What Is AML Policy, And Why Is It Needed?

Let’s start off with the most important info: Anti-money laundering (AML) policies are basically a collection of laws and regulations designed to constrain or uncover illegal financial activities. Simply said, AML tackles money laundering, a financial crime where criminals strive to camouflage dirty money as legitimate.

Money laundering has long been a scourge of the global financial system. The UN Office on Drugs and Crime reports that the average percentage of money laundered per year stands at around 2-5% of the global GDP, or even higher. However, this malicious process has gained further momentum in recent years due to the introduction of unique and non-regulated financial products like virtual currencies. Fully comprehending digital assets’ security issues, our team at Bitnomics has implemented the highest standards of AML procedures to protect all crypto transactions and funds.

That said, let us now understand how money laundering works, what is the extent of this intricate criminal activity, and why AML is an essential code.

How does money laundering work?

Money laundering follows three basic steps, which involve complicated proceedings aimed at turning the illicit funds into apparent legal assets. They are:

  • Placement: This stage determines how the illegitimate funds are handled and stored. Most commonly, money is piled via ‘smurfing’ or placed in cash-based businesses. Funds can also be transferred to offshore companies and trusts where owners’ identities are hidden.
  • Layering: It involves multiple layers of complex transactions and maneuvers to obscure the trail of criminal funds, slashing all connections from the source.
  • Integration: It refers to the eventual integration of laundered money into the economy as seemingly legal funds.


Why is AML protocol necessary?

First, AML is highly important as laundered money sometimes facilitates terror financing and other high-end crimes like human or drug trafficking. Besides this, anti-money laundering laws are essential to prevent the destabilization of economic balance, ensuring the integrity of financial systems.

Almost all financial platforms and exchanges, like Bitnomics, instate AML compliance to enhance the customers’ confidence by protecting their funds from the malice of corruption and embezzlement. Moreover, institutions also implement AML to avoid negligence penalties and safeguard their brand reputation against the detrimental effects of money laundering schemes.

What is our anti-money laundering policy?

We at Bitnomics have divided this policy into three levels. In addition to the requirements detailed below, our Compliance Department may request additional documents in some cases. Note that the following criteria are relevant for individual clients. If you represent a company or organization, you can find more info on our websites, or you can contact us and we’d be happy to answer any question you have.

If you wish to exchange less than 15K Euros with Bitnomics, we’ll ask you for live identity verification. In addition, you’ll need to present us with an ID of some sort, and proof of residence, alongside a declaration of crypto purchase. Don’t worry if you don’t know how to obtain it, we’ll help you with that.

If you wish to exchange 15K-50K Euros, we’ll ask you to present all the proof we require from those who exchange less than 15K, in addition to these: An e-signed source of funds form, and a document that proves the source of funds.

Those who want to exchange more than 50K Euros, will have to live up to two additional requirements: A compliance video call, and an e-signed purchase questionnaire.

The list of requirements may seem tiring, but it’s necessary. Bitnomics is committed to ensuring, in favor of all, that only legal funds are being used in its interface. Check our site for further information

Risk disclosure

You agree that you are free to choose whether or not to use the service provided to you by Bitnomics and that you do so at your sole option, discretion and risk. The exchange of digital currency is considered a risky transaction with highly speculative outcomes. Bitnomics does not guarantee any profit from any activity associated with its services.

  • You agree that you are free to choose whether or not to use the service provided to you by Bitnomics and that you do so at your sole option, discretion and risk. You confirm that you understand and agree that the risks associated with the Services are acceptable by you, taking into account your objectives and financial capabilities.
  • You acknowledge that purchasing or selling Cryptocurrency carry significant risk. Prices can fluctuate on any given day. Because of such fluctuations, Cryptocurrency may gain or lose value at any time. Cryptocurrency may be subject to large swings in value and may even become absolutely worthless. Cryptocurrency trading has special risks not generally shared with official currencies, goods or commodities in a market. Unlike most currencies, which are backed by governments or other legal entities, or commodities such as gold or silver, Cryptocurrency is a unique kind of currency, backed by technology and trust. There is no central bank that can take corrective measures to protect the value of Cryptocurrency in a crisis or issue more currency.
  • You should carefully consider if holding digital currency is suitable for you depending on your financial circumstances. Dealing and exchanging in cryptocurrencies involves significant risk. The value of virtual assets / currencies has high volatility (value can increase and decrease significantly in a very short period of time and at any given moment). Such price fluctuations bring uncertainty. The value of a virtual currency and collapse in demand may be influenced by many factors, including irrational (or rational) bubbles, loss of confidence in the currency, changes in software development, government decisions, creation of a competitive currency, technical problems, political or non-political statements, statements of influencers and news and hacker-attacks.
  • Your virtual assets may be lost by losing your password, private key or other security code. Virtual currencies have special risks that are not generally shared with the official currencies, because they are not issued by governments, or with commodities or goods that are tangible or registered in the official registry. Virtual currencies are intangible, decentralized, digital assets, backed by technology and trust. No central bank or other institution can take any measures to protect the value of virtual currency. Virtual currencies are autonomous and largely unregulated system of firms and individuals issuing currencies. The risk of loss in buying, selling or holding virtual assets / currencies can be substantial. You should therefore carefully consider whether exchanging virtual assets is suitable for you in light of your financial condition. Be careful to keep your private keys, passwords, security codes and words for yourself and change them on a regular basis. Bitnomics uses payment providers for transfers of fiat money for rendering exchange services and operating with the fiat money, whereas assisting banks do not, by any means, represent a medium of exchange, transfer, withdrawal, deposit or other transaction in connection to virtual currencies.
  • You acknowledge and agree that Bitnomics does not act as a financial advisor, does not provide investment advice services or guidance, and any communication between you and Bitnomics cannot be considered as an investment advice. Without prejudice to our foregoing obligations, in asking us to enter into any transaction, you represent that you have been solely responsible for making your own independent appraisal and investigations into the risks of the transaction. You represent that you have sufficient knowledge, market sophistication and experience to make your own evaluation of the merits and risks of any transaction and that you received professional advice thereon. We give you no warranty as to the suitability of the Services and assume no fiduciary duty in our relations with you. We may provide information on the price, range, volatility of digital currency and events that have affected the price of digital currency, but this is not considered investment advice and should not be construed as such. Any decision to purchase or sell digital currency is your exclusive decision at your own risk and Bitnomics will not be liable for any loss suffered.
  • To the full extent permitted by the applicable law, you hereby agree to indemnify Bitnomics and its partners against any action, liability, cost, claim, loss, damage, proceeding or expense suffered or incurred if direct or not directly arising from your use of our website, your use of the service or from your violation of our terms and conditions.
  • Bitnomics is not liable for any price fluctuations in Cryptocurrency. In the event of a market disruption, Bitnomics may, at its discretion and in addition to any other right and remedy, suspend the Services. Bitnomics will not be liable for any loss suffered by you resulting from such action. Following any such event, when Services resume, you acknowledge that prevailing market rates may differ significantly from the rates available prior to such event.
  • Internet transmission risks. Client acknowledges that there are risks associated with using the Software and Services including, but not limited to, the failure of hardware, software, and internet connections. Client acknowledges that the Company shall not be responsible for any communication failures, disruptions, errors, distortions or delays client may experience when using the Software and Services, howsoever caused.