# 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).\ <br>
* Enhanced Due Diligence (EDD) for high-risk customers such as politically exposed persons (PEPs).\ <br>
* Verification of the source of funds for specific transactions.\ <br>

**Transaction Monitoring & Suspicious Activity Detection**

* Real-time automated transaction monitoring to detect abnormal patterns such as large or frequent transfers.\ <br>
* Integrated Suspicious Transaction Reporting (STR) module for compliance teams.\ <br>
* User activity analysis and risk-tiered monitoring based on transaction behavior.\ <br>

**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.\ <br>
* Comprehensive sender/receiver verification for high-value or cross-border transfers.\ <br>
* Integration with external AML screening solutions for additional oversight.\ <br>

**Auditing & Compliance Reporting**

* Periodic compliance reviews and regulatory reporting to relevant authorities.\ <br>
* Maintenance of detailed audit logs to ensure traceability and accountability.\ <br>

**Data Security & Privacy Protection**

* All KYC data and transaction records are encrypted and access-controlled.\ <br>
* Follows the principle of data minimization and adheres to regional privacy laws (e.g., GDPR, Japan’s APPI).\ <br>

**Customer Asset Protection & Segregation**

* All customer deposits and investor assets are strictly segregated from company operating funds.\ <br>
* Majority of assets are held in cold wallets; hot wallets are used only for limited liquidity purposes.\ <br>
* Cold wallet reserves match hot wallet exposure to ensure solvency and withdrawal guarantee.\ <br>

**External Audits & Proof of Reserves**

* Regular (quarterly or semiannual) Proof of Reserves audits by independent accounting firms.\ <br>
* Public disclosure of foundation wallet addresses, balances, and liability coverage.\ <br>
* All reports are made available in both English and Korean to ensure transparency and public trust.