Royalcash Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Regulations

1. Basic principles and objectives of compliance

Royalcash service activities The transaction is carried out in strict compliance with international financial security standards and the laws of the countries where it operates. The documentation is based on FATF (Financial Action Task Force) recommendations.

The main objectives of this Policy are:

1. Complete exclusion of the possibility of using the platform for illegal transactions.
2. Guaranteed compliance with regulatory requirements.
3. Maintaining the impeccable business reputation of the Royalcash brand.
4. Growing trust from the customer base and regulators.

This document is integrated into the User Agreement. By using the service, the client automatically agrees to the terms of the Policy. Royalcash administration reserves the right to unilaterally update this document by publishing new versions on the official website.

2. Information protection and confidentiality

Royalcash platform prioritizes the security of its clients" personal data. Security measures are implemented in the following areas:

1. Encryption: Information is protected in accordance with current industry security standards.
2. Storage Location: Server equipment is located in jurisdictions that comply with the GDPR and MiCA regulations.
3. Access control: Work with databases is permitted only to authorized company employees.
4. Storage period: Personal data and transaction information are stored in the archive for at least 5 years after the end of cooperation with the user.

3. User Identification (KYC) and Sanctions Control

To successfully verify your account, you must upload high-quality scans or photographs of your documents (all data must be transliterated into Latin).

Documents for identity verification (optional):

1. Internal or international passport.
2. Identity card (ID card).
3. A valid driver"s license.

Documents to confirm address (not older than 3 months):

1. Bank statement or property lease agreement.
2. Receipts for payment of utility services.
3. Income tax return.
4. Any other official documents indicating the registration address.

Additional mandatory requirement:

A selfie of the user holding a piece of paper is required. The paper must contain the current date, a personal signature, and the name of the service "Royalcash."

Source of Funds (SoF) Procedure

Compliance with anti-money laundering requirements requires the service to request information about the source of assets. This procedure is the same for all clients and is independent of their transaction history.

Materials needed:

• screenshots from the wallet interface or transaction log;
• official bank statements or stock exchange reports;
• documents certifying the level of income.

Sanction restrictions:

The Service does not provide services to persons under 18 years of age, or to residents of countries and territories subject to UN, EU, OFAC, or FATF sanctions.

List of prohibited jurisdictions:

Afghanistan, Iran, North Korea, Syria, Yemen, Libya, Somalia, Cuba, Crimea, Transnistria, Venezuela, Myanmar (Burma), as well as any other regions included in the sanctions lists at the time of the operation.

Regulatory inspection deadlines:

1. Standard verification: from 1 to 24 hours.
2. Extended Date Determination (EDD): 24 to 72 hours.
3. Note: If suspicions arise, the service reserves the right to request a repeat KYC procedure.

4. Monitoring of operations and risk management (KYT)

To ensure the security and reliability of transactions, we partner with leading blockchain analytics providers, including proven solutions like Crystal, GetBlock, and BitOK.

Key risk factors:

1. Connections between addresses and darknet sites, fraudulent schemes, or sanctions registries.
2. Use of anonymization tools (mixers).
3. Presence of suspicious behavior patterns (smurfing, operations from high-risk regions).

Risk Score System

Risk assessment is carried out according to the following scale:

1. Low: Value ≤ 62%. The operation is classified as safe and approved by the system.
2. Medium: Value between 63% and 75%. Requires further verification.
3. High level: Value ≥ 75%. The transaction is automatically blocked and transferred to an AML officer for manual review.

Important : Threshold values may vary depending on the software used. A detailed description of the Risk-Score model is available at: https://www.bestchange.ru/wiki/detailed_aml_recommendations.pdf#page=72 .

Transactions with a High Risk status are blocked automatically. A preliminary check of the address"s status can be performed using the tool: https://www.bestchange.com/report/.

Client categories

1. Low risk: Standard verification procedure (CDD) applies.
2. Medium risk: Enhanced monitoring is introduced, re-verification is required every 2 years.
3. High Risk: Enhanced due diligence (EDD) is conducted. This includes a thorough analysis of the origin of funds, transaction history, and an annual KYC update. This category applies to politically exposed persons (PEPs) and residents of countries on the FATF High-Risk list.

Consequences of refusing verification:

1. Funds are frozen for a period of 7–10 business days.
2. Upon expiration of the period, the funds will be returned and the materials will be transferred to the competent authorities (financial intelligence, law enforcement agencies).

5. Algorithm of actions in case of suspicious activity and refund of funds

When signs of illegal activity are detected, Royalcash administration follows the following plan:

1. Immediate suspension of a suspicious transaction.
2. Account blocked pending investigation.
3. Preparation of internal report (SAR/STR).
4. Notification of regulators if necessary (Rosfinmonitoring, FinCEN, EU FIU).

Refund Policy:

1. For bona fide users whose funds are not involved in money laundering, the commission is limited to network fees.
2. In AML cases, the return commission is up to 5%, but not more than $100.
3. Refunds will not be made if funds are deemed criminal and subject to confiscation at the request of regulators.

6. Internal control and interaction with partners

Requirements for counterparties:

1. Cooperation with platforms from jurisdictions with weak AML regulations is prohibited.
2. Due diligence is mandatory for all partners.
3. Partners must be licensed and comply with international standards.

Audit and training of employees:

1. AML Officer: [email protected].
2. Annual professional development of personnel in the field of AML/CTF.
3. Internal audits are conducted quarterly (involvement of external experts is permitted).

7. Payment standards

All payments are made in accordance with the standards of international regulators (FATF, OFAC) through:

1. Licensed platforms.
2. Unique one-time crypto addresses.
3. Low-risk addresses (confirmed by AML analyzers).

To contact the AML officer: [email protected]