Compliance Framework

1. Overview

SchnelPay LLC is committed to operating a compliant, transparent, and secure cryptocurrency payment platform. This page describes our compliance framework, including our approach to anti-money laundering (AML), know your customer (KYC), sanctions screening, and regulatory reporting.

As a non-custodial platform currently in beta, SchnelPay is actively building toward full regulatory compliance as we scale, including FinCEN registration and applicable state Money Services Business (MSB) licensing.

2. Anti-Money Laundering (AML) Policy

SchnelPay maintains an AML program designed to detect, prevent, and report money laundering and related financial crimes. Key elements include:

• Transaction monitoring for suspicious activity patterns
• Risk-based approach to user onboarding and transaction review
• Prohibition of transactions with sanctioned individuals, entities, or jurisdictions
• Recordkeeping in compliance with applicable financial regulations
• Ongoing staff training on AML obligations

3. Know Your Customer (KYC) Approach

Non-Custodial (Current)

SchnelPay currently operates as a non-custodial platform. Basic account registration requires only an email address. We do not hold user funds or private keys.

Custodial (Future)

When custodial services are introduced, full KYC will be required including:

• Government-issued photo identification
• Proof of address
• Source of funds verification
• Enhanced due diligence for high-risk users

Our KYC infrastructure is already built and ready to activate. Fields include identity verification, employment status, nationality, and source of funds.

4. Sanctions Screening

SchnelPay screens users and transactions against applicable sanctions lists including:

• OFAC Specially Designated Nationals (SDN) list
• EU consolidated sanctions list
• UN Security Council sanctions
• Other applicable jurisdictional sanctions lists

Users identified as matching sanctions lists will have their access suspended and may be reported to relevant authorities as required by law.

5. Reporting Obligations

SchnelPay is committed to fulfilling all applicable regulatory reporting obligations including:

• Suspicious Activity Reports (SARs) where required
• Currency Transaction Reports (CTRs) for qualifying transactions
• FinCEN registration as a Money Services Business upon reaching applicable thresholds
• Cooperation with law enforcement and regulatory inquiries

6. Security & QuantumShield™

SchnelPay deploys QuantumShield™ — our proprietary hybrid post-quantum cryptography system combining ML-DSA-65 (NIST FIPS 204) and ECDSA — to protect all authentication and transaction signing.

This makes SchnelPay one of the first payment platforms to implement quantum-safe cryptography, protecting users against both current and future quantum computing threats.

• All API traffic encrypted with TLS 1.3
• Passwords hashed with bcrypt (12 rounds)
• JWT tokens with 7-day expiry and timing-safe comparison
• Rate limiting on all authentication endpoints

7. Contact

For compliance inquiries, please contact our compliance team:

SchnelPay LLC
California, USA
Email: [email protected]