Risks Specific to ZipZap
ZipZap facilitates international money transfer, which is considered a high risk industry.
- Focused on Micro Remittances therefore few or no large currency transactions.- No cash transactions to fund transfer.
- All funds flow through licensed entities.
- ZipZap works with banks in both sending and receiving country.
The ZipZap Service is fully operated online which exposes us to online fraud, hacking and DDOS attacks.
- ZipZap works with renowned online identity verification provider, who uses thousands of data sources to validate an identity and prevent fraud.
- ZipZap has stringent transaction monitoring in place, which analyzes the customer behavior on a continuing basis.
ZipZap has to comply with very stringent rules and regulations. Failing to do so has significant impact on the day-to-day business, including closure of bank account, fines and revocation of license.
- ZipZap communicates with and reports to its bank and regulator on a quarterly basis to ensure good relations.
- ZipZap has hired an experienced Chief Compliance Officer and other seasoned management team with years of industry experience
ZipZap Service is available for individuals – no business transactions processed.
- ZipZap collects personal data from all users. Staged identity verification and validation depending on risk category user.
- Comprehensive KYC Policy in place to verify and validate identity customers.
- ZipZap monitors customer activity and transactions on a continuing basis, to avoid fraud, money laundering and other
The ZipZap Service is new and therefore it does not have stable customer base and the number of customers will grow rapidly.
- ZipZap has implemented transactions limits, which will depend, among other things, on the level of identity verification and the length of the customer relationship.
- The ZipZap team has experience building scalable systems and dealing with high growth customer base.
- ZipZap does extensive research on countries and cultures before entering a new market.
ZipZap initially focuses on money transfer from Canada to India and thePhilippines. India and Philippines are considered a high risk countries, for the reason of, among other things, tax evasion.
- ZipZap only offers remittances through licensed entities such as banks.
- ZipZap has a customer identification policy in place which is more stringent that what is required by law.
- ZipZap tracks and monitors all transactions, looking for signs of structuring and potential money laundering.
- ZipZap asks the customer for the purpose of the transaction.
- ZipZap will not operate in/with banned countries and regions.
ZipZap will expand to other countries too quickly.
- ZipZap will do extensive research before offering the ZipZap Service in a new country.
ZipZap has no agents, nor branches and therefore has to do the client on-boarding online.
- ZipZap works with renowned online identity verification providers, who use thousands of data sources to validate an identity and prevent fraud. If the third party cannot verify the identity, a well-trained ZipZap employee will perform a manual verification.
The ZipZap Service is an online business.
- A Business Continuity Plan is in place to secure electronic data.
- Certified external party hosts ZipZap’s server.
- ZipZap rigorously tests the software before making any changes to the ZipZap Service.
ZipZap has a small team.
- ZipZap hires experienced and seasoned Managers
- All relevant ZipZap employees are required to have Compliance training and pass a test.
- Only relevant employees have access to customer data.
ZipZap works with third party vendors for services including crediting & debiting customers’ bank account, and identity verification.
- ZipZap performs due diligence on third party vendors by reviewing (where necessary) the applicable licenses, Compliance & AML program, business continuity program, and security & reliability procedures.
12. ZapZap employees are all Full Time but take consulting work on the side to pay salaries until the company reaches a point where it can support them itself.