Preloaded Wallet's AML/KYC Policy
Preloaded Wallets is not a currency exchange or money transmitter; we simply provide a service that increases the value of a physical hardware wallet. Nonetheless, the Preloaded Wallets Anti-Money Laundering and Know Your Customer Policy (hereinafter - the “AML/KYC Policy”) is designated to prevent and mitigate possible risks of Preloaded Wallets being involved in any kind of illegal activity.
Both international and local regulations require Preloaded Wallets to implement effective internal procedures and mechanisms to prevent money laundering, terrorist financing, drug and human trafficking, proliferation of weapons of mass destruction, corruption and bribery and to take action in case of any form of suspicious activity from its Users.
AML/KYC Policy covers the following matters:
- Verification procedures
- Compliance Officer
- Monitoring & Limiting Transactions
- Risk Assessment
1. Verification procedures
One of the international standards for preventing illegal activity is customer due diligence (“CDD”). According to CDD, Preloaded Wallets establishes its own verification procedures within the standards of anti-money laundering and “Know Your Customer” frameworks.
1.a. Identity verification
Preloaded Wallets’s identity verification procedure requires the User to provide Preloaded Wallets with their full legal name, billing address and shipping address, and refuses to fulfill suspicious orders. For such purposes, Preloaded Wallets reserves the right to collect User’s identification information for the AML/KYC Policy purposes if legally necessary.
Preloaded Wallets will take steps to confirm the authenticity of names and addresses provided by the Users. Legal methods for double-checking identification information will be used and Preloaded Wallets reserves the right to investigate certain Users who have been determined to be risky or suspicious.
Preloaded Wallets reserves the right to verify User’s identity in an on-going basis, especially when their identification information has been changed or their activity seemed to be suspicious (unusual for the particular User). In addition, Preloaded Wallets reserves the right to request up-to-date documents from the Users, even though they have passed identity verification in the past.
Once the User’s identity has been verified, Preloaded Wallets is able to remove itself from potential legal liability in a situation where its Services are used to conduct illegal activity.
1.b. Card verification
The Users who are intended to use payment cards in connection with the Preloaded Wallets’ Services have to pass card verification in accordance with the payment processor used.
2. Compliance Officer
The Compliance Officer is the person, duly authorized by Preloaded Wallets, whose duty is to ensure the effective implementation and enforcement of the AML/KYC Policy. It is the Compliance Officer’s responsibility to supervise all aspects of Preloaded Wallets' anti-money laundering and counter-terrorist financing, including but not limited to:
2.a. Collecting Users’ identification information.
2.b. Establishing and updating internal policies and procedures for the completion, review, submission and retention of all reports and records required under the applicable laws and regulations.
2.c. Monitoring transactions and investigating any significant deviations from normal activity.
2.d. Implementing a records management system for appropriate storage and retrieval of documents, files, forms and logs.
2.e. Updating risk assessment regularly.
2.f. Providing law enforcement with information as required under the applicable laws and regulations.
The Compliance Officer is entitled to interact with law enforcement, which are involved in prevention of money laundering, terrorist financing and other illegal activity.
3. Monitoring & Limiting Transactions
The Users are known not only by verifying their identity (who they are) but, more importantly, by analyzing their transactional patterns (what they do). Therefore, Preloaded Wallets relies on data analysis as a risk-assessment and suspicion detection tool. Preloaded Wallets performs a variety of compliance-related tasks, including capturing data, filtering, record-keeping, investigation management, and reporting. System functionalities include:
3.a. Black Lists
Daily check of Users against recognized “black lists” (e.g. OFAC), aggregating transfers by multiple data points, placing Users on watch and service denial lists, opening cases for investigation where needed, sending internal communications and filling out statutory reports, if applicable;
3.b. Case and document management.
With regard to the AML/KYC Policy, Preloaded Wallets will monitor all transactions and it reserves the right to:
- ensure that transactions of suspicious nature are reported to the proper law enforcement through the Compliance Officer;
- request the User to provide any additional information and documents in case of suspicious transactions;
- suspend or terminate User’s Account when Preloaded Wallets has reasonable suspicion that such User engaged in illegal activity.
The above list is not exhaustive and the Compliance Officer will monitor Users’ transactions on a day-to-day basis in order to define whether such transactions are to be reported and treated as suspicious or are to be treated as bona fide.
3.c. Limiting transactions.
Preloaded Wallets is not a currency exchange or money transmitter. Preloaded Wallets provides a service that increases the value of a physical hardware wallet. Since Preloaded Wallets is not a money transmitter, Preloaded Wallets also limits the number purchases of hardware wallets preloaded with cryptocurrency to five (5) per User. Purchases are limited by the following variables:
- each unique Customer Name;
- each unique Shipping Address;
- each unique Billing Address.
Orders are closely monitored and any shared Customer Name or Address is counted toward individual Users' limit. This limit on transactions is designed to prevent Preloaded Wallets' services from being used for money laundering, terrorist financing and other illegal activity.
4. Risk Assessment
Preloaded Wallets, in line with the international requirements, has adopted a risk-based approach to combating money laundering and terrorist financing. By adopting a risk-based approach, Preloaded Wallets is able to ensure that measures to prevent or mitigate money laundering and terrorist financing are commensurate to the identified risks.
Preloaded Wallets Risk Assessment approach will allow resources to be allocated in the most efficient ways. The principle is that resources should be directed in accordance with priorities so that the greatest risks receive the highest attention.