Q&A with Wai Yenn Ng

Welcome to our Q&A session with the Wai Yenn Ng – MLRO of Paybis! With the crypto world constantly changing, compliance and ensuring the safety of our customers’ assets is more important than ever. We sat down with our MLRO to get a better understanding of their role in keeping our exchange above board, and to hear first-hand answers to some popular compliance questions.

What is crypto compliance

Crypto compliance is the process of adhering to laws and regulations applicable to the crypto world. Currently, the main laws and regulations that apply are predominantly to do with Anti-Money Laundering (AML), although we expect to see the sector evolve and more rules and measures being applied to this industry.

What is the role of the MLRO and why is it important?

The MLRO is responsible for the oversight of all activity relating to anti-money laundering in a company. An MLRO maintains an AML/CTF framework of policies, procedures, methods and tools, in compliance with the of the guidelines found in relevant legislation. They are also monitoring and overseeing their entity-wide implementation of AML/CTF framework. The role of an MLRO is an important one as prevents the company from being used to facilitate financial crime, money laundering or terrorist financing.

This is also an onerous role because it carries personal liability. Failure to discharge duties under relevant laws could result in the MLRO being liable to a fine and up to five years’ imprisonment.

What is identity verification or customer due diligence (CDD)?

Identity verification is a process where a service provider checks and verifies your identity. This is typically done by getting a customer to submit a copy of a government issued document, such as a passport or driving license and the provider will then run some checks on the document.

If you do not complete the identity verification process, you may not be able to access all the products and services which Paybis offers, for example Paybis Wallet.

Why does Paybis carry out Customer Due Diligence?

Paybis is a reputable exchange dedicated to meeting our regulatory obligations. Like all reputable crypto service providers, we have to comply with the regulatory obligations in the jurisdictions where we are licensed. These regulatory obligations include conducting Customer Due Diligence (CDD) checks on individuals using our services.

Conducting CDD allows us to stop the risk of our platform being used as a conduit for criminals looking to launder dirty money.

Why should I complete identity verification or customer due diligence (CDD)?

Completing identity verification or customer due diligence allows you to have a higher limit on your account with us. It also allows you to  have access to the full suite of our products and services, provided that the products and services are not prohibited in the country where you reside.

Why should I choose Paybis over another exchange which does not require me to complete identity verification or customer due diligence (CDD) at all?

Paybis is a reputable and established exchange that is licensed in both Canada and the US. In addition to being licensed and being committed to the highest security and compliance standards to keep your account safe, we also provide a best in class 24/7 customer care helpline.

On the other hand, exchanges which do not require you to complete any identity verification are typically unlicensed and unregulated, and therefore have no obligations to conduct these checks.

Why is my country is in Paybis’ Restricted Jurisdiction list. Can I still open an account with Paybis?

Paybis have decided to not provide services to customers residing in certain jurisdictions due to a number of factors which includes (but is not limited to) the level of financial crime risk posed and the controls which we have in place to mitigate those risks. If you are a resident in a Restricted Jurisdiction country, we regret to say that we will not be able to provide you with our services.

However, if you are only a citizen of a Restricted Jurisdiction and normally live in a country which is not in our Restricted Jurisdiction list, we may still be able to provide you with our services. If this applies to you and you are encountering issues signing up for our services, please get in touch with us via our Online Chat and our team would be happy to assist.

Can you accept crypto assets sent from my dark web wallet or a tumbler/mixer service?

As a reputable exchange and a responsible member of the global financial system, we regret to say that we cannot accept crypto assets being send from a dark web wallet, or assets which has been through a mixer/tumbler. This is because the ability to obfuscate the origin of crypto assets increases the likelihood for the crypto assets originating from tumblers to be tainted by money laundering, tax evasion and proceeds of crime.

In addition, new anti-money laundering rules such as the Travel Rule will make money laundering more difficult and the usage of anonymizing services less viable for people who want to interact with the wider crypto community.

What is the Travel Rule?

Travel Rule is a FATF guidance which requires institutions to pass along information regarding electronically facilitated transactions. Information typically includes the name, date of birth and national identity number of the sender; and can sometimes include name and account number of the recipient.

This is a system that is already in place for bank and money transfers, and is now being applied to crypto asset transfers.

What checks are done on the crypto assets/tokens offered on Paybis’ website and does Paybis endorse them?

We assess the assets that we provide to satisfy ourselves that they meet our minimum standards. In some cases and where available, we will also assess the project against the White Paper that they publish. However, making the crypto assets/tokens available on our exchange does not mean that we endorse or recommend them. You should do your own research and reading to make sure that you understand what you are purchasing and that the assets/tokens will meet your needs.

Written by

Wai Yenn Ng

Head of Compliance & MLRO of Paybis