Know Your Customer (KYC) Policy

  • Need for a Policy
  • Legal Requirements
  • Due Diligence Policy
  • Limits For Trading Without KYC
  • Policy Review

Need for a Policy

Xpesa Ltd. (“Xpesa”) is a company duly incorporated under the laws of Malta and runs a completely transparent and legal virtual currencies trading platform. Xpesa intends to encourage the use of Virtual Currencies among the community and make it easier to trade and exchange.

To that effect Xpesa realizes that there may be some stigma attached to Virtual Currencies due to the ease with which individuals may be able to conduct and complete virtual currencies transactions anonymously. In an effort to remove this stigma, Xpesa intends to follow this entirely voluntary Know Your Customer (“KYC”) and/or Anti Fraud rules and regulations, in an effort to ensure that Xpesa’s services are not used for any illegal activities.

Legal Requirements

  • As per the Government of Malta Officially Valid Documents required for  KYC Direction are listed below as follows:
    • i. Passport
    • ii. Driving licence
    • iii. Tax Number
    • iv. Voter’s Identity Card issued by the Election Commission

 

  •  Xpesa believes in total transparency and adherence to the law and discourages any of illegal activities while using Xpesa’s services. In order to discourage and prevent any person from indulging in illegal activities using its services, Xpesa has made the KYC Policy purely as a measure of prudence and on an entirely voluntary basis.

Due Diligence Policy

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

  • a) Obtaining sufficient information about the client in order to identify who is the actual beneficial owner of the securities or on whose behalf transaction is conducted.
  • b) Verifying the customer’s identity using reliable, independent source document, data or information.
  • c) 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.

  • 3.1 Customer Acceptance Policy

To achieve the object of total transparency and prevent illegal activities on our trading platforms, Xpesa has a clear policy of the kind of customers that it shall accept:

    • 3.1.1 Xpesa 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.
    • 3.1.2 Xpesa 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.
    • 3.1.3 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.
    • 3.1.4 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.
    • 3.1.5 Xpesa shall not accept any customers who are below eighteen (18) years of age and/or above the age of seventy five (75) years and/or who do not have the mental capacity to enter into legally binding contracts. However it shall not be the responsibility of Xpesa to determine the legal capacity of the customers and a warranty regarding their legal capacity shall be considered as satisfactory fulfilment of this condition.
    • 3.1.6 Xpesa 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.
  • 3.2 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 / benami / 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. Xpesa shall accept the following documents as proof of identity:

    • For Individuals:
      • a) Passport
      • b) Bank Statement
      • c) Tax Id
    • For Corporates
      • a) Company’s Tax Id
      • b) Certificate of Incorporation
      • c) Memorandum & Articles of Association
      • d) Board Resolution for Trading in cryptocurrency using corporate account at Xpesa
      • e) PAN of Authorised person
      • f) Cancelled bank cheque
      • g) Government approved ID proof of any one of the director
      • h) Address proof of company
      • i) Address Proof of authorised person
    • For Partnership Firm
      • a) Tax Id
      • b) Certificate of Registration (for registered partnership firms only)
      • c) Partnership Deed
      • d) Authorisation Letter for trading/investment in Xpesa
      • e) Tax Id of Authorized person
      • f) Address proof of firm
      • g) Address Proof of authorised person
    • Proof of Address: All customers shall have to provide scanned copies of atleast one of the documents below as proof of address. Xpesa shall accept the following documents as proof of address:
      • a) Passport
      • b) Utility Bill
      • c) Bank statement (with address)

 

    • One to One Interaction: Xpesa has no mandatory policy of meeting the clients individually. However, Xpesa 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: Xpesa 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:
      • a) Please upload clear scanned copies only. Scanned images should be in color and in high resolution, however, the file size should not be greater than 5 MB. Acceptable formats for the scanned copies are JPG, PNG or PDF.
      • b) All documents should be valid on the date of submission and should not have expired.
      • c) Documents should be provided in English or with certified translation in English
      • d) 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 Xpesa finds or is suspicious that any customer is in violation of the conditions prescribed in this Know Your Customer and Anti Fraud Policy, Xpesa shall be fully entitled to terminate the account of such customer and prevent such customer from undertaking any further activities on any of Xpesa’s platforms, existing or in future.
    • 3.3 Suspicious Transactions
      • 3.3.1 Prohibited Activities: Xpesa 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 Xpesa for any Prohibited Activities. Xpesa 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:
        • a) 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.
        • b) Corruption: offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the action of another party.
        • c) Collusion: arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party.
        • d) 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 terrorist related offences.
        • e) 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.
        • f) 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.

 

      • 3.3.2 Actions: In case it comes to the knowledge of Xpesa or Xpesa becomes suspicious that any customer is engaging in any Prohibited Activities Xpesa reserves the right to terminate the account of the customer and prevent such customer from undertaking any further actions on any of Xpesa’s services, existing or in future. Xpesa 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, Xpesa provides for a special waiver from the Customer Identification Policy, provided that such customers link their existing Bank Accounts to their Xpesa Accounts via the appropriate link. Once the existing Bank Accounts are linked to the Xpesa Account the User can trade on the Trade Engine upto a certain limit as may be prescribed by Xpesa. 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 rules and regulations.

Policy Review

This policy would be reviewed as per the sole discretion of Xpesa in line with review requirements of Xpesa but not later than once a year.

© Xpesa Limited 2019