Money Laundering: Essence and Counteraction
Money laundering is the process by which funds or material assets obtained through illegal activities (such as terrorism, drug trafficking, illegal arms trade, corruption, human trafficking, and other crimes) are converted into legitimate financial resources. The primary goal of such actions is to conceal the true origin of the funds to avoid detection by law enforcement agencies and financial institutions.
CoinGold's Anti-Money Laundering Policy
CoinGold adheres to strict standards in preventing the laundering of criminal proceeds and the financing of terrorism. We strive to ensure transparency and security in all financial transactions conducted on our platform. To achieve this, we have implemented a comprehensive set of measures, including mandatory user identification in accordance with international standards. Every user participating in financial transactions undergoes verification by providing a minimum set of identification data, which allows us to minimize risks associated with illegal activities.
AML and KYC Verification
1) CoinGold uses custodial services to accept user funds into deposit addresses.
2) Risk assessment of incoming transactions is conducted:
- Based on the exchange's own verification algorithms.
- Based on the results of transaction checks by the AML department of the custodial service.
3) If the analysis of an incoming transaction reveals:
3.1) Exceeding acceptable risk thresholds.
3.2) Splitting a sum into multiple parts within a short period.
3.3) Presence of other funds in the transaction that may pose a risk to the receiving party.
3.4) Other possible criteria as part of the internal transaction analysis algorithm.
4) If additional analysis reveals a connection between the received funds and money laundering, criminal activity, or other risks to the receiving party:
4.1) The order is suspended.
4.1.1) If a suspension request is received from the custodial service, a subsequent request for reverse conversion of the user's funds is likely.
4.1.2) To retain the full amount sent by the user, CoinGold fulfills the custodial service's requirement at market rates or by placing a limit deferred order.
4.2) The user is requested to provide documents, photos/videos, explanations of the origin of funds, etc., via the internal chat in the order.
4.3) Upon successful verification, funds are returned to the user to an agreed address, minus the transaction fee and a service fee of 1% of the order amount (min. 40 USD, max 100 USD).
5) The user agrees that suspended funds cannot be returned without completing the verification process.
6) The user undertakes to provide all requested photos/videos, await the verification decision, and not make any claims against the Service.
Acceptable Risk Thresholds
1. 0% (prohibited categories):
Child Exploitation, Dark Market, Dark Service, Enforcement Action, Fraudulent Exchange, Gambling, Illegal Service, Mixer, Ransom, Sanctions, Scam, Stolen Coins, Terrorism Financing.
2. Up to 10% (high-risk categories):
ATM, Exchange | High Risk, Liquidity Pools, P2P Exchange | High Risk, Unnamed Service.
3. Up to 25% (moderate-risk categories):
Mixing Service, Online Marketplace, Bridge.
Monitoring and Cooperation with Authorities
CoinGold actively monitors all transactions for suspicious activity. We work closely with custodial services responsible for storing user funds. As part of this cooperation, upon receiving an official request from law enforcement agencies, CoinGold reserves the right to disclose all available user information through the following channels:
- Directly to law enforcement agencies.
- Through the custodial service's security department.
Right to Refuse Transactions
CoinGold reserves the right to refuse any transaction if there is reason to believe it is related to money laundering or other criminal activities. In accordance with international law, we are not obligated to notify the user that their activity has been deemed suspicious and reported to the relevant authorities.
Technology and Training
To ensure maximum effectiveness in combating money laundering, CoinGold continuously improves its electronic monitoring and transaction verification systems. We regularly update our algorithms and databases to comply with the latest changes in legislation and international standards. Additionally, the company conducts regular training sessions for employees to enhance their skills in identifying and preventing financial crimes.