Anti Money Laundering measures at Yoco
What is transaction monitoring at Yoco?
For Yoco, transaction monitoring is a key part of the regulated AML (Anti-Money Laundering) process. It’s a legal requirement that forces financial institutions to monitor the flow of money.
Why is transaction monitoring important?
Money laundering involves taking criminal proceeds and disguising their origins to appear legitimate. Anti-money laundering (AML) refers to the measures financial institutions (like Yoco) take to comply with regulations, and to actively monitor for and report suspicious activities.
Money laundering often accompanies activities like smuggling, illegal arms sales, embezzlement, insider trading, bribery and computer fraud schemes. It’s also common with organised crime including human, arms or drug trafficking. Anti-money laundering is also closely related to counter-financing of terrorism (CFT).
Yoco Profile risk review and what it means
Why is my profile under risk review?
A transaction or transactions are in the process of being verified.
How long will the risk review take?
Within 1 - 7 working days for local payments. Within 1 - 14 working days for international payments.
When will the funds reflect in my account after the conclusion of the risk review?
Within 24 to 48 hours.
If one of my transactions is confirmed fraud by the bank, what happens now?
Yoco’s Transaction Monitoring Team will do the following: · Request an invoice for the confirmed fraud transaction and any other supporting documentation. · Conduct a review of your profile. · If Yoco determines that your profile is fraudulent and suspicious, we’ll follow due process with the bank to return the funds to the cardholder, if possible. · Yoco’s Transaction Monitoring Team will inform you via telephone or email of the progress made with the investigation.
Why does Yoco refund money back to the cardholder?
Yoco reserves the right to refund a cardholder their money based on the following:
If your profile’s transaction history is suspicious.
If your profile behaviour displays a high-risk appetite.
If you can’t supply us with an invoice.
If there’s non-delivery of goods.
In cases of serious complaints/allegations from the cardholder
Refunds generally take between 1-14 days to reflect in the cardholder’s bank account, depending on who the cardholder banks with.
Why does Yoco require an invoice for my transactions under investigation?
Yoco’s Transaction Monitoring Team will require an invoice if/when they need to verify a transaction as genuine. Additionally, as per Mastercard, Visa, and Yoco Terms and Conditions, suspicious transactions must be verified with a detailed invoice, for any goods sold or services rendered.
Prohibited businesses and profile termination
What can't I do with Yoco?
All Yoco transactions, whether in-person or online, are processed immediately, and in full. Yoco won't allow you to deduct money at any point after the transaction is securely processed with your customer.
Stuff you can’t do using Yoco:
Take debit order payments
Take offline transactions
Sell electricity or airtime
Cash withdrawals
Use in a loan business
Charge your customers for card transaction fees (illegal in RSA)
Prohibited business types:
Time-share or Holiday Club organisations.
Criminal enterprises, or for pyramid selling.
Bureaus de Change, high-risk security investments, commodity investments and other investment merchant enterprises.
Agencies of adult content and/or escort services.
Sale of prescription or illegal drugs, or tobacco products (including cannabis and CBD products).
Independent financial advisers.
Get the full document here.
Why are cash loans / financial services / Crypto traders not allowed?
Merchants who operate cash loan businesses, or provide financial services, or sell financial products, are not allowed to use Yoco. It’s clearly stated on Yoco’s prohibited list - included both on the website as well as in our merchant agreements.
For more, see Yoco’s prohibited businesses list here.
Why are cannabis and CBD products not allowed when they’re no longer illegal?
CBD products fall under medicinal and prescription drugs, which are not allowed as per Yoco’s Terms. Cannabis is also still not legal to sell in South Africa, and therefore a prohibited business type.
Why were my Yoco services terminated?
Services are only terminated when there is confirmed fraud, excessive risk appetite, or when the merchant operates a business on the prohibited list.