June 24, 2019 — 4 min read
Preparing to register for your XE Money Transfer account, and considering starting process of initiating an online money transfer? XE is mandated by international financial regulators to collect and verify certain dentification documents. This is to comply with international Anti-Money Laundering regulations, which are enforced by regulatory organizations, such as:
● The Australian Securities and Investments Commission (ASIC)
● The New Zealand Financial Markets Association (NZFMA)
● The Financial Transactions and Reporting Analysis Centre of Canada (FinTRAC)
● US Department of Treasury Financial Crimes Enforcement Network (FinCEN)
● The Financial Services Authority in the UK
After you securely upload your documents to XE, our compliance team uses their resources to review them in accordance with Know Your Customer (KYC) regulations. Business transactions are governed by, you guessed it, Know Your Business (KYB) regulations, though these regulatory requirements are generally gathered under the umbrella term KYC.
KYC refers to the steps taken by a financial services providers like XE to:
Establish and verify customer identity
Understand the nature of financial activities
Protect individuals and businesses who are carrying out lawful transactions.
You'll often see the KYC acronym preceded by 'e' for electronic.
Much like how you go through security before you board a plane for an overseas trip, the KYC process simply confirms your identity and the nature of your transfer. Odds are, your credentials will be reviewed, your reason for transfer will be cleared, and all will be well.
When financial authorities identify and halt identity thieves before they transfer money overseas before they act, it means:
Fewer cyber criminals are vicitimizing consumers and businesses
There are precedents and deterrents against money laundering and identity theft
Justice is served, consumers and businesses are protected
Transactions are completed with expected speed and reliability
Here is a screenshot of the account page where XE customers upload their documents securely. If you are unsure which documents to use,
When XE complies with these regulations, it helps our customers, business partners, and employees by:
Reducing the occurrence of fraud in the financial services industry as a whole
Helping to assess and mitigate risk
Blocking illegal payments or money laundering before they happen
Online transfer services like XE.com are increasingly using purpose-built commercial tools to expedite the KYC identification verification processes for smaller transactions. For larger transfers, however, we are obliged by international to manually review identification documents.
In some countries like the United States some automated verification can be sourced by specialised AML technology providers that have access to billions of records, from around the world, such as:
Cellphone and utility invoices
Consumer marketing databases
Depending on the size of your money transfer, online transfer services like XE.com can sometimes use purpose-built industry tools to expedite the identification verification process. For larger transfers, however, we are obliged by international to manually review identification documents.
The sooner you can provide clear, authentic identification documents through your account authentication page, the faster we can process your transfer, and get your money where it needs to be. Much like when you are travelling to another country you have to go through customs and security checks and inspections, KYC processes are preventative measures to halting unlawful transactions from happening.
Now you can do your part to ensure a seamless transfer experience, so sign up for an XE Money Transfer account, and request a free, no obligation quote today!
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For more information about XE, please click here: Regulatory Information