KYC & AML Policy

Version 1.0 (pilot) · Effective July 30, 2026 · CarbonXFuture Markets, Inc., Fort Lauderdale, Florida, USA

Scope. CarbonXFuture Markets, Inc. is a marketplace operator, not a bank, money-services business or registered financial institution. This policy describes the risk-based procedures we apply voluntarily, designed with reference to applicable U.S. anti-money-laundering requirements and internationally recognized guidance, because clean counterparties are the foundation of a credible market.

1. Who is reviewed

Every party seeking platform access is reviewed before approval: waste-oil collectors, service shops, processors and re-refineries; credit and feedstock buyers; and any counterparty to a desk-settled transaction. No listing, transaction, issuance or certificate is processed for an unreviewed party.

2. What we collect and verify

Legal company name, state of registration and operating address;
The identity and role of the contact person acting for the company;
For operators: the applicable used-oil license or registration (in Florida, FDEP handler/processor registration; equivalents in other states), verified against the issuing authority's public records where available;
For material transactions: beneficial-ownership information for the counterparty entity;
The business rationale for participation — volumes, activity type and geography, sense-checked against the size and licensing of the operation.

3. Sanctions screening

Counterparties and their principals are screened against applicable U.S. sanctions lists, including the OFAC Specially Designated Nationals (SDN) and consolidated lists, at onboarding and again before material settlements. A confirmed match results in refusal or termination and, where legally required, reporting to the competent authorities.

4. Risk-based approach and enhanced review

Review depth follows risk. Enhanced review — additional documentation, source-of-volume evidence, or a call with the desk — applies, among other cases, when: reported volumes are inconsistent with the license class or facility capacity; ownership structures obscure the beneficial owner; the counterparty or its principals are located in higher-risk jurisdictions; payment arrangements are unusual for the transaction; or documentation shows signs of alteration.

5. Ongoing monitoring

KYC is not a one-time gate. Monthly activity reports are validated item-by-item against documentary evidence; volumes are monitored against facility capacity over time; and the desk may re-verify licensing at renewal or on any material change in a member's business.

6. Refusal, suspension and exit

The desk may refuse, suspend or terminate access where verification cannot be completed, where screening raises unresolved concerns, or where evidence proves materially false. Registry consequences for fraudulent evidence — revocation with a public reason — are governed by the CXF Registry Rules.

7. Records

KYC records, screening outcomes and transaction documentation are retained for the duration of the relationship plus the period required by applicable law, and — for issuance evidence — for as long as the related registry batches or certificates remain recorded, as described in our Privacy Policy. Records are stored with restricted access and are never published; the public registry shows only non-commercial batch fields.

8. Governance

This policy is maintained by CarbonXFuture Markets, Inc. and versioned on this page; material changes take effect from their stated date. Questions, or concerns about a counterparty: desk@carbonxfuture.com.