Re:Ask HN: Is it money laundering?
by PeterisP on Monday January 07, 2013 @05:04AM
(#5020282)
It's not clear from the app description what you mean with "get a swipe card loaded with credit cards issued in another country" - are you issuing Visa or MC cards to your customers? Or are you "renting" card data registered to some other person/company to your customers?
Take a look at both your local legislation and Visa/MC (whatever you'll be using) guidelines. It might be that you'll have handle know-your-customer provisions like requesting physical ID's to verify their names. And you will be liable for any fraud/laundering where people fill "your card" from a stolen card, spend the money, and 2-3 months later the chargebacks start coming.
Cash doesn't need to be involved - if you can make payments "on behalf" of someone else, in someone else's name, then that's directly relevant to money laundering.
Take a look at both your local legislation and Visa/MC (whatever you'll be using) guidelines. It might be that you'll have handle know-your-customer provisions like requesting physical ID's to verify their names. And you will be liable for any fraud/laundering where people fill "your card" from a stolen card, spend the money, and 2-3 months later the chargebacks start coming.
Cash doesn't need to be involved - if you can make payments "on behalf" of someone else, in someone else's name, then that's directly relevant to money laundering.