Why KYC/AML is important?


To use specific features of the Orderbook Services, including certain transfers of Cryptocurrency and/or Fiat Currency, you may be required to provide Orderbook with the Account Information, and any other personal information, listed in Orderbook’s Terms of Service. By submitting your personal information, you verify that the information is accurate and authentic, and you agree to update Orderbook if any information changes.

So why KYC is so essential? KYC is necessary as well as mandatory for the following reasons:

To prevent money laundering

When the illegally obtained money is made to appear as though it has originated from legitimate sources, it is called money laundering. This phenomenon could be the activating lever for the following illegal activities such as tax evasion, smuggling, financial frauds, and corruption. KYC references for every country is a proper mechanism guided by stringent rules will be maintained by all organizations, interacting with finance. This could get the company in serious legal trouble down the line, possibly leading to fines and even jail time for employees.

To Combat Finance of Terrorism

One of the primary objectives of KYC is to let organizations know users’ financial dealings. KYC helps to check suspicious monetary transactions by any of their customers. We need this for tracking financing of the activities related to terrorism.

To check Identity Theft

We (and all other finance organizations) will not allow you to initiate any financial transactions associated with your account until and unless you present valid documents that establish your identity. Please note that the owner of your money is the person who provided us with their documents for verification. That is why we always insist on providing only those documents which are owned by you.

To judge the appropriateness of investments by the customer 

It is also important to judge the appropriateness of investments by, and communications to/with the customer. For instance, if a customer indicates that he or she has low risk tolerance, then we should not sell or even allow them to invest in things where they can lose all their money.

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