The problem of compliance with AML (anti-money laundering) requirements is a huge one, especially in the web3/blockchain space.
The serious deficiencies identified relate to the measures Payone GmbH undertakes to assess merchants’ business models in the customer acceptance process. The deficiencies also relate to the ongoing monitoring of traders. In particular, the anomalies in the risk assessment by Payone GmbH did not result in merchants being rejected or ongoing business relationships being terminated.
Background
Payone GmbH holds a permit as an e-money institution pursuant to Section 1 (1) No. 2 of the German Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz– ZAG). It provides payment services by accepting and settling payment transactions (acquisition business).
Electronic money institutions must ensure that they are not abused for money laundering or terrorist financing. Money laundering is the smuggling of funds from criminal sources into the legal financial and economic circuit in order to disguise their origin.
If there are increased risks of money laundering or terrorist financing, e-money institutions must comply with enhanced due diligence requirements. If the respective enhanced due diligence requirements cannot be met, the termination obligation pursuant to Section 15 (9) GwG shall apply.
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