KYC/AML policy
Know Your Customer (KYC)
Beginner
Know Your Customer (“KYC”) refers to the process used by financial institutions to verify the identity of customers and to collect essential identifying and contact information. The purpose of KYC is to help prevent fraud, money laundering, terrorist financing and other forms of illicit financial activity, as well as the misuse of financial accounts.
As a custodial digital asset platform based in Erbil, Kurdistan Region of Iraq (KRG), CryptoBazar is required to apply KYC procedures in accordance with applicable local requirements and internationally recognised standards.
Why does CryptoBazar require KYC?
KYC is a core component of Anti-Money Laundering (“AML”) and Counter-Terrorist Financing (“CTF”) frameworks. These frameworks are supported globally by the Financial Action Task Force (FATF), which was established in 1989 to combat money laundering and financial crime at an international level.
FATF sets global standards and recommendations that are implemented through national and regional laws. Iraq is a member of the Middle East and North Africa Financial Action Task Force (MENAFATF), which operates in alignment with FATF standards.
CryptoBazar applies KYC procedures to support compliance with applicable Iraqi and regional financial crime regulations and international best practices.
KYC and AML work together to:
When does KYC take place?
KYC verification typically begins before or shortly after an account is created.
CryptoBazar must verify the identity of users before granting access to custodial services or enabling certain features, such as holding, transferring or transacting digital assets.
In some cases, limited access may be available prior to full verification, but functionality will remain restricted until KYC is completed.
What information is required for KYC?
The exact requirements may vary depending on your location, account type and applicable regulations. KYC typically involves the following:
Identity verification
Users may be asked to provide one or more of the following:
Address verification
To confirm residency, users may be asked to submit documents such as:
Additional information (where required)
All information is collected and processed in accordance with CryptoBazar’s Privacy Notice and applicable data protection laws.
Ongoing monitoring and updates
KYC is not a one-time process. Financial institutions are required to:
CryptoBazar may request updated KYC information from time to time to remain compliant with legal and regulatory obligations. Failure to provide updated information when requested may result in restricted access or suspension of Services.
KYC and cryptocurrency platforms
In the digital asset industry, some platforms allow users to create accounts before completing full verification. However, unverified or partially verified accounts typically have limited functionality.
As a custodial platform, CryptoBazar applies KYC requirements to ensure that digital assets held on the Platform are safeguarded and managed in compliance with applicable laws and standards.
Why KYC matters
While KYC can introduce additional steps for users, it plays a crucial role in:
CryptoBazar encourages responsible participation in the digital asset ecosystem and believes that strong compliance standards benefit both users and the industry as a whole.
Users should always ensure that they provide sensitive information only to platforms that apply appropriate security, confidentiality and data protection standards. CryptoBazar is committed to protecting personal data and maintaining high security standards.
Anti-Money Laundering (AML)
Intermediate
Anti-Money Laundering (“AML”) is a broad term covering laws, regulations and procedures designed to prevent criminals from generating illegal profits or moving illicit funds through financial systems. AML frameworks target a wide range of financial crimes, including money laundering, terrorist financing, tax evasion, public corruption and market manipulation, such as wash trading.
As a custodial digital asset platform based in Erbil, Kurdistan Region of Iraq (KRG), CryptoBazar applies AML controls aligned with applicable local requirements and internationally recognised standards.
AML regulatory framework and international standards
AML requirements are established through a combination of domestic legislation, regional implementation and international cooperation. At the global level, the Financial Action Task Force (FATF) sets widely adopted standards and recommendations for combating money laundering and terrorist financing.
Iraq is a member of the Middle East and North Africa Financial Action Task Force (MENAFATF), which operates in line with FATF standards. AML obligations applicable in the Kurdistan Region of Iraq are informed by Iraqi federal law, regional implementation practices, and relevant international guidance.
CryptoBazar structures its AML programme with reference to:
AML controls and technology
Due to the complexity of AML obligations, many financial institutions rely on specialised AML software and monitoring tools. These solutions assist with identifying and managing financial crime risks by:
CryptoBazar uses a risk-based AML approach, combining internal policies, governance and technology-driven controls to help detect, prevent and report suspicious activity where required by law.
Relationship between AML and KYC
AML is closely linked to Know Your Customer (KYC) requirements. KYC focuses on verifying customer identities and understanding the source of funds or income, while AML extends to ongoing monitoring of customer activity throughout the business relationship.
At CryptoBazar:
Modern AML and KYC procedures are largely automated, and the onboarding process is used to collect necessary identification and compliance information in a structured and secure manner.
AML in the cryptocurrency sector
AML programmes are increasingly relevant in the cryptocurrency and digital asset sector as regulatory focus on the industry has grown. Custodial cryptocurrency platforms are expected to apply AML controls comparable to those used in traditional financial services, adapted to the specific risks associated with blockchain-based transactions.
While AML and KYC requirements have faced criticism within the crypto community—particularly regarding privacy and the centralisation of personal data—many industry participants recognise that compliance plays an important role in reducing misuse of digital assets and supporting market credibility.
CryptoBazar addresses these concerns by:
Responsible compliance and self-regulation
An important trend in the digital asset ecosystem is the willingness of many platforms to adopt voluntary compliance measures, even where regulatory frameworks are still evolving. In some cases, companies have collaborated through industry initiatives to establish best practices and self-regulatory standards.
CryptoBazar supports responsible compliance as a means to:
By maintaining a robust AML framework aligned with international standards, CryptoBazar aims to contribute to a safer, more transparent and sustainable digital asset ecosystem in the Kurdistan Region of Iraq and beyond.