The Ultimate - Alternate Payment System (APS) Pt.4 of 6
As we continue to build the ‘Ultimate APS’ we need to take a look at what kind of customer verification we should adopt. How do we know who our customers are and do we need to ask each of them the source of their funds?
Everyone with more than one dollar in their pocket should understand that in today’s world it is important to know who your clients are… I’m not an expert in this field, so comments are invited on this post. Please don’t use this brief bit of information as a legal outline for any business, its just a frank discussion on what I might suggest to use as a general verification method for our fictional ‘Ultimate APS’.
I am trying to take a quick comparison of the existing KYC/Verification rule sets which are now in operation. We will see what is working, who might be too liberal and what companies are going a bit overboard and creating a mountain of red tape for customers. Excessive verification creates a road block to using that currency in global online commerce. Your local requirements may be prohibitive for other jurisdictions around the world. However, minimum verification invites problems and misuse of the system so we must find a common middle ground which will satisfy both sides of the equation. Here is a quick look at some popular system and a list of items we can use.
I have already established that Gold should is the preferred backing behind our digital dollars. Plus we have also now understand that the OUR digital currency requires funding through a variety of methods accessible to all Internet users not just bank and credit card holders. Cash, prepaid cards, vouchers should all be included.
Now lets take a look at what kind of verification we’ll need to ‘know our online customers’. For this comparison, I’m using
In my opinion, even digital currencies such as e-gold, Webmoney, Pecunix, 1MDC and a few others, which are purchased through third party agents, SHOULD be required to know who is using their money and for what purpose….to a certain degree.
Some if not all of these companies at one time in their web operations (a few still do today) may have offered the argument that since the primary currency company does not handle the cash-to-currency physical transactions they should not need to KYC or verify who is using their accounts. In other words, its the third party independent agent accepting retail client funds and not the currency issuer, so the currency issuer is free from KYC responsibility. Sort of like the US dollar, the government issues it but does not track each user, its the banks responsibility to know who their clients are…. However, in today’s world, I believe that any company offering a digital money account needs to satisfy certain KYC requirements to PREVENT misuse of their accounts. All money accounts, online or not, need protection from International Money Laundering and Terror Financing.
It’s pretty easy to explain, if you offer strangers the ability to move money through your system, you should either (1) Know exactly who they are (2) Have made a monumental effort to find out exactly who they are and be able to disclose that information privately if requested by a court. In operating our new Ultimate APS we need to offer clients a middle ground between convenience and meeting International standards used in the prevention of money laundering, terror financing and online crime.
The Ultimate - Alternate Payment System (APS) Parts 1, 2, 3
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POSTED IN: Digital Gold Currency, Emerging $ Tech, Online Payments
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