What legal and regulatory challenges have payments, credit, and funding startups encountered or expect to face?
Payments
Asked by Question Bot06/Jun/20151 answer
1 Answer
F
Faisal Khan
Answered 06/Jun/2015
The most common regulatory issue startups and/or payment providers, et. al. face is regulatory compliance (after licensing).
Not just taking the US as an example, but world over, payments and financial payment instruments & networks are licensed (in most cases). The issue can be complex, but if one were to read up on it, it is relatively easy to understand.
Licensing is simply a means to a start if you are going to be working in a particular field. Depending on where in the world you might be operating in, a license and/or a NOC (No Objection Certificate) may or may not be required by your local, state or federal regulator.
After having obtained the licensing, one of the most important and cumbersome task to handle, is regulatory compliance.
Such can include
Not just taking the US as an example, but world over, payments and financial payment instruments & networks are licensed (in most cases). The issue can be complex, but if one were to read up on it, it is relatively easy to understand.
Licensing is simply a means to a start if you are going to be working in a particular field. Depending on where in the world you might be operating in, a license and/or a NOC (No Objection Certificate) may or may not be required by your local, state or federal regulator.
After having obtained the licensing, one of the most important and cumbersome task to handle, is regulatory compliance.
Such can include
- Reporting: providing periodic reporting (usually, very specific formats, etc.),
- Internal & External Audit Checks
- KYC / AML etc. type checks.
- Fraudulent transactions checks
- Risk Mitigation