AML in E-commerce
Platforms that hold or move seller funds, offer wallets or facilitate cross-border payments fall under AML regulation or their payment partners' requirements. Controls focus on verified seller identity, screening and monitoring of payout patterns.
What KYC and AML controls look like in e-commerce
- Verified seller and payee identity.
- Sanctions and PEP screening of sellers and high-value buyers.
- Monitoring of payouts, refunds and collusive transactions.
- Record keeping and reporting.
Common challenges
- Trade-based laundering disguised as sales.
- Scale and speed.
- Multiple payment partners with differing requirements.
How IDWise supports e-commerce
The Continuous Trust Platform is configured to the regulator and risk profile of each e-commerce customer, combining the modules below in one journey with a complete audit trail.
Frequently asked questions
Is e-commerce subject to AML law?
Platforms that provide payment or wallet services usually are; others inherit obligations from their payment processors.
What is trade-based money laundering?
Using fake or mispriced sales to move value between colluding parties.
How does KYC support AML on marketplaces?
Verified seller identity enables meaningful screening and links suspicious activity to a real person.
Related terms
Talk to an IDWise specialist about your markets, regulators and risk controls.