KYC & AML


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ANTI-MONEY LAUNDERING POLICY

This agreement between CXIHUB and the User, is binding and requires mandatory compliance by the Users (hereinafter, “CXIHUB AML Policy”). Integrity, honesty and ethical business practices are some of the core values of CXIHUB and CXIHUB strongly condemns any and all activities related to money laundering and such other illegal actions or attempt to do so by any Person.

In order to prevent misuse of Platform and Services for such illegal purposes, Users are required to strictly comply with the terms contained herein, which form a part of the CXIHUB Web Agreement. Users are required to read, review, understand and then agree to the terms hereunder for using or availing the Services.

  1. DEFINITIONS
  • Any capitalized terms that are not defined herein shall carry the same meaning as assigned to them in the CXIHUB Web Terms or the CXIHUB Web Privacy Policy.
  • Any capitalized terms used herein and not defined in the CXIHUB Web Terms or CXIHUB Web Privacy Policy, shall have such meaning as defined herein below or in the respective clauses thereafter:
  • AML Law” shall mean all laws in force for the time being within the territory of India aimed at prevention of money laundering, including, but not limited to, the Prevention of Money Laundering Act 2002 (“PMLA”), the Prevention of Money Laundering (Maintenance of Records) Rules 2005 (“PML Rules”) and the Reserve Bank of India’s (“RBI”) Master Direction on Know Your Customer Rules (“KYC Rules”), as updated from time to time.
  • CXIHUB AML Team” shall mean such People who have been appointed by CXIHUB to ensure compliance with the AML Law and includes the Principal Officer and any other People appointed by CXIHUB pursuant to the AML Law.
  • Principal Officer” shall mean the principal officer appointed by CXIHUB in compliance with the AML Law to administer CXIHUB’s compliance with the AML Law and other measures taken by CXIHUB to prevent money laundering and/ or any other illegal Trades and Transactions through the Services and/ or on the Platform.
  • Suspicious Transaction” shall mean a Trade or a Transaction, whether or not made in cash which, to a Person acting in good faith:
  • giving rise to a reasonable ground of suspicion that it may involve proceeds of an offense specified under the applicable Laws, specifically the AML Law, regardless of the value involved; or
  • appearing to be made in circumstances of unusual or unjustified complexity; or
  • appearing to have no economic rationale or bona fide purpose; or
  • giving rise to a reasonable ground of suspicion that it may involve financing of any activities relating to terrorism.

Explanation – Trade or Transaction involving financing of the activities relating to terrorism includes transaction involving funds or assets suspected to be linked or related to, or to be used for terrorism, terrorist acts or by a terrorist, terrorist organization or those who finance or are attempting to finance terrorism.

 

  1. PROHIBITED ACTIVITIES

2.1 CXIHUB has a very strict policy of not allowing its Platforms and Services to be knowingly used for any of the following activities:

(a) any act or omission, including a misrepresentation that knowingly or recklessly misleads, or attempts to mislead, a Person to obtain a financial or other benefit or to avoid an obligation;

(b) offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the action of another Person;

(c) arrangement between Persons designed to achieve an improper, illegal or unlawful purpose, including influencing improperly, illegally or unlawfully, the actions of another Person;

(d) provision or collection of funds or assets, by any means, directly or indirectly, with the intention that they should be used or in the knowledge that they will be used, in full or in part, in order to carry out any of the offences within the meaning of applicable Law;

(e) conduct, which constitutes an offence in any part of the world or would constitute an offence in any part of the world if it occurred there; or

(f) money laundering, i.e., the process of engaging in such financial transactions that are designed to conceal the true origin of criminally derived proceeds for the purpose of ensuring that such proceeds appear to have been received through legitimate sources/ origins, including as defined under the PMLA.

2.2 No User shall or shall attempt to use the Platform or Services for any of the activities specifically prohibited by the CXIHUB Web Terms. We may conduct manual and/ or automated checks to ensure that no User is indulging in any such prohibited activities.

2.3 In case it comes to Our knowledge or suspicion that You are engaging in any prohibited activities, We reserve the right to terminate Your Registered Account and prevent You from undertaking any further Trades or Transactions or using the Platform or Services in full or in part. CXIHUB shall further be fully entitled to, if it so chooses, report such activities to the appropriate Government Authorities.

  1. MAINTENANCE OF RECORDS

3.1 CXIHUB has an internal mechanism to detect and shall maintain a record of the following:

(a) Details pertaining to Trade and Transactions, including but not limited to:

(i) the nature of the Trade or Transactions;

(ii) the amount of the Transaction and the currency in which it was denominated;

(iii) the amount of Trade and the Cryptocurrency in which it was executed;

(iv) the date on which the Trade or the Transaction was conducted; and

  • details of the Users involved executing the Trade or the Transaction.

(b) All details for the following categories of Trade and Transactions are maintained separately from those recorded under 2.1(a) above:

(i) Trade or Transactions of value of INR 1,000,000/- (Indian Rupees One Million only) and above or its Cryptocurrency equivalent; and

(ii) Trade or Transactions that are connected to each other and that take place within 30 (thirty) days of each other with an aggregate value of INR 1,000,000/- (Indian Rupees One Million only) and above or its Cryptocurrency equivalent.

(c) All Suspicious Transactions by way of deposits and credits, withdrawals into or from any accounts in whatsoever name they are referred to in any currency maintained by way of:

  • cheques, including third party cheques, pay orders, demand drafts, or any other instrument of payment of money including electronic receipts or credits and electronic payments or debits; or
  • transfers from one account within the same banking company, financial institution and intermediary, including to and from nostro and/ or vostro accounts, as applicable; or
  • any other mode in whatsoever name it is referred to.

(d) credits or debits into or from any non-monetary accounts such as demat account, security account in any currency maintained by CXIHUB.

  • money transfer or remittances in favor of own Users or non-Users from India or abroad and to third party beneficiaries in India or abroad including Trade or Transactions on its own account by any of the following:
  • demand drafts, or
  • telegraphic or wire transfers or electronic remittances or transfers, or
  • internet transfers, or
  • Automated Clearing House remittances, or
  • any other mode of money transfer by whatsoever name it is called.
  • letters of credit, standby letters of credit, guarantees, comfort letters, solvency certificates and any other instrument for settlement and/or credit support.
  • collection services in any currency by way of the collection of bills, cheques, instruments or any other mode of collection in whatsoever name it is referred to.

3.2 CXIHUB shall maintain hard and soft copies of the above-mentioned records of Trade and Transactions in accordance with the procedure and in such manner, as may be prescribed under applicable Laws, from time to time.

 

  1. DUE DILIGENCE AND VERIFICATION

4.1 CXIHUB makes best efforts to ensure that Platform and/ or Services are not used by any Persons in an illegal and/ or unlawful manner to further any illegal and/ or unlawful motives. We intend to follow a reasonable standard of due diligence which entails:

(a) obtaining sufficient information about to the Users in order to identify the beneficial owners of the Cryptocurrencies or on whose behalf a Trade or Transaction is executed;

(b) verifying the identity of all Registered Users using reliable and independent sources of documents, data and/ or information;

(c) conducting on-going due diligence and scrutiny of the Registered Accounts and Registered Users to ensure that the Trade and Transactions executed through the Services are consistent with the User’s background, financial status, activities and risk profile.

4.2 Our due diligence procedure involves specific checks at the following three specific stages:

(a) acceptance of a Registered User;

(b) identification of a Registered User; and

(c) tracking and highlighting Suspicious Transactions.

 

  1. ACCEPTANCE OF A REGISTERED USER

5.1 We aim at maintaining total transparency and preventing illegal activities on Our Platforms. Thus, We have a clear policy regarding acceptance of Registered Users who may avail Our Platforms and Services.

5.2 Registered Users shall provide complete, updated, accurate and true documents for identification purposes, as specified in detail in Clause 6 below (“KYC Documents”). Users who do not provide the KYC Documents, as required while applying for a Registered Account, shall not be accepted as a Registered User by CXIHUB.

5.3 CXIHUB shall use known, publicly and freely available portals to check the authenticity of any and all KYC Documents provided by the Users and in case KYC Documents of any Users appear to be unclear, insufficient, fraudulent, fictitious, anti-social, impersonating or misleading, then such User shall not be allowed to register or, if registered, registration of such User shall be terminated. No Registered User is allowed to engage in any anti-social activities, fraud, cheating or forgery.

5.4 CXIHUB may require the Users to provide information in addition to the KYC Documents, at any point in time, and if a User refuses or is unable to provide such additional information then CXIHUB shall have a right to refuse registration, or if registered, to terminate their Registered Account of such User.

 

6. USER IDENTIFICATION AND KYC DOCUMENTS

6.1 CXIHUB has a mechanism in place to establish identity of its Registered Users with firm proof of address to prevent opening of fictitious, benami, anonymous Registered Accounts. For this purpose, We collect the following basic information from all Our Registered Users:

  • First name
  • Last Name
  • Residential Address
  • Contact Number
  • Email Address
  • Copy of Permanent Account Number (“PAN”) Card
  • Copy of Proof of Address (as further detailed in Clause 6.3 below)
  • Bank Details
  • Proof of Identity (as further detailed in Clause 6.2 below)

6.2 All Registered Users shall have to provide scanned copies of one of the following documents as proof of identity:

(a) If the User is a natural Person, then User may provide a true copy of his/ her:

(i) Driving license

(ii) Passport (front and last page)

(iii) Voters identity card (front and back)

(iv) Aadhar card (Unique Identification)

(v) Bank statement

(vi) PAN card or PAN intimation letter (which is not more than 1 (one) year old)

(b) If the User is a company, then User may provide a true copy of its:

(i) Certificate of incorporation, memorandum of association and articles of association

(ii) Resolution passed by the board of directors to open a Registered Account

(iii) Proof of identification (as per Clause 6.2(a) above) of Persons who shall have the authority to operate the Registered Account (“Authorized Representatives”)

(iv) Power of attorney granted to Authorized Representatives to Trade and Transact on the Platform on the behalf of the User

(v) PAN card

(vi) Telephone bill of the User

(c) If the User is a partnership, then User may provide a true copy of its:

(i) Registration certificate, as applicable

(ii) Partnership deed

(iii) Power of attorney granted to the Authorized Representative of the User to Trade and Transact on the Platform on behalf of the User

(iv) Proof of identification (as per Clause 6.2(a) above) of the Authorized Representatives of the User

(v) PAN card, if applicable

(vi) Telephone bill of the User

(d) If the User is a trust or a foundation, then User may provide a true copy of its:

(i) Certificate of registration, if applicable

(ii) Power of attorney granted to the Authorized Representative of the User to Trade and Transact on the Platform on behalf of the User

(iii) Proof of identification (as per Clause 6.2(a) above) of the trustees, settlors, beneficiaries and Authorized Representatives and founders/ managers/ directors of the User

(iv) Resolution passed by the managing body of the User to open a Registered Account

(v) PAN card

(vi) Telephone bill of the User

6.3 All Registered Users shall be required to provide scanned copies of one of the following documents as proof of address.

(a) Driving license

(b) Aadhaar card

(c) Passport

(d) Voter’s identity card

(e) Utility bills (landline, electricity or gas connection) not older than 3 (three) months

(f) Ration card with name of the User mentioned on the ration card (not applicable as a valid address proof in the states of Delhi and Maharashtra)

(g) PAN intimation letter (provided it is not more than 1 (one) year old)

(h) Letter from the employer along with employee card and the latest salary slip, as applicable

(i) E-aadhar card

(j) Lease agreement or leave and license agreement shall be accepted only as a proof of temporary residence, if provided along with any of the documents mentioned above in this Clause 6.3, as proof of permanent address

(k) In case the address proof submitted on behalf of a User is not in the name of the User then additional document supporting the relationship of the User with the addressee (in whose name address proof is submitted) should be submitted by email (such as, marriage certificate, gazetted copy of name change or passport or visa stating name of spouse/ guardian of the addressee and relationship of the User with such addressee).

6.4 Users agree and understand that:

(a) only clear scanned copies of the KYC Documents shall be accepted.

(b) all KYC Documents should be valid on the date of submission and for a period of 3 (three) months thereafter.

(c) all KYC Documents should be in English language only. In case a KYC Document is not available with the User in English language, then, a certified translated version of the same shall be submitted in English language.

(d) CXIHUB may check that the KYC Documents provided by the Users against freely available public databases regarding such User.

(e) in case CXIHUB finds or is suspicious that any User is in violation of the conditions prescribed in this CXIHUB AML Policy, We shall be fully entitled to terminate the Registered Account of such Registered User and prevent such Registered User from undertaking any further activities on Our Platforms.

6.5 While CXIHUB has no mandatory policy of meeting the Users individually, We facilitate in-person physical submission of KYC Documents during meet-ups and/ or workshops held by Us across the country from time to time.

 

  1. MEASURES FOR IMPLEMENTATION OF CXIHUB AML POLICY

7.1 CXIHUB has appointed a competent and qualified CXIHUB AML Team, including the Principal Officer, who reviews and updates the CXIHUB AML Policy to ensure compliance with all relevant and applicable Laws, regulations and recommendations (specifically including AML Law) and monitors compliance of CXIHUB AML Policy.

7.2 CXIHUB AML Team is trained to identify and take action on Suspicious Transactions through the Platforms and make regular internal reports on such Suspicious Transactions. CXIHUB would regularly inspect the Trade and Transactions executed through its Services and would report them to relevant supervisory and/or Law enforcement authorities, wherever required. CXIHUB reserves the right to determine such unusual and Suspicious Transactions that may result into abuse of a User’s relationship with CXIHUB.

7.3 The User may approach Sanjeev Sharma, Principal Officer, at sanjeev@cxihub.com to address any queries, concerns, discrepancies or grievances with respect to KYC Documents or this CXIHUB AML Policy. We will use Our best efforts to redress the grievances expeditiously, within 1 (one) month from the date of receipt of such grievance.

 

  1. DISCLOSURE OF KYC DOCUMENTS

 

8.1 CXIHUB shall, if required and/ or directed to cooperate and aid the Government and/ or Law enforcement authorities, police, investigating agencies, courts or tribunals, disclose the KYC Documents shared by the Users for availing Services.

8.2 Subject to applicable Laws, CXIHUB shall be entitled to disclose any information about the Registered User that is in its possession or control, including to Government or Law enforcement officials, police, investigating agencies, courts or tribunals.

8.3 CXIHUB shall be entitled to initiate processes and disclosures under, including but not limited to, the following circumstances:

(a) information pertaining to or in pursuance of claims and legal process (such as summons/ warrants);

(b) to protect property or rights or for safety of CXIHUB, Platforms, Services, Users, third parties or public in general; or

(c) to identify and stop any activity/ activities that CXIHUB considers illegal, unlawful, unethical or legally actionable.

THE USER HEREBY AGREES AND UNDERTAKES TO NOT INDULGE, ASSIST, ABET AND ENCOURAGE IN ANY MANNER WHATSOEVER, IN ANY ACTIVITY INVOLVING MONEY LAUNDERING OR FINANCING OF ANY ILLEGAL OR UNLAWFUL ACTIVITIES IN INDIA OR ABROAD.

 

Last Updated on: 09/02/2018.