KYC / AML Structure & Global Standards Compliance

The Paladeum P2P Service and Paladeum Bank are designed in full compliance with international KYC/AML frameworks, incorporating the following systems and policies:

Customer Identification & Due Diligence

• Mandatory KYC at user onboarding, including name, address, and ID verification (national ID/passport).

• Enhanced Due Diligence (EDD) for high-risk customers such as politically exposed persons (PEPs).

• Verification of the source of funds for specific transactions.

Transaction Monitoring & Suspicious Activity Detection

• Real-time automated transaction monitoring to detect abnormal patterns such as large or frequent transfers.

• Integrated Suspicious Transaction Reporting (STR) module for compliance teams.

• User activity analysis and risk-tiered monitoring based on transaction behavior.

Anti-Money Laundering (AML) & Counter-Financing of Terrorism (CFT)

• Full alignment with FATF (Financial Action Task Force) guidelines, including the Travel Rule and customer information sharing.

• Comprehensive sender/receiver verification for high-value or cross-border transfers.

• Integration with external AML screening solutions for additional oversight.

Auditing & Compliance Reporting

• Periodic compliance reviews and regulatory reporting to relevant authorities.

• Maintenance of detailed audit logs to ensure traceability and accountability.

Data Security & Privacy Protection

• All KYC data and transaction records are encrypted and access-controlled.

• Follows the principle of data minimization and adheres to regional privacy laws (e.g., GDPR, Japan’s APPI).

Customer Asset Protection & Segregation

• All customer deposits and investor assets are strictly segregated from company operating funds.

• Majority of assets are held in cold wallets; hot wallets are used only for limited liquidity purposes.

• Cold wallet reserves match hot wallet exposure to ensure solvency and withdrawal guarantee.

External Audits & Proof of Reserves

• Regular (quarterly or semiannual) Proof of Reserves audits by independent accounting firms.

• Public disclosure of foundation wallet addresses, balances, and liability coverage.

• All reports are made available in both English and Korean to ensure transparency and public trust.