Payment Challenges for MSBs: Navigating High-Risk Acquiring in the EEA and UK
In the iGaming sector, companies operating under a MSB license frequently face significant challenges when it comes to integrating acquiring solutions for high-risk traffic in the EEA and UK. The high-risk nature of these transactions demands strict compliance protocols, especially under the rigorous standards of PSD2 and AML. 🔹 MSB Licenses and Market Perception: MSB licenses, particularly from Canada, are often viewed with suspicion by European acquirers and banks. Despite formal compliance with AML and CFT standards, these licenses are classified as "light-touch regulation," placing them under increased scrutiny from acquiring banks. Consequently, the UBO and company directors are subject to EDD procedures. 🔹 Compliance and Regulatory Risks: The presence of UBOs from CIS countries adds another layer of complexity, automatically categorizing the entity as high-risk. European payment institutions are risk-averse and take into account the jurisdictions of the beneficial o...