Security
Financial Compliance
Kuata operates as a licensed payment services provider subject to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations in every market where we operate.
Financial Compliance — What You Need to Know
Kuata operates as a licensed payment services provider subject to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations in every market where we operate. This document explains what this means for you as a user — why we ask for documents, why transactions may occasionally be reviewed, and what your rights are throughout the process.
Note: This document uses plain language to explain regulatory requirements. It is not legal advice. Detailed regulatory policies are available for institutional partners and regulators on request. |
Why Kuata Verifies Your Identity
Financial regulations in every country require payment services providers to verify who their customers are before allowing them to send or receive money. This is called Know Your Customer (KYC). The rules exist to prevent criminals from using payment systems to move money from illegal activities, fund terrorism, or evade sanctions.
KYC is not a reflection of suspicion — it is a legal requirement that applies to every user, regardless of who they are or how much money they move. By completing identity verification, you help keep the financial system safe for everyone.
What We Check and Why
What we check | Why we need it |
Government-issued national ID document | Confirms your real name, date of birth, and nationality — required by law in every market |
Tax identification number (NIF/TIN or equivalent) | Required for financial services accounts in most jurisdictions |
Proof of address | Confirms your country of residence, which determines which regulations apply to your account |
Source of funds declaration | Helps us understand where your money comes from, so we can detect unusual patterns |
Liveness check (selfie + movement) | Confirms you are a real person present at registration — prevents account fraud using stolen documents |
Why Transactions Are Sometimes Reviewed or Held
Automated systems monitor all transactions on Kuata for patterns that may indicate financial crime. The vast majority of users will never notice this process. However, occasionally a transaction may be held for a short period while it is reviewed. This can happen when:
• The transaction is significantly larger than your typical pattern
• The transaction destination is in a high-risk country or region
• Multiple transactions occur in rapid succession in an unusual pattern
• The transaction matches a pattern associated with known financial crime typologies
• A routine compliance check is triggered by your account tier or transaction volume
If your transaction is held, you will receive an in-app notification. Most reviews are completed within 2 hours. In some cases, we may contact you to request additional information.
Transfer Limits and Why They Exist
Limit type | Free Plan | Pro Plan |
Daily send limit | Equivalent of EUR 500/day | Equivalent of EUR 1,500/day |
Monthly send limit | Equivalent of EUR 2,000/month | Equivalent of EUR 5,000/month |
Single transaction maximum | Equivalent of EUR 300 | Equivalent of EUR 1,000 |
These limits are set in compliance with regulatory requirements and our own risk management policies. They apply to all users at the respective plan level and are not negotiable on an individual basis. Upgrading to Pro increases your limits. If your legitimate needs exceed Pro limits, contact support@kuata.io to discuss enterprise or business account options.
Important: Attempting to split a transfer into multiple smaller transactions to stay below limits (called structuring) is illegal in most jurisdictions and will trigger an automatic compliance review of your account. |
When We May Request Additional Documents
After account opening, we may occasionally ask you to provide additional documentation. This is a normal part of ongoing compliance and does not mean your account is under investigation. We may ask for:
• Updated identity documents (e.g., if your ID has expired)
• Proof of the source of funds for a specific large transaction (e.g., a sales contract, payslip, or inheritance document)
• Updated proof of address
• Clarification of a specific transaction purpose
Requests for additional documentation are sent via in-app notification and email. You have 30 days to respond. If you do not respond within 30 days, your account may be restricted until the documentation is provided.
What Happens If We Cannot Verify Your Identity
If we are unable to verify your identity — for example, because a document is expired, unreadable, or inconsistent — we will:
1. Notify you by in-app message and email with a clear explanation of what is needed.
2. Give you an opportunity to re-submit the required documents (30-day window).
3. If verification cannot be completed, restrict your account to viewing only — no transactions — until the issue is resolved.
4. If the situation cannot be resolved after reasonable effort, we will close the account and return any available wallet balance to the source account.
Note: We are legally required to refuse or terminate accounts where we cannot adequately verify identity. This is not a decision we make lightly, and you always have the right to understand what information is missing. |
Politically Exposed Persons (PEPs)
A Politically Exposed Person (PEP) is someone who holds or has recently held a prominent public position — such as a government minister, judge, military officer, or senior executive of a state-owned company — or a close family member or associate of such a person.
If you are a PEP, or closely associated with one, your account requires enhanced due diligence under international financial regulations. This means:
• Additional documentation confirming the source of your funds and wealth
• Approval of the account by a senior member of our compliance team
• More frequent review of your transaction activity
This is not a judgment about any individual. It is a legal requirement that applies to all PEPs globally. If you believe you have been incorrectly classified as a PEP, contact privacy@kuata.app.
Sanctions Compliance
Kuata is legally required to refuse or block services to individuals, organisations, and countries that are subject to international sanctions. Sanctions are restrictions imposed by governments or the United Nations to respond to threats to international peace, terrorism, or human rights violations.
Every account and every transaction is automatically checked against current sanctions lists in real time. If your name, ID, or a payment destination matches a sanctions list, the account or transaction will be blocked and you will be notified. If you believe a match is incorrect (a false positive), contact compliance@kuata.io with your identification documents we will investigate and resolve genuine false positives promptly.
Your Rights in the Compliance Process
Right | Details |
Know why documents are requested | We will always explain what document is needed and why when we make a request |
Appeal a decision | If your account is restricted or closed, you may request a review by emailing compliance@kuata.io |
Data access | You can see all the data we hold about you: Settings -> Privacy -> Export my data |
Confidentiality | We will never tell third parties that you are under a compliance review |
No discrimination | Compliance checks apply equally to all users — they are not based on nationality, ethnicity, or religion |
How to Contact Us About Compliance Matters
Topic | Contact |
General compliance questions | compliance@kuata.app |
PEP classification queries | privacy@kuata.app |
Sanctions false positive disputes | compliance@kuata.app |
Account restriction appeals | compliance@kuata.app |
Requests for additional document guidance | support@kuata.app |
Note: Kuata will never ask you to pay a fee to pass a compliance check or to unblock your account. Any such request is a scam. |