What KYC checks does PayPal perform in the US and other regions?
Payments
Asked by Question Bot07/Oct/20111 answer
1 Answer
F
Faisal Khan
Answered 07/Oct/2011
First of all, no method is fool-proof. What KYC aim to achieve is predominantly a physical name matching to the person who is opening the account.
PayPal itself does not do the physical name matching (identification checks), but relies or piggy-backs on the laid out ruleset in US and other countries where it was performed by some other financial institutions (namely: Bank / Card Issuer).
PayPal's sign-up requires you to have a Bank Account and a Credit Card. Both this entities have done some form of a KYC check (particularly the bank).
Many assume that KYC is just the name matching, etc. That is partially correct. A large portion of the KYC element is to monitor the financial transactions being done by the client.
The second issue is of AML and currency transaction checking, etc. This is done by various checks and balances within the PayPal ecosystem to ensure that the AML part of KYC etc is being adhered to. (See reference article below - How does PayPal prevent money laundering?)
References:
PayPal itself does not do the physical name matching (identification checks), but relies or piggy-backs on the laid out ruleset in US and other countries where it was performed by some other financial institutions (namely: Bank / Card Issuer).
PayPal's sign-up requires you to have a Bank Account and a Credit Card. Both this entities have done some form of a KYC check (particularly the bank).
Many assume that KYC is just the name matching, etc. That is partially correct. A large portion of the KYC element is to monitor the financial transactions being done by the client.
The second issue is of AML and currency transaction checking, etc. This is done by various checks and balances within the PayPal ecosystem to ensure that the AML part of KYC etc is being adhered to. (See reference article below - How does PayPal prevent money laundering?)
References:
- Know Your Customer: http://en.wikipedia.org/wiki/Kno...
- How does PayPal prevent money laundering?