At X Bank, compliance with Sanctions and Anti-Money Laundering/Counter Terrorism Financing (AML/CTF) standards is a cornerstone of our operations. We are committed to operate our platform in accordance with applicable currency-specific and international laws and regulations and to supporting Participants in meeting their own compliance obligations.
X Bank: As the operator of a payment and settlement platform for institutional Participants, X Bank plays a crucial role in enforcing compliance standards. We perform risk-based compliance checks on Participants and transactions conducted through the platform, in accordance with applicable laws and internal policies. Our controls include the identification of potentially suspicious activity and the application of holds, blocks, or escalations within the platform, subject to applicable legal and operational arrangements.
Participants: Participants are accountable for complying with mandatory obligations under applicable regulations. They are responsible for complying with applicable laws and regulations, as well as with X Bank’s participation rules and contractual requirements. This includes rigorous Know Your Customer (KYC) and Due Diligence processes during onboarding and regular reviews thereafter.
Fund Holding Institutions (FHIs): FHIs, including Central Banks or designated commercial banks, enforce compliance regulations specific to their currency. They may apply compliance and eligibility requirements specific to their currency or settlement role, in accordance with their regulatory obligations.
X Bank maintains a controlled participant ecosystem by applying risk-based eligibility criteria, including regulatory status, during onboarding and ongoing reviews. We design, implement, and monitor comprehensive controls, processes, and procedures to uphold a robust compliance framework. This includes thorough reviews of participants' compliance practices during onboarding and periodic assessments.
X Bank employs a series of risk-based controls and processes within its platform to ensure secure and compliant transactions, including but not limited to:
Pre-Payment Checks: Includes transaction completeness, sanctions screening, and pre-payment fraud detection.
Post-Payment Checks: Includes post-payment fraud detection and transaction monitoring for identifying suspicious activities.
Straight-Through Processing (STP): We streamline payment processes by standardizing message formats and automating transaction checks in real-time. Our in-house compliance team investigates sanctions hits, fraud attempts, and suspicious transactions identified within the platform, in accordance with internal procedures to maintain operational integrity.
By adhering to these rigorous standards and processes, X Bank ensures a secure and compliant environment for all Participants involved in our payment settlement system.