Regulatory RequirementsRegulatory Requirements

Anti-Money Laundering, Counter-Terrorism Financing, and Anti-Proliferation Financing Regulations

This is CoKeeps' approach to Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF), Anti Proliferation Financing (APF) and Know-Your-Customer (KYC) processes.

Money laundering is the process of disguising illegal funds to make them appear legitimate. Criminals use various techniques to launder their dirty money, often involving complex transactions and cross-border movements, ultimately aiming to integrate these funds back into the economy without raising suspicion.

Terrorism financing involves providing financial support to individuals or groups engaged in terrorism. This can include donations, fundraising, and operational funding, often exploiting channels that offer anonymity and ease of cross-border transactions. Funds that have been laundered are often used to finance terrorism or other criminal activities or both.

To counter money laundering, terrorist financing, and proliferation financing, most countries have enacted AML, CTF, and CPF laws that place obligations on financial service providers. These laws, along with guidance from regulators, applicable task forces, and industry best practices, form the basis of Cokeeps' approach to AML and CTF. Cokeeps has implemented systems and controls that meet the standards applicable to regulated sectors to prevent money laundering and terrorist financing.

The Cokeeps' Anti-Money Laundering and Combating the Financing of Terrorism Framework is a multifaceted system designed to detect, prevent, and mitigate risks associated with financial crimes. This comprehensive framework encompasses a range of key components, including:

• Customer Due Diligence (CDD): A process of identifying and verifying customers, along with ongoing monitoring of their transactions and activities to assess risk levels and detect suspicious behavior.
• Enhanced Due Diligence (EDD): Additional scrutiny applied to high-risk customers or transactions, involving more in-depth investigation and information gathering, such as those transacting large volumes and Politically Exposed Persons (PEPs).
• Transaction Monitoring: Continuous surveillance of customer transactions to identify unusual patterns or activities that could indicate money laundering or terrorist financing.
• Suspicious Transaction Report (STR): Mandatory reporting of any suspicious transactions or activities to the relevant authorities.
• Sanctions Screening: Screening customers and transactions against lists of sanctioned individuals and entities to ensure compliance with regulatory requirements.
• Risk Assessment: Regular assessment of the company's exposure to money laundering and terrorist financing risks, and implementation of appropriate controls to mitigate those risks.
• Compliance Program: A comprehensive program that includes policies, procedures, and controls to ensure compliance with all applicable laws and regulations related to anti-money laundering and combating the financing of terrorism.
• Employee Training: Ongoing training and education for employees on how to identify and report suspicious activity, and their roles and responsibilities in the fight against financial crime.
• Travel Rule: Facilitate the exchange of customer information between virtual asset service providers during cryptocurrency transactions by implementing a "travel-rule" framework, where required. For further information, please refer to our Travel Rule section here.

This robust framework reflects Cokeeps' commitment to maintaining the highest standards of integrity and compliance, and our dedication to playing a vital role in preventing the misuse of the financial system for illicit purposes.

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