Fraud Risk
Abstract
Fraud risk refers to the potential for malicious actors to scam, thieve, or otherwise issue unauthorized transactions. Given the irreversible nature of onchain transactions, an extreme emphasis on re-verification (KYC) for withdrawals is necessary to ensure the authenticity of transactions and mitigate the potential risks. This policy also focuses on ensuring accurate reporting of tax deductible activity and ensuring the compliant use of our products by users.
Policy
Endaoment believes in providing secure accounts that are only able to be interacted with the proper KYC’d user and administrators, and guarding against tax deductibility related fraud and DAF misuse. We manage these risks through use of KYC processes on both account creation and any output off platform (i.e. dispersement, rollover).
Scope and Applicability
This policy applied to all Endaoment employees, contractors, board members, and those acting on behalf of Endaoment in any capacity. Non-compliance with this policy may lead to disciplinary action up to and including termination/removal. Should there be a conflict of law, the more stringent of either this policy or the applicable law will be applied.
Operational Controls + Testing
Internal controls will be monitored and/or tested on a periodic basis determined by risk. Monitoring and testing outcomes will be used to inform the continuous improvement of internal controls in order to appropriately mitigate risk.
Training
All Endaoment employees will receive training on Legal Compliance + Regulatory Risk to ensure policy continuity and application. New hires will be trained within their first 60 days, and mandatory incumbent trainings will be conducted bi-annually with all current employees.
Governance
This policy will be reviewed by the executive team and updated semi-annually to ensure it remains up-to-date. Escalation of any questions, concerns, or requests for exceptions regarding this policy must be made to the Endaoment executive team and approved unanimously.