Compliance for brokers — solution by XCritical

Compliance is the necessary process of client verification. It is crucial to organize this option as efficiently as possible for each broker. Even if the company operates in an unregulated market, it must meet modern standards to occupy a decent niche in the Forex brokerage market.

Brokerage account transactions are the favorite technique of fraudsters to launder the money and avoid taxes. In addition, for different jurisdictions, specific categories of residents are prohibited by law to work in financial markets. That is why the broker should pay maximum attention to establishing the Compliance process.

Compliance for brokers — solution by XCritical

What should the Compliance be?

In fintech, several mechanisms allow us to verify client documents. The XCritical platform supports all available options, and brokers can build the business model most advantageously.

Clients mustn’t have difficulties providing the necessary data for the Compliance: personal, tax, and financial (if the regulator requires it). The process of loading documents should be easy, fast, and convenient.

In simple words, the verification of clients’ personal information and necessary data can be done in two ways or by combining them:

  1. Manually. The responsibility for verifying documents is assigned to the employees or Compliance officer directly. In this case, secure uploading, storage, and limited data viewing are necessary to protect the client’s interests and prevent information leaks.
  2. Using professional software. It is a faster and preferable way. Special software verifies the client in a few minutes and does not require the work of the Compliance team.

The XCritical platform allows you to use both methods successfully. The special Compliance module works on an AI basis. In addition, it has integration with KYC/AML providers. This module allows to speed up the process of user verification. Using it, the broker can significantly reduce the costs and burden on staff.

XCritical is a flexible platform, so it is easy to customize the settings. The system developers can create an integration with the right AML provider or payment system in the short term.

Due to this, the broker can work in any jurisdiction, complying with all requirements of the regulators. Its main task is to create the most comfortable conditions for customers.

The transaction confirmation process is also essential. The broker must be 100% sure that the transaction is performed by the client, not by any third party. It becomes possible when sending transactions to customers for verification and signature, and the simpler process, the easier it is to work with the broker.

If the company provides reliable Compliance, it will be able to work without problems with any supplier of payment systems. This is especially important when depositing/withdrawing funds using bank cards. XCritical supports working with the PCI DSS standard at a high technical level.

Compliance and cryptocurrencies

The Compliance process has long become familiar to most users. However, the requirements are becoming more stringent every day. The popularization of cryptocurrencies also facilitates this. Now every self-respecting broker adds the option of depositing an account with digital coins.

Not only Forex brokers but also regulated cryptocurrency exchanges use XСritical solutions. With the Compliance module, it is possible to make the verification process fast and reliable and expand the company’s capabilities when working with fiat and cryptocurrency payment systems.

XCritical system has everything necessary to ensure reliable and effective Forex-brokers operation. At the same time, the platform does not stand still. XCritical is constantly improving and updating.

Developers quickly integrate almost all new technology into the platform. Thanks to this, brokers, who are using XCritical, can apply the most advanced and effective solutions from the brokerage industry and fintech.

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About author

Arseny Kudrin

Publicist, trader

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