Types of KYC at TapaPay

1. Sole Trader

A sole trader is an individual who runs their own business under their own name or a business name. The sole trader is legally responsible for all aspects of the business.

• Legal Structure: The individual and the business are considered the same legal entity. There is no distinction between personal and business assets.

• Liability: The sole trader has unlimited liability, meaning they are personally responsible for any debts or legal actions against the business. Personal assets could be at risk if the business faces financial difficulties.

• KYC Requirements: Both personal information (like an individual) and business registration details. Sole traders must provide proof of identity and evidence of their business (e.g., business registration, trade licenses).

Example: Tom Baker, trading as "Baker’s Plumbing Services."

2. Organisation

An organisation (also called a company or corporate entity) is a separate legal entity that is distinct from the people who own or manage it. Organisations can include limited companies (Ltd), corporations, and other business entities.

• Legal Structure: The business is its own legal entity, separate from its owners and shareholders. This means the business can enter into contracts, own assets, and be sued independently of its owners.

• Liability: Owners and shareholders generally have limited liability, meaning their personal assets are protected in case of business failure or lawsuits.

• KYC Requirements: Information about the organisation itself, such as its legal name, registration number, and registered address, as well as information about key individuals like directors, shareholders, or Ultimate Beneficial Owners (UBOs).

Example: ABC Consulting Ltd., operating as a consulting business.

3. Trust

A trust is a legal entity where one or more individuals (trustees) hold assets for the benefit of others (beneficiaries). Trusts are often created to manage wealth, protect assets, or plan for estate transfers. In the case of a non-profit trust, the trust is established to manage assets or funds for charitable purposes rather than private financial gain.

• Legal Structure: A trust is a relationship, not a separate legal entity like a company. The trustees are responsible for managing the trust's assets according to the terms of the trust deed, while the beneficiaries receive the benefits of the assets or services.

• Liability: Trustees have a fiduciary duty to manage the trust responsibly and in the best interests of the beneficiaries. They can be held liable if they fail to meet their obligations.

• KYC Requirements: Information about the trust, such as the trust deed, as well as detailed information about the trustees and beneficiaries (e.g., full name, nationality, date of birth). It may also require information about the Ultimate Beneficial Owners (UBOs) of the trust, even in a non-profit setting.

Example: The Father Ted Charity, a non-profit trust established to support community welfare projects, with assets managed by trustees to provide resources for local charities and social initiatives.

By adapting the KYC process to suit each customer type, TapaPay ensures that all users are protected and that the platform operates in compliance with legal standards across various jurisdictions. This multi-tiered verification allows us to secure transactions, protect identities, and foster a safer financial ecosystem for everyone involved.