We are proud to announce that we are introducing a new feature that supports the fight against money laundering and terrorist financing: KYC/AML verifications.
European directives voted by the European Parliament oblige financial institutions (insurance, banking, fund management, etc.) to establish procedures to combat money laundering and financing of terrorism.
We now give our users the option to create KYC restricted pools. We offer a KYC/AML verification for the creators and contributors of these KYC restricted pools.
What is the PrimaBlock KYC/AML new feature?
What is the current European regulation?
Overseen by the IMF, the European Parliament votes in different measures and sanctions, called directives, which all European members must comply with. The third anti-money laundering directive was voted in on October 26, 2005, in which is stipulated that all financial institutions are obligated to take part in the fight against money laundering and terrorism financing by implementing measures such as KYC/AML verifications. Since the first directive, new directives must be enacted to combat the ever-changing scope of the financial crime. The transposition of the 4th Directive by the European Member States is just coming to an end, and already the Parliament adopted the 5th anti-money laundering directive on 19th of April 2018.
What is AML?
AML is a framework that a financial entity constructs to meet its regulatory requirements in the field of the fight against money laundering and the financing of terrorism.
What is KYC?
KYC (Know Your Customer) is a process within the AML framework that consists of verifying the identity of customers and ensuring that customers comply with anti-corruption laws. This audit also covers the integrity and probity of the client in the fight against money laundering and terrorist financing, but also in the fight against financial fraud and the prevention of money laundering and identity theft.
Does PrimaBlock use a third party to do the check?
As required by the EU, we process and assess the validity of documents and information submitted internally.
How and how long are documents stored?
We maintain custody of the KYC documents.
We run our backend services on Google Cloud Platform. We store all KYC related documents for a minimum of 5 years in a storage bucket on our Google Cloud account. The bucket is served out of Google’s data center in Belgium. The hard drives are encrypted and the bucket is only exposed to our internal admin site. Our backend code which handles KYC applications was audited by Longterm Security. We invite you to read the results of our second security audit here.
We strictly apply the GDPR policy ensuring that all the processed data is highly protected and removed as soon as possible.
Is PrimaBlock aligned with the last 5th directive?
PrimaBlock offer compliance with the 5th AML directive, that amends the 4th AML directive.
How does PrimaBlock do the AML verification?
For regulatory reasons, we are not able to disclose our AML verification strategy.
How does PrimaBlock do the KYC verification?
We collect and analyze several types of documents we request our customers to issue. Among these documents: the copy of a valid identity document, a proof of address, a selfie, etc.
Does PrimaBlock use external data?
During the process, we use a third-party API, to obtain data such as international sanction lists including CIA, Interpol, Politically Exposed Persons and people who have already been sanctioned.
We sometimes use a third-party API to validate passport and ID images. However, the third party deletes all images as soon as they have been processed.
The third-party API we use is also used by several European banks.
Who can access the KYC documents?
We can exceptionally share them with the creator of the KYC restricted pool, but we try to minimize it and only share the information when necessary.
What changes for PrimaBlock’s users?
What is the cost of a KYC check for PrimaBlock’s users?
For now, we absorb the cost of the KYC process, so there is no extra fee for PrimaBlock’s customers.
Does the creator of a KYC restricted pool have to complete KYC?
Although the contributors of the pool must complete KYC there is no requirement on the pool creator to complete KYC.
How to create a KYC pool?
When a Pool Creator decides to create a KYC pool, they have to choose: “enable KYC” on the Pool Creation page, under “Options”.
The creator has the option to blacklist countries of their choice.
What happens if a user wants to participate in a KYC pool but they refuse to go through the KYC process?
The KYC pool will blacklist anybody who is not KYC verified.
Does PrimaBlock force its users to go through PrimaBlock KYC process?
No, the user only has to go through the KYC process if they want to contribute to a KYC restricted pool.
Does the user have to go through PrimaBlock KYC process every-time he wants to participate in a KYC pool?
No, the user only has to go through PrimaBlock KYC process once.
How to contribute to a KYC pool?
- If a user has already gone through PrimaBlock KYC verification in the past, they will be able to contribute as usual.
- If a user hasn’t gone through PrimaBlock KYC verification yet, we will ask them to go through the KYC process and provide all the related documentation before being able to contribute.
When a user tries to contribute to a KYC restricted pool, he sees the following message:
After clicking on “KYC”, the user starts the KYC process:
If the application is approved, the user receives the following email:
If a user has already gone through a KYC process with another company, do they still need to go through PrimaBlock KYC process?
Yes, they have to go through KYC process with PrimaBlock. As required by the EU, we have to verify all documents internally.
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