Charge of authorizing the transactions

The question in full

In a Remittance-as-a-Service (RaaS) ecosystem, transaction authorization is a two-step process. You, as the business owner, provide the 'Operational Authorization'—ensuring the customer has paid and the beneficiary details are correct. However, the 'Compliance Authorization'—ensuring the transaction doesn't violate AML or OFAC rules—is handled by the Principal License Holder’s automated systems. This guide explains how 'Straight-Through Processing' (STP) automates 99% of authorizations, while 'Manual Flags' are handled by a shared compliance

Answer

Transactions are authorized by the parties involved, i.e. the sender, the banking institutions, processing partners and the payout beneficiaries. As a non-licensed entity, you are not involved in flow of money or its authorization. The whole idea of a sponsored & white-label arrangement is to make sure that the licensed entities involved are the ones who engage in the authorization and flow of funds for the objective that you are seeking under the white-label service.

Who is in charge of authorizing the transactions? Will it be me or someone else?

Suggested Video(s)