BNP Paribas has launched a new service aimed at e-commerce sites and other online marketplaces, which it says will enable them to bring their financial transactions into full compliance with current regulation.
“BNP Paribas is currently the only bank offering credit institution agency status to online marketplace clients – mainly e-commerce sites,” the French bank stated.
It added that as a long-time banking partner to e-commerce players, it provide support to enable marketplace operators to carry on their business and help them comply fully with the regulations issued by the Autorité de contrôle prudentiel et de resolution (ACPR), aka the French Prudential Supervision and Resolution Authority.
Commenting on the service, BNP Paribas said that when an online marketplace carries out collection transactions on behalf of one of its retailers, it is basically providing two distinct services: taking in payment orders and executing bank transfers linked to a paying account.
However, the EU Directive in force states that such payment services can only be carried out by an authorised payment services provider, so as to protect sellers and purchasers from incurring damage should the marketplace operator file for bankruptcy after collecting the funds.
“BNP Paribas Cash Management is therefore offering to confer agency status on major online marketplaces, thus enabling them to benefit from the BNP Paribas banking licence so as to ensure that their transactions are in full compliance with the regulations,” the bank stated.
“Online marketplace operators who take up this offer will have their funds protected by a top-rank banking player and also benefit from the bank’s expertise in combating money-laundering, notably the key know your customer (KYC) procedures.”
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