Your U.S.-based partner for digital dollars.

Registration and Licensing: CFX is a registered Money Services Business (MSB) with FINCEN, adhering to the legal requirements for conducting financial transactions, including money transfers and currency exchange.

‍Compliance Programs: CFX has implemented comprehensive compliance programs to meet FINCEN's regulations. This includes rigorous Know Your Customer (KYC) protocols, transaction monitoring, and suspicious activity reporting (SAR). These measures help identify and prevent illicit activities such as money laundering and fraud.

‍Reporting Obligations: CFX regularly submits reports to FINCEN on transactions that exceed certain thresholds or appear suspicious. This transparency is crucial in maintaining the integrity of the financial system and aiding law enforcement in tracking financial crimes.

‍Training and Audits: CFX conducts regular training sessions for its employees on compliance and AML procedures. Additionally, the company undergoes periodic audits to ensure that its processes and systems align with FINCEN’s standards.

‍Collaboration with Financial Institutions: In partnership with FDIC-member banks, CFX adheres to state and federal regulations, ensuring that all transactions processed through its platform are secure and compliant with U.S. financial laws.

State Licensing: CFX holds money transmission licenses in multiple states, complying with each state’s regulatory requirements for conducting financial transactions. This includes obtaining the necessary licenses to legally operate as a money transmitter.

‍Regulatory Compliance: CFX adheres to the specific regulatory frameworks established by state authorities. This includes implementing robust compliance programs that align with state regulations, ensuring all transactions are conducted lawfully and securely.

‍Transaction Monitoring: CFX employs advanced monitoring systems to oversee all transactions, ensuring they meet state regulatory standards. This includes tracking large transactions, identifying suspicious activities, and ensuring compliance with state reporting requirements.

‍Consumer Protection: CFX’s compliance with state money transmission licenses involves adhering to consumer protection laws. This ensures that customers' funds are safeguarded and that CFX operates with transparency and integrity.

‍Periodic Audits and Reporting: CFX undergoes regular audits and submits required reports to state regulatory bodies. These audits ensure ongoing compliance with state laws and help maintain the integrity and reliability of CFX’s financial operations.

‍Collaboration with Financial Institutions: By partnering with FDIC-member banks and complying with state regulations, CFX ensures that all transactions processed through its platform are secure and meet both state and federal legal standards.

Custodial Accounts: These accounts are specifically designated for holding customer funds. The segregation of these funds ensures they are not co-mingled with CFX’s operational accounts or assets.

‍Regulatory Compliance: Working with FDIC-member banks ensures that CFX complies with all federal banking regulations. This includes adhering to strict guidelines for fund management, security, and reporting, which enhances the overall safety of the financial ecosystem.

‍Transparency and Accountability: By partnering with FDIC-member banks, CFX ensures transparency in its financial operations. These banks are subject to regular audits and examinations by federal regulators, which helps maintain high standards of accountability and integrity.

‍Risk Management: The partnership with FDIC-member banks allows CFX to implement robust risk management practices. This includes comprehensive monitoring of transactions and stringent security measures to protect against fraud and financial crimes.

Separate Legal Entity: Funds are held in custodial accounts in the name of the FDIC-member bank, separate from CFX's own assets. This means that the funds are not considered part of CFX’s estate in the event of bankruptcy.

Legal Protections: Under federal law, custodial accounts maintained by FDIC-member banks are protected. This structure ensures that customer funds are insulated from the financial risks faced by CFX.

Fiduciary Responsibilities: FDIC-member banks have fiduciary responsibilities to manage the custodial accounts in the best interest of the customers. This legal duty reinforces the protection of the funds.