AML / KYC / KYT

1. What AML, KYC and KYT mean

AML — measures against money laundering and the financing of illegal activity.

KYC — verifying the client’s identity where this is needed to carry out an operation safely.

KYT — checking crypto transactions and addresses, including the origin of funds and blockchain risk signals.

2. Our approach

We do not check every client in the same way. The scope of a check depends on the route, amount, payment method, country, type of asset, the history of the operation, the sender’s data and risk signals.

Most standard orders pass without additional verification. In some cases, however, we may ask for additional data before executing an order or before returning funds.

3. When a check may be required

A check may be required if:

• the amount of the operation is large
• the operation goes through a high-risk route
• the sender’s data does not match the order terms
• the payment came from a third party
• a crypto transaction received a high risk score
• the funds are linked to suspicious addresses
• the order shows signs of fraud
• the client asks for a non-standard route
• confirmation of the source of funds is needed
• partners, banks, payment systems or the service’s internal procedures require it

4. What data may be requested

Depending on the situation, we may ask for:

• an identity document
• a selfie or a liveness check through a provider
• proof of address
• proof of the source of funds
• proof of wallet ownership
• a screenshot or receipt of the payment
• an explanation of the economic purpose of the operation
• additional data on the payment details or the recipient

We ask only for the data needed to check the specific operation.

5. How KYC works

If KYC is required, the manager tells the client the reason for the request and the next steps.

The check may take place on a secure page of a verification provider. In that case documents are uploaded not in an open chat but through a secure interface. Until the check is complete, the order may be paused.

6. How KYT works

For crypto operations we may check addresses and transactions using blockchain analytics tools. The check may take into account:

• the source of funds
• links to high-risk services
• sanctions lists
• mixers
• darknet markets
• fraudulent addresses
• stolen funds
• gambling and other high-risk services
• other risk signals

If a transaction receives a high risk score, the operation may be paused until the circumstances are clarified.

7. What happens when the risk is elevated

If an operation raises risk, the following scenarios are possible:

• a request for additional data
• a temporary pause on the order
• a refusal to carry out the operation
• a refund of funds to the sender
• a partial refund, if fees have already been incurred
• passing information to a partner or provider, where needed to process the operation

We do not disclose internal risk algorithms, signal sources or details of a check if that could harm the security of the service.

8. Third parties

Welcome Xchange may decline an operation if a payment came from a third party while the order terms assumed payment by the client personally. For some routes only first-party payments are accepted.

If a payment was sent by a third party without prior agreement, the order may be paused, cancelled or refunded under the refund rules.

9. Data storage

We keep the minimum amount of data needed in connection with the order, communication, payment, checks and execution of the operation.

Personal data is processed only for the purposes of security, executing the order, complying with the service rules and applicable requirements.

10. A client’s refusal of a check

If the client refuses to go through a requested check or to provide the necessary data, Welcome Xchange may decline to carry out the operation.

In that case, a refund is considered individually, taking into account the status of the operation, actual costs, fees, the transaction risk and applicable restrictions.

Checks without panic

Sometimes a transaction may require an additional check. This is a normal part of financial safety. We explain what information is needed, why it is needed and how it affects the order flow.

11. The main principle

AML / KYC / KYT is not a formality and not a way to complicate a deal. It is part of the security that helps protect clients, the service, partners and the financial infrastructure from fraud, illicit funds and unexpected blocks.