SERVICE
StarLiX CaaS
(compliance as a service)
StarLiX CaaS meets the compliance needs of banks and other licensed PSPs which, by onboarding third parties, allow the provision of financial services to end users. The StarLiX platform streamlines, simplifies and consolidates compliance all-in-one place and, by providing a unique end to end transaction reference (UETR) delivers full transparency of the parties on the payment rail.
Licensed payment service providers can stay in control of multi-layered payment chains, reduce the time and money spent on compliance and collaborate with regulators to evidence the relevant information when requested.
StarLiX CaaS can be used across a range of market sectors: embedded finance, international money transfers, crypto currencies, etc.
StarLiX CaaS Platform
Our software enables a licensed provider of payment accounts to have instant direct access to clients’ compliance data and that of their end users. The platform allows flexibility to the in house compliance team to enhance or reduce data collection requirements based on their assessment of risk. The payments account provider now has a complete overview and control over the compliance data of the clients and end users to whom it is enabling a service.
License holders/Banking as a Service Providers (BaaS) can allow distributors clients, agents or payment institution (PI) clients to onboard with them. And they, in turn, can onboard their own end users.
How it works:
At level 1, the BaaS provider can:
- Enable the PI client to onboard themselves onto the platform and carry out embedded KYB, KYC and AML (PEPs, sanctions and adverse media)
- Review, request clarification, approve and reject the PI client
At level 2, the PI client can:
- Enable their end users to onboard themselves on to the platform and carry out embedded KYB, KYC and AML
- Review, request clarification, approve and reject their end users
- Monitor the transactions which their end users carry out
As a consequence, the BaaS provider can:
- Have oversight of end users embedded compliance data and transaction data
- Share the data (compliance data plus transaction data) with regulators and others in the payment chain who need to see it
- Demonstrate end-to-end compliance of the involved parties in a chain at a click of a button
CASE STUDY
An Electronic Money Institution (EMI) is entering a business relationship with a regulated payment institution client which is based in the UK and which has customers sending funds internationally.
The EMI wants to allow the PI to onboard themselves as a client so that the necessary compliance checks can be carried out. The EMI also needs oversight of the sending and receiving customers of the PI, both when they are onboarded and throughout the transaction life cycle.
By using StarLiX, the EMI can gather in one place the compliance information they need on the PI client, their customers, the transactions which they process and the last mile pay out provider.
Step 1
EMI provides a payment account to a client PI and provides access to StarLiX CaaS through API.
Step 2
PI embeds CaaS in its own transaction software.
Step 3
PI enables sending customer to onboard and transact. All payment and compliance information on sender and receiver plus last mile PSP data is embedded into each transaction and uploaded into StarLiX.
Step 4
All payment and compliance information is available to EMI and can be shared at the click of a button when requested with banks, regulators and others who need to see it.
Benefits
Licensed payment service/Banking as a Service providers now:
- Have access to payment and compliance checks, all in one place
- Ensure clients stay compliant
- Have full visibility and compliance control of parties in the chain
- Reduce compliance costs and save time
- Streamline, simplify and consolidate compliance processes
- Are able to collaborate and evidence compliance data banks and regulators
Additionally, StarLiX CaaS can become self funding or an income stream for the BaaS provider. As costs to deliver the service can be assigned to clients and/or end users.