KYC For Payment Service Providers
Compliant KYC Solutions for Payment Service Providers
With the upward trend of the online or remote businesses, payment service providers (PSPs) have played a more important role to process online payments. PSPs process many transactions everyday, and it’s required for PSPs to ensure legitimacy of parties involved in transactions.
Reserve Bank of India (RBI) has released Guidelines on Regulations of Payment Aggregators and Payment Gateway on 17th March, 2020 to regulate the activities of these payment service providers. KYC / AML guidelines are included in the mandated merchant onboarding process to ensure compliance to Know Your Customer (KYC) / Anti-Money Laundering (AML) / Combating Financing of Terrorism (CFT) guidelines.
The EU member states implemented the Fifth Anti-Money Laundering Directive to tighten the anti-money laundering and terrorist financing regulations towards anonymous issuing of electronic money products in the beginning of 2020; not more than 150 euros can be issued anonymously electronically online, cash redemption amount is limited to 50 euros etc.
Application of KYC
PSPs are responsible for ensuring the legitimacy of companies using their services and will not harm any party’s financial conditions or reputation. PSPs have the right to reject providing services to any suspicious business entities. KYC is usually included in the merchant onboarding process of PSPs. Each PSP establishes different KYC policies. During most of the KYC procedures, PSPs will verify certain information of the business/ individual.
- Documentation issued by relevant jurisdictions, shareholder registration and statement on the actual beneficiaries, individual KYC and certified proofs of identity of real beneficiaries and directors.
- Online point of sale contract signed by your customers.
- For a start up company with no commercial history, business plan will be required.
- Details of the bank accounts that will process transactions using PSPs.
BLOCKPASS
A Complete Solution Portfolio
Blockpass offers a multi-product portfolio that allows merchants to choose the scale of solution that applies to each business and jurisdiction. Whether a business wants only Face Match certification, or if they also require KYC, AML or enhanced SLAs, Blockpass is able to offer a full range of identity verification solutions.