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KYC

Learn about the KYC process in Paymennt.

What is KYC?​

Know Your Customer (KYC) refers to the process of a financial service provider, such as a bank or a payment service provider like us in identification and verification of customers before initiating any business transactions.This is a key component of Anti-Money Laundering (AML) regulations, which are designed to combat financial crimes. KYC helps us understand our merchant customers and their financial behaviors to mitigate risks associated with fraud and illegal activities.

KYC in Paymennt​

Paymennt implements a comprehensive Know Your Customer (KYC) process to maintain security and regulatory compliance throughout its operations. The KYC process is integral to Paymennt’s onboarding, ongoing monitoring, and periodic reviews. Here’s a detailed look at how KYC is conducted within Paymennt.

1. Onboarding KYC​

During the onboarding phase, Paymennt collects and verifies a variety of documents and information to establish the identity and legitimacy of its applicants and shareholders.

The below documents are collected during the onboarding process for KYC purposes.

  • Identification documents —
    • For applicants: Applicants must provide Emirates ID to verify their identities
    • For shareholders: Shareholders must provide both passport and Emirates ID (for UAE residents) to verify their identities
  • Business documentation — To confirm the legitimacy of the business, Paymennt requires:
    • Business trade license
    • Proof of online presence (e.g., website, social media profiles)
    • Power of Attorney (if applicable)
    • Memorandum of Association (MoA) (For a company with 2 or more shareholders)
    • Bank account proof such as a Bank statement within 6 months
  • Additional documents — Depending on the merchant’s category and risk level, additional documentation may be requested, such as:
    • Lease contract for the business premises
    • Other relevant documents based on the nature of the business and associated risks

2. Ongoing monitoring​

After the initial onboarding, Paymennt maintains an active monitoring system to oversee transactions and ensure ongoing compliance. This includes:

  • Transaction monitoring — Regularly reviewing transaction patterns to detect any unusual or suspicious activities.
  • Sanction checks — As part of the KYC process, Paymennt performs comprehensive sanction checks to ensure that neither applicants nor shareholders are listed on any international sanctions lists.
  • Behavioral analysis — Analyzing the behavior of customers and merchants to identify potential red flags that could indicate fraudulent or illicit activities.
  • Data security — Ensuring that all collected KYC data is securely stored and protected against unauthorized access.

3. Periodic KYC reviews​

To ensure that KYC information remains accurate and up-to-date, Paymennt conducts periodic reviews of KYC documentation. This process involves:

  • Document updates — Requesting updated copies of previously submitted identification and business documents to verify their current validity.
  • Risk reassessment — Reassessing the risk level associated with each customer or merchant based on their updated information and transaction history.
  • Regulatory compliance — Ensuring that the KYC process aligns with current regulatory requirements and industry standards.