AML/KYC

These AML/KYC Terms were last updated on the 2th of February 2024.

This Know-Your-Customer (‘KYC’) Policy is an integral part of SimpleSwap's Terms of Service. Before using our services, it is imperative that you read these terms carefully.  By accessing and engaging with SimpleSwap's services, you acknowledge that you have read, understood, and agreed to be bound by both the Terms of Service and this KYC Policy. This agreement includes an obligation on your part to comply with all due diligence procedures to the maximum extent required by this policy. If you disagree with any provision of this policy, or are unable or unwilling to comply with our KYC requirements set below, you should not use our services. Your continued use of SimpleSwap's services constitutes acceptance of and agreement to comply with all aspects of the KYC Policy, as well as any future amendments or updates thereto.

1. Introduction to our compliance measures measures

1.1. This policy, as a testament to our commitment to ensure the security of our clients and partners, lays down requirements for screening clients and their transactions to prevent entering into dealings involving suspected money laundering, terrorist financing, fraud, sanctions evasion, and other financial crimes and illicit activities.

1.2. This policy incorporates a risk-based approach, systematically assessing and addressing the varying degrees of risk associated with different clients and transactions to ensure tailored and effective management of potential financial crime threats.

1.3. The policy adheres to and takes into account globally recognised guidelines and recommendations of the Financial Action Task Force (‘FATF’), which sets international standards aimed at preventing financial crimes. By aligning this policy with FATF standards, SimpleSwap aims to raise the effectiveness of its compliance practices and ensure they are adaptable to the evolving nature of these threats.

1.4. This policy shall be applied in any issue related to financial transactions that occur on the SimpleSwap platforms.

2. Risk-based approach

2.1. SimpleSwap's KYC policy aligns with the FATF recommendations, specifically designed to assess risks associated with virtual assets service providers.

2.2. In alignment with our compliance policy and procedures, clients and their transactions are categorised into risk levels. The application of KYC procedures is tailored according to the risk category, this ensures a proportionate and effective approach to risk management.

2.3. We have ongoing risk assessment procedures in place to ensure that client risk profiles and transaction risk levels are regularly reviewed and adjusted as necessary, in accordance with evolving regulatory requirements, changing circumstances and best practices.

3. Transaction monitoring

3.1. SimpleSwap employs advanced technological solutions for conducting real-time and in-depth blockchain analytics to detect patterns that are indicative of compliance red flags. Upon the identification of potential risks, our system generates immediate alerts to initiate a responsive protocol. 

3.2. The security and compliance teams are responsible for the evaluation of these alerts and undertake comprehensive investigations in line with SimpleSwap's internal policies and regulatory obligations.

3.3. These alerts are handled with the utmost confidentiality, strictly adhering to SimpleSwap's policies and regulatory obligations. Your KYC and transaction data privacy is of paramount importance to us.

3.4. SimpleSwap reserves the right to temporarily freeze any transaction if deemed necessary for the duration of an investigation or client checks. If your transaction did not go through, please contact security@simpleswap.io for further guidance and direction. We will put all our efforts into minimising any inconvenience during this process and will resume normal operations as promptly as possible upon the completion of the investigation and client checks.

4. Client checks

4.1. It is a part of SimpleSwap's commitment to providing efficient and streamlined services without compromising on compliance. Defined as ‘free from sign-up’ or ‘no KYC’ approach is applied exclusively in scenarios identified as low risk. In instances where our monitoring system identifies potential red-flag indicators, we will escalate the checking procedures and conduct a client check.

4.2. SimpleSwap may at its discretion require clients to complete mandatory KYC checks on any transaction. This measure is in response to certain triggers identified during our ongoing risk assessment and monitoring processes. We reserve the right to implement these checks as necessary to uphold the security and integrity of our platform and to comply with regulatory obligations.

4.3. The checks are tiered into two distinct levels: standard and enhanced. Criteria for determining whether a certain transaction or client are subject to a certain type of check are solely at SimpleSwap’s discretion and are subject to our security and compliance protocols and regulatory requirements.

4.4. As part of client checks the following information and documents are required: client's full name; date of birth; address (with proof for certain jurisdictions); contact information (phone number, email address); government-issued identification documents (national ID card, passport, national identity card, driver’s license, or any other government-issued photo ID); information whether the client is a Politically Exposed Person (‘PEP’) or related to a PEP; selfie with the ID document.

4.5. Additionally the following documents and information may be requested: declaration of the expected pattern and volume of transactions; detailed information on the nature and purpose of transactions; documentation of source of funds and source of wealth (bank statements, pay slips, contracts, business income documentation, etc); proof of address (recent utility bill, bank statement, property tax receipt, government-issued residence certificate, occupational information, employment verification, business registration documents for self-employed or business owners and other documents and information at SimpleSwap’s discretion).

4.6. Clients may be required to participate in a real-time liveness check that compares the user's face with the government-issued document provided.

4.7. Continuous monitoring and scrutiny of the client's transactions and activities are integral to our due diligence measures, ensuring regular updates to their risk status and any necessary adjustments in due diligence measures.

5. Client’s responsibilities

5.1. Clients are required to provide accurate and up-to-date information during the client checks procedure. This includes furnishing valid and relevant documents and information as outlined in Sections 4.4 and 4.5 above. It is the responsibility of the client to promptly update their personal or financial information to ensure ongoing compliance and accuracy.

5.2. Clients are encouraged upon their first use of our services to register a personal account and regularly review and confirm the accuracy of their account information. SimpleSwap recommends clients to undertake this review at least annually or whenever there are significant changes to their personal or financial circumstances.

5.3. From time to time, SimpleSwap may request and the client is required to provide additional documentation or information as part of our ongoing due diligence and monitoring processes.

5.4. Clients are expected to be vigilant and report any suspicious transactions or activities they observe in their accounts.

5.5. Clients must adhere to all terms and conditions outlined in SimpleSwap's Terms of Service and stay informed about any changes or updates to our policies, including this KYC Policy.

5.6. Clients must avoid engaging in activities that are prohibited under SimpleSwap’s terms of service, such as using the platform for fraudulent purposes, money laundering, financing of terrorism or any other illicit activities. Violation of these terms will result in immediate termination of SimpleSwap’s relations with the client and potential legal consequences.

5.7. Clients are encouraged to engage in ethical financial practices, avoiding transactions that could be deemed high-risk or associated with illegal activities. It is the responsibility of each client to ensure that their transactions comply with local and international laws and regulations.

5.8. In the event of an investigation or client check by SimpleSwap or authorities, clients must fully cooperate by providing requested information and complying with investigation procedures.

6. Data privacy and security

SimpleSwap is strongly committed to protecting the privacy and security of our clients' data. The trust of our clients is paramount, and we recognise the responsibility that comes with handling sensitive personal and financial information. To ensure the highest level of data protection, SimpleSwap employs state-of-the-art security measures. These include encryption technologies, secure data storage solutions, and strict access controls. SimpleSwap is fully compliant with relevant data protection laws and regulations. We adhere to stringent standards for data privacy and security, ensuring that our practices meet legal and regulatory requirements. Please note that SimpleSwap retains information on suspicious transactions including the personal data of our clients for a period required by the government authorities but not less than for five (5) years. For a comprehensive understanding of our data privacy and security practices, clients are encouraged to review our Privacy Policy.

7. Miscellaneous provisions

7.1. SimpleSwap informs its clients that our KYC measures are subject to regular reviews and updates in response to evolving regulatory standards and risk assessment. All policies and procedures are reviewed at least annually. Please note, it is the responsibility of our clients to stay informed about any changes in our KYC policies. We recommend checking our policy documents periodically to ensure familiarity with the most current measures and requirements.

7.2. We encourage our clients to actively engage with us regarding our KYC policies. For any questions, clarifications, or feedback on our KYC measures, clients can reach out via security@simpleswap.io.

7.3. We encourage clients to report any suspicious activities they encounter on our platform. If you notice any unusual transactions, behaviours, or have concerns about potential financial crimes or other illicit activities, please contact us immediately via security@simpleswap.io. For a comprehensive understanding of our data privacy and security practices, please review our Privacy Policy.