Regulatory Alignment and Responsible Financial Operations

At ProofPay, compliance is not an add-on or a checkbox — it is a built-in architectural pillar. The Compliance section of Public Records and Reports offers a transparent overview of ProofPay’s adherence to global financial regulations, including:

• Anti-Money Laundering (AML)
• Counter-Terrorist Financing (CFT)
• Know Your Customer (KYC)
• Sanctions enforcement
• Cross-border payment regulation
• Digital asset licensing frameworks

Our mission is to create a regulator-aligned stablecoin ecosystem that promotes transparency, fairness, and accountability for users of all types — from individuals to institutions.

Compliance by Design: Embedded in the Technology

• Tensor-layer enforcement of programmable compliance rules
• Automated compliance engines for real-time validation
• Blockchain-anchored audit trails for external verification

This integrated model reduces reliance on intermediaries and enables transparent, consistent enforcement.

Key Compliance Components

1. AML/CFT Controls

• Tensor-level AML screening with sanctions and PEP list checks
• Real-time transaction flagging and quarantine functionality
• Automated behavioral risk detection

2. KYC & Identity Verification

• Jurisdiction-specific KYC tiers: Simplified for small amounts, full KYC for high-value usage
• Integration with verified eID, biometrics, and liveness providers
• Continuous re-verification lifecycle for evolving risk profiles

3. Geo-Fencing and Usage Controls

• Location-aware Tensor enforcement
• Adaptive spend rules by region and activity
• Compliance with banned jurisdiction rules and capital controls

4. Sanctions Compliance and Blocklisting

• OFAC, UN, FATF, and EU sanctions list integration
• Tensor- and account-level freeze capabilities
• Public accountability via blocklist disclosures

Compliance Reporting Transparency

• Quarterly Compliance Reports including:
  • KYC account totals
  • Flagged transactions and quarantines
• Annual Regulatory Filings Overview with licensing disclosures
• Incident Reporting Summaries for compliance escalations and sanctions actions
• Governance updates on changes to compliance processes or policy logic

Regulatory Coverage and Licensing Roadmap

• EMI/PI Licenses (Europe) under MiCA and PSD2
• Money Transmitter Licenses (United States)
• Major Payment Institution License (Singapore, under MAS)
• PSP registration across APAC and Africa
• Global VASP registrations aligned with FATF Travel Rule

Features not yet approved in a given region will be regionally restricted until fully compliant.

Governance and Compliance Oversight

• Internal Compliance Office reporting to a Board-level committee
• External legal advisors and compliance consultants per region
• Independent third-party audits of compliance operations
• Participation in global policy forums like ACAMS and Global Digital Finance

Why Compliance Transparency Matters

Industry failures in sanctions, AML, and KYC have led to:

• Fines and legal enforcement
• Platform bans in major jurisdictions
• Public trust degradation

ProofPay’s compliance infrastructure is built to prevent these outcomes through:

• Day-one regulatory readiness
• Auditable and transparent processes
• Proactive regulatory engagement
• Global scalability with legal confidence

Summary: ProofPay’s Compliance Commitment

The Compliance section of Public Records and Reports offers:

• Live insights into ProofPay’s compliance operations
• Proactive disclosures on risk and regulation alignment
• Proof of embedded, enforceable, auditable controls

ProofPay isn’t just a digital money platform — it’s a globally viable, regulator-ready financial system committed to responsible innovation, consumer protection, and legal sustainability.