1. Overview
Kavod Technologies (Pty) Ltd is committed to preventing money laundering, terrorism financing, and proliferation financing in compliance with the Financial Intelligence Centre Act 38 of 2001 (FICA), the Prevention of Organised Crime Act 121 of 1998 (POCA), and applicable regulations in all jurisdictions where we operate.
2. Know Your Customer (KYC) Tiers
2.1 Lite Tier
Basic onboarding requiring:
- Full name and date of birth;
- Mobile phone number (verified via OTP);
- Email address.
Limits: R5,000 per day, R25,000 per month.
2.2 Standard Tier
Enhanced verification requiring:
- South African ID or passport (verified against DHA database);
- Proof of address (not older than 3 months);
- Selfie verification (liveness detection).
Limits: R50,000 per day, R200,000 per month.
2.3 Premium Tier
Full verification requiring:
- All Standard tier requirements;
- Source of funds declaration;
- Proof of income (payslip, bank statement, or tax return);
- Enhanced due diligence interview (for high-risk profiles).
Limits: R500,000 per day, R2,000,000 per month.
3. Customer Due Diligence (CDD)
We conduct CDD at the following points:
- Account opening;
- When a user requests a tier upgrade;
- When transactions exceed prescribed thresholds;
- When there is suspicion of money laundering or terrorism financing;
- Periodically, based on the risk rating of the customer.
4. Transaction Monitoring
Our AI-powered transaction monitoring system screens all transactions in real-time for:
- Unusual transaction patterns (structuring, rapid movement of funds);
- Transactions involving sanctioned individuals, entities, or countries;
- Cross-border transactions that may indicate layering;
- Sudden changes in transaction behaviour.
Our fraud detection system achieves a 97.8% detection rate with a false positive rate below 2%.
5. Sanctions Screening
All users and transactions are screened against:
- United Nations Security Council Consolidated List;
- South African Targeted Financial Sanctions list;
- EU Consolidated Sanctions List;
- OFAC Specially Designated Nationals (SDN) list;
- Politically Exposed Persons (PEP) databases.
6. Suspicious Transaction Reporting
We file Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs) with the Financial Intelligence Centre (FIC) as required by FICA Section 29. Reports are filed within the prescribed timeframes and include all relevant transaction details.
7. Record Keeping
We maintain records of all:
- Customer identification and verification documents (5 years after relationship ends);
- Transaction records (5 years from date of transaction);
- Suspicious transaction reports (5 years from filing);
- Risk assessments and CDD decisions.
8. Staff Training
All employees receive AML/CTF training upon joining and annual refresher training. Compliance officers receive advanced training on emerging money laundering typologies.
9. Compliance Officer
Our Money Laundering Reporting Officer (MLRO) can be contacted at compliance@karatdollar.com.