Check why we are verifying your company
Ever wonder why we verify your details and sometimes ask for your personal or company documents? Let us explain!
In the world of online finance, you’ll come across various acronyms. Two of them are very important for the safety of your money and our services: KYC and AML. They might sound a bit mysterious, but they’re not! Plus, they are legally required.
KYC stands for “Know Your Customer.” It’s simply the process of verifying our customers’ identities. When you register with us, we ask for information and documents, like an ID card, passport, or documents confirming you have the authority to make decisions for your company.
Why do we do this?
· verifying your identity helps us protect your funds from fraud.
· to prevent illegal activities: KYC makes it harder for people to use our services for money laundering or other crimes.
Legal basis for KYC: The requirements for KYC mainly come from anti-money laundering and counter-terrorism financing (AML) regulations, both at the national and European levels.
AML stands for “Anti-Money Laundering.” Money laundering is the process of hiding the origin of illegally obtained funds to make them look legitimate.
Why is this important?
· we protect the financial system: by following AML procedures, we help fight organized crime and corruption.
· we ensure transaction security: thanks to AML, we can detect and react to suspicious transactions, protecting all our customers.
Laws in Poland and the European Union require financial institutions, like PayU, to use KYC and AML procedures. We must do this to:
· operate legally: not following these regulations can lead to serious consequences.
· ensure our customers’ safety: we want our platform to be a secure place for making payments.
· build trust: through transparent procedures, we show that we take the security of your finances seriously.
Thanks for your understanding! If you have any questions about KYC, AML, or the legal basis for these regulations, please contact our customer support team. We’re happy to clear up any doubts.
Regulations concerning counteracting money laundering and financing of terrorism are key to ensuring financial security. Here are the most important legal acts:
European level:
· Directives of the European Parliament and of the Council on the prevention of money laundering: Successive directives (the one currently in force is the 6th AML Directive – Directive (EU) 2018/1673 of the European Parliament and of the Council of 23 October 2018 on combating money laundering by criminal law, and the 5th AML Directive – Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU) set the standards for member states in the scope of AML and KYC. They impose on financial institutions the obligation to identify and verify customers, as well as to monitor transactions.
National Level (Poland):
· National Level (Poland):The Act of 1 March 2018 on Counteracting Money Laundering and Financing of Terrorism, Journal of Laws 2018, item 723. This is the most important Polish legal act regulating the issues of AML and KYC. It specifies the duties of obliged institutions (including payment companies) in the scope of customer identification and verification, risk assessment, reporting of suspicious transactions, and many other aspects related to counteracting money laundering.