Transpact.com Account Verification Process

Discussion in 'Domain Industry News' started by FairTrial, Jan 5, 2017.

Replies:
4
Views:
371

  1. FairTrial

    FairTrial Member Transpact Staff

    Joined:
    May 26, 2015
    Messages:
    19
    Likes Received:
    21
    If you have any specific EU or Transpact.com related comments or questions related to Account Verification, please post them on this thread and not the Escrow.com thread.
     
    The opinions expressed on this page by users and staff are their own, not those of NamePros.
  2. Start

    Start Established Member

    Joined:
    Dec 29, 2015
    Messages:
    43
    Likes Received:
    22
    Thanks for your replies in the other thread.

    I was writing my reply and then after I posted it, I saw your post linking to this thread... so I'll ask it here too, since I'm curious whether Transpact has some flexibility:



    I understand the need for verification, but in the case of established corporations, there should be some flexibility on a case by case basis... like for US or Canadian companies (and probably UK too?), you can usually look-up corporate info online.


    FLEXIBILITY?

    So how about this scenario:

    - A company gives you the URL to their online corporate info listing at the government database web site.

    - And you see that the disbursement payment wire transfer is going to that company name, to a US/Canadian bank account (with the bank account postal address also matching the government database listing).

    - And if it helps, you can see their web site and the fact that it's a long-established company.


    ...so shouldn't that be good enough? (I would be okay with that) And I think it complies with the rules you need to follow.

    And in that case, why would you also need personal photo ID?


    HUGE CORPORATIONS?

    Plus, if the buyer is a huge corporation (perhaps even publicly traded, or private but owned by a billionaire), whose photo ID do you ask for anyway? Some of those CEOs get paid huge salaries, and I can't see them being very comfortable sending their personal documents on behalf of a corporate purchase?
    (and if you would ask a billionaire owner because they are the ultimate beneficiary, they would be even less comfortable)


    So anyway, I think there should be an exception regarding personal ID for the corporate scenario I describe above.

    I understand if it's simply easier to say on the page "Everyone needs to provide personal photo ID"... but if a Transpact customer contacts you directly regarding such a scenario, can you consider it on a case by case basis?


    Thanks in advance for your reply :)
     
    Last edited: Jan 5, 2017
  3. FairTrial

    FairTrial Member Transpact Staff

    Joined:
    May 26, 2015
    Messages:
    19
    Likes Received:
    21
    OK, Firstly, if we are talking about a public traded company - which has shares listed on a major share market, then the extra verification is normally not required.

    Secondly, of course we already access publicly accessible registers to confirm information supplied.

    Thirdly, if the client has already traded with us then we will not require these checks (as we will already have carried them out).

    But for privately held companies, even huge ones, EU law states that we must determine both the underlying ultimate beneficial owners, and those who actually ultimately control the company on a day-to-day basis.

    So Mr X could be listed as a shareholder, but he could be holding his shares on trust or as a representative of Mrs Y. Mrs Y would not be recorded on most Government or other schedules (the UK's Companies House register is a new exception to this rule).

    Further, if the company pays attention to what Mr Z says, even if Mr Z is neither an executive nor a director nor an employee, then Mr Z needs to be listed.
    But Mr Z will not be present on any Government or other schedules (again, the UK's Companies House register is a new exception to this rule).

    For a financial firm to deal with a client, it MUST know that Mrs Y and Mr Z are involved.

    Hope this explains why your suggestion is helpful, but not sufficient, in many cases.
     
  4. Start

    Start Established Member

    Joined:
    Dec 29, 2015
    Messages:
    43
    Likes Received:
    22
    Thanks very much, I appreciate your fast & detailed reply.

    Hmm, I see what you mean regarding the Mr. X, Mrs. Y, Mr. Z types of issues.

    It's good that you can at least adjust for publicly traded companies, because otherwise it would add a lot difficulty for closing on a sale if some high-level executive would have to provide personal ID.


    However, in general, do you really need to keep personal IDs on file?

    If you can ask for ID, view it, confirm it is okay, and then delete it, that could help alleviate some privacy/security concerns (regarding people's personal IDs being stored on a server somewhere... I understand from your other posts that Transpact specializes in security, but customers learning about you for the first time will still be wary).
     
    Last edited: Jan 5, 2017
  5. FairTrial

    FairTrial Member Transpact Staff

    Joined:
    May 26, 2015
    Messages:
    19
    Likes Received:
    21
    We already do where we can.

    The EU regulations I have already referred to on this and the previous thread mandate us to retain some ID verification in some circumstances for five years after the transaction has ended (before you ask, sorry but I cannot go into detail about our security processes or the relevant criteria on a public forum).

    Those same EU regulations also mandate us to delete and destroy any data held at the end of the five years.
     

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!

Share This Page

Loading...