BlueX has partnered with a merchant processor to ensure safeguards and security around your funds. On the insurance front, in the U.S, every customer is eligible for a $250,000 pass- through FDIC insurance for their USD accounts. The amount of insurance coverage in other regions will be dependent on the banking partner and on adhering to local regulatory requirements. Where local regulatory requirements do not require banking insurance, such as in Hong Kong, our partner also has a safeguarding process in place in which sufficient funds are set aside for each region to accommodate for the risks and fluctuations of deposit balances, FX rate changes, and payment activity. There is also a safeguarding reserve held for regions where there is bank insurance for our customers, which creates multiple redundancies.
To address how we ensure the security of these funds (on top of insurance and safeguarding), every region implements strict Transaction Monitoring controls based on a customized risk profile of each onboarded customer to monitor payment activity and flag and prevent any potentially fraudulent activity. For any flagged transactions, we will only release the funds in accordance with AML (Anti-Money Laundering) policies and procedures, after confirmation with our customers and receiving additional information from the beneficiary.
Lastly, we take due diligence extremely seriously. Transaction profiles by user are set up to continuously monitor activity and catch any unauthorized transactions or account takeovers. We employ a strict KYC process and transaction monitoring program.