PALCOIN KYC/AML Policy
Objective
The objective of PALCOIN’s Know Your Customer (KYC) and Anti-Money Laundering (AML) Policy is to prevent the platform from being used—intentionally or unintentionally—for money laundering, terrorist financing, or any other illicit financial activities. This policy also aims to ensure that PALCOIN fully understands its customers, their financial behavior, and associated risks to safeguard the integrity of the ecosystem
Definitions
- KYC: Know Your Customer – procedures to verify the identity of clients
- CDD: Client Due Diligence – the process of assessing client risk and verifying identities.
- EDD: Enhanced Due Diligence – additional measures taken for high-risk clients
- PEP: Politically Exposed Person – individuals in prominent public positions.
- UBO: Ultimate Beneficial Owner – the natural person(s) who ultimately owns or controls a client.
- AML: Anti-Money Laundering
- Virtual Assets: Any digital representation of value that can be digitally traded, transferred, or used for payment.
KYC Process Overview
PALCOIN has implemented internal KYC procedures in compliance with applicable laws and global best practices. These procedures include:
a. Client Due Diligence (CDD)
CDD is applied based on the customer’s risk profile and includes:
- Collection of identity data.
- Verification of documents from reliable sources.
- Risk assessment of the customer relationship.
- Continuous monitoring and periodic updates.
b. Customer Identification and Verification
The following information is collected and verified from reliable sources:
For Natural Persons:
- Full name
- Date and place of birth
- Nationality
- Gender
- Government-issued ID details (number, issuing country, expiry date, etc.)
- Residential and registered addresses
For Legal Entities or Branches:
- Legal name and registration number
- Country of incorporation
- Identity of management and authorized representatives
- Identification of UBO(s)
Screening and Risk Assessment
Screening is an integral part of the CDD process and includes:
- PEP Screening: To determine whether a client or connected individual is a politically exposed person.
- Sanctions Screening: To ensure the client is not subject to international sanctions or embargoes.
- Adverse Media Screening: To check for negative media or reputational risks.
Clients identified with elevated risk are subject to Enhanced Due Diligence (EDD), which may include:
- Additional identity verification.
- Proof of source of funds or wealth.
- Approval by senior management before onboarding.
Source of Funds and Wealth
For high-risk clients, PALCOIN may request documentation to verify the source of funds (e.g., payslips, crypto wallet transaction history) and/or source of wealth (e.g., inheritance, investment income, business ownership).
Ongoing Monitoring
PALCOIN performs ongoing monitoring of the business relationship, which includes:
- Regular review of customer information.
- Transaction analysis to detect unusual behavior
- Updating KYC profiles based on risk or regulatory changes.
- Reporting any suspicious activities to the competent authorities (e.g., via STRs – Suspicious Transaction Reports).
Data Retention
All KYC records, including identification documents and client profiles, are retained for five (5) years after the end of the business relationship or the expiration of the KYC validity period.
Data Protection & Confidentiality
PALCOIN is committed to protecting client data in accordance with applicable privacy regulations, including the General Data Protection Regulation (GDPR). Personal information is:period.
- Collected only for regulatory and compliance purposes.
- Stored securely and protected against unauthorized access.
- Not shared with third parties unless legally required.
Review and Updates
This policy is reviewed regularly to ensure ongoing compliance with regulatory changes, industry standards, and risk trends. Any updates are communicated via official PALCOIN channels.