Know Your Customer and Anti-Money Laundering Policy

CoinSwitch Kuber



This Know Your Customer (“KYC”) and Anti-Money Laundering (“AML”) Policy (“KYC / AMLPolicy”) details the KYC and AML requirements to access to and use of our website https://coinswitch.co/ and mobile application (collectively “Platform”), operated under the brandname of “CoinSwitch Kuber”, for sale or purchase of virtual currencies (“VCs”) by You through thePlatform.

The Platform is managed and operated by Bitcipher Labs LLP (hereinafter referred to as “Us”/ “We”/“CoinSwitch”). You accept and understand that this KYC / AML Policy forms a legal and bindingagreement between You and CoinSwitch.



1. Definitions

1.1 “Applicable Law” shall mean any statute, law, regulation, ordinance, rule, judgment, order,decree, by-law, approval from the concerned authority, government resolution, order, directive,guideline, policy, requirement, or other governmental restriction in force in India, includingwithout limitation the Prevention of Money Laundering Act 2002 (“PMLA”), the Prevention ofMoney Laundering (Maintenance of Records) Rules 2005 (“PML Rules”), and the ReserveBank of India’s Master Direction on Know Your Customer Directions 2016, as applicable andupdated from time to time.

1.2 “Beneficial Owner” means an individual who ultimately owns or controls a User or the Personon whose behalf a transaction is being conducted and includes a Person who exercises ultimateeffective control over a juridical person.

1.3 “Person” means an individual who is above eighteen (18) years of age.

1.4 “Suspicious Transaction” means a transaction, including an attempted transaction, whether ornot made in cash, which to a person acting in good faith:

  1. give rise to a reasonable ground of suspicion that it may involve proceeds of an offensespecified in the schedule to the PMLA, regardless of the value involved; or

  2. appears to be made in circumstances of unusual or unjustified complexity; or

  3. appears to have no economic rationale or bona fide purpose; or

  4. gives rise to a reasonable ground of suspicion that it may involve financing of theactivities relating to terrorism. Terrorism includes transaction involving funds suspectedto be linked or related to, or to be used for terrorism, terrorist acts or by a terrorist,terrorist organization or those who finance or are attempting to finance terrorism.

1.5 “User” / “You” shall mean any Person using/accessing the Platform, for sale or purchase ofVCs.



2. User Due Diligence

2.1 At the time You open an account with CoinSwitch and opt to transact using the Platform,CoinSwitch shall endeavour to identify and verify Your identity. To this effect, CoinSwitchshall collect, and User shall provide, such documents and data, as requested by CoinSwitch, toestablish and verify the identity of the User / for KYC purposes. All data provided by You forKYC and customer identification purpose shall be true, correct and update. CoinSwitch mayalso use / deploy various software and/or technology or other means, either directly or throughits service providers / vendors to establish and verify your identity and/or the documents /information provided by You. You hereby consent to any such identity verification and KYCchecks.

2.2 The documents and data for KYC and customer identification purposes shall be requested fromthe User directly on the Platform and shall be accessed and used by CoinSwitch as per thisPolicy, the Applicable Laws, and the Privacy Policy accessible at https://coinswitch.co/privacy-policy

2.3 CoinSwitch shall also share, use and retain Your data, documents and information to report anyand all Suspicious Transactions to the Financial Intelligence Unit (“FIU”) and/or to complywith requests / requisitions from any statutory / regulatory / supervisory / law enforcementauthority / enforcement authority (“Authorities”).

2.4 Failure of the User to provide the requisite KYC documents may hinder or completely restrictthe use of the Platform and the Services to the User.

2.5 CoinSwitch shall endeavour to verify, either itself or through third party vendors / serviceproviders, the identity and address of the Users along with the other details and documentssubmitted by You as may be legally / operationally tenable, including but not limited to usingthe following methods:

  1. Masked / Offline Aadhar under the Aadhaar (Targeted Delivery of Financial and OtherSubsidies, Benefits and Services) Act, 2016; or

  2. use of passport issued under the Passports Act, 1967; or

  3. use of any other officially valid document (i.e. Voter ID / Driving License); or

  4. use of any other photo ID with address proof, as it deems fit.

User agrees to provide the requisite documents for KYC checks in a timely manner, to create anaccount to transact on the Platform, as listed below:

Person Documents to be submitted for User identification and verification

Individual eligible to be enrolled for an Aadhaar number/ Individually voluntarily submitting to Offline KYC/masked Aadhar

  1. Redacted Aadhaar / Offline Aaddhar, i.e., Aadhar without the Aadhar Number;
  2. the Permanent Account Number or Form No. 60 as defined in Income-tax Rules, 1962; and
  3. such other documents including in respect of the nature of business and financial status of the User as CoinSwitch may deem necessary

Individual not eligible to be enrolled for an Aadhaar number/Individually not willing to submit to Offline KYC/masked Aadhar

  1. Permanent Account Number or Form No. 60 as defined in Income-tax Rules, 1962; or
  2. 1 self-certified copy true copy of an 'officially valid document' containing both details of User identity and address;
  3. 1 recent photograph; and
  4. such other documents including in respect of the nature of business and financial status of the User as CoinSwitch may deem necessary.

2.6 Additionally, CoinSwitch may request the details, data and documents of the owner of the VCwallets to which any VCs is/are being/were transferred by You through the Platform.

2.7 User acknowledges and agrees that the foregoing list may be amended by CoinSwitch by wayof a notification / intimation on the Platform. in its sole discretion from time to time, withoutprior notice.

2.8 User agrees to provide such additional documents as may be required by Coinswitch, to ensurecompliance with any Applicable Laws or request from any Authorities immediately, uponreceipt of written request from CoinSwitch.

2.9 User further represents, warrants, and agrees to provide true, correct, and complete KYCdocuments, information and data to CoinSwitch / its delegates / agents / representatives.

2.10 CoinSwitch may examine the ownership and financial position, including sources of funds ofthe User or details of the wallet receiving the VCs, and You shall provide all assistance andcorporation in this regard. If the User fails/ refuses to comply with the requirements herein,CoinSwitch shall not allow the User to create an account or such transaction to be carried out,as case may be.

2.11 Where any transaction or series of transactions undertaken by a User is considered suspiciousby CoinSwitch or is likely to involve proceeds of crime or be used towards any illegal activity,CoinSwitch shall report all such transactions to FIU / Authorities and may also increase thefuture monitoring of such User. The User shall provide all assistance, support and corporationin this regard including additional documents to verify the identity or the details of thetransaction.

2.12 Notwithstanding anything to the contrary contained in the Privacy Policy, any informationobtained while undertaking the due diligence measures under this Policy shall be maintainedfor a period of a minimum period of 5 (five) years from the date of transaction or such longerperiod as may be specified under any Applicable Laws / Authorities.

2.13 CoinSwitch does not allow opening of or keeping any anonymous account or account infictitious names or account on behalf of other persons whose identity has not been disclosed orcannot be verified or any Benami accounts. The same are strictly prohibited.



3. Maintenance of Records

3.1 CoinSwitch shall collect and maintain records, in the form of books or stored in a computer, ofthe identity of the User along with all documents and information provided by the User and ofall the transactions undertaken by him/her, as required under the Applicable Laws / goodindustry practices.

3.2 CoinSwitch shall maintain and report records of:

  1. the KYC details, document and data of all Users who open an account;
  2. the KYC details, document and data of all Users who undertake a transaction on thePlatform along with the details of the wallet addressee; or
  3. Your transactions on the Platform;
  4. any international money / VC transfer operations.

3.3 Additionally, CoinSwitch shall also maintain and report records of, without limitation:

  1. all transactions of the value of more than INR 10,00,000/- or its equivalent in foreigncurrency or VCs;
  2. all series of transactions integrally connected to each other which have beenindividually valued below INR 10,00,000/- or its equivalent in foreign currency or VCswhere such series of transactions have taken place within a month and the monthlyaggregate exceeds an amount of INR 10,00,000/- or its equivalent in foreign currencyor VCs;
  3. all transactions involving receipts by non-profit organisations of value more than INR 10,00,000/-, or its equivalent in foreign currency or VCs;
  4. all Suspicious Transactions.

3.4 The records shall contain, without limitation, the following information-

  1. the nature of transactions;
  2. the amount of the transaction and the details of the VCs in which it was denominated;
  3. date on which the transaction was conducted; and
  4. the details, data and document of the User / parties to the transaction.

3.5 Notwithstanding anything to the contrary herein, any core biometric information or Aadhaarcopy voluntarily provided by You for verification of identity / KYC shall be deleted byCoinSwitch within thirty (30) days of the completion of the purpose, and only the photo, nameand address of the concerned User therefrom shall be retained for a period of 5 (five) years.



4. Ongoing Due Diligence

4.1 As part of the ongoing due diligence process, CoinSwitch shall monitor the transactionsundertaken by a User on the Platform to ensure that they are consistent with their knowledge ofthe User, its business and risk profile and where necessary, the source of funds.

4.2 When there are suspicions of money laundering or financing of the activities relating toterrorism or where there are doubts about the adequacy or veracity of previously obtained Useridentification data, CoinSwitch shall review the due diligence measures including verifying theidentity of the User again and request additional information from the User. User shall provideall such information, as and when requested by CoinSwitch.

4.3 CoinSwitch shall undertake measures with respect to the existing Users based on materialityand risk and conduct due diligence of such existing relationships at appropriate times or as maybe required under any Applicable Laws or specified by the competent authority, if any, or in itsdiscretion, taking into account whether and when User due diligence measures have previouslybeen undertaken and the adequacy of the data, documents and information provided by theUser.



5. Disclosure

5.1 Any information or record maintained by CoinSwitch may be disclosed pursuant to an orderfrom a competent Authorities including without limitation, police, Director of FinancialIntelligence Unit, or any authority as prescribed under the PMLA, Reserve Bank of India, courtor tribunal or otherwise.

5.2 CoinSwitch may also disclose any information or record maintained herein to protect theinterest of CoinSwitch, its affiliates, directors, employees, agents, professional advisors orpublic at large. It may disclose and/or report any information which it considers to besuspicious, illegal, unethical, immoral or against the Applicable Laws to the competentauthority including but not limited to police, FIU, etc.



6. Risk Assessment and Mitigation

6.1 CoinSwitch shall carry out risk assessment to identify, assess and take effective measures tomitigate money laundering and terrorist financing risk for Users, countries or geographic areas,and products, services, transactions, or delivery channels that is consistent with any nationalrisk assessment conducted by a body or authority duly notified by the Central Government.

6.2 The risk assessment carried out by CoinSwitch shall-

  1. be reasonably documented;
  2. consider all the relevant risk factors before determining the level of overall risk and theappropriate level and type of mitigation to be applied;
  3. be kept up to date; and
  4. be available to competent authorities and self-regulating bodies/ Authorities, if and asrequired under Applicable Laws.



7. Obligation of User

7.1 The User agrees to use the Platform only for lawful and legal purposes as per (i) this KYC /AML Policy; and (ii) the Applicable Laws, as amended from time to time.

7.2 User shall not use the Platform for any illegal or unlawful or criminal or anti-national purposesor for financing any such activity under any circumstance whatsoever.

7.3 User shall not impersonate another person or misrepresent itself/himself/herself on the Platformunder any circumstance whatsoever.

7.4 CoinSwitch reserves the right, at its sole discretion, to change, modify, add or remove portionsof this KYC / AML Policy, at any time without any prior written notice to the User.

7.5 It is the User’s responsibility to review the KYC / AML Policy periodically for any updates/changes. User’s continued use of the Platform following the modification of KYC / AMLPolicy will imply the acceptance by the User of the revisions.

7.6 User hereby acknowledges and agrees that this KYC / AML Policy is also subject to the Termsof Use and Privacy Policy.



8. Compliance by CoinSwitch

8.1 CoinSwitch shall furnish the record maintained under clause 3.3(i), 3.3(ii) and 3.3(iii) to theDirector of FIU every month by 15th day of the succeeding month, or as may be required by theFIU / Authorities.

8.2 CoinSwitch shall report any Suspicious Transaction to the Director of FIU within seven (7)working days on being satisfied that the transaction is suspicious, or as may be required by theFIU.

8.3 CoinSwitch shall appoint a ‘Principal / Compliance Officer’ to ensure overall compliance withthe obligations imposed herein and under any Applicable Laws.

8.4 CoinSwitch shall endeavour to undertake commercially reasonably efforts to implementstandards and provisions similar to the ones specified by the Reserve Bank of India’s underMaster Direction on Know Your Customer Directions 2016, as amended from time to time.

8.5 In case of any complaint or queries with respect to this Policy or to report any suspicious orillegal activity of a User within Your knowledge, You may write to us atsecurity@coinswitch.co.