Compliance & Licensing

Last Updated: January 19, 2026

1. Our Commitment to Compliance

AXPay is committed to maintaining the highest standards of regulatory compliance across all jurisdictions where we operate. As a leading high risk payment gateway, we understand the importance of regulatory compliance in building trust and ensuring the safety of all transactions.

2. Licenses and Registrations

2.1 Payment Processing Licenses

AXPay holds the following licenses and registrations:

  • Money Service Business (MSB): Registered with FinCEN (USA)
  • Electronic Money Institution (EMI): Licensed in the European Union
  • Payment Service Provider (PSP): Authorized in multiple jurisdictions
  • Money Transmitter Licenses: State-level licenses in all required US states

2.2 Industry Certifications

✓ PCI DSS Level 1 ✓ ISO 27001 ✓ SOC 2 Type II ✓ GDPR Compliant

3. Anti-Money Laundering (AML)

3.1 AML Program

We maintain a comprehensive AML program that includes:

  • Risk Assessment: Continuous evaluation of money laundering risks
  • Customer Due Diligence (CDD): Verification of all merchant identities
  • Enhanced Due Diligence (EDD): Additional scrutiny for high-risk merchants
  • Transaction Monitoring: Real-time analysis of suspicious patterns
  • Suspicious Activity Reporting (SAR): Mandatory reporting to authorities

3.2 Know Your Customer (KYC)

Our KYC procedures require:

  • Valid government-issued identification
  • Proof of business registration and ownership
  • Business address verification
  • Ultimate Beneficial Owner (UBO) information
  • Source of funds documentation
  • Business model and transaction volume projections

4. Payment Card Industry (PCI) Compliance

4.1 PCI DSS Level 1 Certification

As a PCI DSS Level 1 Service Provider, we adhere to the highest security standards:

  • Annual on-site security assessments by Qualified Security Assessor (QSA)
  • Quarterly network vulnerability scans
  • Continuous compliance monitoring
  • Secure cardholder data environment
  • Strong access control measures
  • Regular security policy reviews and updates

4.2 Card Network Compliance

We are compliant with requirements from all major card networks:

  • Visa International Operating Regulations
  • Mastercard Rules and Standards
  • American Express Operating Regulations
  • Discover Network Rules

5. Data Protection and Privacy

5.1 GDPR Compliance

For European customers, we comply with the General Data Protection Regulation (GDPR):

  • Lawful basis for processing personal data
  • Data minimization and purpose limitation
  • Rights to access, rectification, and erasure
  • Data Protection Impact Assessments (DPIA)
  • Data breach notification procedures
  • Appointed Data Protection Officer (DPO)

5.2 Other Privacy Regulations

We also comply with:

  • CCPA: California Consumer Privacy Act
  • PIPEDA: Canadian Personal Information Protection Act
  • UK DPA: UK Data Protection Act
  • LGPD: Brazilian General Data Protection Law

6. Industry-Specific Compliance

6.1 iGaming and Online Gambling

For iGaming merchants, we ensure compliance with:

  • Gaming licenses verification
  • Age verification requirements
  • Responsible gambling measures
  • Geo-blocking for restricted jurisdictions
  • Gaming Commission reporting requirements

6.2 Cannabis and CBD

For CBD merchants, we verify:

  • State-level licensing and compliance
  • THC content compliance
  • Age verification systems
  • Product testing and certification

6.3 Nutraceuticals and Supplements

We ensure compliance with:

  • FDA regulations and guidelines
  • Truth in advertising standards
  • Product labeling requirements
  • Health claim restrictions

7. Sanctions and Watchlist Screening

7.1 Sanctions Compliance

We screen all transactions against:

  • OFAC: Office of Foreign Assets Control lists
  • UN Sanctions: United Nations consolidated list
  • EU Sanctions: European Union restrictive measures
  • UK Sanctions: HM Treasury financial sanctions

7.2 Watchlist Monitoring

Continuous monitoring against:

  • Politically Exposed Persons (PEP) lists
  • Adverse media screening
  • Law enforcement watchlists
  • Financial crime databases

8. Audit and Reporting

8.1 Internal Audits

We conduct regular internal audits covering:

  • AML/KYC procedures
  • Transaction monitoring systems
  • Security controls
  • Compliance with policies and procedures

8.2 External Audits

Annual third-party audits include:

  • PCI DSS compliance assessment
  • SOC 2 Type II examination
  • ISO 27001 certification audit
  • Financial statement audits

8.3 Regulatory Reporting

We maintain transparent reporting to regulators:

  • Monthly transaction reports
  • Suspicious Activity Reports (SARs)
  • Currency Transaction Reports (CTRs)
  • Quarterly compliance reports

9. Ongoing Monitoring

9.1 Transaction Monitoring

Real-time monitoring of all transactions for:

  • Unusual transaction patterns
  • Velocity checks and limits
  • Geographic risk indicators
  • Device fingerprinting anomalies
  • Behavioral analysis

9.2 Merchant Monitoring

Continuous assessment of merchant activities:

  • Chargeback ratio tracking
  • Business model changes
  • Compliance with processing limits
  • License and registration status

10. Training and Awareness

All AXPay employees undergo regular training on:

  • AML and fraud prevention
  • Data protection and privacy
  • Security best practices
  • Regulatory requirements
  • Industry-specific compliance

11. Compliance Team

Our dedicated compliance team includes:

  • Chief Compliance Officer (CCO): Overall compliance oversight
  • AML Compliance Officers: AML program management
  • Data Protection Officer (DPO): Privacy and data protection
  • Compliance Analysts: Day-to-day compliance operations

12. Regulatory Updates

We continuously monitor regulatory changes and update our practices accordingly. Our compliance program is reviewed and updated:

  • Quarterly policy reviews
  • Immediate updates for regulatory changes
  • Annual comprehensive program assessment
  • Regular communication with regulators

13. Contact Our Compliance Team

For compliance-related inquiries:

  • Email: hello@axpay.com
  • Compliance Officer: Available for merchant consultations
  • Documentation: Request compliance certificates and documentation

Note: This page provides a general overview of our compliance framework. Specific compliance requirements may vary by jurisdiction and merchant type. Contact our compliance team for detailed information relevant to your business.