Anti-Money Laundering (AML) and Fraud Policy

xEarn DAO, LLC.

Anti-Money Laundering (AML) and Know Your Customer (KYC) Policy of xEarn DAO

1. Purpose and Scope

• 1.1 Purpose: This policy outlines our commitment to preventing and detecting money laundering, terrorist financing, and other illicit activities within the xEarn DAO.

• 1.2 Scope: Applies to all members and entities associated with the xEarn DAO and its operations.

2. Compliance with Laws

• 2.1 Commitment to Compliance: Adherence to all applicable local and international AML and KYC laws and regulations.

• 2.2 Member Responsibility: Members must comply with their respective jurisdiction’s AML and KYC regulations.

3. Member Identification and Verification

• 3.1 KYC Requirement: Mandatory KYC process for all new xEarn DAO members.

• 3.2 Information Accuracy: Members must provide valid, current identification and contact details.

• 3.3 Additional Verification: The DAO may request extra documentation to verify identity or activities.

4. Reporting Suspicious Activities

• 4.1 Reporting Obligation: Members must report any unusual activities within the DAO.

• 4.2 Investigation and Reporting: The DAO will take necessary actions to report suspicious activities to authorities.

5. Transaction Monitoring

• 5.1 Monitoring Procedures: Scrutiny of transactions for unusual patterns, including large or frequent transfers.

• 5.2 Reporting: Suspicious transactions will be reported to relevant authorities.

6. Risk Assessment

• 6.1 Regular Assessments: Periodic evaluations of money laundering and terrorist financing risks.

• 6.2 Enhanced Due Diligence: Higher-risk members or activities may undergo additional scrutiny.

7. Training and Awareness

• 7.1 Training Programs: Members and employees receive AML and KYC training.

• 7.2 Continuous Learning: Encouragement for members to stay updated on AML and KYC best practices.

8. Record Keeping

• 8.1 Documentation: Maintenance of all member identification and transaction records.

• 8.2 Retention Period: Compliance with legal requirements for record retention.

9. Non-Compliance

• 9.1 Consequences of Non-Compliance: Possible membership termination or legal actions for policy violations.

• 9.2 Reporting Violations: Members must report policy breaches to the compliance authority.

10. Policy Review

• 10.1 Periodic Review: Regular reviews to ensure policy effectiveness and legal compliance.

• 10.2 Updates Communication: Notification to members about any policy changes.

The xEarn DAO upholds the highest integrity standards, adhering strictly to AML and KYC regulations to safeguard its members and the broader Web3 community. Full cooperation with these policies is expected from all members to maintain a secure and trustworthy environment.