Compliance & Security

KYC / AML Procedures

How KryptoX onboards customers, screens risk, and keeps finance & compliance in sync.

Compliance

Purpose

KryptoX performs KYC/KYB and AML checks before enabling crypto-to-bank settlement. Controls include identity verification, PEP/sanctions screening, KYT monitoring, and periodic reviews.

  • Compliance-by-design (KYC/KYB/KYT)
  • White-label flows & audit evidence
  • Risk-based approach aligned to policy
Roles

Roles

  • Operations: initiates verification & collects docs.
  • Compliance: reviews alerts & decisions.
  • Finance: validates settlement eligibility.
  • Security: data protection & access controls.

Verification Workflow

01

Intake & Consent

Collect identity data, consent, and basic contact validation.

02

Document & Liveness

Government ID + selfie/liveness; OCR/MRZ & tamper checks.

03

PEP / Sanctions

Screen against global lists at onboarding & periodically.

04

Risk Scoring

Low / Medium / High based on profile & expected activity.

05

Decision & Activation

Approve / Reject / Review; dual control for high-risk.

06

Ongoing Monitoring (KYT)

Screen transactions; hold settlements on alerts until cleared.

KYC / KYB Requirements

KYC

Individuals (KYC)

  • Government ID + selfie/liveness
  • Proof of address (where required)
  • Basic profile: name, DOB, nationality, tax ID (if applicable)
KYB

Businesses (KYB)

  • Registration docs (certificate/incorporation extract)
  • Directors & UBOs identification
  • Company address & activity description
  • Sanctions/PEP screening for company, directors & UBOs

PEP / Sanctions Screening

Screening runs at onboarding, on profile changes, and on a periodic schedule according to risk.

  • Global consolidated lists & watchlists
  • Name matching with fuzziness & transliteration
  • Case management with disposition notes
  • Rescreen cadence: 6–12 months; high-risk: 3 months

Risk Scoring (RBA)

FactorLowMediumHigh
IdentityVerified + strong livenessVerified; minor frictionUnclear/failed checks
GeographyLow-risk jurisdictionsMixed exposureSanctioned or high-risk
Occupation/BusinessStandard employmentCash-intensiveHigh-risk sectors
Expected Activity<$100k/mo$100k–$1M/mo>$1M/mo or complex flows

Records, Retention & Privacy

Recordkeeping

  • Immutable decision log (reviewer, timestamp, evidence)
  • Webhook receipts & ledger refs for settlements
  • Exportable audit bundles (PDF/CSV + attachments)

Retention & Minimization

  • Retention: 5–10 years post-relationship (jurisdiction dependent)
  • Data minimization & purpose limitation
  • Access via RBAC; encryption in transit & at rest

KYC / AML — FAQ

Government ID and selfie/liveness are mandatory. Proof of address may be required based on jurisdiction and risk.

On profile changes and periodically—every 6–12 months, or every 3 months for high-risk profiles.

When a screening alert or KYT signal requires review; funds are released after clearance per policy.