KYC-AML POLICY

KYC-AML POLICY

FEDHABIT VIRTUAL PRIVATE LIMITED

Know Your Customer (KYC) and Anti-Money Laundering (AML) Policy (“KYC-AML Policy”) sets out, for your reference, the terms regarding identity verification of our Users and the procedures followed for early identification, prohibition, prevention and reporting of prohibited/illegal activities which may be committed by using the Platform or our Services (as defined in the Terms of Use). The Services are being provided by and the Platform is operated by Fedhabit Virtual Private Limited, a private limited company incorporated under the Companies Act, 2013 bearing CIN U62013GJ2024PTC153645 (the “Company”). 

When using the Platform or our Services, you must at all times comply with all Applicable Law and with all terms and policies of the Company including this KYC-AML Policy.

By signing up, accessing, using, or continuing to browse through the Platform or using our Services, as a registered User, you agree that you have read, understood, and accepted each of the terms contained herein and agree to be bound by the same. If you have objections to this KYC-AML Policy, or any part thereof, and/or if you do not agree to be bound by the terms of this KYC-AML Policy, or any part thereof, please do not access the Platform and do not use our Services in any manner.

We reserve the right to change, amend, remove, suspend, discontinue or modify these terms (in whole or in part) from time to time. You shall regularly and periodically check this KYC-AML Policy including before you make any transaction on the Platform. We shall have no liability or responsibility whatsoever due to any such changes, additions, removals or modifications.

The purpose of this KYC-AML Policy is to provide an overview of the system we have in place for preventing any money laundering financial transaction, terrorism financing, proliferation financing and/or any other financial transaction involving proceeds from criminal activities identified in AML Regulations through the Platform.

DEFINITIONS

Unless the context requires otherwise, following terms shall have meanings ascribed to them as below.

“AML Compliance Officers” means the Designated Director and Principal Officer appointed by the Company, whose roles and responsibilities are outlined in this KYC-AML Policy and under AML Regulations.

“Beneficial Owner” shall have the meaning ascribed to it under AML Regulations.

“Client Due Diligence (CDD)” means due diligence of the User conducted in accordance with AML Regulations, including by identifying the User and verifying their identity by using a reliable, independent source of documents, data, or information.

“Designated Director” shall have the meaning ascribed to it under AML Regulations.

“Enhanced Due Diligence” shall have the meaning ascribed to it under AML Regulations and includes additional steps required to be undertaken, in relation to certain specified transactions, to examine the ownership and financial position of a client or User and the purpose of their transaction.

“KYC Identifier” means the unique number or code assigned to a client by the Central KYC Records Registry.

“Officially Valid Document/OVD” means passport, driving licence, proof of possession of an Aadhaar Number, voter’s identity card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government, and letter issued by the National Population Register containing details of name and address.

“Person” means an individual who is eighteen (18) or above the age of eighteen (18) years and an Indian citizen-resident.

“Politically Exposed Persons/ PEP” shall have the meaning ascribed to it under the AML Regulations.

“Principal Officer” shall have the meaning ascribed to it under the AML Regulations.

“Suspicious Transaction” means a transaction, including an attempted transaction on the Platform, whether or not made in cash, which to a person acting in good faith:

• gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the PMLA, regardless of the value involved; or

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

• appears to have no economic rationale or bona fide purpose; or

• gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.

“Restricted Jurisdiction” means and includes any jurisdiction other than India.

Terms used in this KYC-AML Policy but not defined herein shall have the meaning ascribed to them in the Terms of Use available at Terms of Use and/or the Trading Policy available at Trading Policy as the case may be.

KNOW-YOUR-CUSTOMER

KYC means to ‘Know Your Customer' which is an effective way for an User opening and operating the Account and verifying such identity (using information and documentation obtained from, or in relation to, the Users), and is the guiding principle behind AML Regulations.

The Company has in place adequate policies, practices and procedures that promote high ethical and professional standards and prevent the Company or Services from being used, intentionally or unintentionally, for money laundering purposes. KYC of a User enables the Company to know/ understand its Users and their financial dealings better which in turn will help the Company to manage its risks prudently. We collect the documents and information as set out in this KYC-AML Policy and as otherwise required by Applicable Law. 

The objectives of KYC are to:

• ensure appropriate User identification and obtaining sufficient information about the User in order to identify who is the actual Beneficial Owner of the Virtual Digital Assets or on whose behalf the transaction is conducted;

• verify the User identity using reliable independent source document, data or information;

• conduct ongoing due diligence and scrutiny of the Account/ User to ensure that the transactions conducted are consistent with the Users’ background, financial status and risk profile;

• monitor and report transactions of a suspicious nature (if any);

• satisfy that the proposed User is not an undischarged insolvent;

• minimise frauds; and

• avoid opening multiple accounts with fictitious names and addresses.

CUSTOMER IDENTIFICATION AND ACCEPTANCE

Account

If you choose to avail our Services and/or transact on the Platform, you must register with us, and open and maintain the Account by providing your details, completing necessary KYC verification requirements as per this KYC-AML Policy and under Applicable Law and executing such undertakings, declarations or agreements as required under Applicable Law. Your Account shall be activated only upon successful completion of these requirements to our satisfaction.

We are required to collect your personal data, which may include the following, for registering you and opening your Account:  Name, Mobile Number, Email Address, Date of Birth, Gender, Live selfie of the User, Permanent Account Number (PAN), Aadhar information, Proof of Address, Proof of Identity, Bank Account details and any other document as and when required for our compliance with applicable Laws. You shall ensure that all the information, data and documents provided by you are reliable, accurate and complete. Please refer to our Privacy Policy which explains how your personal data is used and shared. We may share your information with relevant statutory authorities as required or requested under Applicable Law.

One Account per User

You may open up to two Accounts, subject to the Company's approval and internal policies. We will not permit more than two Accounts for the same User. Where duplicate or unauthorized accounts are detected/identified, we may choose to close or merge such accounts at our sole discretion.

 No Anonymous or Fictitious Account

You will not be permitted to create an anonymous Account or an Account in the name of a fictitious person. You may only open an Account in your individual capacity and not as a representative or agent of another Person. In case you are a Legal entity, only such individuals as duly authorized on your behalf shall be permitted to create an Account on your behalf in their official capacity Further, you will not be permitted to create an account on behalf of a third-party if we are unable to verify their identity in accordance with the procedures set out above.

Who can open an Account? 

You must meet all eligibility criteria and residency requirements set out in our policies and under Applicable Law to register with us and open, maintain and operate an Account.

If we change the eligibility criteria or residency requirements to be registered with the Platform or there is a change in Applicable Law in this regard, and you no longer comply with the new criteria, we may close your Account without any liability for us. 

You are solely responsible for ensuring that you are in compliance with Applicable Law. If your right to access the Platform is revoked or your use of the Platform is in any way prohibited, in such circumstances, you agree not to use or access the Platform in any way whatsoever.

 Account Opening Procedures

The User has to provide certain information and documents at the time of registration for opening the Account. His/her account can be made operational only once such details and documents are verified in accordance with Applicable Law to our satisfaction. This may include:

For the User:

1. PAN or the equivalent e-document or Form No. 60 as defined in the Income Tax Rules, 1962

2. Proof of possession of Aadhaar number

3. Documents for proof of identity and residence such as Aadhaar or any government issued ID (voter ID, passport, driving license)

4. Driving license and passport within the expiry date

5. KYC Identifier

6. In-person verification via live selfie over internet 

Such other information or document in respect of the nature of business and financial status of the User, or the equivalent e-documents thereof, including as may be required to determine and verify the background and purpose of a transaction, User’s business interests, User’s financial status, the source and ultimate beneficial ownership of User’s funds. Where a User is acting on behalf of the Beneficial Owner, we will also seek to establish and verify the identity of the Beneficial Owner and the User’s authority to establish and operate the Account or to conclude transactions on behalf of the Beneficial Owner. 

The act of providing your Aadhaar ID is voluntary in nature unless mandated under Applicable Law. The User may choose to provide us with an alternative identity proof.

Further details 

In addition to the above, we may also require other details from the User such as your annual income and other details of your financial position, occupation, status as a PEP, trading experience and marital status.

Ongoing CDD

We may need to obtain sufficient information necessary to establish, to our satisfaction, inter alia, the identity of each User, whether regular or occasional, and the purpose and nature of the transaction being executed by the User on the Platform. To this end, in addition to the verification done at the time of your registration with the Platform, we may also conduct CDD in certain other circumstances, including:

• as part of a periodic review of existing Users, whether on an annual basis or as required under Applicable Law;

• in relation to any transaction being executed by the User on the Platform;

• as part of periodic checks to investigate authenticity, veracity or adequacy of the User identification data obtained earlier; or

• to ensure that the records of existing Users are accurate and up-to-date.

MONITORING OF TRANSACTIONS

All transactions executed and/or attempted to be executed on the Platform are regularly monitored (inter alia to assess and record the nature, value, currency denomination, date and parties) through use of software-based algorithms, in order to identify and highlight certain kinds of transaction including without limitation, high value transactions and prohibited, illegal or Suspicious Transactions as per Applicable Law.

We may, from time to time, undertake necessary investigation in order to identify and examine transactions inconsistent with any User’s risk profile (determined in accordance with verification of the KYC documentation, sophistication, and expected usage pattern).

If any User is found on any trade or economic sanctions lists, it is within the rights of the Company to report said presence in accordance with the pertinent Applicable Law.

We reserve the right to terminate the Account, restrict and/or prevent access to the Platform or report to the appropriate enforcement authorities the activities of any User in respect of Suspicious Transactions.

MAINTENANCE OF RECORDS 

The Company will maintain and preserve information and/or data in accordance with AML Regulations. This will include records of information on all transactions on the Platform for a period of 5 (five) years, including information on (i) whether the transaction was attempted or executed; (ii) nature; and (iii) value, in such a manner as to enable us to reconstruct individual transactions.

We will also record all account files and business correspondence relating to our Users and store encrypted KYC information.

Identification records of Users (including but not limited to the identification documents submitted pursuant to this KYC-AML policy and Applicable Law, for a period of 5 (five) years from the date of closing of the Account or from when the business relationship with the User has ended, whichever is later.  Records of information obtained for verifying the identity of the User under the Enhanced Due Diligence process prescribed under the AML Regulations shall be maintained for a period of 5 (five) years from the date of User’s transaction or as otherwise prescribed under AML Regulations.

Where an information request under Applicable Law is required to be kept confidential, we will comply with such requirements. The Company will implement specific procedures for retaining internal records of transactions to enable the Company to comply swiftly with information requests from the relevant law enforcement agencies and authorities.

Where the records relate to ongoing investigations or transactions which have been the subject of a disclosure, such records will be retained until it is confirmed that the case has been closed where practicable. We will seek and retain identification documents of all such transactions and to report Suspicious Transactions. 

YOUR OBLIGATIONS 

You undertake that you will not use the Platform or our Services for any illegal, prohibited, unlawful, criminal or anti-national purposes or for financing any such activity under any circumstance whatsoever. Without prejudice to the generality of the foregoing, you undertake that you will not indulge in any benami or any other transaction that is in violation of Applicable Laws, this KYC-AML Policy or any other policy or instruction issued by us from time to time. You must not let anyone access/use your Account or watch you accessing it. You undertake that you shall not impersonate another person or misrepresent yourself on the Platform under any circumstance whatsoever.

All activities under the Account shall be deemed as activities carried out by the registered User. You shall only use the Account with us to transact on your own Account and not on behalf of any other person.

You undertake that you will provide us with accurate information, records and documentation and notify us promptly, and in any case no later than 30 days, regarding any update to your information, records or documentation. You also undertake to notify us promptly regarding any unauthorised use or access of your Account. 

We disclaim any liability arising from any transaction which is not conducted by you or for any obligations of other Users to you, any acts or omissions of a third party or User of the Platform with whom you choose to deal with.

If you know or suspect that anyone other than you know or has unauthorized access to your Account, Account information or any part of it, you must promptly notify us by sending us an email at support@fedhabit.in.

We are not liable for any losses/damages/costs or other consequences of unauthorised/illegal/unwarranted use of your Account arising as a result of your non-compliance with your obligations set out in this KYC-AML Policy, the User Terms and Conditions, or Applicable Law.

REGULATORY / STATUTORY REQUIREMENTS

We may be required to report certain Users and/or their transactions (including relevant data such as device identifiers, IP addresses) to concerned authorities pursuant to Applicable Law. We shall have no obligation to inform such User or any other Person prior to such reporting or subsequently. 

We have also appointed a Principal Officer as required under Applicable Law and ensures their availability at all times. The Principal Officer is responsible for managing the day-to-day operations of this KYC-AML Policy and enforcing it. This includes, but is not limited to:

• ensuring compliance with Applicable Law;

• acting as a central reference point and playing an active role in identification, assessment and reporting of potential Suspicious Transactions;

• ensuring that the Company discharges its legal obligation to cooperate with concerned authorities and  report Suspicious Transactions to concerned authorities as required under AML Regulations;

• ensuring the maintenance of a continually high level of staff AML awareness even between training sessions; and

• undertaking internal audit to ensure compliance with the policies, procedures and controls relating to the prevention of any Suspicious Transaction.