Lootbox, owned and operated by LOOTBOX LTD (HE 466358), with its registered address at 81 Griva Digeni, MARINOS COURT, 3rd Floor, Flat 301, 6043, Larnaca, Cyprus, implements this Know Your Customer (KYC) policy to ensure compliance with Anti-Money Laundering (AML) regulations and to safeguard the platform against illegal activities such as money laundering, fraud, and the financing of terrorism.
Objective of the KYC Policy
The primary objective of the KYC policy is to establish a process for identifying and verifying the identity of our customers. This helps Lootbox mitigate risks associated with financial crimes and ensures that all customer interactions comply with relevant legal and regulatory requirements.
Scope of the KYC Policy
This KYC policy applies to customers identified as high risk based on Lootbox's transaction monitoring systems and risk assessments. While most customers can access services such as depositing funds, purchasing virtual boxes, redeeming rewards, claiming products, and withdrawing funds without undergoing KYC, Lootbox reserves the right to implement KYC procedures for any customer whose activities raise concerns or deviate from typical behavior patterns.
Key Principles
The KYC process is built around the following core principles:
Customer Identification: Verifying the identity of high risk customers who engage with the platform.
Due Diligence: Assessing the risk profile of customers based on their activities, geographic location, and other risk factors.
Ongoing Monitoring: Continuously monitoring transactions and customer behavior to detect and prevent suspicious activities.
Data Retention: Storing customer data in a secure manner for the required retention period in compliance with legal requirements.
Customer Identification and Verification Process
Lootbox requires eligible customers to undergo identity verification before accessing specific features of the platform. To streamline this process and ensure the highest level of security, we partner with Idenfy, a leading identity verification service provider, to verify customer identities efficiently and securely. The process includes:
1. Identity Verification:
Customers are required to provide valid identification documents for verification. Acceptable documents include:
Government-issued ID (passport, national ID card, or driving license)
Selfie of the customer
All identification documents must be clearly legible, with all four corners visible in the submitted image. The verification process is conducted through Idenfy's secure platform to ensure accurate and quick identity checks.
2. Proof of Address:
Customers must also provide proof of address, such as:
A recent utility bill (electricity, water, gas) issued within the last three months.
A recent bank statement or a government-issued letter.
The document must clearly display the customer’s name and address. All four corners of the document must be visible, and the information must be easily readable.
Enhanced Due Diligence (EDD)
For customers identified as high risk, Lootbox applies Enhanced Due Diligence (EDD) measures. EDD involves a more detailed examination of the customer's background, including additional identity verification and transaction history review. Idenfy and AMLBot may be used to facilitate enhanced verification measures in these cases. Customers may be asked to provide additional documentation or information to support the verification process.
Ongoing Monitoring
Lootbox continuously monitors customer transactions and behavior to identify potential risks or suspicious activities. This ongoing monitoring includes:
Reviewing the consistency of a customer's financial activity with their profile.
Flagging unusual transaction patterns or discrepancies.
Conducting periodic updates to the customer’s information to ensure its accuracy.
In cases where suspicious activity is detected, Lootbox reserves the right to suspend or terminate the customer’s account and, if necessary, report the activity to relevant regulatory authorities.
Risk-Based Approach
Lootbox adopts a risk-based approach to customer identification and verification. Customers are classified into risk categories (low, medium, or high) based on factors such as:
The type of services used.
Geographical location.
Transaction patterns.
Source of funds.
Higher-risk customers are subject to more stringent verification and monitoring processes, and Idenfy may be used to facilitate these enhanced checks.
Data Protection and Confidentiality
Lootbox is committed to ensuring the privacy and security of all customer data. All personal and financial information collected as part of the KYC process is stored securely and handled in accordance with applicable data protection laws, including the General Data Protection Regulation (GDPR).
Customer data is processed through Idenfy's secure platform and is only accessible to authorized personnel. It is not shared with any third parties without the customer’s consent, except where required by law.
Customer Responsibilities
Customers must ensure that the information and documents provided during the KYC process are accurate and up to date. Any changes to personal information (such as address or contact details) must be promptly communicated to Lootbox.
Failure to comply with KYC requirements, or providing false or misleading information, may result in account suspension or closure.
Review and Updates
Lootbox periodically reviews its KYC policy to ensure ongoing compliance with applicable laws and regulations. Any significant updates to the policy will be communicated to customers via the platform and other appropriate channels.
For more information or assistance with the KYC process, please contact us at [email protected].