AML/KYC Explained

[vicoma]

Despite the importance of KYC/AML in preventing money laundering and other related crimes, one cannot denied the risk involved. Third parties mostly untrusted can make use of customer details to commit a financial crime which is generally known as identity theft. At the end, the only traceable element is the real owner. We should be cautious in releasing our identity and ensure it really worth it

[kexko]

Is there any exchange these days which only require a copy of ID, allowing watermark, and no selfie? Thanks.

[Abhijeetcg]

I'd like to propose some changes to KYC/AML rules.  Criminals have been known to use their ill gotten gains to eat at restaurants and shop in grocery stores.  I guess criminal activity can work up an appetite.  It is incumbent upon restaurants to ensure that the money their customers are paying has come from legitimate sources.  All restaurants should ask for ID and a utility bill before serving customers.  They also need to ask their customers for their employer information and annual income.  Self employed customers can produce a business license or other such documentation to prove the legitimacy of their income.  Grocery stores also need to comply with these rules but in addition, grocery stores should ask for social security numbers as well.  Maybe then we can protect children and fight Al Qaeda ISIS.  

Government AML regulations put the burden on financial institutions, not regular businesses.  Many banks are choosing not to accept anonymous cash deposits into bank accounts... such as JP Morgan Chase, which now only allows people to deposit cash into their own account.

Any cash deposit or cash withdrawal of more than $10,000 is required to be reported to the Federal government.

Right sir, I think KYC and AML again drag us into classical financial system. The vision of Bitcoin creation is to provide freedom from present financial ecosystem. But instead we need a Blockchain based solution which is alternative present KYC system.

[CoinFascination]

I'd like to propose some changes to KYC/AML rules.  Criminals have been known to use their ill gotten gains to eat at restaurants and shop in grocery stores.  I guess criminal activity can work up an appetite.  It is incumbent upon restaurants to ensure that the money their customers are paying has come from legitimate sources.  All restaurants should ask for ID and a utility bill before serving customers.  They also need to ask their customers for their employer information and annual income.  Self employed customers can produce a business license or other such documentation to prove the legitimacy of their income.  Grocery stores also need to comply with these rules but in addition, grocery stores should ask for social security numbers as well.  Maybe then we can protect children and fight Al Qaeda ISIS.  

Government AML regulations put the burden on financial institutions, not regular businesses.  Many banks are choosing not to accept anonymous cash deposits into bank accounts... such as JP Morgan Chase, which now only allows people to deposit cash into their own account.

Any cash deposit or cash withdrawal of more than $10,000 is required to be reported to the Federal government.

Right sir, I think KYC and AML again drag us into classical financial system. The vision of Bitcoin creation is to provide freedom from present financial ecosystem. But instead we need a Blockchain based solution which is alternative present KYC system.

How would a blockchain solution be any different?
If you MUST provide your private information, blockchain or otherwise, it is NOT treated as a voluntary act. How could a decentralized system of identity collection work differently?

[99subsats]

Does anyone know if I need to pass AML/KYC test in mpcx's platform?

[hv_]

Take a look at Coinfirm AMLT report about risk KYC/AML. For example, Binance is in "high" risk.
https://cointelegraph.com/news/study-14-of-major-crypto-exchanges-are-licensed-by-regulators

How is this even measured? Is there a online resource with guidelines on AML/KYC?

Not for AML, since it should not be easy for criminals to find out how to work around.

AML rules should not be published - it's a business secret - to be efficient.

[iknowsatoshe]

Is it true that OOOBTC's first IEO is MPCX?

[souljay]

Some exchanges don't ask for KYC for depositing bitcoin or other cryptocurrencies.but they require KYC when they feel u are about withdrawing your funds from the exchange.I had a very tough experience with hitbtc.Not going back there anytime soon

[Victorycoin]

Some exchanges don't ask for KYC for depositing bitcoin or other cryptocurrencies.but they require KYC when they feel u are about withdrawing your funds from the exchange.I had a very tough experience with hitbtc.Not going back there anytime soon

And also a lot of exchange does not require KYC but without verifying KYC you can withdraw/deposit a small amount of money for example you may see bittrex or binance. They give higher limit for verifying KYC.

[CoinFascination]

It's not just cash deposits/withdrawals. Any combination of transactions reaching or exceeding 10.000 USD within 48 hours can/will be reported. This includes the EURO zone (SEPA) where a copy of each bank transaction is send to the US for analyses. So details of a bank transfer from Italy to Spain, or even within the same city between your family members is send over to the US. It depends on your risk profile if you get into trouble or not.

Also single person business owners (non-limited companies) also fall under that rule.

Where is this rule? 48 hours or 24 hours? I ask because I thought it was 24 hours.
With 48 hours it implies it accumulates, 2 10k deals in two days would be reported.

[GlobalProtection]

Choose a No KYC Crypto Exchange if you are confused about KYC.

[putukin]

How do you feel about the fact that some exchanges sell personal customer`s data into the Dark Web due to the users must pass a KYC. KYC is the personal data that an exchange actually receives and there are no guarantees of security, only trust

[Victorycoin]

How do you feel about the fact that some exchanges sell personal customer`s data into the Dark Web due to the users must pass a KYC. KYC is the personal data that an exchange actually receives and there are no guarantees of security, only trust

If any exchange use our data or sell our data we cant do anything if we cant proof either they sold our document or not. If we can proof and they break any terms of service then we may try to make dispute. But better to use trusted exchanges those who will never use or sell their customers data.

[hv_]

How do you feel about the fact that some exchanges sell personal customer`s data into the Dark Web due to the users must pass a KYC. KYC is the personal data that an exchange actually receives and there are no guarantees of security, only trust

If any exchange use our data or sell our data we cant do anything if we cant proof either they sold our document or not. If we can proof and they break any terms of service then we may try to make dispute. But better to use trusted exchanges those who will never use or sell their customers data.

There is no fully regulated and trusted exchange yet. I wonder if SIX Group's SDX , SCX or bakkt will be that?

[tarakan]

Some exchanges don't ask for KYC for depositing bitcoin or other cryptocurrencies.but they require KYC when they feel u are about withdrawing your funds from the exchange.I had a very tough experience with hitbtc.Not going back there anytime soon

And also a lot of exchange does not require KYC but without verifying KYC you can withdraw/deposit a small amount of money for example you may see bittrex or binance. They give higher limit for verifying KYC.

yeah hitbtc is fishy, all that minimums to withdraw and so on.. also moved from there

[xtraelv]

https://www.pwc.com/gx/en/financial-services/publications/assets/pwc-anti-money-laundering-2016.pdf

This is an extensive document by PwC that lists every country individually, KYC laws and limits.

Exchanging over certain values can trigger mandatory AML reporting. It is worthwhile understanding and knowing the KYC and AML laws.

It prevents unnecessary issue over locked account. It appears to be something that is happening a lot now.

It is a little bit dated being from 2016 but it is a good start.

[master122]

Kyc is needed for every exchanger, it's for secure financial. Is there any exchanger no need kyc now?

[ayoubouni95]

Kyc is needed for every exchanger, it's for secure financial. Is there any exchanger no need kyc now?

I guess some of the information provided here are already outdated and some dead links need to be updated. I think KYC policies change over time. In my recent experience with Bitfinex and if you scan through their Help center, you will find that they do not require KYC during sign-up, during deposit (up to a certain amount I guess) and trade of most cryptocurrencies. KYC is required if you want to deposit/withdraw fiat, stable tokens/coins and some other selected tokens/coins.

[Docent85]

Maybe it is funni for  today, but on exchange 50x no any KYC.

[lobeyou]

LocalBitcoin (p2p based, limited KYC?)

LocalBitcoin (p2p based, limited or no AML?)

If you're referring to LocalBitcoins.com then you can update OP as the new verification system is much stricter now.

Limit: 1000 EUR/yr >> Real Name + Country of Residence + Email Address + Phone Number

And that's the lowest tier available now, T0.

For anything above that you need ID Verification, Physical Address Verification & more.


Reference Links:

https://localbitcoins.com/blog/id-verification-update/
https://localbitcoins.com/blog/tier-verification-deadline-extended/

Note: I understand the post is old but it's pinned, so it must be important and still relevant.