When operating a local account of Meikeduo in Latin America, sellers not only need to manage warehousing issues, but also need to pay attention to KYC (Know Your Customer) audits to avoid potential risks. The convenience of local accounts coexists with risks. The following article will introduce in detail the concept of KYC audits, behaviors that are likely to trigger audits, and the risks of operating local accounts in Latin America to help sellers better avoid risks and operate effectively.
1 What is KYC?
KYC is a system for reviewing and filing the identity of sellers, and is the basis for anti-money laundering (AML) and preventing corruption. The platform requires sellers who open stores in Latin American countries to verify their identities and understand the actual controllers of the accounts and the actual beneficiaries of the transactions.
2. Behaviors that are likely to trigger KYC audits.
The following behaviors may easily trigger KYC audits:
Change the backend payment account
Change the backend Google authenticator
Frequently change the backend basic information: such as email, password, IP, phone, etc.
Large-amount one-time withdrawals
Sell local contraband
Sell infringing products
A large number of quality complaints and mismatched goods in a short period of time
Long-term failure to put products on the shelves and stockpiling of empty accounts
3. Risks of operating local accounts in Latin America.
There are certain risks in operating local accounts in Latin America, mainly involving the following aspects:
Audit triggering risks
KYC audit triggering: Irregular operations may trigger KYC audits, affecting account functions and operations.
Account reputation damaged: Long-term failure to put products on the shelves and a large number of quality complaints can easily lead to a decline in account reputation.
Legal and regulatory compliance issues
Local company registration restrictions: When registering local accounts in Latin American countries, it is necessary to meet the legal person requirements. Some countries require local identity to register legal persons.
Risks are difficult to control: the legal person is not one of the company’s own, which may lead to failure to contact in the later stage, triggering KYC review.
Illegal products and complaints
Risks of illegal products: selling illegal products is likely to trigger KYC review, resulting in account restrictions.
Operational risks: long-term non-listing of products, quality complaints, etc. will affect the reputation of the account.
The advantages and risks of operating a local account in Latin America coexist. Sellers need to pay attention to avoiding potential risks and do standardized operations to ensure the stability and compliance of account operations.