Introduction: 

At Kroxio, we hold ourselves to the highest standards of integrity and regulatory compliance. Central to our commitment is the implementation of robust Know Your Customer (KYC) procedures. These policies are not only a reflection of our dedication to combating financial crimes such as money laundering, terrorist financing, and fraud, but also serve as fundamental pillars safeguarding the interests of our clients and maintaining the integrity of our platform. This document elucidates the procedures and measures we have instituted to verify the identity of our clientele, understand the nature of their activities, monitor transactions for suspicious behaviour, and ensure unequivocal adherence to legal and regulatory obligations.

Purpose: 

The purpose of this KYC policy is to:

• Establish and verify the identity of customers.

• Understand the nature of the customer's activities.

• Monitor transactions for suspicious behaviour.

• Comply with legal and regulatory obligations.

Customer Identification Process:

• Identification Documents: Customers are required to provide valid and current identification documents such as government-issued photo identification (e.g., passport, driver's licence) and proof of address (e.g., utility bill, bank statement), and proof of payment method.

• Risk-Based Approach: We adopt a risk-based approach to customer due diligence, where the level of scrutiny applied to each customer may vary based on factors such as their risk profile, transaction volume, and geographical location.

• Enhanced Due Diligence (EDD): For high-risk customers or transactions, enhanced due diligence measures are applied, including additional documentation and scrutiny.

  • Additional documentation may include but is not limited to: business licences, financial statements, source of funds declarations, and references from financial institutions.

  • Customers subjected to EDD will be informed of the specific requirements and the reasons for the enhanced scrutiny.

Client Registration and Initial KYC Screening:

• Upon registration on our platform, clients will be sent an email outlining the KYC screening process.

• Clients are required to complete this verification process before activating their accounts.

• Failure to complete the verification will lead to the temporary disabling of their account until verification is finalised.

Compliance with KYC Screening Tool and Internal KYC Policy:

• Clients must adhere to the specific requirements outlined by Third Party, our chosen KYC verification service provider, as well as our internal KYC policy.

• Following approval from a third party tool, our compliance team will conduct additional manual checks to ensure full compliance with regulatory standards.

Verification Finalisation and Fund Deposit:

• Upon successful completion of verification, clients can proceed with depositing funds into their accounts.

• Before depositing funds, clients will be required to sign a declaration form confirming their payment and agreement with our policy.

Declaration of Deposit:

• After verification is completed, clients will receive a Declaration of Deposit document to formalise their deposit.

• The document will include the following acknowledgments:

  • Acknowledgment of transactions made and authorised by the client for funding their personal trading account.

  • Understanding of the document's importance in compliance with our Anti Money Laundering Policy and regulatory bodies.

  • Recognition of personal responsibility for obtaining necessary licences for trading platforms and acknowledgment of risks associated with delegating trading to third parties.

  • Acknowledgment of responsibility for all trading activities conducted on the client's account and acceptance of inherent risks associated with CFD trading.

Ongoing Monitoring:

• Transactions and activities on our platform are monitored continuously for unusual or suspicious behaviour.

• Any transactions that deviate from the customer's normal pattern or are deemed high-risk are subject to further investigation.

Risk Assessment:

• A risk assessment is conducted for each customer based on factors such as their geographic location, nature of business, transaction history, and background.

  • Geographic location: Assessing jurisdictional risks associated with money laundering or terrorist financing.

  • Nature of business: Evaluating the inherent risks associated with specific industries or activities.

  • Transaction history: Analysing past transactional behaviour to identify anomalies or patterns indicative of suspicious activity.

  • Background checks: Reviewing publicly available information and databases to assess reputational and legal risks.

• Customers are categorised into risk levels (low, medium, high) based on this assessment, and appropriate due diligence measures are applied accordingly.

• The risk assessment process is dynamic and may be updated periodically to reflect changes in customer behaviour or regulatory requirements.

Record Keeping:

• Comprehensive records of customer identification, due diligence procedures, and transactional activities are maintained in secure and compliant databases.

• Records include but are not limited to: copies of identification documents, transactional records, risk assessments, and correspondence with customers.

• Records are securely stored in accordance with data protection laws and regulatory requirements.

• Records are retained for a period in compliance with applicable laws and regulations, after which they are securely disposed of or anonymized.

Staff Training and Awareness:

• Our staff undergo regular training to ensure they are familiar with KYC procedures and are equipped to identify suspicious activities.

• Awareness programs are conducted to keep staff updated on evolving regulatory requirements and emerging trends in financial crimes.

Customer Communication:

• Customers are informed of our KYC requirements at the onboarding stage and are required to adhere to these requirements throughout their engagement with our platform.

• Clear and transparent communication channels are maintained to address any queries or concerns customers may have regarding KYC procedures.

Customer Rights and Responsibilities:

• Customers have the right to access their personal information held by Kroxio and request corrections if necessary.

• Customers are responsible for providing accurate and up-to-date information during the KYC process.

• Customers must adhere to KYC requirements and provide any additional information or documentation requested by Kroxio to comply with regulatory obligations.

Acknowledgment of Regulatory Changes:

• Kroxio is committed to staying abreast of changes in regulatory requirements and industry best practices.

• The KYC policy will be periodically reviewed and updated to reflect changes in regulations, emerging risks, or improvements in compliance practices.

• Customers will be notified of any significant changes to the KYC policy and provided with guidance on how these changes may affect their interactions with the platform.
  
  

Compliance and Review:

• This KYC policy is regularly reviewed and updated to ensure its effectiveness in mitigating financial crime risks.

• Compliance with this policy and relevant regulatory requirements is subject to periodic audits and assessments.

Conclusion: Our Financial/Forex platform is committed to maintaining the highest standards of integrity, transparency, and compliance with regulatory requirements. The implementation of this KYC policy is a fundamental aspect of our efforts to safeguard our platform from financial crimes and maintain trust with our customers and stakeholders.

Note: This KYC policy serves as a general framework and may need to be customised based on specific regulatory requirements and the nature of the financial/forex platform. Additionally, it's advisable to seek legal counsel to ensure compliance with applicable laws and regulations.