Risk Management Policy

WHITECAPITAL applies a risk management system when onboarding merchants, reviewing agency instructions, monitoring operations and interacting with banks.

Main risks

WHITECAPITAL considers:
compliance risk;
AML/CFT risk;
sanctions risk;
fraud risk;
chargeback risk;
refund risk;
settlement risk;
operational risk;
supplier risk;
reputational risk.

Merchant risks

Merchant risks include:
unclear business model;
absence of public documents on the website;
high level of refunds;
high level of chargebacks;
buyer complaints;
hidden processing of payments for third parties;
mismatch between declared and actual activity;
prohibited goods or services.

Agency instruction risks

Risks of the agency model include:
absence of invoice;
unclear supplier;
absence of economic purpose;
goods or services from a prohibited category;
sanctions risk;
instruction without an underlying transaction;
attempt to use the agency model as a transfer without documents.

Control measures

WHITECAPITAL may apply:
KYB/KYC;
document review;
sanctions screening;
business model analysis;
website analysis;
limits;
reserves;
delayed settlements;
request for additional documents;
refusal of an operation;
suspension of service;
termination of agreement.

Settlement risk

WHITECAPITAL may delay settlements with a merchant if an operation is disputed, there is refund risk, chargeback risk, fraud risk, a bank request or incomplete compliance review.

Risk review

The client's risk profile may be reviewed when turnover, website, goods, services, owners, customer geography or level of refunds changes, or upon request of the bank.