AML And Kyc Policy

AML/KYC Policy


NIOC Exchange’s Anti-Money Laundering and Know Your Customer Policy (hereafter referred to as ‘AML/KYC Policy’) is curated to prevent any possible risks of NIOC Exchange being involved in illegal activities from occurring.

NIOC Exchange implements certain effective internal procedures and mechanisms as requested by both international and local regulations to prevent terrorist financing, money laundering, the proliferation of weapons of mass destruction, drug and human trafficking, corruption and bribery, and to take action in case of suspicious activity by any user.

This AML/KYC Policy covers the following aspects:

  1. Verification Procedures
  2. Compliance Officer
  3. Monitoring Transactions
  4. Risk Assessment

 1. Verification Procedures

Customer Due Diligence – ‘CDD’ is one of the international standards used to prevent illegal activities. Based on CDD, NIOC Exchange has come up with its own verification procedures abiding by the standards of anti-money laundering and ‘Know Your Customer’ frameworks.

 1.1. Identity Verification

Users have to provide NIOC Exchange with a reliable, and independent source of documents or information. For instance, national ID, bank statement, international passport, utility bill, etc. For the identity verification procedure, NIOC Exchange reserves the right to collect identification information from the users.

All the information provided by the users will undergo certain procedures undertaken by NIOC Exchange to confirm its authenticity. The information provided will be double-checked, and any users who are found suspicious will be investigated.

NIOC Exchange holds the right to regularly hold user identity verification processes, especially when their identification information is changed, or their activity seems suspicious. Additionally, NIOC Exchange also holds the right to request up-to-date documents from the users even after them passing the identity verification process in the past.

The information collected from the users will be stored, shared, and protected in accordance with the NIOC Exchange’s Privacy Policy and regulations.

 1.2. Card Verification

The users who use payment cards in connection with NIOC Exchange will have to pass a card verification.

  2. Compliance Officer

NIOC Exchange has authorized a person – The Compliance Officer who ensures that the AML/KYC Policy is effectively implemented. The Compliance Officer is responsible for supervising all aspects of NIOC’s Exchange’s anti-money laundering, and counter-terrorist financing, including but not limited to:

  1. Gathering users’ identification information
  2. Establishing and updating internal policies and procedures for the completion, review, submission, and retention of all reports and records as required by the applicable laws and regulations.
  3. Monitoring transactions and investigating suspicious activities.
  4. Enforcing a records management system for appropriate storage and retrieval of documents, files, forms and logs.
  5. Updating risk assessment regularly.
  6. Offering law enforcement with information according to the applicable laws and regulations.

  3. Monitoring Transactions

Not only are the users’ identity verified, but their transactional patterns are analysed as well. NIOC Exchange depends on data analysis as a risk-assessment and suspicion detection tool, and perform different compliance-related tasks viz. record-keeping, reporting, and investigation management. The system functionalities include the following:

  • Daily checking the users against recognized ‘black-lists’ (e.g. OFAC)
  • Combining transfers at multiple data points
  • Categorizing users on watch and service denial list
  • Opening cases for investigation where needed
  • Sending internal communications
  • Filling out statutory reports

 3.1. Case and Document Management

NIOC Exchange in compliance with AML/KYC Policy will constantly monitor all the transactions and it holds the right to:

  • Make sure that any suspicious transaction is reported, and proper law enforcement is brought through the Compliance Officer.
  • Gather any additional information required from the users in the case of suspicious transactions.
  • Suspend and terminate a user’s account when suspicion of illegal activity is reasonable.

The above list isn’t comprehensive, and the Compliance Officer holds the right to monitor the users’ transactions daily to determine whether the transactions are to be reported or treated as a bona fide.

 4. Risk Assessment

NIOC Exchange in compliance with the international requirements has put together a risk-based approach to fight money laundering and terrorist financing. Leveraging this risk-based approach, NIOC Exchange ensures that the measures used in preventing money laundering and terrorist financing are compatible with identifying the risks. This additionally allows the resources to be allotted in the most effective ways. Furthermore, the principle also makes sure that the greatest risks receive the highest attention.