Know Your Client (KYC)- Anti Money Laundering (AML) Terms & Conditions


Know Your Client (“KYC”) and Anti-Money Laundering (“AML”) Policy ("KYC-AML Policy") herein delineates the terms and conditions mandating You, henceforth referred to as the "User/Client/You," for accessing and utilizing our website and associated mobile applications, collectively termed as the "Platform," operated under the brand name "Flitpay." The Platform facilitates online purchase and sale of Virtual Digital Assets ("VDA") via deposit and withdrawal of INR, alongside the transfer of other VDAs. The purpose of this KYC-AML Policy is to impart cognizance to Users/Clients regarding their obligations under the (i) Prevention of Money Laundering Act, 2002 ("PMLA"), (ii) Prevention of Money Laundering (Maintenance of Records) Rules, 2005 ("PML Rules"), and (iii) Anti-Money Laundering and Countering the Financing of Terrorism Guidelines for Reporting Entities Providing Services Related To Virtual Digital Assets, published by the Financial Intelligence Unit – India ("FIU-IND Guidelines"). Hereinafter, the PMLA, PML Rules, and FIU-IND Guidelines collectively constitute the "PML Framework."

The Platform is overseen and managed in India by Flitpay Pvt. Ltd, an entity duly incorporated under the Companies Act, 2013 of India, referred to as "Us"/"We"/"Flitpay." Flitpay operates as a Reporting Entity under the PMLA. It is acknowledged and understood by You that this KYC-AML Policy establishes a legally binding agreement between You and Flitpay.

Flitpay retains the sole discretion to alter, amend, append, or abrogate segments of this KYC-AML Policy, sans any antecedent written notification. It is incumbent upon You to periodically peruse the KYC-AML Policy for any updates or alterations. The continuance of Your utilization of the Platform subsequent to any modification of the KYC-AML Policy shall imply Your acquiescence to said policy alterations. Hereby, You explicitly acknowledge and assent that this KYC-AML Policy is also subservient to the Terms of Service and Privacy Policy.

You expressly consent to Flitpay's perpetual surveillance and compilation of information and data pertinent to Your engagements on the Platform, alongside the collation, retention, processing, and dissemination of any identification information for the facilitation of this KYC-AML Policy.

Flitpay remains steadfast in its commitment to combat money laundering and, in its sound discretion, deploys measures to preclude any exploitation of the Platform for money laundering, terrorist financing, or proliferation financing endeavors.

1. Purpose

  1. 1.1 This KYC-AML Policy aims to prevent activities such as money laundering, terrorism financing, and other illicit endeavors on or via the Platform, while mitigating associated risks to the fullest extent.

  2. 1.2 Pursuant to the provisions of the PML Framework, as periodically amended, Reporting Entities (REs) must adhere to specified Client identification procedures during registration and transaction execution on the Platform, including account establishment and transaction monitoring.

  3. 1.3 Additionally, the KYC-AML Policy endeavors to ensure the implementation of appropriate Client identification procedures and to raise awareness among Clients regarding their obligations under the PML Framework concerning activities such as money laundering and terrorism financing.

  4. 1.4 The KYC-AML Policy outlines the User Identification process, a fundamental prerequisite for registering and opening a Flitpay Account. No Flitpay Account may be created on the Platform without successful verification and due diligence conducted by Flitpay.

  5. 1.5 Flitpay endeavors to collect requisite documents and conduct KYC procedures to:

    • a. Authenticate and verify the Client's identity and, where applicable, their Beneficial Owner, or ascertain the nature of any transaction conducted on the Platform;

    • b. Mitigate instances of fraud;

    • c. Prevent the establishment of accounts under fictitious identities; and

    • d. Promptly identify and decline suspicious Clients.

  6. 1.6 While intended to be comprehensive, this KYC-AML Policy remains subject to change in accordance with any Applicable Law and/or at the sole discretion of Flitpay.

2. Declarations and Responsibilities

  1. 2.1 Flitpay Declarations:

    • a. Flitpay commits to verifying Users' identity and address, including Beneficial Owners, using either internal processes or third-party services upon Users' decision to trade or apply for Client status.

    • b. Flitpay may employ various software or technology, directly or through service providers, to verify User identity and provide documentation, with User consent.

    • c. Flitpay reserves the right to request User documents and data for KYC and Client identification purposes, in accordance with legal and operational requirements, utilizing the documents listed in Clause 4 of the KYC-AML Policy. In cases of document discrepancies, additional documentation may be requested. User information shall be accessed and utilized for the purposes outlined in this policy, compliance with Applicable Laws, and in line with the Privacy Policy.

    • d. Failure by Users to furnish required KYC documents or identification information may impede or prevent Platform access and related services.

    • e. Flitpay retains the right to examine additional information or request further documentation to ascertain User identity and financial status, including fund sources or Crypto wallet details. User cooperation in this regard is mandatory, failure of which may lead to denial of account creation, Platform operation, or Crypto transactions.

    • f. Flitpay undertakes to maintain, preserve, and report User information as per internal policies and standard operating procedures, ensuring confidentiality, security, and protection against unauthorized access, use, or disclosure, in accordance with Applicable Laws.

    • g. Flitpay may share User information, including transaction and KYC data, in compliance with the PML Framework or as required by governmental authorities under Applicable Laws.

  2. 2.2 User Obligations:

    • a. Users agree to timely provide necessary documents and information for KYC checks, ensuring the creation and continued use of their Platform Account for transaction instructions.

    • b. Users pledge to utilize the Platform solely for lawful purposes, in adherence to this KYC-AML Policy and applicable laws.

    • c. Users shall refrain from using the Platform for any illegal, criminal, or anti-national activities, or any violation of Applicable Laws.

    • d. Impersonation or misrepresentation on the Platform is strictly prohibited.

    • e. Users warrant not to engage in transactions violating Applicable Laws, this KYC-AML Policy, or any other directives issued by Flitpay.

    • f. Users agree to ensure that funds transferred to their Flitpay account originate from their own bank account or exchange wallets held in their name and under their control, obtained through legitimate means and compliant with Applicable Laws.

    • g. Users commit to providing accurate and updated KYC documents, information, and data to Flitpay and its representatives.

3. Account Opening Procedures and Client KYC Documents

  1. 3.1 Any Indian national residing within the geographical territory and jurisdiction of India is eligible to open a Flitpay Account.

  2. 3.2 Prior to activation, Users must submit the following documents:

    • a. Permanent Account Number (PAN) issued by Income Tax Authorities,

    • b. Officially Valid Documents for identification and proof of residence (Aadhaar/Voter ID/Passport),

    • c. Live selfie taken from the camera.

  3. 3.3 While the above documents establish the User's identity, additional details are required to profile expected activities in the Flitpay Account:

    • a. Annual Income,

    • b. Occupation, and

    • c. Whether the User is classified as a Politically Exposed Person (PEP).

  4. 3.4 Depending on the legal entity:

    • For companies: Certificate of incorporation, memorandum and articles of association, PAN of the company, board resolution, and power of attorney may be required.

    • For partnership firms: Registration certificate, partnership deed, PAN of the firm may be necessary.

  5. 3.5 For unincorporated associations or bodies of individuals: Resolution of the managing body, PAN or Form No. 60 of the association, power of attorney, and additional documents to establish existence may be requested.

  6. 3.6 Following the account opening process, Users must add and verify their bank account/UPI ID for INR deposits/withdrawals.

  7. 3.7 Activation of the User's Flitpay Account is subject to satisfactory verification of submitted documents and information, including any additional data requested by Flitpay.

  8. 3.8 Flitpay shall maintain an audit trail of all document uploads, modifications, and downloads.

4. Client Due Diligence

  1. 4.1 The KYC and data collection processes conducted by Flitpay aim to ensure appropriate Client Identification, encompassing Client Due Diligence (CDD), including Enhanced Due Diligence (EDD), and/or Counterparty Due Diligence (CPDD). Flitpay gathers sufficient information, as required by Applicable Laws, to verify the identity of each User and the purpose of intended transactions on the Platform.

  2. 4.2 CDD is conducted at various stages, including:

    • a. User Account registration,

    • b. Periodic User Account reviews,

    • c. Transaction executions by Users on the Platform, and/or

    • d. Instances where doubts arise regarding User identity data authenticity or adequacy.

  3. 4.3 For User identification:

    • a. Identity refers to attributes uniquely identifying a natural or legal person, with identifiers aiding in establishing identity.

    • b. Identification involves recording information provided by Users to establish their identity.

    • c. Verification of identity involves confirming whether a person is who they claim to be, achieved through checks on provided information correctness.

    • d. In cases where document validation is hindered, a video-KYC may be required to authenticate User identity and submitted document/information validity. Video-KYC is also utilized for enhanced due diligence when necessary.

    • e. Periodic KYC updates are performed at Flitpay's discretion, adopting a risk-based approach to ensure User information and documentation currency.

    • f. Users are obligated to notify Flitpay of any contact detail changes, providing valid proof and demonstrating Account ownership for updates.

  4. 4.4 Based on User risk categorization or transfer nature, CDD, including EDD and/or CPDD, may be conducted. Flitpay reserves the right to request additional information and documentation as necessary.

    • a. CDD entails collecting and verifying identity, address proof, and a photograph based on submitted documents and information.

    • b. EDD includes additional measures beyond CDD, such as scrutinizing complex transactions, unusual patterns, monitoring PEPs, conducting in-person visits, and assessing fund sources aligned with assessed risks. EDD may also apply to relationships and transactions from higher-risk jurisdictions. Failure to undergo EDD may result in Account termination.

    • c. CPDD is applicable to VDA transfers involving Counterparties, aiming to mitigate dealing with illicit or sanctioned actors. CPDD may involve identifying Counterparty wallet types and risk assessment.

  5. 4.5 Crypto exchanges or financial institutions creating User Accounts may be required to provide:

    • a. Business nature and anti-money laundering/counter financing of terrorism/counter proliferation financing risk control framework details.

    • b. Reputation, supervision quality, and any money laundering/terrorism financing/proliferation financing investigation or regulatory action information.

    • c. Senior management approvals and information on accounts or custodial wallets used by customers for Platform transactions, including conducted CDD and transaction details of identified customers.

In case of any complaint or queries with respect to this KYC-AML Policy or to report any suspicious or illegal activity of a User within Your knowledge, You may write to us at [email protected]

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