Anti-Money Laundering (AML) & Know Your Customer (KYC) Policy

Effective Date: February 9, 2026

Regulatory Compliance
Enhanced Security
Global Standards

Policy Overview

PARANEX is committed to preventing money laundering, terrorist financing, and other illegal activities. This AML/KYC Policy outlines our comprehensive framework for customer identification, transaction monitoring, and regulatory compliance.

Customer Due Diligence

Thorough verification of all customers before account activation

Ongoing Monitoring

Continuous surveillance of transactions for suspicious activity

Record Keeping

Maintaining detailed records as required by regulations

Suspicious Reporting

Timely reporting of suspicious activities to authorities

Why KYC/AML is Required

Cryptocurrency platforms must implement robust KYC/AML procedures to:

1

Prevent Financial Crime

Deter money laundering, terrorist financing, and fraud

2

Regulatory Compliance

Meet global financial regulations and licensing requirements

3

Protect Users

Safeguard legitimate users from criminal activity

4

Maintain Integrity

Preserve the integrity of the cryptocurrency ecosystem

KYC Verification Process

1

Account Registration

Provide basic information: email, password, and username

Immediate Required
2

Identity Verification (Tier 1)

Upload government-issued ID for basic verification

Passport
Driver's License
National ID
3

Address Verification (Tier 2)

Provide proof of residential address for higher limits

Utility Bill
Bank Statement
Tax Document
4

Enhanced Due Diligence (Tier 3)

Additional verification for high-value accounts

Video Verification Source of Funds Occupation Details

Verification Levels & Limits

Level
Requirements
Daily Limit
Monthly Limit
Basic
Email & Phone
$1,000
$5,000
Tier 1
ID Verification
$10,000
$50,000
Tier 2
Address Proof
$50,000
$250,000
Tier 3
Enhanced Due Diligence
$250,000+
$1,000,000+

AML Monitoring & Controls

Customer Risk Assessment

All customers are assigned risk ratings based on:

  • Country of residence
  • Transaction patterns
  • Source of funds
  • Occupation type

Transaction Monitoring

Real-time monitoring for suspicious patterns:

  • Unusual transaction amounts
  • Rapid fund movements
  • Structuring to avoid reporting
  • High-risk jurisdiction transfers

Suspicious Activity Reporting

Procedures for identifying and reporting:

  • SAR filing within 30 days
  • CTR reporting for large transactions
  • Internal investigation protocols
  • Regulatory communication

Sanctions Screening

Regular screening against:

  • OFAC sanctions lists
  • UN Security Council lists
  • EU sanctions lists
  • PEP databases

Red Flag Indicators

Unusual Activity

Transactions inconsistent with customer profile

Rapid Movement

Quick deposits and withdrawals without trading

Structuring

Breaking transactions to avoid thresholds

High-Risk Jurisdictions

Transactions involving sanctioned countries

Compliance Framework

Compliance Officer

Designated AML Compliance Officer with authority and responsibility for:

  • Overseeing AML program implementation
  • Approving suspicious activity reports
  • Ensuring staff training
  • Managing regulatory communications

Employee Training

Regular training programs covering:

  • AML regulations and requirements
  • Red flag identification
  • Customer due diligence procedures
  • Reporting obligations

Independent Audit

Annual independent review of:

  • AML program effectiveness
  • Compliance with regulations
  • Internal control systems
  • Record-keeping practices

Record Keeping Requirements

We maintain comprehensive records for regulatory compliance:

Retention Period

Minimum 5 years from account closure

Customer Identification

All KYC documents and verification results

Transaction Records

Complete transaction history and monitoring data

Reports & Communications

SAR filings and regulatory correspondence

Frequently Asked Questions

Financial regulations require cryptocurrency platforms to verify customer identities to prevent money laundering, terrorist financing, and fraud. This protects both the platform and legitimate users from criminal activity.

Basic verification is typically completed within 24 hours. Enhanced verification may take 2-3 business days. We process verifications as quickly as possible while ensuring thorough compliance checks.

Yes, we use bank-level encryption and secure storage for all personal information. Access is restricted to authorized compliance personnel, and we never share information except as required by law or with your consent.

Unverified accounts have limited functionality and lower transaction limits. To access full platform features and higher limits, complete the KYC verification process.

Basic accounts require minimal verification (email and phone). However, to deposit, trade, or withdraw cryptocurrencies, you must complete the appropriate level of KYC verification based on your intended usage.

We do not offer services to residents of countries on international sanctions lists, including but not limited to North Korea, Iran, Syria, Cuba, and Crimea. A full list is available upon request from compliance@paranex.online.

Compliance Support

For KYC/AML questions or verification assistance:

compliance@paranex.online