KYC procedure in Bitcoin ATMs

Introduction

Bitomat.com is committed to complying with all Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) legal requirements. This procedure is designed to ensure compliance with applicable laws and to protect our clients and the financial system as a whole from being used for illegal purposes.

The AML procedure applies to all persons using Bitcoin ATMs Bitcoin from Bitcoin Bitomat.com. Initiating a transaction implies acceptance of these rules, including the provision of necessary information and documents. We strive to make the verification process clear and as simple as possible for you, while maintaining the highest standards of compliance and security.

1. customer identification

When and why?
Regardless of the amount of the transaction, we may require identification. In particular, the need will arise if you exceed the legal transaction limit or if you need to confirm your identity. KYC limits vary from local regulations. Check your country's limit at the top of the wwwBitomat.com homepage or by contacting support at Bitomat.com/contact.

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How does it work?

• If you exceed the specified limit, the Bitcoin ATM screen will prompt you to identify yourself and show an animation showing where on the device to scan the document.
• The limit can range from €0 to €15,000 per day, depending on local regulations.
• You will be asked to scan a valid identity document issued by a government authority (e.g., ID card, passport, driver's license).
• We will check the authenticity of the document and record basic data (name, surname, date of birth).
• If we doubt that you are the actual beneficiary of the transaction, the screen may ask, "Is the transaction for your personal use?"
  • Yes: You continue the transaction.
  • No: We will display a request to contact our Customer Service Department to determine the actual beneficiary and purpose of the transaction.

What if I refuse?
Refusal to identify myself or failure to cooperate in this regard means cancellation of the transaction and possible temporary blocking of Bitcoin ATM.

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2 Identity Verification

Continuous process
Verification is done for every transaction, not just the first one. Each time, we make sure that the person is the same one who submits the identity document.

Examples of questionable situations
We can stop a transaction if we observe:

• Scanning the document in such a way that it cannot be read.
• Use of an invalid, altered, or identity document belonging to another person.
• Use of a document issued by non-state organizations.

If in doubt, we can ask for further clarification or refuse the transaction altogether.

3 Customer Acceptance and Risk Assessment

Once your identity is confirmed, we verify that we can accept you as a customer for the transaction. This includes verification:

• Sanction Lists: We check whether the customer is on international sanction lists. If so, we must refuse the transaction.
• PEP (Politically Exposed Persons) List: If you are a PEP, we may require additional documents and management approval before proceeding with the transaction. In some cases, the transaction will be rejected.

Any confirmed entries on sanction lists or PEPs will result in the suspension of transactions.

4 Enhanced Due Diligence (EDD)

What is EDD?
EDD is used when a transaction appears suspicious, high-risk or unusual. This includes:

• Very large or complex transactions without a clear economic purpose.
• Customers behaving nervously, giving the impression of acting at someone else's behest (e.g., the customer is unable to explain what the cryptocurrency wallet is for, the public address, or what Bitcoin is).
• Many small transactions on a single day, cumulatively exceeding the legal limit, which can mask one large transaction.

What happens during the EDD?

• Bitcoin ATM may stop the transaction and ask you to contact Customer Service.
• We may request additional information or documents, such as confirmation of the source of funds (bank statements, PIT, contracts).
• In certain cases, we will ask for a written statement to act on your own behalf.
• Our Compliance Officer will analyze the data provided and decide on the further course of the transaction. Depending on the result of the analysis, the transaction may be allowed (with simultaneous monitoring) or permanently blocked.

Refusal to provide the required information or inability to explain the origin of the funds leads to rejection of the transaction.

5 Verification of Source of Funds

If a transaction exceeds certain limits or is perceived as higher risk, we will ask you to document the source of the funds. This applies to both the purchase and sale of cryptocurrencies.

Sample documents

• When buying cryptocurrency: Tax returns, bank statements, pay slips, employment or service contracts, deeds.
• When selling cryptocurrency: Transaction history from the cryptocurrency wallet, confirmations of previous purchases/sales in Bitcoin ATM, evidence of mining (mining) activity, evidence of transactions from cryptocurrency exchanges.

If the documents presented are questionable or incomplete, we will ask for additional clarification. Refusal to cooperate or inability to demonstrate the source of funds will result in the assignment of the highest risk level and rejection of the transaction.

6 Prohibition of Third Party Transactions

Transactions must be carried out solely on your own account. We do not carry out operations on behalf of third parties. In case of suspicion of so-called "money muling" (a person acting on behalf of others), we will assign the transaction the highest level of risk and, if necessary, inform the relevant law enforcement authorities.

We are seeing an increasing number of cases in which elderly people, manipulated by scammers pretending to be loved ones or people in love, are depositing funds via Bitcoin ATMs. In many situations there is an obvious scam, but victims often disavow this fact and do not believe our warnings.

Therefore, in cases of reasonable doubt, we require a written declaration, confirming that the person making the transaction is aware of the risk and is not acting under the influence of manipulation.

In addition, we are introducing a 5% commission for such transactions. This fee is intended to cover the operational costs of handling fraud cases, as well as to discourage victims from continuing to transfer funds to fraudulent individuals.

We thank you for your understanding and encourage you to exercise extreme caution when making transactions.

7 Data Protection and Confidentiality

Your personal data, camera recordings and copies of documents are stored securely and in accordance with applicable data protection laws. While we respect your privacy, we must also comply with regulations for storing and sharing data with competent authorities when required by law.

8. contact the Service Department - if you have additional questions

If you have any questions, concerns or problems during the verification process, we encourage you to contact our Customer Service Department

Summary

Bitomat.com makes every effort to prevent money laundering, terrorist financing and other illegal activities. Precautions may sometimes seem onerous, but they are necessary to keep our platform safe and legal. Thank you for your understanding and cooperation to help maintain trust and security.

Sources and Useful Links

• PEP list and sanctions - OpenSanctions

(The above links help verify the legality of transactions, including checking sanction lists and PEP lists).