Compliance and Controls
Embedded Finance operates as a regulated banking program under a sponsor bank. The associated controls are mandatory, and they run inside the program rather than being something your platform builds and operates.
Eligibility and Verification
These checks apply to account holders rather than to your full participant base. Participant onboarding and business verification sit elsewhere in Commerce Hub for Platforms. Here, the sponsor bank requires customer identification before the account opens, and re-verification when information changes or ages out. Failing that check closes off only the Embedded Finance account. Whether that participant continues to operate on your platform remains your decision, and they can still be paid through your other payout methods.
Controls Fiserv Operates
| Control | Coverage |
|---|---|
| KYC/CIP | Identity verification and customer identification at account opening, refreshed over the life of the account. |
| AML | Ongoing transaction monitoring, investigation, and regulatory filing. |
| Sanctions/OFAC | Screening at opening and continuously thereafter, against sanctions and watchlists. |
| Fraud | Account and transaction-level detection, with the ability to hold funds pending review. |
Monitoring and Reporting
Accounts are monitored continuously. Where a review results in a hold, a closure, or a request for additional information, your platform is notified and the participant is contacted directly.
For your own audit and reconciliation needs, every payout carries your reference ID through to settlement, and account and transaction records are retained to the standard the program requires. Regulatory reporting obligations, including tax reporting, are defined per program during configuration.