AML/CFT/KYC Policy

While the Crypto Stock Exchange (CSE) is currently in its BETA phase and ongoing development, it is our commitment to operate with the utmost integrity and in compliance with global best practices. Upon the completion of our BETA phase, CSE will have obtained all necessary licenses, respecting, and abiding by all the regulations articulated in this document and ensuring ethical functionality consistent with the standards of a premier stock exchange.

1. Policy Overview
1.1

CSE’s Anti-Money Laundering, Countering Financing of Terrorism, and Know Your Customer Policy (hereafter referred to as "AML/CFT/KYC Policy") is strategically structured to thwart and mitigate the risks associated with CSE's potential entanglement in any unlawful undertakings. Globally recognized and domestic regulations mandate CSE to implement potent internal systems and strategies to counteract money laundering, terrorist financing, drug and human trafficking, weapons proliferation, corruption, and bribery, and to proactively address any suspicious undertakings by its users.

1.2

The terms "Money Laundering" and "Terrorist Financing" are defined comprehensively, capturing all facets of these criminal activities as universally understood and recognized. The AML/CFT/KYC Policy encapsulates:

  • 1.2.1

    Internal Controls

  • 1.2.2

    Training

  • 1.2.3

    Compliance Officer Role

  • 1.2.4

    Verification Protocols

  • 1.2.5

    Risk Assessment Strategy

  • 1.2.6

    Transaction Monitoring Mechanism

  • 1.2.7

    AML Program Audit

2. Internal Controls
2.1

CSE has established a methodical internal control system to align with prevailing AML/CFT laws and regulations. This system encompasses user identity validation, specialized treatment for politically exposed persons (PEP), tracking and reporting of anomalous and suspicious activities, and maintaining records of users’ documentation and transaction history.

3. Training
3.1

All pertinent CSE personnel undergo rigorous AML/CFT training, supplemented with role-specific guidance to ensure familiarity and adherence to the current legal landscape. Newly onboarded staff undergo this training before their tenure commences, and the training program undergoes periodic updates.

4. Compliance Officer
4.1

The Compliance Officer at CSE plays a pivotal role in ensuring the rigorous execution of the AML/CFT/KYC Policy. This individual shoulders a multitude of responsibilities from policy enforcement to liaising with law enforcement agencies

5. Verification Procedures
5.1

Incorporating the globally endorsed customer due diligence ("CDD") standard, CSE has devised its verification protocols within the broader framework of anti-money laundering and "Know Your Customer" norms. This involves meticulous identity verification procedures, stringent checks against sanctions, and watchlists like the Office of Foreign Assets Control (OFAC) and PEP lists.

6. Risk Assessment
6.1

By employing a risk-based approach, CSE prioritizes resources to address the most significant threats, ensuring the most effective deployment of preventative and mitigative measures against money laundering and terrorist financing.

7. Monitoring of Transaction
7.1

CSE exercises vigilant monitoring of user transactions, deploying advanced tools and external services. Monitoring extends beyond mere identity verification to analyzing transactional patterns, with any inconsistencies or deviations prompting an investigative review by the Compliance Officer.

8. AML Program Audit
8.1

The Compliance Officer conducts an annual AML/CFT audit, with additional audits as determined by internal protocols.

8.2

This policy serves as CSE's pledge to uphold the highest standards in the financial industry, ensuring the safety, security, and ethical handling of all transactions and interactions.