Exchanges will not take the risk of under-interpreting money laundering signals because that could result in the loss of their licenses.
Nobody is asking them to do "under-interpret money laundering signals." We're just asking them to be smarter and more fair about the way that they go about doing it.
FATF are also not the ones telling KuCoin what specific policies they need to implement in order to remain legal. Read their recommendations for yourself:
https://www.fatf-gafi.org/media/fatf/documents/recommendations/12-Month-Review-Revised-FATF-Standards-Virtual-Assets-VASPS.pdfI know people who have deposited thousands of dollars on other exchanges like eToro, Binance and Coinbase and withdrawn them the next day without any problems, so obviously its not a universal implementation. As I said earlier it is simply KuCoin's interpretation of how AML policies should be implemented.
They take one day for every response. It has been 6 days now.
I am down over 15% while I still have to pay TAX on the full amount the moment I received it.
If they don't release your coins within the next week or so, let me know and I will put a red tag on their account.
OP: I wish I could help you more but XMR is a tricky situation since it is not traceable on its blockchain, and thus much harder to prove that your source of funds is legit. However, having read this:
Winnie, Aug 31, 2020, 12:40 AM GMT+8
Dear KuCoin User,
...
Besides, we would like to point out again, that your funds are ABSOLUTE SAFE with KuCoin, no matter your funds are acceptable to us or not. If there really does exist some risky part of your wealth that KuCoin deemed as unacceptable and decided to terminate business relationship with you, your funds would still be ABSOLUTELY SAFE and would be released to you within 5 working days since the termination decision been made. Normally, we would wait for our customers to submit their KYC, ECDD and other supplementary documents for 15 working days. If customer still refuse to provide any information we required, a decision of terminating business relationship would be put forward.
Sounds like they are saying they will indeed release your funds back to you, so that's positive. That was 5 days ago. So you should be getting your funds released shortly (2-3 days) granted you clarified with them that you want to "terminate your business relationship" with KuCoin.