KYC, AML & Risk Statement

This Risk Statement was last reviewed and updated on 10th February 2020.

It is a recommended read for any merchant who wishes to accept crypto payments online or instore, especially when using the STARK platform

Posted 10th February 2020
Author Stark Payments
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Risks with cryptocurrencies

As a business you must be satisfied that accepting cryptocurrency as a payment method is suitable for you in light of your personal or commercial financial circumstances and attitude towards risk before starting. The price or value of cryptocurrencies can rapidly increase or decrease at any time (and may even fall to zero). The risk of loss in holding cryptocurrencies can be substantial.

Any funds received by us in relation to cryptocurrency transactions will not be safeguarded (under the UK Electronic Money Regulations 2011) or covered by the Financial Services Compensation Scheme. We do not make any representation regarding the advisability of accepting or transacting in cryptocurrency. We cannot guarantee the timeliness, accurateness, or completeness of any data or information used in connection with you holding any exposure to cryptocurrencies.

Currently, there is no requirement for Stark Payments Ltd to be regulated by the Financial Conduct Authority (FCA). As and when there is a requirement to be so, we will undertake measures to ensure full compliance, therefore Stark Payments Ltd’s cryptocurrency service is not regulated by the FCA.

Know Your Customer (KYC) Statement

As a company, we strive to ensure KYC obligations are met, not only to be compliant to meet any legal obligations, but also to safeguard the longevity of our business.

Therefore, in order for merchants to use the services provided on our platform, business owners/operators will be required to submit various form of identification such as Passport, Driving Licence, Proof of Address and other company related information. These documents will be checked internally and verified. Once verified, your merchant account will be approved and you may continue to use the service provided.

Anti Money Laundering (AML) Statement

Please note that whilst in some cases Bitcoin and other cryptocurrencies can be more advantageous when compared to fiat currencies, it is important for each business to fully understand the risks involved before deciding to accept cryptocurrencies as a payment method. Bitcoin and the cryptocurrencies we currently support should be considered as a relatively high-risk asset.

Our Mission and Approach

STARK has established an internal program to help protect our clients and our business from the risks of money laundering, terrorist financing and other financial crimes. As a technology first company, some of our future products and services will include AI to combat such risks.

At present, this includes:

Compliance Team: This has been set up by the company’s senior management as the responsible body for overseeing the program, including appraising senior management of AML compliance initiatives, any significant compliance deficiencies, and the reporting of suspicious activity;

Compliance Controls: This control framework governs the overall program, including AML policies, best practices, managing and implementing processes, training and testing.

Final Note

Whilst we remain excited about the future of what crypto and the blockchain can do for the payments industry, as a company, STARK is fully committed to remaining vigilant to prevent the use of our products and services by those who seek to abuse them. We continually seek to combat money laundering and terrorist financing through the prevention, detection and reporting of unusual or suspicious behavior. We actively work to prevent terrorist organisations from accessing our services and are ready to assist regulators and law enforcement agencies by answering their enquiries as quickly as possible.

FCA – Further Reading

Read > FCA provides clarity on current cryptoassets regulation (opens in a new window or tab)