AML/CTF procedures

Because cryptocurrencies and cryptocurrency transfers are anonymous, cryptocurrency exchanges, services, and companies can become platforms for illegal money laundering. Therefore, services, implementing AML/CTF procedures, apply them not only to fiat currencies but also to cryptocurrencies.

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AML/CTF (Anti-Money Laundering/Counter-Terrorism Financing) – a set of measures and procedures designed to identify and/or prevent the use of the Service for money laundering and terrorist financing.

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AML procedures are related to KYC (Know Your Customer) requirements, which include verifying the identity of the customer and their source of income. KYC also requires financial institutions (exchanges, companies, etc.) to continuously monitor the activities of their users. The requirements for AML/CTF procedures are determined by current legislation and global best practice.

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By implementing AML/CTF procedures, the company takes several steps to ensure that the service cannot be used to convert illegally obtained funds into legitimate funds. The most common measures include operational monitoring procedures, customer information monitoring and other necessary procedures. Automated tools, software solutions and algorithms can be used for this purpose. They check whether transactions may be connected to suspicious services or platforms.

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AML/CTF procedures must be followed. Users who neglect to comply with the requirements of the Service (especially regarding the implementation of AML/CTF and KYC procedures) will be denied further services and operations and may be suspended.

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Money laundering is a financial crime. Failure to comply with prescribed procedures may result in reputational and material damage through fines from regulatory authorities.