LotusX is owned, operated and managed by TechLotus Private Limited (CIN: U74999MH2021PTC373409), having its registered office at Plot No 37, 1-Ground Floor, Juhu Landmark CHS, Gulmohar Road, JVPD Scheme, Near Criticare Hospital, Vile Parle West, Juhu, Mumbai, Maharashtra, India, 400049 (hereinafter referred to as ‘The company’ or ‘Us’ or ‘We’ or ‘Our’, which term shall mean and include our affiliates, group entities, related parties and service providers).

The company is registered with the Financial Intelligence Unit – India (“FIU-IND”). LotusX is vigilant in the fight against money laundering and under its best judgment implements processes not allowing any person or entity to use the services for money laundering and terrorist financing activities.

INTRODUCTION

This Know Your Customer (KYC)-Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) policy (“KYC-AML & CFT Policy”) sets out, for your reference, the terms regarding identity verification of our Users and the procedures followed for early identification, prohibition, prevention and reporting of prohibited/illegal activities which may be committed by using our Services. When using our Services, you must at all times comply with all Applicable Law and with all terms and policies of the company including this KYC-AML & CFT Policy.

By signing up, accessing, using, or continuing to browse through or using our Services, as a registered User, you agree that you have read, understood, and accepted each of the terms contained herein and agree to be bound by the same. If you have objections to this KYC-AML & CFT Policy, or any part thereof, and/or if you do not agree to be bound by the terms of this KYC-AML & CFT Policy, or any part thereof, please do not access the company and do not use our Services in any manner.

We reserve the right to change, amend, remove, suspend, discontinue or modify these terms (in whole or in part) from time to time. You shall regularly and periodically check this KYC-AML & CFT Policy including before you make any transaction. We shall have no liability or responsibility whatsoever due to any such changes, additions, removals or modifications.

The purpose of this KYC-AML & CFT Policy is to provide an overview of the system we have in place for preventing any money laundering financial transaction, terrorism financing, proliferation financing and/or any other financial transaction involving proceeds from criminal activities identified in AML Regulations through the company.

DEFINITIONS

Unless the context requires otherwise, the following terms shall have meanings ascribed to them as below.

1. a) “AML Compliance Officers” means the Designated Director (DD), Money Laundering Reporting Officer (MLRO) & Principal Officer (PO) appointed by the company, whose roles and responsibilities are outlined in this KYC-AML & CFT Policy and under AML Regulations.
2. b) “Applicable Law” shall mean any applicable statute, law, regulation, ordinance, rule, judgment, order, decree, by-law, approval from the concerned authority, government resolution, order, directive, guideline, policy, requirement, or other governmental restriction in force in India only, including without limitation the Foreign Exchange and Management Act, 1999 and regulations thereunder, Prevention of Money Laundering Act 2002 (“PMLA”), the Prevention of Money Laundering (Maintenance of Records) Rules 2005 (“PMLR”), AML & CFT Guidelines For Reporting Entities Providing Services Related To Virtual Digital Assets (“AML”), as issued by the FIU-INDIA, rules and regulations of the Computer Emergency Response Team, India (“CERT-In”), replaced and updated from time to time;
3. c) “Beneficial Owner” shall have the meaning ascribed to it under AML Regulations.
4. d) “Client Due Diligence (CDD)” means due diligence of the User conducted in accordance with AML Regulations, including by identifying the User and verifying their identity by using a reliable, independent source of documents, data, or information.
5. e) “Designated Director” or “Director” shall have the meaning ascribed to it under AML Regulations.
6. f) “Enhanced Client Due Diligence/EDD” shall have the meaning ascribed to it under AML Regulations and includes additional steps required to be undertaken, in relation to certain specified transactions, to examine the ownership and financial position of a client or User and the purpose of their transaction.
7. g) “KYC Identifier” means a unique number or code assigned to a client, either through the National Identification Number issued by the respective country or by the Central KYC Records Registry (CKYCR) in India, for the purpose of establishing and verifying the client’s identity under Know Your Customer (KYC) norms.
8. h) “Officially Valid Document/OVD” means the Identity Card, Passport, the Driving License, in case of India proof of possession of an Aadhaar Number, or the Voter’s Identity Card issued by the Election Commission of India, or any other equivalent government-issued identification document used to uniquely identify and verify an individual or a legal entity. For the purpose of this definition, ‘Aadhaar Number’ means an identification number as defined under the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016.

OVDs for legal entities shall mean:

• Private and Public corporations 

1. Certificate of Incorporation (CIN).
2. Business registry check 
3. Memorandum and Articles of Association (MoA & AoA).
4. Certificate of incumbency/Good standing
5. List of Shareholders
6. List of Directors
7. Permanent Account Number (PAN) of the company
8. A board resolution and power of Attorney granted to its List of Authorized users to transact on its behalf.
9. Documents relating to ID and Proof of address of Ultimate beneficial owners or beneficial owners, the Authorized users & Directors.
10. Bank statement dated within last 3 Months
11. Identification and verification of UBO’s source of wealth
12. GST Certificate (India)
13. Proof of address of the company (e.g. Business registration proof, utility bills, etc.)

• Partnership Firm

1. Registration Certificate
2. Partnership Deed
3. PAN (Permanent Account Number of the company)
4. Certificate of incumbency/Good standing
5. List of Shareholders
6. A board resolution and power of Attorney granted to its List of Authorized users to transact on its behalf.
7. Documents relating to ID and Proof of address of Ultimate beneficial owners or beneficial owners, the Authorized users & share holders.
8. Bank statement dated within the last 3 Months.
9. Identification and verification of UBO’s source of wealth
10. GST Certificate (India)
11. Proof of address of the company (e.g. Business registration proof, utility bills, etc.)

• Sole Proprietorship 

1. Certificate of Incumbency / Good Standing
2. Documents relating to ID and Proof of address of Ultimate beneficial owners or beneficial owners, the Authorized users.
3. Bank statement dated within last 3 Months
4. Identification and verification of UBO’s source of wealth
5. Tax Identification Number of the company
6. GST Certificate
7. Udyam Certificate/Udyog Aadhaar
8. Import/Export Certificate

• Trusts 

1. Certificate of incorporation (CIN)
2. Business registry check 
3. Certificate of incumbency/Good standing
4. List of Shareholders
5. Documents relating to ID and Proof of address of Ultimate beneficial owners or beneficial owners, the Authorized users & Directors.
6. Bank statement dated within last 3 Months
7. Trust Deed
8. GST Certificate (India)
9. The company’s PAN (India)
10. Proof of address of the company
11. Tax Identification Number (for India: Permanent Account Number (“PAN”) of the company

Permanent Account Number (PAN) is issued by the Indian Income Tax Department to help uniquely identify taxpayers. e-PAN is an electronically issued PAN which is digitally signed.

1. i) “Person” means an individual who is eighteen (18) or above the age of eighteen (18) years.
2. j) “Politically Exposed Persons” or “PEP” shall have the meaning ascribed to it under AML Regulations.
3. k) “Principal Officer” shall have the meaning ascribed to it under AML Regulations.
4. l) “Suspicious Transaction” means a transaction, including an attempted transaction on the company, whether or not made in cash, which to a person acting in good faith:

1. Gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the applicable law, regardless of the value involved; or
2. Appears to be made in circumstances of unusual or unjustified complexity; or
3. Appears to have no economic rationale or bona fide purpose; or
4. Gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.

1. m) “Restricted Jurisdiction” means and includes any jurisdiction that is identified in the Financial Action Task Force (FATF) Blacklist and Grey List, and shall specifically include Pakistan, irrespective of its current FATF status.
2. n) “CFT” stands for “Combating the Financing of Terrorism” refers to the efforts and measures undertaken by governments, financial institutions, law enforcement agencies, and international organizations to prevent and disrupt the financing of terrorist activities.
3. o) “MLRO” stands for “Money Laundering Reporting Officer” refers to the person who is responsible for detecting and reporting suspicious financial activity related to money laundering or terrorist financing.

3 – KNOW-YOUR-CUSTOMER POLICY

KYC means to ‘Know Your Customer’ which is an effective way for an entity to identify any User opening and operating an account and verify such identity (using information and documentation obtained from, or in relation to, the Users), and is the guiding principle behind AML Regulations.

The company has in place adequate policies, practices and procedures that promote high ethical and professional standards and prevent the company or Services from being used, intentionally or unintentionally, for money laundering purposes. KYC of a User enables the company to know/ understand its Users and their financial dealings better, which in turn will help the company to manage its risks prudently.

The objectives of KYC are to:

• Ensure appropriate User identification and obtain sufficient information about the User in order to identify who is the actual Beneficial Owner of the Virtual Digital Assets or on whose behalf the transaction is conducted.
• Verify the User identity using reliable independent source document, data or information.
• Conduct ongoing due diligence and scrutiny of the Account/ User to ensure that the transactions conducted are consistent with the customer’s declared profile, source of funds, and expected activity, and do not indicate money-laundering, terrorist financing, fraud, or other illicit conduct.
• Consistent with the Users’ background, financial status and risk profile.
• Monitor and report transactions of a suspicious nature (if any).
• Satisfy that the proposed User is not an undischarged insolvent.
• Minimize fraud; and
• Avoid opening Benami accounts with fictitious names and addresses.

The company collects the documents and information as set out in this KYC-AML & CFT Policy and as otherwise required by Applicable Law.

4 – CUSTOMER IDENTIFICATION AND ACCEPTANCE

1. a) ACCOUNT. Suppose you choose to avail our Services and/or transact on the company. In that case, you must register with us, and open and maintain an account by providing your details, completing necessary KYC verification requirements as per this KYC-AML & CFT Policy and under Applicable Law and executing such undertakings, declarations or agreements as required under Applicable Law. Your Account shall be activated only upon successful completion of these requirements to our satisfaction.

Depending on the specific requirements of the financial institution or regulatory authority, additional documentation may be requested to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.

You shall ensure that all the information, data, and documents you provide are reliable, accurate, and complete. Please refer to our Privacy Policy which explains how your personal data is used and shared. We may share your information with relevant statutory authorities as required or requested under Applicable Law.

For source of wealth and funds: We collect information about the source of wealth (lifetime earnings) and the source of funds (immediate funds used to place an order). This includes evidence of income, salary, and gains from all applicable sources. Documentation includes salary slips, pay slips, bank statements, etc.

1. b) ONE ACCOUNT PER USER. You may only open one Account. We will not create duplicate accounts for the same User. Where duplicate accounts are detected/identified, we may choose to close or merge duplicate accounts at our sole discretion.
2. c) NO ANONYMOUS OR FICTITIOUS ACCOUNT. You will not be permitted to create an Anonymous Account or an Account in the name of a fictitious person. You may only open an Account in your individual capacity and not as a representative or agent of another Person. In case you are a Legal entity, only such individuals as duly authorized on your behalf shall be permitted to create an Account on your behalf in their official capacity. Further, you will not be permitted to create an account on behalf of a third-party if we are unable to verify their identity in accordance with the procedures set out in Clause 4(a) above.

d) WHO CAN OPEN AN ACCOUNT? You must meet all eligibility criteria set out in our policies and under Applicable Law to register with us and open, maintain and operate an Account.