23 November 2012. International trade association Prepaid International Forum (PIF) today announced that it has published a White Paper in response to concerns that certain types of prepaid products are facilitating financial crime and the purchase of age-restricted goods by minors. The paper, entitled ‘Simplified Due Diligence in Prepaid’, forms part of PIF’s drive to promote understanding, of prepaid products and how they operate, to regulators, consumer bodies and the media.
Produced in partnership with Neopay, the White Paper sets out to address the general misconception that prepaid products are increasing the risk of criminal activity in the financial services sector and enabling access to age-restricted and illegal goods by minors through the provision of anonymous products.
In a manner aimed at improving awareness of prepaid products and services the paper considers the meaning of anonymity in prepaid and the circumstances under which the legal requirement to conduct full customer due diligence can be removed. It provides examples and benefits of Simplified Due Diligence (SDD) and other regulatory exempt prepaid products but also considers the risk factors associated with these products. The paper outlines the controls that are used to manage the potential risks, the limits and restrictions in place and the regulatory structure that exists.
“When SDD is applied to prepaid products and services correctly, and with the appropriate controls in place, these products can provide significant benefits to consumers”, said Robert Courtneidge, Chairman of PIF. “SDD allows issuers of prepaid products to meet market need and demand and provide consumers with a range of secure payment options. The concerns raised are taken very seriously by the industry which is striving for a balance – to provide a commercially viable service that provides consumers with choice and convenience and a system of rigorous checks that prevents misuse”.
For further information please contact Diane Brocklebank at E: firstname.lastname@example.org or T: +44 (0) 77369 71986
Notes to Editors:
Prepaid International Forum (PIF) is a not-for-profit trade association established in 2007 to represent the interests of all parties participating in the prepaid economy on a commercial basis.
PIF is dedicated to the progression of prepaid commerce around the world and acts as a principal point of liaison between the prepaid economy and government agencies, regulators, consumer bodies and the media. It is focused on the entire prepaid world and facilitates the development of cross-industry guidelines and codes of practice.
In all of its activities PIF aims to:
- Provide an informed and unified voice for the cross-industry prepaid sector to speak to national and international government bodies, regulators, consumer bodies and the media;
- Act as a catalyst for the creation of industry guidelines and codes of practice, and
- Provide research and thought-leadership to participants in the prepaid economy
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