AML KYC

Introduction

PayXborder is dedicated to preventing money laundering (ML), terrorist financing (TF), and other financial crimes in compliance with international and local laws. We implement a comprehensive Anti-Money Laundering (AML) and Know Your Customer (KYC) policy to safeguard our platform, ensuring it is not misused for criminal activities. This policy outlines our procedures and controls to identify, prevent, and report suspicious activities, in alignment with AML and KYC obligations.

1. Policy Scope and Objectives

This AML & KYC policy applies to all users, clients, employees, and third-party service providers associated with PayXborder. Our primary objectives include:

• Identifying and verifying the identity of customers and beneficial owners;
• Monitoring transactions to detect and report suspicious activities;
• Ensuring compliance with AML and KYC regulations in the jurisdictions where we operate;
• Regularly updating our risk assessment procedures.

2. Regulatory Compliance

PayXborder complies with local and international regulations, including:

• Financial Action Task Force (FATF) recommendations;
• Anti-Money Laundering Act (AMLA);
• Prevention of Money Laundering Act (PMLA), 2002;
• Other regulatory frameworks related to AML and KYC.

3. Know Your Customer (KYC) Procedures

To mitigate ML and TF risks, we implement rigorous KYC procedures for all clients. This includes:

3.1 Customer Identification Program (CIP)
PayXborder requires all customers to provide sufficient identification to verify their identities before onboarding.

Individual Customers:

• Full Name, Date of Birth, and Nationality
• Valid government-issued ID (passport, driver’s license, or national ID card)
• Proof of address (utility bill, bank statement, or similar document)

Corporate Customers:

• Company registration details, including Certificate of Incorporation
• Information on directors, shareholders, and ultimate beneficial owners (UBOs) holding 25% or more of shares
• Documents verifying the business address and operations (utility bill, recent tax filings)

3.2 Enhanced Due Diligence (EDD)
EDD applies to high-risk customers, transactions, and jurisdictions. It includes additional verification steps, such as:

• In-depth background checks on UBOs;
• Examination of source of funds and source of wealth;
• Frequent monitoring of transactions and business activities;
• Ongoing risk assessment and re-evaluation of customer profiles.

3.3 Ongoing Monitoring
PayXborder continually monitors customer transactions and behavior. Any deviations from the typical transaction pattern trigger further analysis to determine whether the activity is consistent with the customer’s profile.

4. Risk Assessment

Our risk-based approach assesses risks related to customer profiles, geography, services, and transactions. Customers and transactions are categorized based on their risk level, with ongoing monitoring for higher-risk customers.

4.1 Customer Risk
Customers are classified as high, medium, or low risk based on factors such as occupation, jurisdiction, transaction volume, and customer relationship history.

4.2 Geographic Risk
We assess geographic risks based on FATF high-risk jurisdictions and countries with weak AML/CFT regulations.

4.3 Product/Service Risk
Certain services (e.g., high-value transactions, foreign currency exchange) are assessed for potential misuse, and appropriate controls are applied.

5. Transaction Monitoring

PayXborder uses automated systems to monitor transactions in real-time, ensuring that unusual patterns are flagged for review. We monitor:

• Frequency and volume of transactions;
• Transaction amounts that deviate significantly from customer profiles;
• Transactions to or from high-risk jurisdictions;
• Patterns suggestive of structuring or layering activities.

6. Reporting Suspicious Activities

All employees are trained to recognize suspicious activities and report them to the designated AML Compliance Officer. We follow strict reporting protocols, including:

6.1 Suspicious Transaction Report (STR)
When suspicious activity is detected, an STR is filed with the appropriate regulatory body. The report includes detailed information about the transaction and customer to assist in investigation.

6.2 Currency Transaction Report (CTR)
Transactions exceeding a specific threshold (based on local regulatory requirements) are reported to authorities, ensuring transparency in high-value transactions.

7. Record Keeping

PayXborder maintains comprehensive records for all transactions and customer profiles, complying with record-keeping regulations. These records are retained for at least five years following the termination of a business relationship or completion of a transaction and include:

• Customer identification records;
• Transaction records (amounts, types, currency, location);
• Suspicious activity reports (SARs) and related communications.

8. Employee Training

Our staff undergoes regular training on AML and KYC practices, ensuring they understand regulatory obligations, recognize suspicious activities, and follow internal reporting procedures. This training is conducted annually or more frequently if regulations or policies change.

9. Third-Party Due Diligence

PayXborder applies stringent due diligence when engaging third-party service providers, ensuring that they adhere to AML and KYC standards. We periodically assess these relationships to ensure ongoing compliance and may terminate relationships with non-compliant partners.

10. Data Privacy and Security

We are committed to protecting customer information and adhere to data protection regulations. Our AML/KYC practices include secure data storage, restricted access controls, and data encryption to safeguard sensitive information.

11. Policy Review and Updates

This AML & KYC Policy is reviewed and updated annually or whenever there is a significant change in regulatory requirements. The policy is overseen by the AML Compliance Officer, who ensures that all updates reflect the latest regulatory standards and industry practices.

Contact Information

For questions or concerns about our AML & KYC Policy, please contact us:

Email: info@payxborder.com
Address: UG – 06 to UG-17, Swarn Plaza, Swarn Nagari, Greater Noida, Uttar Pradesh, India – 201310

This policy reflects our commitment to operating a secure, compliant, and transparent platform, ensuring our services remain safe and trustworthy for all users. Thank you for choosing PayXborder as your global payment partner.