AML/KYC Guide

AML/KYC User Verification Guide

Why does Lova request user data and documents?

Lova is a financial service that enables the use of electronic money and a digital wallet. Therefore, we are obliged to identify and verify users before enabling the use of certain functionalities.

This procedure is not just an internal Lova policy, but a legal obligation prescribed by the Law on Prevention of Money Laundering and Financing of Terrorist Activities ("Official Gazette of BiH", No. 13/2024). This law prescribes the measures, actions, and procedures that financial and other obliged entities must implement to prevent and detect money laundering and terrorist financing. 

KYC verification, or knowing your customer, helps us protect users, prevent misuse, and ensure the secure use of the Lova application.

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What does AML/KYC mean?

AML stands for Anti-Money Laundering.

KYC stands for Know Your Customer.

In practice, this means that Lova must know who is using the service, whether the provided data is accurate, and whether the service is being used for lawful purposes.

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What data may we request?

Depending on the type of service, usage level, and risk assessment, we may request the following data and documents from the user:

1. basic personal data, such as name, surname, nationality, phone number, and email address; 
2. data from a valid identification document; 
3. proof of residential address, when required; 
4. a photo of the identification document; 
5. a photo of the user with an identification document or another form of electronic identification; 
6. bank account details, if the user wishes to make deposits or withdrawals via bank account; 
7. additional information regarding the source of income, origin of funds, purpose of service use, and expected transaction volume, when required by law and risk assessment. 

These steps are in line with the internal Policy on Client Identification and User Account Verification of Digital Money Transfer d.o.o. Banja Luka, according to which the user must complete the personal data verification process and obtain approval to use the platform before using it. 

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When is verification requested?

Verification may be requested:

• during user registration; 
• before enabling transactions; 
• before deposits and withdrawals via bank account; 
• when the volume of service usage increases; 
• when it is necessary to further confirm the user's identity; 
• when required by legal regulations or internal risk assessment. 

For certain transactions or a higher volume of service usage, Lova may also request additional information regarding the source of income, origin of assets, purpose of transactions, expected transaction amount, as well as a declaration of whether the user is a politically exposed person. 

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How to complete verification in the Lova app?

1. Log in to the Lova app. 
2. Open the account verification option. 
3. Enter the required personal data. 
4. Attach a valid identification document. 
5. Provide proof of residential address. 
6. Provide proof of bank account ownership. 
7. If necessary, complete the statement on source of income, origin of funds, purpose of service use, politically exposed person (PEP) declaration, and expected transaction volume. 
8. Submit the request for review. 
9. Wait for verification status notification. 

This is in accordance with your internal policy, which states that users must complete personal data verification to use the platform, and bank account ownership verification for banking transactions. Additionally, for certain transactions, financial data regarding the source of income, origin of assets, purpose, and amount of anticipated transactions are required.

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Why is this data important?

The data and documents provided by the user are used for:

• confirming user identity; 
• protecting the user account; 
• preventing identity theft; 
• preventing fraud and abuse; 
• fulfilling legal obligations; 
• the protection of the Lova system and all application users. 

Without successfully completed verification, Lova cannot enable the use of certain services, as this would be contrary to legal obligations and business rules.

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What does the verification process look like?

The process is simple and is carried out via the Lova application or an online form.

The user enters the requested information, attaches the necessary documents, and submits the request for review. Subsequently, authorized Lova personnel check whether the data is complete, accurate, and consistent with the submitted documents.

If everything is in order, the user account is verified.

If a document is unclear, invalid, incomplete, or if there is another reason why verification cannot be accepted, the user will be informed of the rejection reason and, if necessary, will be able to resubmit correct information or documents. The internal policy stipulates that the administrator checks the validity of the entered data, the validity of the document, and the quality of the submitted document. 

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How to properly submit documents?

For faster and more successful verification, it is necessary that:

• the document is valid; 
• the document image is clear and legible; 
• all corners of the document are visible; 
• the information on the document is not covered; 
• the photo is not blurry, cropped, or subsequently altered; 
• the user provides accurate and complete information. 

Documents that are unclear, altered, or where the user's identity cannot be reliably confirmed will not be accepted.

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Is my data secure?

Yes. Lova handles personal data carefully and in accordance with applicable personal data protection regulations.

The data is used exclusively for legally permitted purposes, including user identification, account verification, prevention of misuse, fulfillment of legal obligations, and the secure provision of services.

Lova does not request this information to unnecessarily complicate the use of the application, but because it is obliged to ensure a secure, lawful, and reliable financial system for all users.

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Frequently Asked Questions

Can I use the Lova app without verification?

Certain functionalities may be limited until the user completes verification. Successful user identification and verification are required to use financial services and transactions.

Why do I need to provide a personal identification document?

Because Lova must confirm the user's identity and verify that the service is being used by the actual person who provided the data.

Why is bank account information requested?

Bank account information may be required when a user wishes to make deposits or withdrawals via a bank account. This confirms account ownership and reduces the risk of misuse.

Why are income source details sometimes requested?

For certain volumes or types of transactions, Lova is obliged to collect additional information regarding the source of income, origin of funds, and purpose of transactions. This is part of the legal obligation to prevent money laundering and terrorist financing.

What if my verification is rejected?

If verification is rejected, the user will receive a notification explaining the reason for the rejection. The most common reasons include an illegible document, incomplete data, an invalid document, or a document that does not match the entered information.

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Our Commitment to Users

Lova aims to provide users with a simple, fast, and secure digital wallet experience. At the same time, as a financial service provider, we are obliged to comply with laws and procedures that protect users and the financial system.

AML/KYC verification is an important part of that protection.

Thank you for your understanding and cooperation.