Compliance & AML Policy Summary

A summary of Covalent Custody’s compliance approach, client due diligence, AML controls, sanctions screening, and transaction monitoring.

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This page is provided for general website disclosure purposes only and does not replace a signed client agreement, custody agreement, service order, legal advice, tax advice, investment advice, or regulatory advice.

1. Compliance Commitment

Covalent Custody is committed to operating with appropriate compliance controls for digital asset custody operations, stablecoin settlement support, wallet governance, transaction workflows, and client onboarding.

2. Client Due Diligence

Clients may be required to provide identity information, business registration documents, beneficial ownership information, authorized representative details, source-of-funds information, transaction purpose, wallet information, and supporting documentation.

3. AML, Sanctions, and Counterparty Review

Covalent Custody may conduct anti-money laundering checks, sanctions screening, adverse media review, wallet risk review, counterparty verification, transaction monitoring, and other compliance checks where appropriate.

4. Prohibited Activity

Covalent Custody does not support activity involving fraud, sanctions evasion, money laundering, terrorist financing, human trafficking, ransomware, darknet markets, illegal gambling, corruption, stolen assets, or other unlawful activity.

5. Transaction Monitoring

Transactions may be reviewed before, during, or after processing. Covalent Custody may delay, reject, suspend, or report activity where required by law, compliance policy, risk review, or client agreement.

6. Recordkeeping

Covalent Custody may retain records relating to onboarding, approvals, wallet instructions, counterparties, transactions, communications, and compliance reviews for legal, audit, and operational purposes.

7. Cooperation with Authorities

Covalent Custody may cooperate with regulators, law enforcement, courts, and other competent authorities where legally required or where necessary to protect the company, clients, or the integrity of its services.

Effective date: May 17, 2026