IQPari – AML KYC Policy

Table of Content

Definition Of Money Laundering

Money laundering involves knowingly engaging in activities related to unlawfully obtained property, typically money. These actions include concealing or transferring the illegal proceeds to hide their origins or help others evade legal consequences. Money laundering also covers altering the true characteristics, source, location, movement, rights, or ownership of criminally derived assets. Additionally, acquiring, possessing, or using such property while aware of its illicit origin, as well as participating, associating, attempting, aiding, abetting, facilitating, or counselling such activities, all fall under the umbrella of money laundering. Importantly, this applies regardless of whether the criminal activities occurred in another jurisdiction.

Three-Step Verification

Step One Verification

All users must complete step one verification before making withdrawals. This mandatory process includes verifying payment details, withdrawal information, and nationality and involves the user providing their personal information: first name, last name, date of birth, primary residence country, gender, and full address.

Step Two Verification

Step two verification is required for users depositing or withdrawing over $2,000. Transactions are held until this step is completed. Users must provide a clear picture of their official ID with a paper clip displaying a unique six-digit number next to it on a dedicated subpage. The accepted ID type may vary by country.

An electronic verification cross-references data from step one with two databases for accuracy. If it fails, users must provide proof of current residence, like a government-issued registration certificate.

Step Three Verification

Step three verification is obligatory for all users who deposit more than $5,000, withdraw more than $5,000, or send another user more than $3,000. Transactions involving withdrawals, tips, or deposits will be temporarily held until step three verification is successfully

Customer Identification And Verification (KYC) 

The formal customer identification process is a critical component, both for complying with anti-money laundering regulations and adhering to the Know Your Customer (KYC) policy. This identification process is based on the following key principles:

  1. Submission of Official ID: Users/customers should provide a document (passport, ID, or driving licence) with a handwritten note containing six random numbers, along with a separate photo of their face. For privacy, they can obscure all information except date of birth, nationality, gender, first name, last name, and picture.
  2. Document Clarity: When submitting these documents, it’s essential that all four corners of the ID are visible in the same image, and all details must be clearly legible, particularly those mentioned above. The right to request additional details is reserved to the company.
  3. Additional Checks: In certain situations, the company’s employees may conduct further checks as needed to ensure compliance with the policies and regulations.

Proof Of Address

Address verification is done electronically using two databases. If electronic verification fails, users can provide manual proof, like a recent utility bill or official government document confirming residence. Ensure clear, legible documents with all corners visible. Our employees may conduct further checks as needed.

Source Of funds

Deposits exceeding 5,000 euros prompt a source of wealth (SOW) inquiry, including business, employment, inheritance, investments, or family resources. If unclear, additional documentation is requested.

Accounts with such deposits are temporarily frozen, and users receive an email explaining the process. Identity verification includes bank or credit card details. Basic information is generated via iqpari.com settings, with potential employee checks as needed.

Risk Management 

To address varying risks and wealth levels in different regions of the world, iqpari.com will categorize each nation into three risk regions:

  • Region One: Low Risk
    • For nations in Region One, the three-step verification process described earlier will be implemented.
  • Region Two: Medium Risk
    • For nations in Region Two, the three-step verification process will be triggered at lower deposit, withdrawal, and tip thresholds. Step one verification will proceed as usual. Step two verification will occur after depositing $1,000, withdrawing $1,000, or tipping another user/customer $500. Step three verification will be required after depositing $2,500, withdrawing $2,500, or tipping another user/customer $1,000. Users from a low-risk region who convert cryptocurrency into any other currency will be treated as users/customers from a medium-risk region.
  • Region Three: High Risk
    • High-risk regions will be prohibited from using the platform. These high-risk regions will be regularly updated to adapt to the evolving global landscape.

This risk-based approach allows iqpari.com to tailor its verification and security measures to the specific risks associated with different regions.

Additional Measurements

Supervised by the AML compliance officer, AI detects unusual behaviour and alerts employees. Employees, guided by risk-based assessments, review checks, repeating or adding as needed.

A data scientist, supported by advanced analytics, identifies anomalies such as rapid transactions, account changes, and shifts in behaviour.

Enterprise-Wide Risk Assessment

iqpari.com uses a risk-based approach, conducting an AML “Enterprise-wide Risk Assessment” (EWRA) to identify and understand risks related to its operations and website services. This assessment covers user types, transactions, delivery channels, geographical reach, and emerging risks. It aligns with regulatory requirements and industry guidance, with extra measures for online risks.

Ongoing Transaction Monitoring 

To ensure Anti-Money Laundering (AML) compliance, iqpari.com conducts ongoing transaction monitoring to detect unusual or suspicious transactions compared to the customer’s profile. This monitoring occurs at two levels.

The First Line Of Control

iqpari.com exclusively partners with trusted Payment Service Providers (PSPs) that have effective AML policies in place. This prevents most suspicious deposits onto iqpari.com from occurring without the proper execution of Know Your Customer (KYC) procedures on potential customers.

The Second Line Of Control

iqpari.com diligently monitors customer transactions, utilizing a three-step verification process and tailored risk management. This involves automated checks with employee cross-verification.

Suspicious or unexplained transactions are swiftly identified and reported to the AML division for further investigation.

The Third Line Of Control

As the final defence against money laundering, iqpari.com conducts manual checks on all suspicious and higher-risk users to comprehensively prevent illicit financial activities. In cases where fraud or money laundering is identified, iqpari.com will promptly inform the appropriate authorities.