Word of Krypto operates under India’s Prevention of Money Laundering Act (PMLA), 2002, as amended to include Virtual Digital Asset (VDA) service providers, with oversight from the Financial Intelligence Unit (FIU-IND).
Word of Krypto conducts robust KYC verification using government-issued IDs and proof of address for all users, applying enhanced due diligence for high-risk profiles like politically exposed persons.
Global best practices from the Financial Action Task Force (FATF) guide identity checks on all VDAs, fiat exchanges, transfers, and safekeeping services.
The platform performs real-time monitoring of low, medium, high-risk, and frequent VDA transactions, flagging suspicious patterns such as structuring or rapid layering.
Enhanced scrutiny applies to transactions exceeding FIU thresholds, including high-value crypto trades, with immediate alerts to compliance teams.
All customer data, transaction records, and communications are securely stored for a minimum of 5 years, accessible for FIU-IND audits or regulatory inquiries.
Full audit trails cover VDA exchanges, transfers, and wallet administrations to ensure traceability and prevent illicit fund flows.
Ongoing training equips staff to identify money laundering red flags in VDA activities, including high-risk crypto trades and emerging threats like mixer usage.
New hires and annual refreshers emphasize PMLA compliance, VDA-specific risks, and reporting protocols to FIU-IND.
Word of Krypto maintains a dynamic risk-based approach, assessing vulnerabilities in VDA services, user profiles, and transaction volumes quarterly.
High-risk factors include anonymous wallets, offshore peer-to-peer trades, and integration with DeFi protocols.
This AML policy undergoes annual reviews to align with PMLA updates, FIU directives, and global VDA standards, ensuring continuous compliance.
