Compliance

Compliance is the state of being in accordance with established guidelines or specifications, or the process of becoming so.

The importance of compliance

When working in the crypto business, it is instrumental to comply with financial regulations and prevent money laundering or terrorism financing. Therefore, implementing Know-Your-Customer (KYC) and Anti-Money Laundering (AML) procedures is a core business requirement since it allows to keep a professional trustworthy relationship both with the bank and the crypto exchange parties.

The perceived compliance risk depends on the actual business model you have chosen to implement.

WARNING

While Nexus provides the tools to functionally implement security and compliance, Quantoz Blockchain Services BV is not responsible for the correct implementation and usage of these tools by the Nexus clients.

Compliance and security functionality within Nexus

Customer compliance and compliance history

The below properties are available to be set on a customer in order to assist with compliancy, and any changes to these fields will trigger a new compliance history record.

• Name
• Email
• Status
• Trustlevel
• Currency
• Business
• Risk Qualification
• Latest Review
• Review Recommended
• Politically Exposed Person
• Reason Code
• Reason

Enabling the "Show Customer Compliance Data" feature allows a user to view a customer's compliance history in the portal on an additional tab in the customer view.

NOTE

When updating a customer via the portal or our APIs, you can optionally select a reason code to be stored in the compliance history record. These reason codes pull through to the reports to assist with reporting and can be customized to meet your needs in the portal settings.

Compliance reports

A Compliance and Compliance History Report are available to be pulled within the Nexus portal and assists on compliance reporting.

Trust levels

One important security measure provided by NEXUS is called Trust levels. These allow to limit the amounts that a customer can buy or sell per day, month and/or year. This allows to stricter constraints for new customers, which need to be assessed thoroughly, and instead allowing a greater degree of freedom to the trusted ones with whom you had already past transactions. All of the on-chain transactions and their owners are logged into Nexus for further analysis.

Sanction list

Enabling the "Sanction List" feature will check customer names on our sanction list to possibly mark a customer to require additional investigation in the portal. Portal operators then have the ability to view the match details and investigate whether to mark the customer as a match or not. Depending on their findings, they can go ahead and update the customer status accordingly and take any necessary steps.

Portal user management

The portal allows users to be assigned certain roles and permissions, separating responsibilities and implementing the four-eyes principle. Default roles are available to start with, but custom roles are also possible to be setup to meet any specific requirements you might have.