Know Your Customers – Our Anti-Money Laundering Policy
Since our goal is having the most secure platform with the lowest fees, we have to take extra measures to overcome fraud. The higher the fraud, the higher the losses, and those losses eventually trickle to customers through higher prices. Prices are always lower when fraud is inexistent.
Why Must We Know Our Customers?
Knowing Our Customers is the number one way to prevent fraud. Of course, there is no way to 100% prevent fraud but when we know who you are, criminals are less likely to use our service.
Look at it from the eyes of a criminal. Will a criminal rob you and accept a personal check? No. Should a criminal want to steal the money from your e-SilverLiberty Account, he would also need to have an e-SilberLiberty Account to transfer the money into. This brings us to phishing. Phishing is the means by which criminals collect your e-SilverLiberty login information. Once a criminal has your password, all he has to do is login as you and transfer all the funds into his Account and then cash out before you even know the money was removed.
Now imagine if a criminal managed to steal your e-SilverLiberty password and emptied your account. Would you continue using e-SilverLiberty? Probably not! Even in the case e-SilverLiberty bears the entire loss and gives your silver and/or gold coin back, you would still have difficulties to trust the soundness of our platform. The moral of the story is that e-SilverLiberty’s reputation is at stakes each time there is fraudulent activity.
What does phishing have to do with knowing our customers? Well, phishing requires the criminal to be anonymous. Knowing our customers gives us a fighting chance to overcome fraud. By knowing our customers, we also reduce spam. In the end, spammers want to get wealthy, and having an anonymous payment system is essential for their con business to thrive.
Without a good KYC policy, a clever criminal will eventually find a way of spamming others under a dummy account. Receiving unwanted emails may be annoying, however it is nothing compared to phishing attacks. Identity theft occurs when spam contains phishing messages threatening account closure unless the member discloses personal information such as name, email and password.
Knowing our customers is also a cornerstone for reducing unethical behavior and protecting ourselves in case of litigation. We offer services such as free classifieds and a virtual market place similar to eBay, and do not want people to use our services to scam others. What good is a customer complaint if the seller is completely unknown? Also, we have no plans to spend our time in court defending ourselves for the actions of our members. Fraud is the biggest threat to destroy everything we want to build.
The Free Market Solution
We believe the free market is the best solution to determine the necessary amount of personal information to collect from customers. Everyone wants total privacy, and perhaps, complete anonymity. However, the reality is people embracing the KYC usually enjoy the highest level of security with lowest fees, while the anonymous silver and gold transfer companies is constantly struggling with scammers, causing frustration and routine account termination without warning to innocent victims.
In the end, the anonymous payment system is more expensive, has fewer customers and offers limited business opportunities to its customers. Also, people do not want to associate themselves with businesses known to deal with criminals and those who commit fraud, so it becomes more and more difficult for the anonymous people to make deals with other businesses. Eventually economic reality imposes itself, either requiring more discipline to address the problem of fraud, or eventually going out of business. We do not want to go out of business as e-Gold did.
For the reasons described above, we require the following personal information to become a Member:
- 1. Picture ID such as a scan of your passport, driver’s license or State Issued ID.
- 2. Proof of address with a scan of a utility bill or bank statement. If your name does not show on the statement, then you must explain and prove your relationship with the utility bill or bank statement. We prefer honesty to rigidity.
- 3. A real telephone number from a known utility company in your country. If you do not have one, then you must explain why you do not have such a telephone number, and provide a genuine phone number from someone who knows you personally.
e-SilverLiberty reserves the right to call you to verify the validity of your phone number, and also to ask you to send an original of your utility bill. We promise to return your utility bill to you by regular mail. Since such verification procedures are time consuming and expensive, we will only apply them when we feel it is necessary.