KYC

The know-your-customer principle (KYC) is the verification of personal and business data of new customers of a financial service provider. This process takes place for the prevention of money laundering and terrorist financing on the basis of the Money Laundering Act.

The process must be carried out in order to activate the payment provider Payrexx Direct and Payrexx Swiss Collecting.

Proof of Identity

In order for the bank to pay out funds to you, they, as a financial service provider (payment facilitator), are legally obliged to conduct a so-called KYC process. For the purpose of completing the registration, a scan of an official passport (passport, ID [both sides], driver's license) needs to be uploaded.

General requirements for your website and your company can be found here - Link to legal Informations

Payouts

Banks have strict guidelines and usually only accept payments if the recipient of the transfer matches with the registered account holder. It is therefore important that the correct payment details and company type are specified when registering:

  • Sole proprietorships/enterprises, individual/sole proprietors are considered to be natural persons and transfers are therefore always made using the name of the registered "Company Representative" at Payrexx. The bank account must therefore be in the personal name of that person and not in the company name.

  • Other types of companies such as limited liability companies (Sàrl) or limited companies (SA) are considered legal entities and transfers are sent to the registered company name. The bank account also has to run in the company's name and must not be registered on a natural person.

  • Non-profit organizations such as associations or non-profit organizations must have an account in the name of the organization.

More about payouts

Prohibited Business

Our partners work with banks that set strict framework conditions regarding the type of business. This includes models with a high risk of default or product offerings that are not legally permitted in some countries.

Here you can find all unsupported business models in the individual countries

The use of Payrexx Direct in a manner inconsistent with its intended use is prohibited, as are the expressly prohibited uses listed in the Payrexx Service Agreement.

Detailed Definition

1. The Term

The Know-your-Customer Principle (KYC) is the verification of the personal and business data of new customers of a credit institution for the prevention of money laundering and terrorist financing on the basis of the Money Laundering Act 2008.

2. The Basis

The (KYC) requirement of European financial institutions is based on Art. 8 in the 3rd EU Money Laundering Directive and in Switzerland the Federal Act on the Prevention of Money Laundering and Terrorist Financing

3. Inspection Obligations

The information Payrexx is required to collect differs from country to country and typically includes (but is not limited to):

  • The individual creating the Payrexx account

  • The business associated with the Payrexx account

  • Any individuals who ultimately own or control that business

4. Consequences of Non-compliance

If the special regulations are not complied with, the financial companies are threatened with severe fines, prison sentences for senior employees or even the withdrawal of the business permit. In addition, the reputational risk should not be underestimated.