Acceptable Use (Excerpt)
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Introduction & Scope
This excerpt from our Acceptable Use and Know Your Business (“KYB”) Policy summarizes key standards and principles that guide Chain Veritas (“we,” “us,” or “the Company”) in providing its blockchain forensics, AML/CTF advisory, and risk mitigation services. Our clients include corporate entities, regulated digital asset exchanges, private enterprises, and government agencies seeking robust compliance tools to minimize the risks of illicit usage of cryptoassets.Below, we outline the primary rules, obligations, and responsibilities pertaining to acceptable service use and the KYB procedures that we apply.
1. Acceptable Use Overview
1.1. Purpose
Chain Veritas is dedicated to ensuring that our tools and services are not leveraged to promote or conceal illegal activities. Although we are not formally supervised by the Central Bank of Lithuania or other financial regulators in the same capacity as financial institutions, our voluntary alignment with Lithuanian and EU legislation (such as the Law on the Prevention of Money Laundering and Terrorist Financing, and relevant EU AML Directives) reflects our commitment to mitigating reputational, legal, and ethical risks.
1.2. Prohibited Activities
Use of our services or software for any illegal, fraudulent, or unethical purpose is strictly forbidden. This includes, but is not limited to:Aiding or abetting money laundering or terrorism financing.Attempting to bypass or manipulate EU, UN, or national sanctions.Gathering personal data for harassment, unauthorized surveillance, or other malicious objectives.Accessing or interfering with third-party systems without explicit legal authority.In the event we suspect or detect any such activity, we reserve the right to suspend or terminate service provision.
1.3. Permissible Purposes
Our solutions are intended to enhance compliance, support investigations into fraud or theft, conduct crypto-forensic analysis of suspicious addresses, or carry out due diligence in line with legitimate objectives. Clients may use them to comply with international AML/CTF standards, trace stolen assets, or bolster internal compliance frameworks.
2. KYB Procedures
2.1. Why We Conduct KYB
Because illicit actors can exploit blockchain analytics tools or compliance consultancy to mask wrongdoing, we adopt a Know Your Business approach. This is akin to KYC obligations in financial services, but with an organizational focus: verifying corporate legitimacy, understanding beneficial ownership, and checking for sanctions or adverse media.
2.2. Risk-Based Approach
We use a risk-based methodology in line with EU AML Directives, reviewing factors such as the Client’s jurisdiction, ownership structure, transaction complexity, and negative media hits. Depending on risk level (Low, Medium, or High), different levels of documentation or ongoing monitoring may apply.
2.3. Key Documentation
Although details can vary, typical documents required for onboarding may include:
- Certificate of Incorporation or local equivalent, establishing the legal existence of the business.
- UBO (Ultimate Beneficial Owner) Information, clarifying ownership stakes above a standard threshold, usually 25%.
- Identity Documents of directors or controlling individuals, particularly if they are Politically Exposed Persons (PEPs).
- Regulatory Licenses, if the entity is supervised by a financial authority.We treat all personal or corporate information with confidentiality and in compliance with the General Data Protection Regulation (GDPR) and relevant Lithuanian data protection laws.
3. Ongoing Monitoring & Enforcement
3.1. Monitoring
After a client is onboarded, we periodically review business activities, watch for changes in beneficial ownership, and track relevant sanctions updates. Our software logs usage patterns for indicators of unusual or high-risk behavior.
3.2. Trigger Events
If we detect a major shift—such as the client appearing in a leaked sanctions list, receiving significant adverse media, or drastically increasing usage volumes inconsistent with stated business lines—we may perform an Enhanced Due Diligence (EDD) or temporarily restrict the client’s access pending further inquiries.
3.3. Enforcement Actions
If clients fail to cooperate with EDD, refuse to clarify suspicious usage, or are identified as linked to criminal or terrorist networks, we reserve the right to:Immediately suspend or terminate the contract.Report relevant information to competent authorities in line with Lithuanian or EU AML regulations.Decline any future relationship with such entities.
4. Data Protection & Privacy
4.1. Lawful Processing
Chain Veritas processes both personal and corporate data under the lawful bases of legal obligation (to meet AML requirements) or legitimate interest (fraud prevention and compliance). Our data storage protocols ensure secure servers, role-based access, and compliance with retention periods mandated by law (usually at least five years post-contract).
4.2. Data Subjects’ Rights
Individual directors or beneficial owners have certain rights under the GDPR, including the right to access or request rectification of their personal data. However, AML obligations take precedence over erasure requests if local regulations dictate that we must retain documents for a minimum statutory period.
4.3. Disclosure to Authorities
Where legally required—such as in response to a court order, or a binding request from the Lithuanian Financial Crime Investigation Service—we may share relevant data. We only disclose the minimal information needed to fulfill these obligations.
5. Client Responsibilities
5.1. Accurate Information
Clients must provide true, complete, and up-to-date information during the onboarding and throughout the relationship. Any material changes, such as a new beneficial owner or a shift in regulated status, should be communicated swiftly.
5.2. Cooperation
Should we request clarifications or updated documentation for compliance reasons, clients are expected to cooperate in a reasonable and timely manner. Non-compliance or refusal to engage in essential KYB steps may result in service denial.
5.3. Legitimate Usage
Clients agree not to misuse our forensic or advisory solutions. Activities like attempting to analyze wallet addresses on behalf of sanctioned entities or facilitating disguised transactions for criminals are strictly prohibited.
6. Liability & Limitations
6.1. Disclaimers
While we maintain high standards of due diligence, we do not guarantee that all external data (e.g., sanctions databases, negative media sources) is free from errors. Our role is primarily advisory and forensic; responsibility for any underlying transactions remains with the client.
6.2. Limit on Damages
Any claims arising from the legitimate application of these Acceptable Use or KYB policies may be subject to liability limits outlined in our Terms of Service or Master Services Agreement.
6.3. Indemnity
Clients who engage in fraudulent or unlawful conduct may be liable to indemnify Chain Veritas for damages, losses, or legal fees arising from the misconduct.
7. Policy Updates
7.1. Periodic Review
We review and update this excerpt (and the full policy) at least annually, or earlier if there are significant changes in regulatory requirements under Lithuanian law or EU AML directives.
7.2. Notice to Clients
Substantial updates will be communicated to active clients in writing or via email. Continued use of our services following such notice implies acceptance of the revised standards.
8. Where to Find More Information
8.1. Full Policy
This excerpt provides only an overview of our Acceptable Use and KYB Policy. To access comprehensive version, including procedures on Enhanced Due Diligence, record-keeping obligations, or appeals processes in case of adverse onboarding decisions, please contact ux.
8.2. Contact
Email us at: compliance@chainveritas.com
By engaging with Chain Veritas, you acknowledge that you have reviewed these summary provisions and agree to adhere to the principles outlined herein. We are committed to building trust within the digital assets ecosystem, and we thank you for partnering with us in the fight against illicit financial activities.