IDPAY is the first global association uniting remittance, FinTech, mobile and traditional financial & identity service providers with government regulators and law enforcement in a public/private partnership to manage risk.
As a Public/Private partnership, IDPAY will develop a Financial Services Trust Framework creating a standardized process for identity verification and financial supply chain management including consumers and agents. This multilateral legal and technical agreement will reduce cost, risk and friction through better Know Your Customer (KYC), industry trust and supporting Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) efforts.
The Trust Framework will address some the industry’s biggest challenges:
- De-Risking: A significant and growing barrier to financial inclusion. “A significant portion of MTOs declared that the MTO principal or its agents can no longer access banking services.” – World Bank
- Digital Payment Vulnerabilities: MtGox lost a staggering $350 million in 2014, Bitcoinica for $28 million in 2012, and in 2016 a string of incidents has already occurred, starting with Cryptsy losing $10 million, The DAO $50 million, and Bitfinex for $65 million.
Regulatory/Law Enforcement Focus on Remitters: Remittance companies globally, especially smaller ones, are often fined after submitting suspicious activity reports (SARs). They have little defense. IDPAY is working with U.S. Treasury, FATF, FINTRAC, World Economic Forum and other agencies.