KYC stands for Know Your Customer. AML is for Anti-Money Laundering.
Cryptocurrencies are often considered to be used for illegal operations that allow you to withdraw money from the shadows. In order to prevent this, it is necessary to take measures to ensure customer verification and security of financial transactions. KYC/AML application convinces the regulatory authorities of the absolute legality of the transaction carried out by you. Thus, you confirm that you are a law-abiding citizen and the state has no reason to address any claims towards you.
ChangeNOW has an automated risk prevention system implemented. If a transaction is marked suspicious by this system, the exchange is delayed and the customer in question is then asked to pass KYС. There is a certain set of criteria that the system employs; however, they can’t be made public, otherwise there will be people who will try to abuse those criteria in order to cheat the algorithm. This system has proven to be very useful against money launderers and scammers, since the KYC process allows us to tell an honest customer apart from a scammer very quickly and without any trouble. Each KYC case is handled individually. We will apply a set of standard procedures to our KYC clients, among which are asking a client to send a minimal set of documents that will allow us to confirm their identity and provide the source of funds. We aren’t going to keep this client’s funds. They’re stored on a cold wallet created specifically for his case. If the KYC procedure has failed we reserve the right to submit a claim to the legal authorities (Interpol, Europol, and other).
We do everything in our power to maintain our reputation as a legitimate, law-abiding exchange service that can be safe for use by anyone, be it a regular person who doesn’t deal with crypto much or an experienced trader or miner.