Introduction
This document outlines the Know Your Customer (KYC) policy and procedures for BixBeta Inc.
The purpose of this policy is to ensure that our company complies with all applicable laws,
regulations, and industry best practices related to customer due diligence, identification,
verification, and monitoring. This policy aims to prevent and mitigate the risks associated with
money laundering, terrorist financing, and other illicit activities.
1. Scope
This policy applies to all employees, directors, officers, and agents of BixBeta and covers all activities, products, and services offered by the company.
2. Definitions
Know Your Customer (KYC): A process by which a company identifies and verifies the identity of its customers to establish a business relationship, assess risk, and monitor transactions. Customer Due Diligence (CDD): A risk-based process of gathering and analyzing customer information to establish the customer's risk profile and determine the appropriate level of
monitoring.
3. KYC Compliance Officer
BixBeta will appoint a KYC Compliance Officer who will be responsible for the development, implementation, and ongoing maintenance of the company's KYC policies and procedures. The Compliance Officer will also ensure that all employees receive appropriate training on these policies and will be responsible for monitoring compliance within the organization.
4. Customer Identification and Verification
BixBeta will implement a risk-based approach to customer identification and verification. The following steps will be taken to establish the identity of each customer:
a. Obtain customer information: All new customers will be required to provide identification information, such as their name, address, date of birth, and a government-issued identification number.
b. Verify customer identity: BixBeta will take reasonable steps to verify the identity of each customer using reliable, independent sources, such as government-issued identification documents or electronic verification methods.
c. Recordkeeping: BixBeta will maintain records of all customer identification documents and any other relevant documents for a period of at least five years from the date of the transaction or the end of the customer relationship, as required by applicable laws and regulations.
5. Beneficial Ownership
For legal entities, BixBeta will collect information on beneficial owners who own or control more than a specified percentage of the entity, as defined by applicable regulations. This information will be used to assess the risk associated with the customer relationship and to determine the appropriate level of monitoring.
6. Ongoing Monitoring
BixBeta will conduct ongoing monitoring of customer relationships and transactions to ensure that the customer's risk profile remains accurate and up-to-date. This monitoring will include:
a. Regular review of customer information and risk profiles.
b. Monitoring of transactions to identify unusual or suspicious activity.
c. Updating customer information and risk profiles as necessary based on changes in the customer's circumstances or activities.
7. Politically Exposed Persons (PEPs)
BixBeta will implement enhanced due diligence measures for customers identified as Politically Exposed Persons (PEPs). These measures may include obtaining additional information about the customer's source of wealth, source of funds, or reasons for establishing a business relationship with BixBeta.
8. Training
All employees of BixBeta will receive KYC training upon joining the company and will be required to complete ongoing training at least annually. The training will cover relevant laws and regulations, the risks associated with money laundering and terrorist financing, and the company's policies and procedures for customer identification, verification, and monitoring.
9. Auditing and Review
BixBeta will conduct periodic internal and external audits to ensure compliance with KYC laws, regulations, and the company's policies and procedures. The results of these audits will be used to identify areas for improvement and to update our policies and procedures as needed. The KYC Compliance Officer will be responsible for coordinating and overseeing the audit process, addressing any deficiencies or non-compliance issues, and implementing corrective actions as necessary.
10. Penalties for Non-Compliance
Non-compliance with this KYC policy and procedures may result in disciplinary action, up to and including termination of employment or termination of the business relationship with BixBeta. Additionally, non-compliance with KYC laws and regulations can lead to severe legal and financial penalties, reputational damage, and the potential loss of business licenses or authorizations.
11. Policy Review and Updates
BixBeta will regularly review and update this KYC policy and procedures to ensure that they
remain in line with current laws, regulations, and industry best practices. All employees,
directors, officers, and agents of the company will be informed of any changes to the policy and
will be expected to comply with the updated policy.
Conclusion
BixBeta is committed to maintaining a robust KYC compliance program to protect our organization, our customers, and the financial system from the risks associated with money laundering, terrorist financing, and other illicit activities. By adhering to this policy and its associated procedures, we can ensure that we continue to operate in a responsible and compliant manner.
