Money Laundering (AML) & Know Your Customer (KYC) Policy

Last Revised: 29 November 2017


Thank you for visiting our website. We are committed to protecting your interests against potential instances of money-laundering and related financial crimes, and promoting legal and transparent trade in Digital Assets. This Anti-Money Laundering Policy (“AML & KYC Policy”) describes the policies and procedures relating to prevention of money laundering, financing of terrorism, and related illegal activities. Although under Indian laws relating to anti-money laundering, such as the Prevention of Money Laundering Act, 2002 and the Unlawful Activities Prevention Act, 1967 (“AML Laws”), the Company does not have any specific obligations to follow the procedures prescribed herein, however, the Company has prepared this AML & KYC Policy to ensure the highest possible voluntary compliance under the AML Laws.

 

The terms “We”, “Our”, “Company” and “Us” refer to Global DCX India Private Limited, and the terms “User”, “You” and “Your” refer to a User of our Website. The capitalized terms used in this AML Policy, but not defined, shall have the meaning given to such terms in the Terms (defined hereinafter).

 

For the purposes of the AML Laws, the officer responsible for developing and enforcing the policies and procedures contained herein is the Chief Compliance Officer, who is designated by the Company as the Principal Officer. They can be contacted at Global DCX India Pvt. Ltd., R-514, Lower Ground Floor, New Rajendra Nagar, New Delhi – 110.060 or at compliance@globaldcx.com.

 

This AML & KYC Policy applies uniformly to any User desirous of availing the Services or otherwise using or benefitting from the use the Website. It is imperative that you read this AML & KYC Policy before using the Website. By using the Website, you are expressly consenting to be bound by the Terms of Use and consequently this AML Policy. You must stop using our Services and/or the Website if your use results in committing/attempting to commit any criminal offences.

 

AML & KYC Policy Is Part Of Our Terms

This AML & KYC Policy is a part of and incorporated within, and is to be read along with the our Terms of Use (the “Terms of Use”) and our Privacy Policy, in force from time to time, and available at www.GlobalDCX.com.

 

Policy Changes

You understand that we periodically change and update all our policies, including this AML Policy. Such changes may be made without prior notice to you, and you consent to any such changes. However, any changes we make will only be applicable to activities and information on a going forward, not retroactive basis.

We may notify you of changes by updating the “Last Revised” field at the top of this document with the date of the most recent revision. You expressly consent to be bound by such revisions from the date the field is updated. It is important therefore that you review this Policy on a regular basis to ensure that you are familiar with them and/or any changes made to them, and immediately contact us in writing to close your account if you disagree with any such change.

 

Scope Of This Policy

We have developed an internal compliance and audit system to prevent violation of any AML Laws. Accordingly, this policy incorporates the following elements: (i) Customer Acceptance Terms; (ii) Risk Management Procedure; (iii) Customer Verification Procedure; and (iv) Transaction Monitoring Term.

 

Internal Controls

This AML & KYC Policy has been duly approved by our Audit Committee, which is empowered by the Board to oversee compliance with AML Laws. We may regularly furnish to the Financial Intelligence Unit – India (FIU-IND) or other law enforcement agencies the details of any transactions taking place on the Website and such other information as deemed necessary by us. The Chief Compliance Officer is empowered to ensure compliance with AML Laws. S/he is available at compliance@globaldcx.com.

 

We will undertake a risk assessment based on (A) sufficiency and adequacy of identification documents submitted by you; (B) your social and/or financial status; (C) nature and other similar information about your business/vocational activities; or (D) guidance notes circulated by various governmental and inter-governmental organizations. We may internally categorize you as a low-risk, medium-risk, or a high-risk User on the basis of the aforementioned assessment.

 

We will keep your risk categorization and related data confidential at all times, subject to any requests received from a competent law enforcement authority. In order to maintain the integrity of the risk assessment process, the results of your risk assessment and/or categorization will not be disclosed to you either.

 

Customer Due Diligence/Know Your Customer

You may either at the time of registering as a User; upon execution of any transactions; while requesting access to additional Services (such as increased buy and sell limits, requests to transfer any funds to your Linked Bank Account or third-party digital asset wallets, etc.); or periodically for purposes of updating records and on-going due-diligence (as specified under the AML Laws; or upon being directed by appropriate enforcement authorities), be required to take part in the User identification and verification process. For this purpose, we will follow the procedure prescribed under this Clause.

Required Customer Information

We will collect the following information for the purposes of verification of identification:

 

  • Individual Users – name; date of birth; phone number and residential address; photograph; certified copy of any Valid Documents; documents pertaining to business/financial status of such User (if prescribed by the Company);
  • Business Users – Business name; name, contact-details, photograph, and copy of Valid Documents of the authorised representative, one certified copy each of the certificate of incorporation/registration Certificate (as the case may be); memorandum and articles of association/partnership deed (as the case may be); board resolution/other authorization documents giving authority to the representative chosen to execute transactions on the Website;

 

You must file a fresh proof of address within six months of effecting any changes to the address mentioned as per the ‘proof of address’ submitted by you.

 

Comparison with Government-Provided Lists

In addition to the above, we may require you to furnish such other details as may be deemed necessary to verify your identity if we have a reason to believe that you are a person or entity whose details are enlisted in any of the Sanctions Lists, or upon being directed by a competent enforcement authority. For the purpose of this policy, a “Sanction Lists” are lists maintained by us for the purposes of anti-money laundering compliance and include those circulated by the Reserve Bank of India and the United Nations Security Council, including without limitation, the ISIL and Al-Qaida Sanctions List and the 1988 Sanctions List.

 

Additional Information from Business Entities

In case of a legal entity, you must identify the Beneficial Owner and also assist in verification of the identity of such Beneficial Owner and any individual who purports to act on behalf of such legal entities. In this regard, a “Beneficial Owner” means: (A) In case of companies, the natural person who has ownership of over 25% (twenty five percent) of the shares, is entitled to over 25% (twenty five percent) of the profits, or has the power, directly or indirectly, to appoint or elect more than half of the board of directors of such company, as the case may be; and, (B) In case of partnership firms/Limited Liability Partnerships, the natural person(s) who has ownership of over 15% (fifteen percent) of the capital or is entitled to over 15% (fifteen percent) of the profits of such firm, as the case may be.

 

Lack of Verification

If we believe any information obtained from the User hereunder is (A) inadequate or incomplete; (B) false or misleading; (C) insufficient resulting in an inability to readily verify the same; or (D) appearing on any Sanctions Lists, we may in our sole discretion either refuse or terminate (as the case may be) the registration of such Account or require such User to verify the Valid Documents submitted by it again.

 

User Refusal to Provide Information

We may, in our sole discretion, refuse to open any new accounts, terminate existing User Accounts after giving due notice, or refuse to process any transactions on the Website if we are unable to verify any information due to non-cooperation by the User, or if such transactions are likely to have an material adverse effect on us for being in violation of any applicable laws or industry best-practice guidelines.

 

Reliance on Other Financial Institution

We may also require you to certify that your Linked Bank Account is held only with a scheduled commercial bank which is compliant with all know your customer (KYC) procedures mandated under the applicable laws. For this purpose, we may require you to furnish this certification in such format as may be prescribed by us.

 

Identity Verification Procedure

We may, at our sole discretion, at the time of initiation of your User registration process, request one or more appropriate third party service provider to assist us in authentication and verification of the Valid Documents and other incidental details provided by you. In addition to the above, we reserve the right to verify customer identity through non-documentary means or both. We may also use non-documentary means if we are still uncertain about whether we know the true identity of a User. We will use the following non-documentary methods of verifying identity: (a) Confirming validity of email; (b) Confirming validity of telephone number or bank account number; and (c) Confirming your location using, among others, your IP address; all of which may be carried out by an automated or manual process.

 

Monitoring and Mitigating Suspicious Activity

We may monitor and flag for review all transactions where the amounts involved exceed limits specified by local or applicable laws, official guidelines, or industry best practices. In addition to the above, we may regularly monitor, through both manual screening and use of software-based algorithms, all transactions executed and/or attempted to be executed on our Website, in order to promptly identify and highlight any suspicious activity, which includes without limitation, activities that:

  • appear, to a person acting in good faith, akin to collection of funds to be used, either in full or in part, by any terrorist or related organization, or in order to carry out any of the activities relating to terrorism, or terrorist acts;
  • appear, to a person acting in good faith, to have been structured in a manner of unusual or unjustified complexity in order to avoid triggering any reporting requirements;
  • appear, to a person acting in good faith, to have been transacted for a malafide purpose or where a sound economic rationale cannot be ascertained.
  • appear, to a person acting in good faith, to signal possible ‘money-laundering’ activities, as defined under the Prevention of Money Laundering Act, 2002.
  • appear to be unusual due to the reason of being inconsistent with any User’s risk profile, expected usage pattern or sophistication. The extent of monitoring shall depend on various factors including upon each User’s risk profile.

 

On detection of any suspicious activity, we reserve the right to take appropriate actions without any prior notification to the User, which includes, without limitation, (i) terminating the Account, (ii) restricting and/or blocking further access to our Website, and (iii) notifying the appropriate enforcement authorities regarding the suspicious activities of any User.

 

Maintenance of Records

Under the applicable AML Laws, we are required to maintain and preserve the following information and/or data:

  • Records of all transactions executed by you on our Website, for a period of at least 5 (Five) years from the date of each transaction.
  • Records of all suspicious transactions, trans-national transactions, and transactions wherein the amounts involved exceed INR 50,000, whether executed or attempted, for a period of at least 10 (Ten) years, including but not limited to the information about the nature and value of the transactions, parties involved in such transactions, and information about the date of remittance, in addition to reporting the same fortnightly.
  • Identification records of Users (including but not limited to the Valid Documents submitted pursuant to the clause titled ‘Customer Due Diligence’ above), during the subsistence of and for a period of at least 5 (Five) years from the date of termination of such User’s Account.

 

Disclosure and Notices

In order to improve the integrity and transparency of transactions on the Online Platforms, you are encouraged to report, to our Chief Compliance Officer, any information which you are privy to or become privy to, regarding any suspicious transactions, or transactions you find or have reason to believe are dubious in nature.

 

In order to ensure compliance with this AML & KYC Policy and/or the applicable laws, the Company may be required to send you notices from time to time. All such notices will be sent to such address as provided by you. Where you are required to share any information according to the procedures contained in this AML & KYC Policy, such communication may be made by you electronically by sending an email to our Chief Compliance Officer.