1.Purpose and Basis
In light of the fact that money laundering activities will seriously jeopardize the development of digital asset transactions, damage the legitimate rights and interests of users, undermine the foundation of the stable operation of digital asset trading platforms, and increase the legal and operational risks of digital asset trading platforms, 58COIN, in order to prevent money laundering and terrorism financing activities, and fully implement the relevant provisions of anti-money laundering and counter-terrorism financing, formulates this Guideline in accordance with the provisions of Know-Your-Customer and Anti-Money Laundering Policies, 58COIN User Agreement, and 58COIN Legal Statement.
This Guideline shall be applicable to all users trading on the 58COIN OTC platform (hereinafter referred to as “OTC Platform”). Users should abide by the laws and regulations of anti-money laundering and counter-terrorism financing prescribed in their countries or regions, and subject to which shall users implement the provisions of this Guideline, where, if there are stricter ones, such provisions shall prevail.
3. Anti-Money Laundering and Counter-Terrorism Financing
Money laundering is an attempt to disguise and hide the source and nature of illegal income obtained from drug operation, underworld organized crimes, terrorist crimes, smuggling, corruption and bribery offences, financial crimes, crimes of disrupting the order of financial management and other offences. Any account trades on the OTC Platform suspicious of money laundering, 58COIN reserves the right to take relevant measures in accordance with laws and regulations of 58COIN anti-money laundering.
4. 58COIN Anti-Money Laundering Regulations
The relevant rules of 58COIN’s anti-money laundering (including counter-terrorism, the same below) include Know-Your-Customer and Anti-Money Laundering Policies, the anti-money laundering part of 58COIN Legal Statement, 58COIN User Agreement and this Guideline. If the content specified in this guideline conflicts with other rules, this guideline shall prevail.
5. The Basic Principles of Anti-Money Laundering on OTC Platform
OTC Platform will carry out user risk monitoring in accordance with the following principles:
1) Comprehensive: OTC Platform will take into account all kinds of risk factors that users may be suspected of money laundering and take reasonable measures to monitor all users.
2) Prudence: Based on fully understanding the users, OTC Platform will improve the capability to identify their identities and prudently monitor user risks.
3) Continuity: OTC Platform will continue to pay attention to user risks and respond appropriately to actual situations.
4) Confidentiality: The user identity information, transaction information, and risk level information held by OTC Platform are strictly confidential. Unless prescribed by legal provisions and regulatory requirements, OTC Platform will not disclose any of the above information to any unit or individual.
5) Hierarchical Management: OTC Platform will regularly review the basic information of users according to their risk levels, and the audit of users with higher risk levels should be stricter than those with lower risk levels.
6. Submission of Individual User Files
OTC Platform individual users should submit the following the information and materials in accordance with the OTC Platform anti-money laundering related regulations:
1) Full legal name;
2) Copy of ID card or passport;
3) Other information or documents that should be provided to the OTC Platform.
7. Submission of Institutional Client Files
Institutional clients should submit the following information and materials in accordance with the OTC Platform anti-money laundering related regulations:
1) Company Name;
2) Company registered office address;
3) Legal representative of the company;
4) Domicile of the company’s legal representative;
5) Business license;
6) Copy of the company’s legal representative ID card or passport;
7) Other information or documents that should be provided to the OTC Platform.
8. Review of User Documents
OTC Platform is entitled to verify and record the information submitted by you under the user identification system in the OTC Platform anti-money laundering regulations. If the OTC Platform has doubts about the information provided by you, it shall have the right to verify with the relevant authorities or departments.
9. Monitoring of Low-Risk Users
OTC Platform will monitor low-risk users according to the specific requirements of 58COIN anti-money laundering regulations. OTC Platform reserves the right to make changes to the grade of the low-risk users.
10. Monitoring of High-Risk Users
OTC Platform will conduct audits every six months for high-risk users, including but not limited to update user basic identity information, understand the source of founds, the use of funds, economic status, or business status.
11. Preservation of User Files
OTC Platform will take necessary measures to keep the user identity information and transaction information for a certain period of time. According to international rules, upon termination of business relationship, the user transaction information should be preserved for at least five years from the end of the last transaction.
12. User Attention
OTC Platform users should be aware of the following rules:
1) Not enable anyone to use your account;
2) Not enable anyone to use your identity document;
3) Protect and not disclose your important personal property information including but not limited to account, bank card, deposit book, password;
4) Actively cooperate with OTC platform for user identification;
5) Select and use secure third-party financial institutions for payment activities when trading on the OTC Platform.
13. Report of Suspicious Behavior
When trading on the OTC Platform, If users find out that any account suspicious of engaging in money laundering or terrorism financing activities, you should report to the OTC Platform.
14. Handling of Suspicious Users
If the transaction behavior of the OTC platform user triggers the relevant risk control rules, 58COIN shall have the right to handle the account as follows and reserves the right to further disposition.
1) Delay the withdrawal of suspicious funds, and the withdrawal of related funds will be unavailable within 24 hours;
2) Require you to carry out a higher level of KYC verification
3) Require you to issue proof of the source of the funds.
15. Interpretation of the Guidelines
This Guideline is interpreted by the OTC Platform.
16. Effective Date
This Guideline shall take into force upon the date of promulgation.