LEGAL - Money transmission & rules against money laundering / financing terrorsim
 

Hello everyone,

I'm investigating starting an adult product which would feature users (customers) paying in order to interact with other users (entertainers) who can cash-out the money later on. Not a cam-site, but imho relatively similar from the perspective of transactions.

Since money will be transferred from users to users, I am not sure how this would work with the rules about fighting fraud, money laundering and financing of terrorism. Would anyone have input about how cam-sites transfer significant amounts of money from customers to models while complying with those rules?

Services like MangoPay put limitations in place in order to comply:
- You need to collect email / first name / last name / country of residence / birthday / nationality about your users for them to cash-in up to 2500? per year or to cash-out up to 1000? per year
- You need to additionally collect ID / address to raise those limits up to 15000? per year

If collecting those information does not look like a problem on the model side, who will be cashing-out, it looks like a bit more problematic on the customer side... and I have not seen any cam-site asking for so much information in order to transfer funds from customers to models.

Have a nice day, and thanks to anyone who has some input about this!

blah blah blah bitcoin blah blah blah btc, blah blah blah :1orglaugh

Better do a better job than this guy

https://gfy.com/fucking-around-and-pr...rocessing.html

And then come to grips with KYC requirements in the US and other jurisdictions.

Not sure to understand your answers guys, I do not especially want to deal in bitcoins which usage is imho not so widespread yet. Maybe the service could be structured with bitcoins though, getting the users to actually cash-in / cash-out tokens in bitcoins so that it is not necessary to comply with many rules. Personally I know very little about bitcoins and what can be achieved thanks to them, if you have input about how to make it work with bitcoins I'd be glad to learn.

I think the use case is relatively similar to MFC / Chaturbate though: a customer comes, buy tokens in exchange for a classic currency, gives them away to models, models cash them out for another classic currency... and you have to make sure to comply with the anti-money laundering / money transmission / know your customer rules.

What has to be done practically to comply with those rules tho, I have not figured it out so far

US regulation starts here.
Welcome To FinCEN.gov

However, you are a merchant in trade -- the AML regs would apply to your Financial Institution (Commercial Bank) or the MTA (Money Transfer Agent) that you will use. Many of these rules, regulations and laws are by international agreement or by treaty.

I would recommend that you consult with a lawyer competent in these matters in your legal jurisdiction.