Legal Compliance

Anti-Money Laundering (AML) Policy

Effective Date: August 16, 2026

Purpose and Scope

BorderPay Africa, Inc. ("BorderPay," "we," "us," or "our") is committed to preventing money laundering (ML), terrorist financing (TF), and other financial crimes through a robust Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) compliance program. As a global digital banking platform, we operate across multiple jurisdictions and comply with applicable anti-money laundering frameworks.

This policy complies with:

Nigeria: Money Laundering (Prohibition) Act 2022, Economic and Financial Crimes Commission (EFCC) Act, Central Bank of Nigeria (CBN) AML/CFT Regulations 2022, and Special Control Unit Against Money Laundering (SCUML) guidelines for financial institutions and designated non-financial institutions.
Kenya: Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) 2009 (as amended 2017), Central Bank of Kenya (CBK) Prudential Guidelines on AML/CFT, and Financial Reporting Centre (FRC) regulations requiring customer due diligence and suspicious transaction reporting.
South Africa: Financial Intelligence Centre Act (FICA) 2001 (as amended by FIC Amendment Act 2017), requiring risk-based customer identification, beneficial ownership verification, and reporting to the Financial Intelligence Centre (FIC).
Ghana: Anti-Money Laundering Act 2020 (Act 1044), requiring Know Your Customer (KYC) procedures, transaction monitoring, and reporting to the Financial Intelligence Centre (FIC) Ghana.
Egypt: Anti-Money Laundering Law No. 80 of 2002 (as amended by Law No. 308 of 2014), enforced by the Egyptian Money Laundering and Terrorist Financing Combating Unit (EMLCU).
Rwanda: Law No. 47/2008 on Prevention and Penalizing the Crime of Money Laundering and Financing Terrorism, regulated by the National Bank of Rwanda and the Financial Investigation Unit (FIU).
FATF Recommendations: Financial Action Task Force (FATF) 40 Recommendations on combating money laundering and terrorist financing, which most African countries have adopted through membership in regional FATF-style bodies (e.g., GIABA for West Africa, ESAAMLG for East and Southern Africa).
African Union: AU Convention on Preventing and Combating Corruption (2003) and regional frameworks promoting financial transparency and integrity.

BorderPay Africa, Inc. is a corporation incorporated under the laws of the State of Delaware, United States, with its principal place of business at 1111 B South Governors Avenue 39961, Dover, DE 19904, United States. We operate cross-border payments, multi-currency accounts, stablecoin wallets, eligible African local-bank and mobile-money routes where available, and planned card access for customers worldwide (except in restricted jurisdictions) through regulated financial infrastructure. Identity verification is conducted through regulated KYC/AML verification infrastructure.

This policy applies to all BorderPay employees, contractors, agents, and third-party service providers. Violations may result in disciplinary action, termination, and reporting to relevant African Financial Intelligence Units (FIUs) and law enforcement agencies.

1. Risk-Based Approach and Risk Assessment

We adopt a risk-based approach (RBA) as required by FATF Recommendations, Nigerian CBN regulations, South African FICA, and other African AML frameworks. We conduct enterprise-wide ML/TF risk assessments at least annually or when material changes occur (e.g., new products, markets, or infrastructure), considering:

Customer Risk: Business entities, directors, beneficial owners, authorised representatives, high-risk customer types (including Politically Exposed Persons), ownership, occupation, and transaction patterns.
Geographic Risk: African countries with higher ML/TF risk (e.g., FATF-identified jurisdictions with strategic AML deficiencies), cross-border remittances to/from high-risk regions, and countries on international sanctions lists (UN, US OFAC, EU).
Product/Service Risk: Multi-currency wallets (USD digital wallets), eligible African local-bank and mobile-money routes, planned card access, high-value transactions, and rapid fund movement.
Delivery Channel Risk: Mobile app, web platform, and regulated payment, banking, and verification integrations.

Risk Categories:

High Risk: PEPs, customers from FATF blacklisted/greylist countries, large cash-equivalent transactions (>$10,000 USD equivalent), suspicious transaction patterns, and customers refusing to provide KYC information.
Medium Risk: New customers, cross-border remittances to moderate-risk African countries.
Low Risk: Verified customers with transparent ownership or identity, consistent transaction patterns, and activity aligned with the documented business or authorized partner use case.

Risk assessments inform our Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) requirements. High-risk customers are subject to EDD; low-risk customers may qualify for simplified due diligence (SDD) where permitted by local law.

2. Customer Due Diligence (CDD) and Know Your Customer (KYC)

Per Nigerian CBN AML/CFT Regulations, South African FICA, Kenyan POCAMLA, and FATF Recommendations, we perform CDD on all customers before establishing a business relationship or conducting transactions above specified thresholds.

2.1 Identity Verification

All customers must provide and verify:

Full legal name (as on government-issued ID)
Date of birth
Residential address (verifiable via utility bills, bank statements, or government records)
Nationality and country of residence
Government-issued identification: national ID card, international passport, driver's license, or residence permit (accepted documents vary by country per local regulations)
Biometric verification (facial recognition, liveness detection) through regulated verification systems

Verification process: Regulated verification systems cross-reference customer-provided data against authoritative databases, perform liveness checks to prevent fraud, and validate document authenticity, in line with applicable KYC/AML regulations.

2.2 Purpose and Nature of Account Relationship

We collect information on the intended use of the account (e.g., personal remittances, freelance income, payments), source of funds, and anticipated transaction volume.

2.3 Ongoing Monitoring

We continuously monitor customer transactions to ensure consistency with their profile, risk category, and stated purpose of account. Red flags triggering review include:

Sudden spikes in transaction volume or value
Transactions inconsistent with customer's stated occupation or business
Multiple small transactions just below reporting thresholds (structuring/smurfing)
Transactions to/from high-risk jurisdictions (FATF blacklist/greylist countries)
Rapid movement of funds (deposit and immediate withdrawal)
Transactions involving known sanctioned entities or individuals (UN, OFAC, EU lists)

2.5 Enhanced Due Diligence (EDD)

High-risk customers (PEPs, customers from high-risk jurisdictions, large transaction volumes) are subject to EDD, including:

Senior management approval for account opening
Enhanced verification of source of funds/wealth (bank statements, payslips, business revenue records)
More frequent monitoring and transaction reviews
Additional documentation (e.g., proof of business registration, tax returns)
PEP screening via licensed verification providers and third-party databases (World-Check, Dow Jones, etc.)

PEP Definition (per Nigerian EFCC, South African FICA, and FATF): Individuals entrusted with prominent public functions (e.g., heads of state, senior politicians, military officials, judicial officers, senior executives of state-owned corporations) and their immediate family members and close associates. We screen all customers against African and international PEP databases.

2.6 Simplified Due Diligence (SDD)

Where permitted by local law and risk assessment, low-risk customers with transparent ownership or identity and an established activity profile may undergo SDD with reduced documentation requirements. However, full CDD is applied if suspicious activity is detected.

3. Sanctions Screening and Prohibited Transactions

We screen all customers and transactions against international and regional sanctions lists, including:

United Nations Security Council (UNSC) Consolidated List (terrorists, terrorist financing)
US Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List
European Union Sanctions Lists
FATF High-Risk and Non-Cooperative Jurisdictions (blacklist/greylist)
African Union sanctions and national sanctions lists (e.g., Nigerian EFCC watchlist)

Prohibited Transactions: We do not process transactions involving:

Sanctioned individuals, entities, or countries
Illegal activities (drug trafficking, human trafficking, fraud, corruption)
Terrorist financing or support for designated terrorist organizations
Proceeds of crime or money laundering
Transactions to/from restricted or sanctioned jurisdictions

Matches are investigated immediately; confirmed matches result in account suspension/termination and reporting to FIUs.

4. Suspicious Transaction Reporting (STR)

Per Nigerian Money Laundering Act 2022, South African FICA, Kenyan POCAMLA, and other African AML laws, we are required to report suspicious transactions to the relevant Financial Intelligence Units (FIUs):

Nigeria: Nigerian Financial Intelligence Unit (NFIU) – within 7 days of detection
Kenya: Financial Reporting Centre (FRC) – within 24 hours of detection
South Africa: Financial Intelligence Centre (FIC) – as soon as reasonably possible
Ghana: Financial Intelligence Centre (FIC) Ghana – within 14 days
Other African countries: Per local FIU reporting timelines

Red Flags for Suspicious Activity:

Transactions with no apparent economic or lawful purpose
Structuring (breaking large transactions into smaller amounts to avoid thresholds)
Unusual transaction patterns (e.g., dormant account suddenly active with large transfers)
Customer reluctance to provide KYC information or provides false/inconsistent information
Transactions involving known criminal activities or high-risk industries (e.g., unlicensed money services)
Use of multiple accounts to receive/send funds without clear reason
Transactions to/from high-risk jurisdictions or sanctioned entities

Internal Reporting: All employees must report suspicious activities to our Money Laundering Reporting Officer (MLRO) immediately via mlro@borderpayvelocity.xyz or through our internal reporting system. The MLRO reviews, investigates, and files Suspicious Transaction Reports (STRs) with the relevant FIUs.

No Tipping-Off: Per Nigerian Money Laundering Act Section 7, South African FICA Section 29, and other African AML laws, employees are strictly prohibited from disclosing to customers or third parties that an STR has been filed or that an investigation is underway. Violations may result in criminal penalties.

5. Record-Keeping and Data Retention

We maintain comprehensive records as required by African AML laws:

Customer Identification Records: Copies of government-issued IDs, proof of address, beneficial ownership documents, verification reports from licensed providers – retained for at least 5 years after the business relationship ends (Nigerian CBN AML/CFT Regulations, South African FICA Section 22, Kenyan POCAMLA).
Transaction Records: All transaction details (amount, currency, date, parties involved, purpose) – retained for at least 5 years from the transaction date.
STR and Investigation Records: Records of all internal and external suspicious transaction reports and investigations – retained for at least 5 years.

Records are stored securely and are retrievable within a reasonable time upon request by competent authorities.

6. Employee Training and Awareness

All employees and agents receive mandatory AML/CFT training upon hiring and annually thereafter. Training covers:

Relevant African AML laws and regulations
BorderPay's AML/CFT policies and procedures
Recognition of red flags and suspicious activities
Reporting obligations and "tipping-off" prohibitions
New ML/TF typologies and trends in the African fintech sector

We maintain records of all training sessions and attendance.

7. Independent Audit

Our AML/CFT program is subject to an independent audit at least annually by a qualified third party or internal audit function to assess its effectiveness and compliance with applicable African laws and regulations. Audit findings are reported to the Board of Directors and senior management for corrective action.

Compliance Contact

For AML/CFT inquiries or to report suspicious activity, please contact our Compliance Team:

compliance@borderpayvelocity.xyz