Anti-Money Laundering Management Requirements for Overseas Acquirers
These Anti-Money Laundering Management Requirements ("AML Requirements") apply to Alipay overseas cooperative acquirers having entered into an Alipay Service Contract with Alipay.com Co Ltd ("Alipay").
These AML Requirements set out the responsibilities and obligations of the Overseas Acquirers to have in place appropriate systems and controls to manage risks associated with anti-money laundering and anti-terrorism financing in accordance with applicable laws and regulations.
All Overseas Acquirers must ensure that their business operations and its Secondary Merchants comply with these AML Requirements.
Unless otherwise defined herein, capitalized terms used in this document have the meanings given to them in the Alipay Service Contract between the Overseas Acquirer and Alipay.
1) "Due Diligence" means investigating the business scope, major upstream suppliers and downstream target clients and the actual controller of Secondary Merchants.
2) "Financial Sanctions" means restrictive measures imposed on individuals or entities in an effort to curtail their activities and to exert pressure and influence on them, including but not limited to targeted asset freezes or prohibitions from providing any financial services to others.
3) "Secondary Merchants Identification" means providing to Alipay current and complete information about the Secondary Merchant to properly identify merchants.
4) "Overseas" means all countries and regions outside of PRC.
5) "Overseas Acquirer(s)" means acquirers or banks which have entered into an agreement with Alipay to provide cross-border payment service to Secondary Merchants.
6) "Secondary Merchant" means an overseas Secondary Merchant who does not directly enter into an agreement with Alipay and obtains access to Alipay Services through its Overseas Acquirer.
7) "Suspicious Transaction Report" means a transaction report recording circumstances where Alipay discovers, or suspects on a reasonable basis, that a Secondary Merchant, the funds or any other assets of a Secondary Merchant, or the Transactions conducted (or to be conducted) by a Secondary Merchant is connected with money laundering, terrorist financing or any other criminal activities, in accordance with applicable laws and regulations.
8) "UBO", Ultimate Beneficial Owner, means the natural person who controls the company or holds more than 25% equity interests or voting rights, directly or indirectly, in the company or controls the company by way of personnel or financial controlling.
1) The Overseas Acquirers shall set up a complete management mechanism for managing anti-money laundering, anti-terrorism financing and financial sanctions, including rules for Merchants' Identification (including Due Diligence), lists screening and suspicious transaction monitoring mechanism, provided that anti-money laundering obligations required to be performed by the Overseas Acquirers in accordance with applicable laws and regulations.
2) The Overseas Acquirers shall set up and comply with a management mechanism for Secondary Merchants' identification recognition (including Due Diligence) provided that no anti-money laundering obligations required to be performed by the Overseas Acquirers in accordance with applicable laws and regulations.
3) The Overseas Acquirers should strictly abide by the sanctions laws and regulations in the jurisdiction where the business operates. The business related to Alipay cannot be provided to or involve any sanctioned countries or regions, such as Iran, Syria, Sudan, North Korea, Cuba, and Crimea.
4) When Overseas Acquirers suspects the Secondary Merchant is engaging in or being involved in money laundering, terrorist financing and/or other financial crime, Overseas Acquirers must take immediate measures that comply with local regulatory requirements against relevant Secondary Merchants.
5) According to the compliance requirements of anti-money laundering, anti-terrorism financing and financial sanctions regulations, the Overseas acquirers should cooperate with Alipay to conduct necessary investigations and due diligence. If necessary, Alipay must submit Suspicious Transactions Reports to the relevant regulator, or take appropriate measures for money laundering risk control including closing accounts, freezing terrorist related funds, and restricting transactions without notice to the Overseas Acquirer.
1) KYC Management on Secondary Merchants
The Overseas Acquirer must establish appropriate systems and controls in compliance with these AML Requirements and applicable laws to efficiently and effectively complete Secondary Merchant Identification (including due diligence) including but not limited to completely register and retain all information of the Secondary Merchants, and return the relevant information as requested by Alipay. The Overseas Acquirer must at all times, monitor, conduct investigations on the Secondary Merchants (where necessary), and keep appropriate management records.
2) List Screening (In accordance local regulations)
a) Sanctions list screening should be conducted when onboarding Secondary Merchants including but not limited to collecting and verifying the name of each Secondary Merchant, its legal representatives and their UBOs, etc.
b) Maintain effective control and mechanism to screen Secondary Merchants against the list of sanctioned countries or regions.
c) Retain complete records for all List screening and processing procedures.
3) Suspicious Transaction Monitoring (only applicable to Overseas Acquirers that are subject to anti-money laundering obligations in accordance with local regulations)
a) Maintain effective controls to monitor operations conducted by Secondary Merchants to identify any suspicious transactions
b) Submit Suspicious Transaction Reports to the local regulatory authorities where necessary.
c) Retain accurate and complete records of all suspicious transactions analysis and reporting.
Updated on April 30, 2019