Know Your Customer (KYC) and Anti Money Laundering (AML) Policy

Last updated: Aug 8, 2018

1. Need for a Policy

Bitfair Technologies Pvt. Ltd. (“Coindelta”) is a company duly incorporated under the laws of India and runs a completely transparent and legal virtual currencies trading platform. Coindelta intends to encourage the use of virtual currencies among the community and make it easier to trade and exchange. To that effect Coindelta realizes that there may be some stigma attached to virtual currencies due to the ease with which individuals may be able to conduct and complete virtual currencies transactions anonymously. In an effort to remove this stigma, Coindelta intends to follow this entirely voluntary Know Your Customer or Anti Fraud Policy, in an effort to ensure that Coindelta’s services are not used for any illegal activities.

2. Legal Background

Reserve Bank of India (RBI), the regulator of banks in India issued detailed guidelines to Banks on Know Your Customer (KYC) and Anti Money Laundering (AML) in November 2004. The Indian Parliament passed the Prevention of Money Laundering Act (PMLA) in 2002 to implement the Political Declaration adopted by the special session of the United Nations General Assembly held during June 8-10, 1998 and the Global Programme of Action annexed to Resolution S-17/2 adopted by the United Nations General Assembly on February 23, 1990. The provisions of this Act are effective from July 1, 2005. The PMLA addresses a range of issues including the definition of and punishment for the offence of Money Laundering, attachment and confiscation of property tainted by Money Laundering and the obligations of banking companies, financial institutions and intermediaries in connection with Money Laundering issues.
Under PMLA, the scope of Money Laundering covers certain offences under the Narcotics Drugs and Psychotropic Substances Act, 1985, the Indian Penal Code, 1860, the Arms Act, 1959, the Wild Life (Protection) Act, 1972, the Immoral Traffic (Prevention) Act, 1956 and the Prevention of Corruption Act, 1988.

3. No Legal Requirement

Although Coindelta is not required by the law to follow any Know Your Customer (KYC) policies or implement any Anti Fraud mechanisms, however Coindelta believes in total transparency and adherence to the law and discourages any of illegal activities while using Coindelta’s services. In order to discourage and prevent any person from indulging in illegal activities using its services, Coindelta has made the following KYC and Anti Fraud Policy purely as a measure of prudence and on an entirely voluntary basis.

4. Due Diligence Policy

In order to ensure that Coindelta’s services are not utilized by unwanted and illegal elements to further their illegal motives, Coindelta intends to follow a wholistic Due Diligence Policy which entails the following:

  • Obtaining sufficient information about to the client in order to identify who is the actual beneficial owner of the securities or on whose behalf transaction is conducted.
  • Verifying the customer’s identity using reliable, independent source document, data or information.
  • Conducting on-going due diligence and scrutiny of the account/client to ensure that the transaction conducted are consistent with the client’s background/financial status, its activities and risk profile.
  • The Due Diligence Policy involves the following three specific parameters: (i) Customer Acceptance Policy; (ii) Customer Identification Policy; and (iii) Highlighting Suspicious Transactions.

4.1 Customer Acceptance Policy

4.1.1 Coindelta shall only accept clients who are able to provide complete and true documents in line with the Customer Identification Policy set out below. Customers who do not supply the essential information required while filling in the form provided for registration shall not be accepted.

4.1.2 Coindelta shall use known publicly and freely available portals to check the authenticity of the identification documents provided by the customers and any persons whose documents appear to be unclear, insufficient, fraudulent or misleading shall not be allowed to register, and if registered, their registration shall be terminated.

4.1.3 Any customers whose registration information does not match the documents provided or appears to be fictitious may not be registered, and if registered, their registration shall be terminated.

4.1.4 No customers shall be allowed to register in fictitious names or if the customer appears to be an anti social element or is found to have a record of fraud, cheating or forgery.

4.1.5 Coindelta shall not accept any customers who are below 18 years of age or who do not have the mental capacity to enter into legally binding contracts. However it shall not be the responsibility of Coindelta to determine the legal capacity of the customers and a warranty regarding their legal capacity shall be considered as satisfactory fulfillment of this condition.

4.1.6 Coindelta may ask for additional information at any point of time and if the customer refuses or is unable to provide such additional information then such customer shall not be registered, and if registered, their registration shall be terminated.

To achieve the object of total transparency and prevent illegal activities on our trading platforms, Coindelta has a clear policy of the kind of customers that it shall accept:

4.2 Customer Identification Policy

The objective of the Customer Identification Policy is to have a mechanism in place to establish identity of the client along with firm proof of address to prevent opening of any account which is fictitious / benami / anonymous in nature.

Proof of Identity: All customers shall have to provide scanned copies of atleast one of the documents below as proof of identity. Coindelta shall accept the following documents as proof of identity: For Individuals from India

  • Bank Statement
  • PAN Card

For NRIs

  • Passport (Front and back both)
  • Bank Statement
  • PAN Card

Proof of Address: All customers shall have to provide scanned copies of atleast one of the documents below as proof of address. Coindelta shall accept the following documents as proof of address:

  • Passport

One to One Interaction: Coindelta has no mandatory policy of meeting the clients individually. However, Coindelta will be enabling customers to submit their documents in person during meet-ups and/or workshops held across the country which would allows for another level of direct KYC verification.

Authenticity Check: Coindelta may, and shall be under no obligation to, check that the documents provided by the customers as proof of identity and proof of address are authentic by cross checking them against freely available public databases. General Conditions: While providing documents to fulfill the User Identification Policy, customers should keep in mind the following:

  • Please upload clear scanned copies only. Scanned images should be in color and in high resolution (at least 300 dpi) however the file size should not be greater than 5 MB. Acceptable formats for the scanned copies are JPG, PNG or PDF.
  • All documents should be valid on the date of submission and should not have expired.
  • Documents should be provided in English or with certified translation in English
  • In case address proof submitted is not in the name of applicant then an additional document supporting the relationship with the addressee should be submitted by email such as marriage certificate, gazetted copy of name change or passport, visa etc. stating name of spouse/ guardian & their relationship.

Termination of Account: In case Coindelta finds or is suspicious that any customer is in violation of the conditions prescribed in this Know Your Customer and Anti Fraud Policy, Coindelta shall be fully entitled to terminate the account of such customer and prevent such customer from undertaking any further activities on any of Coindelta’s platforms, existing or in future.

4.3 Highlighting Suspicious Transactions

4.3.1 Prohibited Activities: Coindelta has a very strict policy of not allowing its services to be knowingly used for any “Prohibited Activities”. No customer shall use the services of Coindelta for any Prohibited Activities. Coindelta may conduct manual checks to ensure that not customer is indulging in Prohibited Activities; these checks may in future become automated. The Prohibited Activities for the purposes of this policy shall include:

  • Fraud: any act or omission, including a misrepresentation that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation.
  • Corruption: offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the action of another party.
  • Collusion: arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party.
  • Terrorist financing: provision or collection of funds, by any means, directly or indirectly, with the intention that they should be used or in the knowledge that they are to be used, in full or in part, in order to carry out any of the offences within the meaning of Articles 1 to 4 of Council Framework Decision 2002/475/JHA of 13 June 2002 on combating terrorism.
  • Criminal conduct: conduct, which constitutes an offence in any part of the world or would constitute an offence in any part of the world if it occurred there.
  • Money laundering: Money laundering is essentially the process of engaging in such financial transactions that are designed to conceal the true origin of criminally derived proceeds for the purpose of ensuring that such proceeds appear to have been received through legitimate sources/origins. It has been defined under the Prevention of Money Laundering Act, 2002 in the following words:

“Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money-laundering.”

4.3.2 Actions: In case it comes to the knowledge of Coindelta or Coindelta becomes suspicious that any customer is engaging in any Prohibited Activities Coindelta reserves the right to terminate the account of the customer and prevent such customer from undertaking any further actions on any of Coindelta’s services, existing or in future. Coindelta shall further be fully entitled, if it so chooses, to report such suspicious activities to the appropriate authorities.

DISCLAIMER

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your information, we cannot guarantee the security of your data transmitted to the Platform. Any transmission is at your own risk. Once we have received your information, we use the procedures and security features as provided under the terms of this Privacy Policy to try to prevent unauthorised access.

Where we have given you (or where you have chosen) a username and password which enables you to access our Platform, you are responsible for keeping these details confidential. We ask you not to share your password with anyone. You must log out when you leave our Platform protected by a password. We recommend closing the browser completely and re-opening it before accessing other websites over the internet

You understand and acknowledge that generally, information published on a blockchain (including, without limitation, transactional information) is susceptible to public disclosure since any blockchain ledger is publicly accessible. As a result, Digital Asset transactions, whether executed on the Platform or otherwise, are not truly anonymous. Similarly, the balance and transaction history of any public Digital Asset address can also be viewed by the public at large. Further, the information relating to a public Digital Asset address can also be correlated / matched with technical information automatically collected over the internet, in order to ascertain your identity. Also, data- analysis techniques can be used on a blockchain to identify information about you. You understand and acknowledge that we cannot be held liable for any loss of your information sustained due to the inherent lacunas of blockchain technology.

IF YOU WISH TO CONTACT US

In the event you have any questions or concerns, or wish to file a grievance or complaint, or wish to provide feedback, please contact us at https://support.coindelta.com/support/how-to-create-submit-a-ticket.html with a thorough description, and we will try to resolve it. You may also contact us at the address below:

Our mailing address is Bitfair Technologies Private Limited, Ground B, Midas Tower, Hinjewadi Phase 1, Pune, MH – 411057.



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