ANTI-MONEY LAUNDERING POLICY

Last updated: Aug 7, 2018

We, at Bitfair Technologies Private Limited (hereinafter referred to as “Company” “we”, “our” and “us”), 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 on your use of this Platform. The terms “User”, “you” and “your” refer to the Users of our Platform.

This Anti-Money Laundering Policy (“AML Policy”) describes the policies and procedures relating to prevention of money laundering, financing of terrorism, and related illegal activities. We have prepared this AML Policy to ensure the highest possible voluntary compliance under the AML Laws.

BY USING THIS PLATFORM, YOU CONFIRM THAT YOU ARE CONSENTING TO BE BOUND BY THIS AML POLICY. THEREFORE, WE REQUEST YOU TO CAREFULLY READ THE TERMS CONTAINED HEREIN. WE RECOMMEND THAT YOU PRINT A COPY OF THIS FOR FUTURE REFERENCE. YOU ARE ENCOURAGED TO REVIEW THIS AML POLICY EVERY TIME YOU ACCESS OUR PLATFORM TO MAKE SURE THAT YOU UNDERSTAND HOW ANY INFORMATION YOU PROVIDE WILL BE USED. YOU MUST STOP USING OUR SERVICES AND/OR THE PLATFORM IF YOUR USE RESULTS IN COMMITTING/ATTEMPTING TO COMMIT ANY CRIMINAL OFFENCES.

WE MAY REVISE THE TERMS OF THIS AML POLICY AT ANY TIME BY AMENDING THIS PAGE. PLEASE CHECK THIS PAGE FROM TIME TO TIME TO TAKE NOTICE OF ANY CHANGES WE MADE, AS THEY ARE BINDING ON YOU. ANY CHANGES WILL ONLY APPLY TO ACTIVITIES AND INFORMATION ON A GOING FORWARD BASIS.

For the purposes of the AML Laws, the officer responsible for developing and enforcing the policies and procedures contained herein is Shubham Yadav the “Chief Compliance Officer”, who is designated by us as the principal officer. He can be contacted at Bitfair Technologies Private Limited, at Shubham Yadav at Ground B, Midas Tower, Hinjewadi Phase 1, Pune, MH - 411057 or 9607126161, from 10:00 AM to 6:00 PM. He is also available at support@coindelta.com.

AML POLICY IS PART OF OUR TERMS

This AML Policy is a part of and incorporated within, and is to be read along with the User Terms and Conditions available at https://flux.coindelta.com/agreement or the Privacy Policy available at https://flux.coindelta.com/privacy-policy (collectively referred to as the “Terms”). You may view these policies on our Platform. The capitalized terms used in this AML Policy, but not defined herein, shall have the meaning given to such terms in the Terms.

INTERNAL CONTROLS

If we believe that a transaction on the Platform seems suspicious, we may furnish the details of such transaction to the relevant law enforcement agency/ies, along with such other information as may be necessary. The Chief Compliance Officer is empowered to ensure compliance with AML Laws.

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.

CUSTOMER DUE DILIGENCE

You will, at the time of registering as a User, upon execution of any transactions, while requesting access to additional Services (such as revising buy and sell limits), or periodically for the purposes of updating of 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. Upon verification by us, you will be permitted to use this Platform in compliance with the Terms

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 the national identity document or passport or bank account information or taxpayer number or other similar information (“Valid Documents”); documents pertaining to business/financial status of such User (if prescribed by us) and such other documents as may be prescribed us (at our sole discretion) from time to time.
  • Business Users – Business name; name, contact-details, photograph and certified copy of the 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 Platform and such other documents as may be prescribed by us on the Platform (at our sole discretion) from time to time.

You must file a fresh proof of address within 3 (three) months of effecting any changes to the address mentioned as per the residential/postal/registered address submitted by you.

ADDITIONAL INFORMATION FROM BUSINESS ENTITIES

In case of an individual, you must provide an undertaking at the time of registration that you will avail the Services only for yourself and not for the benefit of any other third party.

In case of a legal entity, you must identify the Beneficial Owner (if any) 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.

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, “Sanctions Lists” are lists maintained by us for the purposes of complying with anti-money laundering laws as provided by the law enforcement authority in your jurisdiction including, without l imitation, the Sanctions List maintained by the United Nations Security Council (the ISIL and Al-Qaida Sanctions List and the 1988 Sanctions List available at https://www.un.org/sc/suborg/en/sanctions/1988/materials), and by the Reserve Bank of India in the jurisdiction of India.

LACK OF VERIFICATION

If we believe any information obtained from you is (a) inadequate or incomplete; (b) false or misleading; (c) insufficient resulting in an inability to readily verify the same; or (d) appears on any Sanctions Lists, we may in our sole discretion, either refuse or terminate (as the case may be) the registration of your User Account, or require you to verify the Valid Documents submitted by you again, or contact the appropriate authorities and submit any details provided by you to the authorities.

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 Platform if we are unable to verify any information due to non-cooperation by the User, or if such transactions are likely to have a material adverse effect on us for being in violation of any applicable law or industry best-practice guidelines.

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 providers 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; 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 regularly monitor through both, manual screening and use of software-based algorithms, all transactions executed and/or attempted to be executed on our Platform, 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 mala fide purpose or where a sound economic rationale cannot be ascertained.
  • appear, to a person acting in good faith, to signal possible ‘money-laundering’ or similar activities, as defined under the applicable law.
  • 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, (a) terminating the User Account; (b) restricting and/or blocking further access to our Platform; and (c) notifying the appropriate enforcement authorities regarding the suspicious activities of any User.

MAINTENANCE OF RECORDS

As part of our AML Policy, we will maintain and preserve the following information and/or data:

  • Records of all transactions executed by you on our Platform, for a period of at least 7 years from the date of each transaction.
  • Records of all suspicious transactions, trans-national transactions, and transactions wherein the amounts involved exceed INR 10,00,000/- (Indian National Rupees Ten Lakh only), whether executed or attempted, for a period of at least 7 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 7 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 Platform, you are encouraged to report 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, to our Chief Compliance Officer.

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



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