> For the complete documentation index, see [llms.txt](https://bafex.gitbook.io/bafex/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bafex.gitbook.io/bafex/business-model/legal-model-of-the-marketplace-operation/kyc-aml-procedures.md).

# KYC/AML procedures

BAFEX adheres to international anti-money laundering (AML) and counter-terrorist financing (CTF) standards similar to the Financial Action Task Force (FATF) recommendations and the Virtual Asset Regulatory Authority (VARA) requirements [vara.ae](https://vara.ae).

Therefore, we are introducing some rules that will protect us as a platform and future users from possible risks.

### General Principles

* All new users go through the **initial KYC level** upon registration: checking e-mail, mobile number, and uploading a photo of a document (passport/ID and selfie).
* When certain thresholds are exceeded (for example, the equivalent of 10,000 USD or the equivalent in BAFEX), **in-depth verification is required**: confirmation of address (utility bill), verification of sources of funds.

### Identification when participating in ICO/IDO

* To participate in a public or private token sale, all investors (individual and institutional) undergo formal KYC/AML procedures.
* Payments are accepted only after full KYC: provision of documents, verification through a third-party AML provider (for example, Jumio, Onfido, Shufti Pro).
* If the system detects a high level of risk or there are sanctions, the profile is automatically blocked, and the funds are returned to the user with a notification of access suspension.
* All transactions (incoming/outgoing) are monitored by the AI ​​module (outsourced company) to identify abnormal patterns (potential money laundering, scam).
* If suspicious transactions are detected (volume discrepancies, frequent transfers to “new” addresses, etc.), the system automatically initiates an additional verification procedure (manual review, document request).
* **BAFEX** undertakes to store transaction logs for at least 5 years in accordance with the requirements of VARA and international regulators.