Compliance
KYC, AML, licensing, and reporting in global fintech operations
Compliance follows the money
Tokenisation moves settlement faster; it does not remove licensing. On-ramp touchpoints remain KYC/AML gates; off-ramps trigger sanctions screening and transaction reporting—whether the asset is USDC, EURC, XOFC, or another supported stablecoin. Know which entity in your stack holds the e-money or payment institution licence in each jurisdiction.
Core programme elements
| Element | What to plan for |
|---|---|
| Customer identification | Verify before first deposit |
| Sanctions screening | Batch and real-time on payout |
| Transaction monitoring | Rules on amount, velocity, corridor |
| Record retention | Align off-chain retention with law |
| SAR filing | Escalation workflow with legal counsel |
Your compliance programme owns policy and reporting. Infrastructure partners provide audit trails to support investigations—they do not replace your compliance officer.
Regional context
Regulators worldwide govern mobile money, payment services, and cross-border flows—WAEMU and BCEAO in West Africa, EU PSD2, US MSB rules, and national banking commissions elsewhere. Requirements vary by corridor. Consult local counsel—this guide is educational, not legal advice.
Partner due diligence
When integrating LP, payout aggregators, or international banking partners, review their licences and SOC reports. Contractual liability allocation should match operational reality.