Over the past few years, cryptocurrencies have grown significantly in popularity, in direct proportion to their value. Although digital currencies started as an investment instrument, today they are increasingly respected as a full-fledged payment instrument. 

Moreover, cryptocurrency can be exchanged for fiat currency with the participation of Kanga Kantor cryptocurrency exchange offices and members of the Kanga Local community. However, such initiatives come with certain obligations, such as knowledge of AML (Anti Money-Laundering) procedures. What does this look like in practice, and how has Kanga Exchange decided to approach this issue in relation to its projects?

AML responsibilities

The AML Law includes obligations for dedicated obligated institutions. These are specified in the wording of the law mentioning such entities as an accounting firm, a loan company, a real estate broker, or just a cryptocurrency exchange. This is because this point provides services in the field of virtual currencies (buying and selling cryptocurrencies).

The most important obligation in the case of the AML law is the need for the company to implement an AML procedure. More specifically, it’s a document regulating anti-money laundering rules in a company. Referring to the law, the procedure includes:

principles for identifying and assessing the risks of money laundering and terrorist financing that are associated with the business relationship or occasional transaction in question;

– an inventory of activities or actions taken to reduce the risk of money laundering;

– an inventory of measures used to properly manage the identified risks of money laundering or terrorist financing that are related to the economic relations or occasional transaction in question;

– rules for the application of financial security measures;

– rules for the storage of documents and information at the institution;

– Principles of performing duties involving the transmission of information on transactions and notifications to the GIIF;

– Principles of dissemination of knowledge of anti-money laundering and terrorist financing regulations among employees of the obliged institution;

– Principles of reporting violations of AML regulations by employees.

AML compliance will be certified when the cryptocurrency exchange in question conducts internal AML and terrorist financing training.

Kanga Local members, as they are not in business, have no obligations to the AML Act. Nevertheless, it is recommended that they know both their AML obligations and powers. For this reason, Kanga Exchange recommends that Locals take part in this type of training.

AML training with the support of Staniszewski and Partners law firm

Realizing the relevance of the issue raised, and with the support of Staniszewski and Partners law firm, we can proudly announce that we were able to train more than 350 Exchange Points and Locals. Those who expressed a desire to take part in the trainings could count on a comprehensive dose of practical knowledge. It is quite a challenge to familiarize oneself with all the necessary information on the AML Law. All the more reason to appreciate the law firm’s assistance throughout the process. All this to ensure that the adoption of cryptocurrencies into everyday life progresses steadily!