Meet a Government Requirement and Improve the Customer Experience at the Same Time?
FinCEN’s Beneficial Ownership Rule Took Effect on May 11, 2018
The safety and security of the payments system is critically important to every player in the acquiring chain, from the card networks to the acquiring financial institutions to the merchants and everyone in between. Keeping the system safe from bad actors is the responsibility of those who are enabling access to it.
A recent change to a rule casually known as “beneficial ownership” is adding to financial institutions’ responsibilities on this front. It’s intended to make sure that these entities — and the businesses conducing on-boarding activities on their behalf — know the people and businesses they’re dealing with.
But for payment facilitators (PFs), who are laser-focused on merchant experience, new compliance aciviies can be somewhat dauning. A beter, more fricionless boarding process is the PF’s lifeblood. So how do you adhere to new rules without making the onboarding process more unwieldy?
Fortunately, the PF model is increasingly supported with technology and expertise to help meet both compliance obligations and merchant expectations.