What are the current KYC and AML processes that are conducted by Diamond Pigs?
Our KYC process involves the following steps:
- Validation of Email address
- Validation of identity using a well-known identity provider (https://www.digidentity.eu/en/) which is also used by the Dutch and UK government for identity management. Users have to provide their ID card or passport which is then validated by Digidentity against a number of databases,
- Validation of the mobile phone number using SMS verification,
- Providing user's address details (home address). We currently do not validate the address provided, although Digidentity could provide that service to us in the future for a number of countries if we consider this important or required. We do compare the country code of the mobile phone and the country provided, although this is not a 100% check, we use this to be reasonably sure we provide the right VAT tax tariff for our invoices (which depends on the country our customers live).
Our AML/CDD process involves:
- Guarantee that the funds we manage for users do not originate from money laundering (we only ask this, but do not have the means to check this at this point),
- Checking the identity of the customer against databases for PEP (Politically exposed persons), sanctions, and Interpol (using the services of Digidentity),
- Stating if the customer is a “US person” (either by having a US citizenship or permanent resident card). We currently do not have a way to validate this, except if they provided a US passport or ID card during the Digidentity KYC process.
We are working with Digidentity to conduct KYC and AML processes. Due to the current regulation in Europe, KYC/AML/CDD are not required steps for the products we provide. However, this will change when the new European MICA regulation will come into effect. We believe KYC/AML/CDD is an important process, so we implemented a number of processes during our onboarding already.