> ## Documentation Index
> Fetch the complete documentation index at: https://docs.lumx.io/llms.txt
> Use this file to discover all available pages before exploring further.
# Prohibited business activities
> High-risk and prohibited industries under Lumx's AML/CFT, sanctions, and partner-bank policies
Every customer has to fully disclose their business activities to Lumx during onboarding and on an ongoing basis. We use that disclosure to run the right risk assessment, apply the right controls, and stay compliant with AML/CFT, sanctions, and regulatory requirements.
Not disclosing relevant activity can lead to onboarding rejection, account suspension, or termination.
## High-risk business activities
Allowed with disclosure, risk assessment, and Enhanced Due Diligence.
Being in one of the categories below doesn't disqualify you — it triggers EDD and ongoing monitoring. You have to disclose these activities up front.
This list isn't exhaustive:
* Money services, payment processing, or funds transmission (MSBs, PSPs, P2P platforms, prepaid or gift cards, ATM operators)
* Licensed lending, foreign exchange, and securities brokerage
* Virtual asset service providers (VASPs): crypto exchanges, OTC desks, wallet providers, custody or escrow, stablecoin issuers
* Decentralized finance (DeFi), DAOs, foundations, gaming, metaverse, or other virtual asset ecosystems
* Issuing, holding, safeguarding, or managing client funds, digital assets, stablecoins, or wallets
* Trading, brokering, or dealing in high-value or trade-exposed goods — precious metals and stones, jewelry, oil and gas, mining, agriculture, construction, and real estate
* Cash-intensive businesses — convenience stores, liquor retail, restaurants operating on cash, car washes
* Licensed gambling, betting, or gaming operators
* Crowdfunding platforms
* Licensed investment advisors and asset managers
* Businesses with complex or multi-layered ownership structures
* Customers where a principal owner or controlling person is a politically exposed person (PEP)
High-risk customers may be asked for additional documents via [Request for Information](/compliance/rfi). Plan for verification windows beyond the [standard SLA](/compliance/identity-verification#verification-slas).
## Prohibited business activities
Not supported under any circumstances.
Lumx doesn't serve businesses engaged in the following activities, directly or indirectly, regardless of jurisdiction or licensing claims.
| **Category** | **Description** |
| :----------------------------------------------------------- | :----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Adult content and sexually oriented services | Businesses offering or facilitating sexually explicit, obscene, or adult-oriented content or services. |
| Drugs, controlled substances, and unlicensed pharmaceuticals | Sale, distribution, or facilitation of illegal or controlled substances, including cannabis and unlicensed pharmaceuticals. |
| Tobacco and tobacco-related products | Manufacture, distribution, or sale of tobacco products and related services. |
| Weapons, ammunition, and explosives | Trading or dealing in weapons, firearms, ammunition, or weapon-related products. |
| Unlicensed gambling, betting, and games of chance | Any business involving unlicensed or prohibited games of chance, betting, or casinos. Licensed operators fall under [high-risk](#high-risk-business-activities). |
| Fraudulent and predatory financial models | Ponzi schemes, pyramid schemes, deceptive practices, and abusive or predatory lending. |
| Unlicensed money services | Money transmitters, payment processors, virtual asset providers, and remittance operators without the required licenses in their jurisdiction. |
| Shell banks and unsupervised banking structures | Shell banks, offshore banks without physical presence, correspondent accounts for shell banks, payable-through accounts, and concentration accounts. See [Nested Payments](/compliance/nested-payments). |
| Unlicensed investment products and funds | Non-deposit investment products, trust and asset-management services, and trade finance operations without the required licenses. |
| Client trust and pass-through accounts | IOLTA-style lawyer trust accounts, escrow accounts on behalf of unidentified beneficiaries, and any structure where Lumx-held funds belong to a non-onboarded party. See [Nested Payments](/compliance/nested-payments). |
| Hate, violence, terrorism, and discriminatory activity | Activities promoting or enabling harm, hate, exploitation, or terrorism, including known terrorist organizations. |
| Sanctioned and illicit entities | Entities or individuals on OFAC, EU, UN, UK, or other sanctions lists, or operating from jurisdictions under comprehensive embargoes. See [Supported countries](/compliance/supported-countries). |
| Identity fraud, anonymity misuse, and shell structures | Anonymous or fictitious accounts, bearer-share companies, or entities designed to obscure beneficial ownership. |
| Intellectual property infringement and counterfeit goods | Entities selling, distributing, or enabling IP-infringing or counterfeit products. |
| Data misuse and consumer privacy violations | Businesses that compromise customer data or privacy. |
| Governmental, diplomatic, and political entities | Government bodies, embassies, consulates, supranational organizations, and diplomatic entities. |
| Charities and NGOs | Non-governmental organizations, charitable foundations, and non-profit entities. |
## Consequences of violation
If prohibited activity is found on a Lumx account:
* The account is reviewed and may be suspended or terminated.
* Funds may be frozen pending investigation.
* Partners and authorities may be notified, in line with legal and contractual obligations.
## Reporting violations
If you spot prohibited activity on the platform, email [compliance@lumx.io](mailto:compliance@lumx.io).
## Related resources
Jurisdiction tiers and where Enhanced Due Diligence applies.
KYC and KYB requirements for individuals and businesses.
Visibility rules and why pass-through structures are restricted.
Resolve RFIs raised during enhanced due diligence.