AML / KYC Policy

XHQ Exchange Anti-Money Laundering and Know Your Customer policy, identity verification requirements, and compliance procedures.

XHQ Exchange (Traders Global Group Incorporated) is committed to the highest standards of Anti-Money Laundering (AML) compliance and Know Your Customer (KYC) procedures. This policy is designed to prevent the use of our platform for money laundering, terrorist financing, or any other financial crime.

All clients must complete our identity verification process before accessing full platform functionality, making deposits, or requesting withdrawals.

1. Purpose and Scope

This policy applies to all clients, prospective clients, employees, agents, and third parties who interact with XHQ Exchange. It is designed to comply with applicable AML legislation, Financial Services Authority requirements, and international standards set by the Financial Action Task Force (FATF).

2. Customer Identification Program (KYC)

Before establishing a business relationship or executing significant transactions, XHQ Exchange will verify the identity of each client. This process includes:

Collecting and verifying full legal name, date of birth, and nationality
Verifying residential address
Assessing the source of funds and source of wealth where required
Screening against international sanctions lists and politically exposed person (PEP) databases

3. Required Identity Documents

Clients must provide the following documents to complete verification:

Proof of Identity (one of the following)

Valid passport (all relevant pages)
National identity card (front and back)
Government-issued driver's licence

Proof of Address (dated within 3 months, one of the following)

Utility bill (electricity, gas, water)
Bank or credit card statement
Official government correspondence
Tax authority letter

Source of Funds (where required)

Bank statements showing origin of deposited funds
Payslips, employment contracts, or business financial statements
Sale of assets documentation
Inheritance or gift documentation

All documents must be clear, legible, unaltered, and in full. We reserve the right to request additional documentation at any time.

4. Enhanced Due Diligence (EDD)

Enhanced due diligence procedures are applied to higher-risk clients, including:

Clients from high-risk jurisdictions identified by FATF
Politically Exposed Persons (PEPs) and their close associates and family members
Clients with complex ownership structures or unusual transaction patterns
Clients transacting with large or unexplained deposits
Clients where standard verification raises concerns

EDD may involve additional documentation, source of wealth verification, senior management approval, and enhanced ongoing monitoring.

5. Politically Exposed Persons (PEPs)

XHQ Exchange applies enhanced scrutiny to clients identified as PEPs. A PEP is an individual who holds or has held a prominent public position, including heads of state, senior politicians, judicial officers, military officers, senior executives of state-owned enterprises, and their immediate family members and known close associates.

Acceptance of PEP clients requires senior management approval and is subject to continuous enhanced monitoring.

6. Ongoing Transaction Monitoring

We continuously monitor client accounts and transactions for:

Unusual or inconsistent transaction patterns relative to client profile
Rapid movement of funds with no clear investment purpose
Multiple deposits or withdrawals that appear to structure transactions to avoid reporting thresholds
Transactions involving high-risk jurisdictions or sanctioned parties
Sudden changes in trading behavior inconsistent with the client's stated experience or financial position

7. Suspicious Activity Reporting

XHQ Exchange is required by law to report suspicious transactions or activity to the relevant financial intelligence unit or regulatory authority. In accordance with applicable law:

We will not inform you if a suspicious activity report (SAR) has been filed about you or your account.
Accounts under investigation may be suspended or restricted without prior notice.
Cooperation with law enforcement and regulatory investigations is mandatory.

8. Sanctions Screening

All clients and transactions are screened against international sanctions lists, including those maintained by the United Nations, OFAC (United States), HM Treasury (United Kingdom), the European Union, and other relevant authorities. We will not provide services to sanctioned individuals, entities, or jurisdictions.

9. Record Keeping

We maintain records of all client identification documents, transaction records, and AML-related correspondence for a minimum of 5 years following the end of the client relationship, in accordance with applicable regulatory requirements. Records are stored securely and are available to regulators and law enforcement upon lawful request.

10. Training and Compliance

All XHQ Exchange employees involved in client-facing roles, transaction processing, and compliance receive regular AML/KYC training. Our compliance team conducts periodic reviews of policies, procedures, and controls to ensure continued effectiveness and regulatory alignment.

11. Contact

For KYC-related queries or to submit verification documents, please contact our compliance team at compliance@xhqexchange.com.