Money Laundering is the process of making illegally generated money appear legal by concealing its illicit origins. Anti-Money Laundering regulations prevent legal businesses associating with individuals involved in money laundering or other predicate crimes such as corruption & bribery, fraud, organized crime, drug & human trafficking, and terrorism.
THE KYC PROCESS (KNOW YOUR CUSTOMER)
To ensure that Nayax is not aiding any money launderers, the company engages in enhanced due diligence to verify that none of its clientele is acting illegally or carrying out any predicate crimes. This compliance process is called “Know Your Customer” or KYC for short.
Nayax is required to collect customer identity information to verify our clientele’s legitimacy, which also includes the completion of a form detailing the customer’s business details and the authentication of documents and beneficiary ownership.
The compliance process is completed before any financial relationship is established with a new client, and no funds can be transferred until the KYC is completed and all documents are submitted and checked.
Nayax will screen customers names against sanctions lists such as the Israeli Ministry of Defense Terror list the US Specially Designated Nationals and Blocked Persons list (SDN), and a consolidated list of people, groups, and entities who are subject to EU financial sanctions. If any customer names are matched a business relationship will not be established and a file will be reported to the relevant enforcement authorities.
The questions and documents asked of customers for the KYC process are in accordance with the legislation instituted by the EU as outlined in these two directives:
- Directive (EU) 2015/2366 of the European Parliament and of the Council on payment services in the internal market
- Directive (EU) 2015/849 of the European Parliament and of the Council, on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing