KYC-AML & Transaction Monitoring Policy
Lightningnodes Technologies Private Limited
Last updated on May 23, 2024.
Pi42.com Platform is owned, operated and managed by Lightningnodes Technologies Private Limited (CIN: U62099GJ2023PTC143842), having its registered office at 1302, Gala Empire, Drive-in-Road, Memnagar, Thaltej Road, Ahmedabad City, Ahmedabad-380054, Gujarat (hereinafter referred to as ‘Pi42’ or ‘Pi42.com’ or ‘Company’ or ‘Us’ or ‘We’ or ‘Our’, which term shall mean and include our affiliates, group entities, related parties and service providers).
1 - INTRODUCTION
This Know Your Customer (KYC) and Anti-Money Laundering (AML) Policy (“KYC-AML Policy”) sets out, for your reference, the terms regarding identity verification of our Users and the procedures followed for early identification, prohibition, prevention and reporting of prohibited/illegal activities which may be committed by using Pi42.com Platform or our Services. When using Pi42.com Platform or our Services , you must at all times comply with all Applicable Law and with all terms and policies of Pi42.com including this KYC-AML Policy.
By signing up, accessing, using, or continuing to browse through Pi42.com Platform or using our Services, as a registered User, you agree that you have read, understood, and accepted each of the terms contained herein and agree to be bound by the same. If you have objections to this KYC-AML Policy, or any part thereof, and/or if you do not agree to be bound by the terms of this KYC-AML Policy, or any part thereof, please do not access Pi42.com Platform and do not use our Services in any manner.
We reserve the right to change, amend, remove, suspend, discontinue or modify these terms (in whole or in part) from time to time. You shall regularly and periodically check this KYC-AML Policy including before you make any transaction on Pi42.com Platform. We shall have no liability or responsibility whatsoever due to any such changes, additions, removals or modifications.
The purpose of this KYC-AML Policy is to provide an overview of the system we have in place for preventing any money laundering financial transaction, terrorism financing, proliferation financing and/or any other financial transaction involving proceeds from criminal activities identified in AML Regulations through Pi42.com Platform.
2 – DEFINITIONS
Unless the context requires otherwise, following terms shall have meanings ascribed to them as below.
2 a) “AML Compliance Officers” means the Designated Director and Principal Officer appointed by Pi42.com, whose roles and responsibilities are outlined in this KYC-AML Policy and under AML Regulations.
2 b) “Applicable Law” means any applicable statute, law, regulation, ordinance, rule, judgement, order, decree, by-law, approval from the concerned authority, government resolution, order, directive, guideline, policy, requirement, or other governmental restriction in force in India, including without limitation AML Regulations, and various applicable guidelines, rules and regulations of the Indian Computer Emergency Response Team and the Reserve Bank of India or its constituents/payment system providers as applicable, replaced and updated from time to time.
2 c) “Beneficial Owner” shall have the meaning ascribed to it under AML Regulations.
2 d) “Client Due Diligence (CDD)” means due diligence of the User conducted in accordance with AML Regulations, including by identifying the User and verifying their identity by using a reliable, independent source of documents, data, or information.
2 e) “Designated Director” shall have the meaning ascribed to it under AML Regulations.
2 f) “Enhanced Client Due Diligence” shall have the meaning ascribed to it under AML Regulations and includes additional steps required to be undertaken, in relation to certain specified transactions, to examine the ownership and financial position of a client or User and the purpose of their transaction.
2 g) “KYC Identifier” means the unique number or code assigned to a client by the Central KYC Records Registry.
2 h) “Officially Valid Document/OVD” means passport, driving licence, proof of possession of an Aadhaar Number, voter’s identity card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government, and letter issued by the National Population Register containing details of name and address.
2 i) “Person” means an individual who is eighteen (18) or above the age of eighteen (18) years and an Indian citizen-resident.
2 j) “Politically Exposed Persons” or “PEP” shall have the meaning ascribed to it under AML Regulations.
2 k) “Principal Officer” shall have the meaning ascribed to it under AML Regulations.
2 l) “Suspicious Transaction” means a transaction, including an attempted transaction on Pi42.com Platform, whether or not made in cash, which to a person acting in good faith:
.gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the PMLA, regardless of the value involved; or
.appears to be made in circumstances of unusual or unjustified complexity; or
.appears to have no economic rationale or bona fide purpose; or
.gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.
2 m) “Restricted Jurisdiction” means and includes any jurisdiction other than India.
Terms used in this KYC-AML Policy but not defined herein shall have the meaning ascribed to them in the User Terms & Conditions available at https://pi42.com/terms-and-conditions and/or the Trading Policy available at https://pi42.com/trading-policy as the case may be.
3) KNOW-YOUR-CUSTOMER POLICY
KYC means to ‘Know Your Customer' which is an effective way for an entity to identify any User opening and operating a Pi42 Account and verify such identity (using information and documentation obtained from, or in relation to, the Users), and is the guiding principle behind AML Regulations.
Pi42.com has in place adequate policies, practices and procedures that promote high ethical and professional standards and prevent Pi42.com Platform or Services from being used, intentionally or unintentionally, for money laundering purposes. KYC of a User enables Pi42.com to know/ understand its Users and their financial dealings better which in turn will help Pi42.com to manage its risks prudently.
The objectives of KYC are to:
.ensure appropriate User identification and obtaining sufficient information about the User in order to identify who is the actual Beneficial Owner of the Virtual Digital Assets or on whose behalf the transaction is conducted;
.verify the User identity using reliable independent source document, data or information;
.conduct ongoing due diligence and scrutiny of the Pi42 Account/ User to ensure that the transactions conducted are consistent with the Users’ background, financial status and risk profile;
.monitor and report transactions of a suspicious nature (if any);
.satisfy that the proposed User is not an undischarged insolvent;
.minimise frauds; and
.avoid opening Benami accounts with fictitious names and addresses.
Pi42.com collects the documents and information as set out in this KYC-AML Policy and as otherwise required by Applicable Law.
4 - CUSTOMER IDENTIFICATION AND ACCEPTANCE
4 a) Account. If you choose to avail our Services and/or transact on Pi42.com Platform, you must register with us, and open and maintain a Pi42 Account by providing your details, completing necessary KYC verification requirements as per this KYC-AML Policy and under Applicable Law and executing such undertakings, declarations or agreements as required under Applicable Law. Your Account shall be activated only upon successful completion of these requirements to our satisfaction.
We are required to collect your personal data, which may include the following, for registering you and opening your Account: Name, Mobile Number, Email Address, Date of Birth, Gender, Live selfie of the User, Permanent Account Number (PAN), Aadhar information, Proof of Address, Proof of Identity, Bank Account details and any other document as and when required for our compliance with Applicable Laws. You shall ensure that all the information, data and documents provided by you are reliable, accurate and complete. Please refer to our Privacy Policy which explains how your personal data is used and shared. We may share your information with relevant statutory authorities as required or requested under Applicable Law.
4 b) One Account per User. You may only open one Pi42 Account. We will not create duplicate accounts for the same User. Where duplicate accounts are detected/identified, we may choose to close or merge duplicate accounts at our sole discretion.
4 c) No Anonymous or Fictitious Account. You will not be permitted to create an anonymous Pi42 Account or a Pi42 Account in the name of a fictitious person. [You may only open a Pi42 Account in your individual capacity and not as a representative or agent of another Person.In case you are a Legal entity, only such individuals as duly authorized on your behalf shall be permitted to create an Account on your behalf in their official capacity Further, you will not be permitted to create an account on behalf of a third-party if we are unable to verify their identity in accordance with the procedures set out in Clause 4(a) above.
4 d) Who can open an Account? You must meet all eligibility criteria and residency requirements set out in our policies and under Applicable Law to register with us and open, maintain and operate a Pi42 Account.
If we change the eligibility criteria or residency requirements to be registered with Pi42.com Platform or there is a change in Applicable Law in this regard, and you no longer comply with the new criteria, we may close your Pi42 Account without any liability for us.
You are solely responsible for ensuring that you are in compliance with Applicable Law. If your right to access Pi42.com Platform is revoked or your use of Pi42.com Platform is in any way prohibited, in such circumstances, you agree not to use or access Pi42.com Platform in any way whatsoever.
4 e) Account Opening Procedures. User and the corporate entity has to provide certain information and documents at the time of User/corporate entity registration for opening the Pi42 Account. Its/his/her Pi42 Account can be made operational only once such details and documents are verified in accordance with Applicable Law to our satisfaction. This may include:
First set of Documents to be asked with regard to corporate entity:
1) MOA & AOA
2) PAN of Company
3) Certificate of Incorporation
4) PAN and Aadhar of authorised signatory
5) Board resolution authorizing the company to open account with us
6) Bank statement for last six months
7) Authorization letter
8) GST certificate
9) Details of Beneficial owner or Legal Owners and directors.
Second set of documents to be asked after scrutiny of the above-mentioned documents:
1. registered email address and Phone Number (Authorized Officers who would be authorized to access Pi42's platform)
2. shareholding pattern and Ultimate Beneficial Ownership (UBO) details
3. Purpose of opening the account, provided on your company letterhead and signed by all authorised signatories
4. Latest audited financial statements
5. Net worth Certificate
6. Source of funds documents
7. Selfie holding both personal and company/HUF PAN cards
8. Pi42.com also asks for a live video proof of any one authorised person, holding both the personal and company PAN cards.
For the User:
Permanent Account Number (PAN) or the equivalent e-document or Form No. 60 as defined in the Income Tax Rules, 1962.
.Proof of possession of Aadhaar number.
.Documents for proof of identity and residence such as Aadhaar or any government issued ID (voter ID, passport, driving license)
Driving license and passport within the expiry date.
KYC Identifier.
.copy of last six months bank statement only in case of corporate entity
.in-person verification via live selfie over internet
Such other information or document in respect of the nature of business and financial status of the User, or the equivalent e-documents thereof, including as may be required to determine and verify the background and purpose of a transaction, User’s business interests, User’s financial status, the source and ultimate beneficial ownership of User’s funds. Where a User is acting on behalf of the Beneficial Owner, we will also seek to establish and verify the identity of the Beneficial Owner and the User’s authority to establish and operate the Pi42 Account or to conclude transactions on behalf of the Beneficial Owner.
The act of providing your Aadhaar ID is voluntary in nature unless mandated under Applicable Law. User may choose to provide us with an alternative identity proof.
4 f) Further details. In addition to the above, we may also require other details from the User such as your annual income and other details of your financial position, occupation, status as a PEP, trading experience and marital status.
4 g) Ongoing CDD. We may need to obtain sufficient information necessary to establish, to our satisfaction, inter alia the identity of each User, whether regular or occasional, and the purpose and nature of the transaction being executed by the User on Pi42.com Platform. To this end, in addition to the verification done at the time of your registration with Pi42.com Platform, we may also conduct CDD in certain other circumstances, including:
.as part of a periodic review of existing Users, whether on an annual basis or as required under Applicable Law;
.in relation to any transaction being executed by the User on Pi42.com Platform;
.as part of periodic checks to investigate authenticity, veracity or adequacy of the User identification data obtained earlier; or
.to ensure that the records of existing Users are accurate and up-to-date.
5 - MONITORING OF TRANSACTIONS
5 a) All transactions executed and/or attempted to be executed on Pi42.com Platform are regularly monitored (inter alia to assess and record the nature, value, currency denomination, date and parties) through use of software-based algorithms, in order to identify and highlight certain kinds of transaction including without limitation, high value transactions and prohibited, illegal or Suspicious Transactions as per Applicable Law.
5 b) We may, from time to time, undertake necessary investigation in order to identify and examine transactions inconsistent with any User’s risk profile (determined in accordance with verification of the KYC documentation, sophistication, and expected usage pattern).
5 c) If any User or corporate entity is found on any trade or economic sanctions lists, it is within the rights of Pi42.com to report said presence in accordance with the pertinent Applicable Law.
5 d) We reserve the right to terminate the Pi42 Account, restrict and/or prevent access to Pi42.com Platform or report to the appropriate enforcement authorities the activities of any User in respect of Suspicious Transactions.
6 - MAINTENANCE OF RECORDS
6 a) Pi42.com will maintain and preserve information and/or data in accordance with AML Regulations. This will include:
6 b) Records of information on all transactions on Pi42.com Platform for a period of 5 (five) years, including information on (i) whether the transaction was attempted or executed; (ii) nature; and (iii) value, in such a manner as to enable us to reconstruct individual transactions.
6 c) We will also record all account files and business correspondence relating to our Users and store encrypted KYC information.
6 d) Identification records of Users (including but not limited to the identification documents submitted pursuant to this KYC-AML policy and Applicable Law, for a period of 5 (five) years from the date of closing of such Pi42 Account or from when the business relationship with the User has ended, whichever is later. Records of information obtained for verifying the identity of the User under the Enhanced Due Diligence process prescribed under AML Regulations shall be maintained for a period of 5 (five) years from the date of User’s transaction or as otherwise prescribed under AML Regulations.
6 e) Where an information request under Applicable Law is required to be kept confidential, Pi42.com will comply with such requirements.
6 f) Pi42.com will implement specific procedures for retaining internal records of transactions to enable Pi42.com to comply swiftly with information requests from the relevant law enforcement agencies and authorities.
6 g) Where the records relate to ongoing investigations or transactions which have been the subject of a disclosure, such records will be retained until it is confirmed that the case has been closed where practicable. Pi42.com will seek and retain identification documents of all such transactions and to report Suspicious Transactions.
7 - YOUR OBLIGATIONS
7 a) You undertake that you will not use Pi42.com Platform or our Services for any illegal, prohibited, unlawful, criminal or anti-national purposes or for financing any such activity under any circumstance whatsoever. Without prejudice to the generality of the foregoing, you undertake that you will not indulge in any benami or any other transaction that is in violation of Applicable Laws, this KYC – AML Policy or any other policy or instruction issued by Pi42.com from time to time. You must not let anyone access/use your Pi42 Account or watch you accessing it. You undertake that you shall not impersonate another person or misrepresent yourself on Pi42.com Platform under any circumstance whatsoever.
7 b) All activities under a Pi42 Account shall be deemed as activities carried out by the registered User. You shall only use the Pi42 Account with us to transact on your own Pi42 Account and not on behalf of any other person or entity.
7 c) You undertake that you will provide us with accurate information, records and documentation and notify us promptly, and in any case no later than 30 days, regarding any update to your information, records or documentation. You also undertake to notify us promptly regarding any unauthorised use or access of your Pi42 Account.
We disclaim any liability arising from any transaction which is not conducted by you or for any obligations of other Users to you, any acts or omissions of a third party or User of Pi42.com Platform with whom you choose to deal with.
If you know or suspect that anyone other than you know or has unauthorised access to your Pi42 Account, Pi42 Account information or any part of it, you must promptly notify us by sending us an email at [email protected] .
We are not liable for any losses/damages/costs or other consequences of unauthorised/illegal/unwarranted use of your Pi42 Account arising as a result of your non-compliance with your obligations set out in this KYC-AML Policy, the User Terms and Conditions, or Applicable Law.
8 - THE REGULATORY / STATUTORY REQUIREMENTS
8 a) We may be required to report certain Users and/or their transactions (including relevant data such as device identifiers, IP addresses) to concerned authorities pursuant to Applicable Law. We shall have no obligation to inform such User or any other Person/entity prior to such reporting or subsequently.
8 b) Pi42.com has also appointed AML Compliance Officers as required under Applicable Law and ensures their availability at all times. The AML Compliance Officers are responsible for managing the day-to-day operations of this KYC-AML Policy and enforcing it. This includes, but is not limited to:
.ensuring compliance with Applicable Law;
.acting as a central reference point and playing an active role in identification, assessment and reporting of potential Suspicious Transactions;
.ensuring that Pi42.com discharges its legal obligation to cooperate with concerned authorities and report Suspicious Transactions to concerned authorities as required under AML Regulations; and
.ensuring the maintenance of a continually high level of staff AML awareness even between training sessions; and
.undertaking internal audit to ensure compliance with the policies, procedures and controls relating to the prevention of any Suspicious Transaction.