Public Policies

MeChat DIGITAL WALLET OPENING PROCESS FOR INDIVIDUALS

All about accessing your Cash Wallet on MeChat


Article By MeChat Universe

October 5, 2021, 2:04 am

DIGITAL WALLET OPENING PROCESS FOR INDIVIDUALS

Only entities registered on MeChat can obtain a Digital Wallet (Registered Entities (REs). RE’s as previously stated, can register under one of several types of entities, including as an individual. 

MeChat users are categorized by 4 categories:

  • User Account (unverified users without access to financial services)
  • Deposit Accounts (Verified Users, Digital Wallets, debit cards)
  • Borrowable Accounts (Credits, Loans)
  • Third Party Accounts (User hosted accounts, connecting to: Stripe, Paypal, etc)

Digital Wallets can be accessed through QR Codes, single sign-on, OTP, or 2FA and are subject to the following conditions:

  1. Customer’s consent should be taken for authentication through OTP.
  2. Customer’s consent and use of functions is taken for authentication.
  3. The aggregate balance of all the Digital Wallet deposit accounts shall not exceed the stored value of their transactions.
  4. The credits facility sanctioned to the borrowers should be only in the form of term loans..
  5. Customer Due Diligence (CDD) procedure of such accounts should be completed within one year.
    1. If the CDD procedure is not completed within a year, in respect of deposit accounts, the same shall be closed immediately.
    2. In respect of borrowal accounts, no further debits shall be allowed.
  6. A declaration shall be obtained from the customer to the effect that no other account has been opened within the same digital property OR the same Regulated Entity (RE).
  7. Furthermore, a new digital Property must be established for separate REs, each property will have its own Digital Wallet subject to KYC/AML and other Regulated Entities (REs) policies.
  8. MeChat does not automatically open Digital Wallet accounts. All customer Digital Wallets are consented through OPT-IN and verification of KYC information of accounts.
  9. No two accounts can have the same OTP.

For opening accounts of juridical persons not specifically covered above; Digital Wallets of juridical persons such as Government or its Departments, societies, universities and local collective bodies, can be opened with the certified copies of the following documents ;

  1. Document showing name of the person authorized to act on behalf of the entity.
  2. Officially valid documents for proof of identity and address in respect of the person holding a power of attorney to transact on its behalf and
  3. Such documents as may be required by the RE to establish the legal existence of such an entity/juridical person.

To ensure a successful transfer of funds, MeChat and intermediaries:

  1. Maintain records of all transactions-irrespective of whether it was a single transactions or series of integrally connection transactions across and between digital properties and accounts.
  2. All transaction records are maintained for seven years from the date of transactions (including Closing of account).

According to MeChat’s e-KYC policy are subject to the following conditions.

 

How to Open Digital Wallet Account on MeChat?

When conducting typical Customer Information Program (CIP) and Customer Due Diligence (CDD) during an individual Digital Wallet opening process, MeChat is required to confirm the following information about the individual applying, specifically:

  • That they exist;
  • That they are who they say they are; and
  • That they have a physical location.

MeChat also obtains proof of commerce by requesting additional documents that confirms the day to day business in question. Any discrepancies between the original information provided by the individual and any additional documentation collected, must be clarified, and deemed acceptable by the Compliance Department.

Documentation that is considered acceptable by MeChat, for the purpose of confirming an individual’s identification, and business affairs includes:

  • An original or certified copy of a valid (not expired) government issued photo identification (such as a passport or driver’s license) .
  • Documentation that is considered acceptable by MeChat, for the purpose of confirming an individual’s physical location, such as:
  • A utility bill in the individual’s name;
  • Communication from a recognized bank or insurance company bearing the individual’s address;
  • Communication from a competent tax authority bearing the individual’s address; or
  • A Voter registration card.

 

Customers That Cannot Be Identified

If a customer is not able, or willing, to be identified, MeChat cannot open a Digital Wallet for them. In these cases, MeChat will let the customer know that it is against the law to complete certain transactions without identification, and that MeChat’s policy requires complete customer identification prior to opening a Digital Wallet. 

 

ACCEPTABLE DIGITAL WALLET DOCUMENTATION

MeChat Customer Identification Program (CIP) documentation.

 

Proof of Address

Officially Valid Documents (OVD) for proof of address.

  1. Utility bill which is not more than two months old of any service provider (electricity, telephone, postpaid mobile phone, piped gas, water bill).
  2. Property or Municipal Tax receipt;
  3. Bank account, Insurance, or Post Office savings bank account statement;
  4. Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
  5. Letter of allotment of accommodation from employer issued by State or Central Government departments, statutory or regulatory bodies, and public sector undertakings, scheduled commercial banks, financial institutions and listed companies. Similarly, leave and license agreements with such employers allotting official accommodation;
  6. Documents issued by Government departments of foreign jurisdictions and letter issued by Foreign Embassy.
  7. Voter Registration

If the individual does not have a physical residential address, he or she can provide any of these:

  • Army Post Office box (APO)
  • Fleet Post Office box (FPO)

 

Identification Number

If the customer is a individual (“non-business entity”): 

  • U.S. Citizen:
    • social security number,
    • the Taxpayer Identification Number (“TIN”), or
    • Individual Taxpayer Identification Number (“ITIN”)

 

  • Non-U.S. Citizen:
    • a passport number and country of issuance,
    • an Alien Identification Card number, or
    • a number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph.

If the customer is a non-individual (“business entity”): 

  • U.S. legal entity: Employer Identification Number (“EIN”) from a legal registration document
  • Non-U.S. legal entity: If a foreign business does not have an identification number, an alternative government-issued document certifying the existence of the business must be obtained or validation via a government-sponsored source or other reliable sources.


The additional documents mentioned above shall be deemed to be OVDs under ‘simplified measure’ for the ‘low risk’ REs for the limited purpose of proof of address where REs are unable to produce any OVD for the same.

 

Valid ID

All forms of identification used to verify identity must be original and current, as well as include a clear photograph of the customer that clearly resembles the customer. The following are valid forms of identification:

  • Valid state driver’s license with a photo
  • Valid state non-driver’s license with a photo
  • Work ID with a photo
  • Student ID with a photo
  • Military ID with a photo
  • Military dependent’s ID with a photo
  • Department of Public Welfare ID with a photo
  • Medicare Card with a photo
  • Passport with a photo

Expired identification documents are unacceptable.

 

When Additional Identification Is Needed

For certain individuals where the address on the application doesn’t match the address on their identification or the last name on the application doesn’t match the last name on their identification, MeChat will request another form of identification, such as a utility bill or marriage license to verify the identity or address.

MeChat requires additional identification if:

  • The customer’s photo identification is unclear
  • The signature on the identification does not match the signature on the signed documents
  • The driver’s license or state identification card was recently issued
  • The address on the application does not match: (a) the address provided by the customer or (b) the address on the identification card
  • Higher than low risk level
  • Any other reason that your firm deems necessary

     

PERIODICAL DOCUMENT UPDATING AND CLOSURE OF ACCOUNTS

MeChat reserves the right to close and/or freeze the accounts of REs who are non-compliant to KYC/AML and other Terms of Conditions that exposes MeChat to risks.

While identity/legal name remains the same, the principal place of business, mailing address, telephone, fax nos. e-mail address etc. may change. For this purpose, existing MeChat REs must submit KYC documents to the bank at an interval of:

  • Two years for High Risk REs
  • Eight years for Medium Risk REs
  • Ten years for Low Risk REs

In addition to the above actions as a part of their ongoing due diligence on REs’ accounts, MeChat automates positive confirmation through:

  • Cross referencing mismatch data (address, etc) of users with proper OVD, asking REs to choose the correct data to update their account.
  • Every 2-3 years, asking for fresh photographs to be submitted, if not already.

If a customer does not submitting KYC documents in a timely manner (generally after giving prior notice of three months to the REs, and for 3 months after delinquency, to comply with KYC requirements) at risk interval above (two/eight/ten years), MeChat may impose ‘partial freezing’ of the account and any digital wallets added to the account.

Additionally, MeChat may impose ‘partial freezing’ by allowing:

  • all credits and disallowing all the debit entries
  • all non-card payment transactions
  • freedom to close the accounts.

If accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing’ banks may disallow all debits and credits from/to the accounts, rendering your account inoperative and subject to additional fees. 

In the meantime, the account holders can revive accounts by submitting the KYC documents as per instructions in force.

 

 


 

 


 

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