AML KYC Rules

1. This AML verification policy is aimed at identifying transactions related to terrorism financing, money laundering, as well as other illegal activities.

1. General provisions

This AML/KYC policy describes the principles of anti-money laundering (AML) and the customer identification procedure (KYC) applied by the Charex service.

The service adheres to international standards for combating money laundering (AML) and the financing of terrorism (CFT) and monitors all operations using specialized blockchain transaction analysis tools.

By using the Char service, the user confirms acceptance of this AML/KYC policy.

2. AML transaction analysis

All cryptocurrency transactions sent to the service addresses undergo mandatory verification in the AML analyzer.

For the analysis of cryptocurrency operations, the service uses specialized blockchain monitoring systems (including GetBlock and similar analysis tools).

The verification is carried out based on the Risk Score model, which determines the level of risk of a cryptocurrency address or transaction.

Risk levels:

• 0–25% — low risk
• 25–50% — medium risk
• 50–75% — elevated risk
• 75–100% — high risk

Transactions with a high risk level may be temporarily suspended until additional verification is completed.

3. Preliminary AML verification

Before creating a request, the user may independently conduct a preliminary check of the cryptocurrency address using AML analyzers.

The verification may be performed through the BestChange verification service:

BestChange

The user may:

• provide the verification result to the service operator

or

• refuse the verification and confirm acceptance of possible risks

By creating a request, the user confirms acceptance of the service’s AML control conditions.

4. KYC / SoF procedure

In case of elevated risk detection, the service may request the user to undergo the KYC (Know Your Customer) or SoF (Source of Funds) procedure.

The service may request the following materials:

• identity document (passport or ID card)
• selfie with the document
• proof of residential address (utility bill / bank statement)
• proof of source of funds (Source of Funds)
• wallet or exchange account screenshots
• additional documents upon request of the compliance department.

Failure to provide the required documents may result in refusal to process the operation.

5. AML verification stages

AML verification may inсlude the following stages:

• automatic transaction verification in the AML analyzer
• manual verification by a compliance specialist
• KYC / SoF document request
• decision making regarding the operation.

6. Verification timeframe

The verification period depends on the complexity of the case and may be:

• up to 24 hours — standard verification
• up to 3 business days — if additional verification and document request are required.

In certain cases the verification period may be extended if additional analysis is required.

7. Refund of funds

If the operation cannot be performed according to AML verification results or the user refuses to undergo the KYC/SoF procedure, the service may issue a refund to the sender.

The refund is carried out to the original sender address after completion of the verification procedure.

The refund period may be up to 3 business days after the decision is made.

8. Fee for refund

The service fee for refunds in AML cases may be up to 5% of the transaction amount, but not more than 100 USD equivalent.

For bona fide users whose funds after completion of the KYC/SoF procedure are not confirmed as related to illegal activity, the service fee is not charged. In this case only the blockchain network fee is deducted.

9. Operation restrictions

The service reserves the right to:

• suspend the operation
• request additional information
• refuse to perform the exchange
• return the funds to the sender

in case of suspicion of AML policy violation.

10. Final provisions

The Charex service adheres to the principles of transparency and complies with AML control requirements to prevent the use of the service for illegal purposes.

The policy may be amended or supplemented without prior notice to the user

AML RULES EXPLANATIONS

The AML Policy is intended for preventing and reducing potential risks of the Contractor’s involvement in any type of illegal activity.

3. The Contractor (hereinafter also referred to as the Operator) conducts Customer identification (hereinafter also referred to as the Client, User) when the Contractor has reasonable suspicions that the Customer uses the website for improper purposes or performs illegal actions classified as laundering or attempted laundering of illegally obtained funds.

4. All users of the exchange service acknowledge, undertake and agree to the following conditions:

• The User will comply with legislation in the field of anti-money laundering.
• The Operator applies KYC (Know Your Customer) and KYT (Know Your Transaction) procedures in accordance with the AML policy (Anti-Money Laundering Policy).
• The User undertakes to cooperate with the Operator by providing requested information and documents regarding their activities, accounts and purposes of operations.
• The Operator has the right to use information about the Client for investigation and / or prevention of illegal actions.

5. To prevent illegal operations, the Contractor establishes the following requirements:

• User personal data must be relevant and reliable.
• Creating requests through anonymous proxy servers or other anonymous connections is prohibited.

6. As part of the KYC procedure, the User must provide the operator with valid documents (for example, passport, international passport, bank statement). The Operator reserves the right to collect identification information.

7. The Contractor has the right to conduct enhanced verification of users with suspicious activity and request documents again even if AML/KYC/KYT verification has already been completed.

8. Client identification information will be collected, stored, transferred and protected in accordance with the personal data processing policy.

9. After identity verification, the Operator releases itself from legal liability if its services are used for illegal activities.

10. The employee responsible for AML is authorized by the Contractor and controls anti-money laundering and counter-terrorism financing measures:

• Collection of identification information.
• Development and updating of internal policies and procedures.
• Transaction monitoring and investigation of deviations.
• Implementation of a record management systеm.
• Regular updating of risk assessments.
• Providing information to law enforcement authorities.

11. The AML officer has the right to interact with law enforcement authorities.

12. As part of verification, the Operator has the right to:

• Require documents confirming identity, address and solvency.
• Block the account and operations if verification fails.
• Transfer information to supervisory and/or law enforcement authorities.
• Refuse withdrawal of funds to third-party accounts.
• Hold funds until the investigation is completed.
• Refuse services in case of suspicion of illegal origin of assets.
• Carry out refunds minus the network fee.

13. The Operator has the right to monitor the entire transaction chain in order to identify suspicious operations.

14. The Contractor reserves the right not to disclose verification methods and results.

15. Transaction monitoring:

• Monitoring and data analysis — a risk assessment tool.
• The GetBlock service is used to detect suspicious transactions.
• If AML risk exceeds 69%, the transaction is frozen.
• If the risk exceeds 79% — transactions are frozen.
• Transactions from sanctioned services are blocked regardless of the risk score.
• The victim-report tag (connection with a criminal case) leads to blocking.
• Assets marked “sanctions” or “mixer” may be frozen by a regulator for an indefinite period; the service is not responsible for refunds.

16. Each investigation is conducted individually, taking into account the date, transaction structure, share of funds and other factors.

17. When monitoring operations, the Contractor has the right to:

• Suspend the transaction.
• Request a selfie with a document.
• Request a screenshot from the wallet personal account.
• Block the account and operations, transfer information to authorities.
• Hold funds until investigation.
• Return assets only to the original details (or others after verification).
• Request additional materials and documents.
• Return funds minus the network fee.

18. If the User does not provide the requested information and does not respond for more than 6 months, the withheld funds are not returned.

Purpose of this document

This Privacy Policy explains what data we collect when you visit our website, register on it, and/or use our services. It also describes how we process and protect your information.

Consent to data processing

To avoid any doubts regarding the processing of your personal data, you should carefully read the terms of this Privacy Policy. By accessing our website (regardless of registration), you confirm that you:

• Voluntarily provide us with your personal data;
• Agree with the terms of this Policy;
• Allow us to collect information about you when visiting the website, registering, and using services;
• Accept the possibility of Policy updates in the future;
• Do not object to staff, branches, and partners contacting you regarding services of interest (unless you opted out of such communication).

What data we collect

By using the website, you agree to the use of cookies that record your actions and store certain information (e.g., IP address and location).

For service provision, we may request:

• Identification data — to verify your identity (full name, address, passport details, government-issued documents and their numbers, etc.);
• Contact information — for communication purposes (phone, email, account details, residential address, etc.);
• Additional information — collected to enhance security, improve platform performance, and comply with legal requirements.

If you follow links to third-party resources, please review their privacy policies. We are not responsible for their content or actions.

Data processing under GDPR

If your data is within the European Economic Area (EEA), under GDPR you have the rights to:

• Obtain information about the processing of your data and access it (in some cases, copy issuance may be denied);
• Correct inaccurate or incomplete data (identity verification may be required);
• Request deletion of personal data (except when required by law);
• Restrict processing or object to its use;
• Withdraw consent for processing (in some cases, processing may continue on legal grounds).

To comply with GDPR, we appoint a Data Protection Officer (DPO) who oversees personal data security.

How we collect your data

Verification materials

When conducting transactions at the service office, each client signs a cryptocurrency exchange form containing client data and proof of funds origin.

The following information is requested from the client:

• Full name
• Date of birth
• Passport details (number, issue date, issuing authority)
• Registration address
• Cryptocurrency wallet address
• Exchange account data (if available)

The client also signs a declaration confirming that:

• Funds and crypto assets were obtained legally
• Funds belong to them personally
• Transactions are performed by them independently, not on behalf of third parties
• The client understands the risks of cryptocurrency transactions
• The client complies with applicable tax laws

This document is signed by both parties and stored by the service as part of the KYC and Source of Funds procedures.

Thus, for offline transactions, the service conducts client identification and documentary proof of funds origin.

We may collect information in the following ways:

• Data you provide yourself;
• Information obtained from third-party organizations (e.g., payment systems);
• Data recorded during website and service use;
• Information from public sources.

Cookies

Our website uses cookies and analytics tools (e.g., Google Analytics) to collect visit data.

Cookies are small files stored on your device. They help analyze user behavior. You can disable cookies in your browser settings, but this may limit website functionality.

Purpose of data processing

Collected information is used to:

• Provide services and fulfill requests;
• Verify identity;
• Improve platform functionality;
• Conduct statistical analysis;
• Personalize user experience;
• Ensure security (e.g., two-factor authentication);
• Detect and prevent fraud;
• Comply with legal requirements.

We do not transfer personal data to third parties for commercial purposes. Disclosure may occur to:

• Affiliated organizations assisting in service provision;
• Government authorities when legally requested.

To prevent fraud, we may use third-party data verification tools.

How we protect your data

We implement security measures:

• Physical protection — storage in secure data centers;
• Electronic protection — access via restricted systems;
• Administrative control — processing only by authorized personnel;
• Technical methods — encryption and other security technologies;
• Other measures — server monitoring and protective mechanisms.

However, transmitting data over the internet always carries risks. We are not responsible for leaks caused by cyberattacks or unauthorized actions.

Data retention period

Personal information is stored as long as necessary to fulfill obligations and comply with regulations. After the retention period, data is deleted or anonymized.

Factors considered in retention:

• Data volume and sensitivity;
• Potential risks of unauthorized use;
• Processing purposes;
• Legal requirements.

Data transfer outside the EEA

If you are in the EEA, your consent is required for data transfer outside the zone. If you refuse, you may not use the services but can withdraw funds.

Conclusion

We take all possible measures to protect personal data. If you have questions about this Privacy Policy, please contact us for more information.