> ## Documentation Index
> Fetch the complete documentation index at: https://support.wepayments.com.br/llms.txt
> Use this file to discover all available pages before exploring further.

# Crossborder Compliance Requirements

Cross-border operations are subject to strict regulatory requirements in Brazil, including anti-money laundering (AML) and counter-terrorist financing (CFT) regulations. This guide outlines the key compliance requirements for international merchants operating with WEpayments.

## Regulatory framework

WEpayments operates in compliance with Brazilian regulations, including:

| **Regulation**                 | **Scope**                                     |
| :----------------------------- | :-------------------------------------------- |
| **Law nº 9.613/1998**          | Money laundering crimes and prevention        |
| **Law nº 13.260/2016**         | Terrorist financing                           |
| **Law nº 13.810/2019**         | UN Security Council sanctions compliance      |
| **BCB Circular nº 3.978/2020** | PLD/FTP procedures for financial institutions |
| **BCB Resolution nº 277/2022** | eFX transactions                              |
| **COAF Resolution nº 29/2017** | Reporting obligations                         |

> 💡 WEpayments maintains a comprehensive **PLD/FTP Policy** (Prevention of Money Laundering and Terrorist Financing) aligned with these regulations.

## Key compliance concepts

| **Concept**                          | **Definition**                                                                                                                      |
| :----------------------------------- | :---------------------------------------------------------------------------------------------------------------------------------- |
| **Money Laundering**                 | Process of concealing illegal origin of funds to make them appear legitimate (placement → concealment → integration)                |
| **Terrorist Financing**              | Providing funds for terrorist purposes – funds may be legitimate or illicit                                                         |
| **Beneficial Owner**                 | Natural person who ultimately owns, controls, or significantly influences a legal entity                                            |
| **PEP (Politically Exposed Person)** | Individual in a prominent public position, plus their family and close associates (status applies for 5 years after leaving office) |
| **COAF**                             | Financial Intelligence Unit of Brazil – receives and analyzes suspicious transaction reports                                        |

## Prevention methods: KYC, KYB, KYP, KYE, KYS

WEpayments employs multiple "Know Your" processes to mitigate compliance risks:

| **Process**                  | **Applies to**    | **Purpose**                                                         |
| :--------------------------- | :---------------- | :------------------------------------------------------------------ |
| **KYC (Know Your Customer)** | Merchants/clients | Collect information, profile monitoring, detect suspicious patterns |
| **KYB (Know Your Business)** | Legal entities    | Verify corporate structure, beneficial owners                       |
| **KYP (Know Your Partner)**  | Business partners | Screen before contracting, monitor relationships                    |
| **KYE (Know Your Employee)** | Employees         | Hiring criteria, conduct monitoring, training                       |
| **KYS (Know Your Supplier)** | Suppliers/vendors | Pre-contract screening, payment monitoring                          |

## Required documentation for cross-border payments

### Per transaction

| **Document**    | **Description**                                    |
| :-------------- | :------------------------------------------------- |
| **Nota Fiscal** | Brazilian tax invoice from the receiving company   |
| **Invoice**     | Commercial invoice from the paying foreign company |

### Onboarding / first transaction

| **Document**            | **Description**                                     | **Reusable** |
| :---------------------- | :-------------------------------------------------- | :----------- |
| **Commercial contract** | Agreement between parties                           | Yes          |
| **KYC/KYB documents**   | Company registration, tax ID, beneficial owner info | Yes          |

### CBD-specific documentation (if applicable)

| **Document**         | **Source** |
| :------------------- | :--------- |
| Medical prescription | Patient    |
| ANVISA authorization | Patient    |
| Identity document    | Patient    |

## Compliance monitoring and analysis

### What is monitored

| **Dimension**                 | **Analysis**                                   |
| :---------------------------- | :--------------------------------------------- |
| **Transaction velocity**      | Frequency of payments to/from same beneficiary |
| **Amount patterns**           | Values relative to historical behavior         |
| **Beneficiary relationships** | Connections between payers and payees          |
| **Restrictive lists**         | Sanctions, PEP, watchlists, negative media     |

### Monitoring outcomes

| **Outcome**            | **Description**                                            |
| :--------------------- | :--------------------------------------------------------- |
| **Auto-approved**      | No risk indicators – transaction proceeds normally         |
| **Flagged for review** | Suspicious pattern – held for manual analysis              |
| **Blocked**            | High risk or restrictive list match – transaction rejected |
| **MED notification**   | Central Bank fraud return mechanism triggered              |

## Risk classification

Merchants and transactions are classified using a **risk-based approach (RBA)** :

| **Risk Level**  | **Characteristics**                           | **Approval**          | **Re-evaluation** |
| :-------------- | :-------------------------------------------- | :-------------------- | :---------------- |
| **Low risk**    | Standard operations, complete documentation   | Compliance Director   | Every 24 months   |
| **Medium risk** | Some flags or higher-value operations         | Compliance Director   | Every 18 months   |
| **High risk**   | PEPs, restricted segments, complex structures | Subcommittee approval | Every 12 months   |

## Suspicious activity reporting (COAF)

Transactions or situations that may indicate money laundering or terrorist financing must be reported to COAF.

### Examples of suspicious indicators

| **Indicator**                         | **Description**                                     |
| :------------------------------------ | :-------------------------------------------------- |
| **Unusual patterns**                  | Frequency or values atypical for the client         |
| **Resistance to provide information** | Client avoids contact or document submission        |
| **False information**                 | Difficult or costly to verify                       |
| **Incompatible resources**            | Movement inconsistent with declared income/activity |
| **Acting on behalf of third parties** | Without revealing beneficial owner                  |
| **Sudden limit increase requests**    | Without reasonable justification                    |

> ⚠️ Suspicious transaction reporting is mandatory. The Compliance team makes final reporting decisions.

## Intercompany payment restrictions (BCB Resolution nº 561/2026)

**Intercompany payments** (where paying and receiving companies share corporate structure) are **not permitted** under the eFX model.

| **Reason**                        | **Explanation**                                                       |
| :-------------------------------- | :-------------------------------------------------------------------- |
| **eFX purpose**                   | Limited to purchase of goods/services or unilateral transfers         |
| **Intercompany characterization** | May be interpreted as capital transfers or loans – not allowed in eFX |
| **Required alternative**          | Use traditional FX market for intercompany operations                 |

## Compliance training

WEpayments provides regular training on PLD/FTP topics:

| **Training type**         | **Frequency** | **Audience**                   |
| :------------------------ | :------------ | :----------------------------- |
| **Awareness training**    | Annual        | All employees                  |
| **Refresher training**    | As needed     | Compliance-relevant roles      |
| **Educational materials** | Ongoing       | Employees, partners, suppliers |