When dealing with payments locally or internationally, AML compliance is critical. We built Payment Rails with compliance in mind, ensuring we can provide a frictionless user experience to our clients.
How does it work?
Payment Rails automatically screens each recipient record when added to the platform for the first time, and then each time a payment is sent. This ensures that every payment made is legal and compliant and will be processed by our global banking partners.
Each recipient is screened against global watchlists including but not limited to: OFAC (Office of Foreign Assets and Control), OSFI (Office of the Superintendent of Financial Institutions) Anti-Terrorism Financing List, United Kingdom HM Treasury Financial Sanctions Consolidated Lists, European Union (EU) Consolidated List, Australian Financial Sanction Consolidated List, and various other global sanctions lists where relevant.
What happens when a recipient gets flagged?
In the case that a recipient/payment is flagged due to a "hit" on one of the AML watchlists, we provide an automated process for the recipient to complete to confirm if the "hit" was truly positive or was, in fact, a false positive. This process may require additional information or require that the recipient provides additional KYC (Know your Customer) due diligence documentation.
RiskScore is the first step in our future Fraud Prevention product that will be built-in throughout the whole dashboard. It is loosely based on recipient session login to widget or portal using info such as: IP Address, geolocation info, email address, device fingerprint, known bad user lists, proxies, etc.
Score between 1-99, 1-50 = green (low risk), 50-75 = orange (medium risk), 75-99 = red (high risk). If you see red, maybe have a 2nd look. It is not a reason on its own today to believe a recipient is sketchy, just an indicator that something might not be right.
Please see: PayPal has their own AML screening and we only facilitate PayPal payments but do not do their background checks.
If the email entered is not associated with a PayPal account, PayPal emails that address an invites them to create a PayPal account to receive their money.
PayPal also operates it's on AML / CTF program, which includes ID verification, among other checks, during their onboarding process