AML/KYC Policy Switzerland

1. INTRODUCTION

1.1. This AML/KYC Policy (hereinafter referred to as the “Policy”) sets forth the rules, principles and procedures that Xchange360 SA, its subsidiaries and affiliated parties (hereinafter referred to as the “Company”) follows for detecting and preventing any financial crime, including money laundering and the funding of terrorism, in accordance with all relevant and mandatory applicable laws and self‑regulatory standards in Switzerland.

1.2. This Policy is an integral part of the Company’s Terms of Services – i.e. the terms and conditions, which are at all times available on the Company’s website. The Policy specifies the main and general principles and rules applicable for the purposes of detecting and preventing any financial crime, including money laundering and the funding of terrorism, in accordance with all relevant and mandatory applicable laws.

1.3. The Company is strongly committed to preventing the use of its Services for money laundering or any other activity which facilitates money laundering, the funding of terrorist and/or any other criminal activities, or any other illicit purposes.

1.4. The Company is subject to provisions on Anti‑Money Laundering and Counter‑Terrorist Financing under the laws of Switzerland (hereinafter collectively referred to as the “AML/CFT Laws”), in particular the Federal Act on Combating Money Laundering and Terrorist Financing in the Financial Sector (AMLA), its implementing ordinances, and the regulations and directives of ARIF (Association Romande des Intermédiaires Financiers), a FINMA‑recognised self‑regulatory organisation (SRO) of which Xchange360 SA is a member. These AML/CFT Laws are in accordance with the recommendations of the Financial Action Task Force (FATF), of which Switzerland is a member country. This means in particular that Xchange360 SA has to identify its customers and establish the beneficial owner’s identity, understand the nature and purpose of the business relationship, and apply risk‑based monitoring measures. The AML compliance policies approved by the Board of Directors include, inter alia, processes for the identification of customers and beneficial owners, the collection of information regarding customers’ business activities and relationships with Politically Exposed Persons (PEPs), and record‑retention procedures.

1.5. The Company’s Compliance Department, led by the designated AML Compliance Officer (“Responsable LBA”), is tasked with monitoring compliance with the relevant AML/KYC regulations and administering the procedures within the Company in strict accordance with applicable AML/CFT Laws.

2. THE COMPANY’S PROTECTION MEASURES
2.1. In our efforts to counter money laundering and terrorist financing and to be in compliance with the applicable legislation, we apply the following measures:

identification of customers or persons participating in an occasional transaction and verification of the submitted information;
identification and verification of a representative of a customer or person participating in an occasional transaction and their right of representation;
identification of the beneficial owner and, for the purpose of verifying their identity, taking measures to the extent that allows the Company to make certain that it knows who the beneficial owner is, and understands the ownership and control structure of the customer or of the person participating in an occasional transaction;
understanding of business relationships, an occasional transaction or operation and, where relevant, gathering information thereon;
gathering information on whether a person is a politically exposed person, their family member or a person known to be a close associate;
monitoring of a business relationship.

2.2. The Company has the right to request additional, new and/or updated data, documents and/or information from any User at any time, even if such User has been identified before, in accordance with applicable laws.

2.3. In an event that the Company reasonably suspects suspicious transaction(s), it shall conduct additional questioning regarding the User’s activity by means of an AML/KYC Questionnaire, and request any additional data, documents and/or information that may be required for these purposes and in accordance with applicable AML/CFT Laws.

2.4. In case the User has not provided any data, document, information and explanation about the suspicious transaction(s), a complete set of requested documents, and/or has presented suspicious or unusual data, documents and other information that the Company cannot verify, the Company will reasonably suspect that the User’s business, activities and transaction(s) may be connected to money laundering, terrorism financing or other illegal activity. In such cases, the Company will file a suspicious activity report with the Money Laundering Reporting Office Switzerland (MROS) in accordance with the Swiss Anti‑Money Laundering Act (AMLA), and reserves the right to suspend or restrict the User’s account suspected of such activities at its sole discretion.

2.5. The Company may stop or refuse to provide Services to Users and/or report such Users to MROS if they do not provide the Company with requested data, documents or information in accordance with applicable Swiss laws and regulations, including the AMLA.

2.6. In addition the Company:

conducts AML/CFT staff (employee) training;
conducts periodic AML/CFT audits (including internal and external);
maintains and updates User data, documents and other information;
reports suspicious transactions to the relevant authority in accordance with AML/CFT Laws;

Takes all other necessary steps and measures to detect and prevent any financial crime, including money laundering and terrorism financing, in accordance with AML/CFT Laws.

3. KYC PROCEDURES AND VERIFICATION
3.1. The Company implements and applies different AML/KYC Verification Levels to detect and prevent any financial crime, including money laundering and the funding of terrorism, in accordance with AML/CFT Laws.

3.2. The Company’s Verification Level, conducted on each User, shall directly influence the amount of activities the User can perform on the Company’s website. For the purposes of the Company’s Verification Levels, the following terms shall have the following meaning: the “Valid ID” shall mean an identity card and/or passport or driving license; and the “Proof of Residence” shall mean a bank statement, utility bill, insurance, credit card statement and/or tax statement issued within the last three (3) months.

3.3. In accordance with applicable AML/CFT Laws, as well as the Company’s internal compliance procedure rules, when making a transaction or a series of linked transactions and/or at any time requested by the Company, a User shall provide a Proof of Funds, which shall mean any document that verifies the lawful source of the User’s funds, such as copies of company accounts, agreements, bank statements and similar documentation.

3.4. For the purposes of the Company’s Verification Levels and/or at any time, the Company may also send a User an AML/KYC Questionnaire, which shall mean a series of questions and/or a video‑call with the Company’s Compliance Department in order to detect and identify the intent and the source of funds that are subject to the User’s business, transactions and activities, as well as to rule out any illicit purpose.

4. RISK ASSESSMENT PRINCIPLES
4.1. When carrying out risk assessment, as well as initial and/or ongoing procedures, the Company takes into account risk factors, including the User’s profile and geographical risk characteristics.

4.2. When carrying out risk assessment, the Company takes into account untruthful, false and/or incomplete data, information, documents and facts, including but not limited to discrepancies in ID documents provided, fictitious persons, stolen identities, previous financial‑crime records, terrorist records, wanted‑person alerts and similar circumstances.

4.3. When carrying out risk assessment, the Company also pays attention to the performance of suspicious, high‑volume and unusual transactions and/or series of linked transactions by its User(s).

4.4. When carrying out risk assessment, the Company, in accordance with its internal procedure rules, may apply simplified or enhanced AML/KYC measures in accordance with the AML/CFT Laws and based on the results (outcomes) of the risk assessment.

4.5. The Company has its own developed and implemented list of countries with which it does not work. The list of countries is based on the list of countries identified by the EU as high risk, as well as the list of countries identified as being at risk by the Financial Action Task Force (FATF) and relevant Swiss authorities. These lists are essential for assessing the risk of Users, transactions and/or business relationships.

5. RESTRICTED BUSINESS AND JURISDICTIONS
5.1. To minimize any risk of money laundering and terrorist financing our Company does not provide services to clients whose activities are associated with any high‑risk or banned activities. For example:

unlicensed gambling, casinos, betting companies;
unlicensed financial institutions;
non‑regulated charities;
clients who are involved in adult entertainment;
clients dealing with weapons;
companies with bearer‑share form;
client accounts in the name of a third person;
shell banks;
clients listed on sanctions lists (i.e. OFAC, UN, EU, SECO).

5.2. Further, the Company does not accept Clients from the following jurisdictions:
AFGHANISTAN; BELARUS; BURKINA FASO; BURUNDI; CENTRAL AFRICAN REPUBLIC; CONGO, THE DEMOCRATIC REPUBLIC; COTE D’IVOIRE (IVORY COAST); CUBA; GAZA STRIP (PALESTINE); GUINEA; GUINEA BISSAU; HAITI; IRAN; IRAQ; KOSOVO; LIBYA; MALI; MYANMAR; NICARAGUA; NORTH KOREA; RUSSIAN FEDERATION; SOMALIA; SOUTH SUDAN; SUDAN; SYRIA; VENEZUELA; WEST BANK (PALESTINIAN TERRITORY); WESTERN SAHARA; YEMEN; ZIMBABWE.

5.3. The above list is not exhaustive. The Company might not accept clients dealing with other high‑risk business activities which are not aligned with its risk appetite.

6. DATA RETENTION
6.1. The Company will store your personal data collected for the purpose of establishing a business relationship with you for the minimum period required under applicable Swiss AML and data‑protection legislation, which is generally at least ten (10) years from the date of terminating your business relationship with the Company, unless a longer retention period is required by law.

6.2. You may find additional information on the collection and storage of your personal data in the Company’s Privacy Policy.

6.3. By applying for an account with us you agree to promptly provide us with all the information that we reasonably request in order to comply with all applicable laws and regulations relating to anti‑money laundering and counter‑terrorist financing.

7. CONTACT US
7.1. If you have any questions about this AML/KYC Policy, procedures and/or any other AML/KYC‑related matters or any complaints about the Company’s Services, you may contact us at info@xchange-360.com.