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Kyc Anti Fraud

best bitcoin wallet

Know Your Customer and Anti Fraud Description

BTCMonk is a company duly incorporated under the laws of India and runs a completely transparent and legal Bitcoin trading platform. BTCMonk intends to encourage the use of Bitcoins among the community and make it easier for the Bitcoin community in India to trade and exchange in Bitcoins. To that effect BTCMonk realizes that there may be some stigma attached to Bitcoins due to the ease with which individuals may be able to conduct and complete Bitcoin transactions anonymously. In an effort to remove this stigma and encourage Bitcoins to become more widely prevalent, BTCMonk intends to follow this entirely voluntary Know Your Customer or Anti Fraud Policy, in an effort to ensure that BTCMonk’s services are not used for any illegal activities.

Legality Check

Reserve Bank of India (RBI), the regulator of banks in India issued detailed guidelines to Banks on Know Your Customer (KYC) and Anti Money Laundering (AML) in November 2004. The Indian Parliament passed the Prevention of Money Laundering Act (PMLA) in 2002 to implement the Political Declaration adopted by the special session of the United Nations General Assembly held during June 8-10, 1998 and the Global Programme of Action annexed to Resolution S-17/2 adopted by the United Nations General Assembly on February 23, 1990. The provisions of this Act are effective from July 1, 2005. The PMLA addresses a range of issues including the definition of and punishment for the offence of Money Laundering, attachment and confiscation of property tainted by Money Laundering and the obligations of banking companies, financial institutions and intermediaries in connection with Money Laundering issues.

Under PMLA, the scope of Money Laundering covers certain offences under the Narcotics Drugs and Psychotropic Substances Act, 1985, the Indian Penal Code, 1860, the Arms Act, 1959, the Wild Life (Protection) Act, 1972, the Immoral Traffic (Prevention) Act, 1956 and the Prevention of Corruption Act, 1988.

No Legal Requirement

Although BTCMonk is not required by the law to follow any Know Your Customer (KYC) policies or implement any Anti Fraud mechanisms, however BTCMonk believes in total transparency and adherence to the law and discourages any of illegal activities while using BTCMonk’s services. In order to discourage and prevent any person from indulging in illegal activities using its services, BTCMonk has made the following KYC and Anti Fraud Policy purely as a measure of prudence and on an entirely voluntary basis.

Due Diligence Policy

In order to ensure that BTCMonk’s services are not utilized by unwanted and illegal elements to further their illegal motives, BTCMonk intends to follow a holistic Due Diligence Policy which entails the following:

  1. Obtaining sufficient information about to the client in order to identify who is the actual beneficial owner of the securities or on whose behalf transaction is conducted.
  2. Verifying the customer’s identity using reliable, independent source document, data or information.
  3. Conducting on-going due diligence and scrutiny of the account/client to ensure that the transaction conducted are consistent with the client’s background/financial status, its activities and risk profile.

The Due Diligence Policy involves the following three specific parameters: (i) Customer Acceptance Policy; (ii) Customer Identification Policy; and (iii) Highlighting Suspicious Transactions.

  • 4.1 Customer Acceptance Policy
  • To achieve the object of total transparency and prevent illegal activities on our trading platforms, BTCMonk has a clear policy of the kind of customers that it shall accept:
  • 4.1.1 BTCMonk shall only accept clients who are able to provide complete and true documents in line with the Customer Identification Policy set out below. Customers who do not supply the essential information required while filling in the form provided for registration shall not be accepted.
  • 4.1.2 BTCMonk shall use known publicly and freely available portals to check the authenticity of the identification documents provided by the customers and any persons whose documents appear to be unclear, insufficient, fraudulent or misleading shall not be allowed to register, and if registered, their registration shall be terminated.
  • 4.1.3 Any customers whose registration information does not match the documents provided or appears to be fictitious may not be registered, and if registered, their registration shall be terminated.
  • 4.1.4 No customers shall be allowed to register in fictitious names or if the customer appears to be an anti social element or is found to have a record of fraud, cheating or forgery.
  • 4.1.5 BTCMonk shall not accept any customers who are below 18 years of age or who do not have the mental capacity to enter into legally binding contracts. However it shall not be the responsibility of BTCMonk to determine the legal capacity of the customers and a warranty regarding their legal capacity shall be considered as satisfactory fulfillment of this condition.
  • 4.1.6 BTCMonk may ask for additional information at any point of time and if the customer refuses or is unable to provide such additional information then such customer shall not be registered, and if registered, their registration shall be terminated.

Customer Identification Policy

The objective of the Customer Identification Policy is to have a mechanism in place to establish identity of the client along with firm proof of address to prevent opening of any account which is fictitious / untrue / anonymous in nature.

Proof of Identity: All customers shall have to provide scanned copies of atleast one of the documents below as proof of identity. BTCMonk shall accept the following documents as proof of identity:

For Individuals

-Address Proof [Any One] Can Be Of Below Things:
	Drivers Licence

	Passport (Front and Last page)

	Voter ID Card (Front and Back)

	Aadhar Card (UID)

	Bank Statement

-For Identification & Legality Purpose Doc Required Is:

	PAN Card or a PAN intimation letter which is not more than one year old.

For Corporates

	Certificate of incorporation and Memorandum & Articles of Association

	Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account

	Power of Attorney granted to its managers, officers or employees to transact business on its behalf

	PAN number

	Copy of the telephone bill

For Partnerships

  • (i) Registration certificate, if registered
  • (ii) Partnership deed
  • (iii) Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf
  • (iv) Any officially valid document identifying the partners and the persons holding the Power of Attorney and their addresses
  • (v) Telephone bill in the name of firm/partners

For Trusts and Foundations

  • (i) Certificate of registration, if registered
  • (ii) Power of Attorney granted to transact business on its behalf
  • (iii) Any officially valid document to identify the trustees, settlors, beneficiaries and those holding Power of Attorney, founders/managers/ directors and their addresses
  • (iv) Resolution of the managing body of the foundation/association
  • (v) Telephone bill

For Proprietorship Concerns

Registration certificate (in the case of a registered concern)

Certificate/licence issued by the Municipal authorities under Shop & Establishment Act,

Sales and income tax returns

CST/VAT certificate

Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities

Licence issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, registration/licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority/ Department, IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT, etc.2

Proof of Address: All customers shall have to provide scanned copies of atleast one of the documents below as proof of address. BTCMonk shall accept the following documents as proof of address:

Driver’s License

Adhaar Card

Passport

Voter’s Identity Card

Utility Bills (Landline, Electricity, Gas) not older than 3 months.

Ration card with name mentioned in the ration card. (Not applicable as a valid address proof in the states of Delhi & Maharashtra).

PAN intimation letter (not older that 1 year).

Letter from employer along with employee card and latest salary slip.3

E-Aadhar card.

Lease Agreement or Leave and License Agreement shall be accepted only as a proof of temporary residence if provided along with any of the above documents in this sub-clause as proof of permanent address.

One to One Interaction: BTCMonk has no mandatory policy of meeting the clients individually. However, BTCMonk will be enabling customers to submit their documents in person during meet-ups and/or workshops held across the country which would allows for another level of direct KYC verification.

Authenticity Check: BTCMonk may, and shall be under no obligation to, check that the documents provided by the customers as proof of identity and proof of address are authentic by cross checking them against freely available public databases.

General Conditions: While providing documents to fulfill the User Identification Policy, customers should keep in mind the following:

Please upload clear scanned copies only. Scanned images should be in color and in high resolution (at least 300 dpi) however the file size should not be greater than 4 MB. Acceptable formats for the scanned copies are JPG, GIF, PNG.

All documents should be valid on the date of submission and should not have expired.

Documents should be provided in English or with certified translation in English

In case address proof submitted is not in the name of applicant then an additional document supporting the relationship with the addressee should be submitted by email such as marriage certificate, gazetted copy of name change or passport, visa etc. stating name of spouse/ guardian & their relationship.

Termination of Account: In case BTCMonk finds or is suspicious that any customer is in violation of the conditions prescribed in this Know Your Customer and Anti Fraud Policy, BTCMonk shall be fully entitled to terminate the account of such customer and prevent such customer from undertaking any further activities on any of BTCMonk’s platforms, existing or in future.

Highlighting Suspicious Transactions

4.3.1 Prohibited Activities: BTCMonk has a very strict policy of not allowing its services to be knowingly used for any “Prohibited Activities”. No customer shall use the services of BTCMonk for any Prohibited Activities. BTCMonk may conduct manual checks to ensure that not customer is indulging in Prohibited Activities; these checks may in future become automated. The Prohibited Activities for the purposes of this policy shall include:

  • (i) Fraud: any act or omission, including a misrepresentation that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation.
  • (ii) Corruption: offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the action of another party.
  • (iii) Collusion: arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party.
  • (iv) Terrorist financing: provision or collection of funds, by any means, directly or indirectly, with the intention that they should be used or in the knowledge that they are to be used, in full or in part, in order to carry out any of the offences within the meaning of Articles 1 to 4 of Council Framework Decision 2002/475/JHA of 13 June 2002 on combating terrorism.
  • (v) Criminal conduct: 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.
  • (vi) Money laundering: Money laundering is essentially 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. It has been defined under the Prevention of Money Laundering Act, 2002 in the following words:

“Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money-laundering.”

4.3.2 Actions: In case it comes to the knowledge of BTCMonk or BTCMonk becomes suspicious that any customer is engaging in any Prohibited Activities BTCMonk reserves the right to terminate the account of the customer and prevent such customer from undertaking any further actions on any of BTCMonk’s services, existing or in future. BTCMonk shall further be fully entitled, if it so chooses, to report such suspicious activities to the appropriate authorities.

Limits For Trading Without KYC

In case of Users who have bank accounts in Select Partner Banks, BTCMonk provides for a special waiver from the Customer Identification Policy, provided that such customers link their existing Bank Accounts to their BTCMonk Accounts via the appropriate link. Once the existing Bank Accounts are linked to the BTCMonk Account the User can trade on the Trade Engine upto a certain limit as may be prescribed by BTCMonk. In case of Users of any other Bank Accounts or trading beyond the prescribed limits, the Users will have to provide KYC documents as per the Customer Identification Policy.

  • 1 Not acceptable as address proof for location where in the license specifically mentions that it is not a valid address proof.
  • 2 Any two of the above documents would suffice. These documents should be in the name of the proprietary concern.
  • 3 BTCMonk reserves the right to reject this address proof at its discretion. [NOTE: This is so that people do not make up fictitious employers to give a fraudulent letter]


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