Anti-Money Laundering Policy (AML) At iBlock Trade
Last Updated on 25/08/2022
iBlock Investment Consultant Pvt. Ltd., (COMPANY) incorporated under the laws of India having its registered
office address at: Suit no-405, 4th floor H-221 Sector -63 Noida, Gautam Budh Nagar, Noida,Uttar Pradesh 201301 which owns and
operates the ‘iBlocktrade’ ("iBlocktrade Platform"), hereinafter referred to as ‘iBlocktrade’ or “Company”, which
term shall refer to and include its owners, its subsidiaries and affiliated companies, directors, investors,
employees, officers, representatives, affiliates, or other related parties.
The terms "We", "Our", "Company" and "Us" refer to the Company, and the terms "User", "You" and "Your" refer
to a User of iBlocktrade Platforms.
This is an agreement between iBlocktrade and the User, which is binding on the User. All Users are required to
comply with the terms of this agreement at all times, and any instance of non-compliance will result in the
termination of such user’s accounts on iBlocktrade platform, and in appropriate reporting of the circumstances
of such non-compliance and such termination to the relevant statutory authorities.
Integrity, honesty and ethical business practices are some of the core values of iBlocktrade, and iBlocktrade
strongly condemns any and all activities related to terrorism, money laundering, and all other unlawful
actions. In order to prevent misuse of the services provided on iBlocktrade platform, Users are required to
strictly comply with the terms contained herein, which forms part and parcel of the User Terms of use. Terms
not defined herein shall carry the same meaning as in the Terms of use, and in the absence thereof, to
general usage and parlance.
What is Money Laundering
Money laundering is criminalized primarily by means of the Prevention of Money laundering Act, 2002 and
rules framed under. The provisions of this Act are effective from July 1, 2005.
The Government of India had notified on July 1, 2005, the rules under Prevention of Money Laundering Act,
2002 (PMLA) relating to “Maintenance of records of the nature and value of transactions, the procedure and
manner of maintaining and time for furnishing information and verification and maintenance of records of the
identity of the clients.
The regulations contain detailed provisions on the measures and procedures to be maintained and applied by
subject persons, including customer due diligence measures, record keeping procedures and reporting
procedures, etc\
Glossary for Anti-Money Laundering (AML)
1. “Applicable law” means all laws in force for the time being within the territory of India including
Prevention of money laundering Act 2002 and other rules regulations made under the aforementioned Act
from time to time.
2. “Money laundering” (ML) is the process by which criminals attempt to disguise the true origin of the
proceeds of their criminal activities by the use of the financial system so that after a series of
transactions,
the money, its ownership and the income earned from it appear to be legitimate. According to the Financial
Action Task Force, (FATF), ML is the processing of criminal proceeds in order to disguise their illegal
origin.
This process is often achieved by converting the original illegally obtained proceeds from their original
form, usually cash, into other forms such as deposits or securities and by transferring them from one
financial
institution to another using the account of apparently different persons or businesses.
Section 3 of PMLA, describes the offence of ML. Section 3 reads as under: “Whosoever directly or indirectly
attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or
activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of
offence of money-laundering.”
3. “Suspicious Transaction” as per – Rule 2(1)(g) of the PMLA Rules Suspicious transaction is a transaction
whether or not made in cash which to a person acting in good faith (a) gives rise to a reasonable ground of
suspicion that it may involve the proceeds of crime; or (b) appears to be made in circumstances of unusual
or unjustified complexity; or (c) appears to have no economic rationale or bonafide purpose; or (d) give
rise
to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism;
ANTI MONEY LAUNDERING (AML) POLICY IS PART OF OUR TERMS OF USE
This AML Policy is a part of and incorporated within and is to be read along with the User Terms of Use (the
"Terms").
POLICY CHANGES
iBlocktrade may change and update this AML Policy from time to time. Such changes may be made without prior
notice, but any changes will only apply to activities and information on a going forward, not retroactive
basis unless specifically mentioned. Users are encouraged to review this AML Policy whenever they access the
Online Platforms.
YOUR OBLIGATIONS
You acknowledge that it is your duty to ensure compliance with the terms and conditions described in this
AML Policy and accord your consent to not using the Services and the Online Platforms in any manner which
results in committing/attempting to commit any criminal offences. You also agree and consent to any changes
made to this Privacy Policy in due course and without notice.
The User must ensure that any personal information and/or Identification Documents submitted by the user
belong to the user and are legitimate.
The User must file a fresh proof of address within 6 (six) months of making any changes to the address
mentioned as per the ‘proof of address’ submitted by you.
PURPOSE OF THIS POLICY
In order to mitigate its risks relating to money laundering and other illegal activities, iBlocktrade intends
to put in place this policy which has the following elements:
1. Customer Acceptance Terms; and
2. Risk Management Procedure; and
3. Customer Verification Procedure; and
4. Transaction Monitoring Terms
CUSTOMER ACCEPTANCE TERMS
iBlocktrade may either at the time of opening the User Account, or while undertaking any transactions, or
during Periodic Updates, or for any other reason, ensure your compliance with the following:
1.Require that you undergo a verification process during the activation process of your User Account by
submitting your Identification Documents and such other details, as mandate (Customer Verification
Procedure) of this AML Policy.
2.Require you to declare such other details as may be deemed necessary by the Company to verify your
identity, if the Company has reason to believe that you are a person or entity enlisted in the Restricted or
fraudulent Lists.
3.Require you to submit such additional information and/or data as may be directed by a competent
enforcement authority.
4.Require you to certify that your Linked Bank Account is held only with a scheduled commercial bank
compliant with all Know Your Customer (KYC) procedures mandated under the applicable Indian laws.
iBlocktrade may, in its sole discretion, refuse to open any new accounts, terminate existing User Accounts
after giving due notice, or refuse to process any transactions on the Online Platforms if it is unable to
ensure compliance with any of the aforementioned conditions, either due to noncooperation by the User or due
to the details provided by the User being found enlisted on any Restricted or fraudulent Lists or unreliable
or unverifiable to iBlocktrade’s satisfaction.
RISK MANAGEMENT PROCEDURE
iBlocktrade may categorize its Users including you into low, medium or high-risk categories, after undertaking
an appropriate risk assessment of each User based on the following factors (including without limitation):
1. Sufficiency and adequacy of identification information submitted under (Customer Verification Procedure);
or
2. Its social and/or financial status; or
3. Nature of User’s business/vocational activities; or
4. Guidance notes circulated by various governmental and intergovernmental organizations.
You acknowledge that in order to maintain the integrity of the Risk Management Procedure, iBlocktrade will keep
your risk categorization and any data related thereto confidential. Users will not be entitled to seek
disclosure of your risk categorization. However, iBlocktrade may disclose the User’s risk categorization data
to the competent enforcement authority if it finds that a particular User has executed or is likely to
execute any Suspicious Transaction.
CUSTOMER VERIFICATION PROCEDURE
iBlocktrade, during activation of User Accounts or while undertaking any transactions or for any other reason,
may require for the purposes of verification of any User’s identity, following details:
1.In Case of Individuals – one copy of UIDAI issued Aadhaar card containing their identity and address
details; one live webcam selfie photograph; PAN card any other documents pertaining to such individual as
may be prescribed by iBlocktrade from time to time;
2.In Case of Companies – one copy each of Certificate of Incorporation; GST Registration Certificate;
Corporate PAN Card; Memorandum and Articles of Association; Board resolution authorizing to transact on the
Online Platform; Identification Documents containing identification and address details of the individual
authorized to transact along with a copy of such authorization document; and any other documents pertaining
to such corporate entity as may be prescribed by iBlocktrade from time to time;
3.In case of Proprietorship- one copy each of GST Registration Certificate; KYC of proprietor;
Proprietorship Registration Certificate (MSME); and any other documents pertaining to such corporate entity
as may be prescribed by iBlocktrade from time to time;
4.In Case of Partnership Firm/Limited Liability Partnership – one copy each of Registration/Incorporation
Certificate; GST Registration Certificate; partnership deed; Identification Documents containing
identification and address details of the individual authorized to transact along with a copy of such
authorization document; Aadhar and PAN card of all partners; and any other documents pertaining to such
corporate entity as may be prescribed by iBlocktrade from time to time;
Users must ensure that all copies of aforementioned Identification Documents are duly certified.
For the purposes of verification of any User’s identity, iBlocktrade may rely on appropriate and licensed
third-party service providers to authenticate the Identification Documents and other incidental details
provided by the User.
If iBlocktrade finds any User information obtained in accordance with the procedure described under this Clause
to be inadequate, insufficient, or enlisted on the Restricted or fraudulent Lists, iBlocktrade may in its
discretion either refuse or terminate (as the case may be) the registration of such User Account or require
verification of such User’s Identification Documents again.
TRANSACTION MONITORING TERMS
All transactions executed and/or attempted to be executed on the Online Platforms are regularly monitored by
iBlocktrade, both manually and through use of software-based algorithms, in order to promptly identify and
highlight certain kinds of transaction including without limitation, the following kinds of transactions:
1.Withdrawal of High value transactions of amounts greater than INR 50,000/- ( Fifty Thousand Indian Rupee)
or its equivalent in any other currency;
2.Cross border transactions (no user can initiate a cross border transaction at iBlocktrade Platform.)
3.Suspicious Transactions.
iBlocktrade 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 (Risk Management
Procedure) above), sophistication, and expected usage pattern.
The extent of monitoring shall depend on various factors including upon each User’s risk profile.
iBlocktrade reserves the right to terminate the User Account, restrict and/or prevent access to Online
Platforms, or report to the appropriate enforcement authorities the activities of any User in respect of
transactions identified under this Clause (Transaction Monitoring Terms).
MAINTENANCE OF RECORDS
iBlocktrade Platform will maintain and preserve the following information and/or data:
1. Records of all transactions executed on the Online Platforms, for a period of at least 5 (five) years
from the date of each transaction. ( As in accordance with the provisions of the Information Technology
act,2000 and rules framed under )
2. Records of all transactions identified under (Transaction Monitoring Terms) above for a period of at
least 5 (Five) years, including but not limited to the information about the nature, value and parties to
such transactions, and their date of remittance. . ( As in accordance with the provisions of the Information
Technology act,2000 and rules framed under )
3. Identification records of Users (including but not limited to the Identification Documents submitted
pursuant to (Customer Verification Procedure) above), during the subsistence of and for a period of at least
5 (years) years from the date of termination of such User Account. ( As in accordance with the provisions of
the Information Technology act, 2002 and rules framed under )
DISCLOSURE OF RECORDS
iBlocktrade may be required and / or directed to cooperate and aid the government and / or law enforcement
authorities, police, investigating agencies, or Tribunals and Courts within the territory of India. In such
cases, subject to applicable laws with respect to data protection, iBlocktrade shall be entitled to disclose
any information about the User that is in its possession or control, including to government or law
enforcement officials, police, investigating agencies, Tribunals and Courts within the territory of India.
In particular, iBlocktrade shall be entitled to initiate processes and disclosures, including but not limited
to the following circumstances:
1.information pertaining to or in pursuance of claims and legal process (such as summons / warrants);
2.to protect iBlocktrade’s property, rights, and safety and the property, rights, and safety of a third party
or the public in general;
3.to identify and stop any activity that iBlocktrade considers illegal, unethical, or legally actionable.
4.iBlocktrade may, if so required under applicable law, disclose the necessary information to Enforcement
Directorate or any Indian government departments seeking for such information.
GOVERNING LAW AND JURISDICTION
This AML Policy shall be governed by Indian laws, in particular, the Information Technology Act, 2000 and
rules framed there under and any amendment, modification, statutory enactment thereto from time to time.
Any dispute that may arise from this Privacy Policy shall be subject to the exclusive jurisdiction to the
courts of Noida, Uttar Pradesh.