KYC

KNOW YOUR CUSTOMER (KYC) POLICY

Abu Exchange Ltd.

At Abu Exchange Ltd., we place the highest priority on ensuring that our financial services are not exploited for money laundering, terrorist financing, or any other unlawful activity. To achieve this, we follow a robust Know Your Customer (KYC) framework, supported by our RemitPro compliance software, which enables us to identify, verify, and monitor all customers with accuracy and efficiency.

Purpose of KYC

KYC is a legal and regulatory requirement designed to:

  • Confirm the true identity of our customers.
  • Understand the nature and purpose of transactions.
  • Safeguard our services against misuse.
  • Maintain compliance with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations (2017), the 5th AML Directive, and relevant EU/UK financial legislation.

Information We Collect

As part of customer due diligence (CDD), Abu Exchange Ltd. collects the following key details before establishing a business relationship or executing a transaction:

  • Full legal name
  • Date of birth
  • Residential address
  • Purpose of the transaction
  • Relationship between sender and beneficiary
  • Source of funds and beneficial ownership details
  • Ultimate recipient of the transferred funds

This information allows us to create a clear profile of the customer and the transaction flow, minimizing the risk of financial crime.

Verification of Identity

We verify customer identity through original, valid, government-issued documents. Acceptable primary documents include:

  • Passport
  • Photocard driving licence (full or provisional)
  • National identity card
  • Firearms certificate
  • Electoral Identity Card (Northern Ireland)

Where primary documents are unavailable, we may request a combination of alternative documents, such as:

  • Non-photo government-issued documents (e.g., old-style driving licence, benefit entitlement letter)
  • Proof of residential address (e.g., recent utility bill, bank statement, mortgage statement – not downloaded versions)

Photocopies may be accepted only if certified by a recognized professional (solicitor, accountant, bank official, doctor, civil servant, etc.), confirming that the copy is true and the individual is genuine.

Our staff are trained to check documents for:

  • Validity and expiry dates
  • Correct spellings
  • Likeness of the photo to the customer
  • Consistency of addresses and personal details

We also use guidance provided by the UK Home Office on identifying forged or fraudulent documents.

Electronic Verification with RemitPro

Abu Exchange Ltd. enhances its KYC process with RemitPro software, which integrates electronic verification tools. These systems enable us to:

  • Cross-check customer details against multiple data sources.
  • Detect links with identity fraud databases or deceased persons records.
  • Validate addresses and historical data across different timeframes.
  • Access live updates on sanctions lists, PEP databases, and criminal records.

When selecting third-party data providers, we ensure they meet high standards of reliability, are ICO-registered, and comply with industry accreditation requirements.

Our staff are trained to interpret electronic verification results correctly, understanding risk scores, pass/fail outcomes, and any alerts that require enhanced due diligence (EDD).

Enhanced Due Diligence (EDD)

Where a customer or transaction presents a higher risk (e.g., large value transfers, unusual transaction patterns, or links to high-risk countries), we apply enhanced measures, which may include:

  • Combining manual and electronic verification.
  • Requesting additional supporting documents.
  • Verifying source of wealth/funds.
  • Seeking independent confirmation of identity through embassies or professional certifiers.

Non-UK Customers

For customers outside the UK, we request equivalent identification documents as those required for UK residents. Where necessary, documents are verified with the issuing authority, relevant embassy, or through the PRADO database of authentic travel and identity documents. If documents are in a foreign language, official translations may be required for our compliance records.

Record Keeping and Training

All KYC documentation and verification evidence are securely stored in our RemitPro system.

Records are retained in line with regulatory requirements and available for inspection by authorities.

Staff undergo regular training to remain aware of evolving KYC/AML obligations, fraud detection techniques, and the correct use of RemitPro compliance tools.