Paynex is not a licensed financial institution. KYC/KYB, AML operations, fund custody, banking services, and payment transmission are each performed by licensed third-party partners under their own regulatory authorization.
This page documents how compliance is structured within the Paynex platform model for review by compliance teams, regulatory counsel, and infrastructure partners.
These principles are structurally embedded into how Paynex is built — not aspirational statements.
Paynex does not hold a banking license, money transmission license, or e-money authorization. We do not describe ourselves as a regulated entity in any jurisdiction. All regulated activities are performed by licensed partners.
Each regulated function is clearly attributed to the licensed partner that operates it. Banking, custody, compliance, and transmission are labeled by who owns them — not Paynex.
No corridor or product flow reaches production without documented compliance review and written approval from the relevant partner. Compliance sign-off is a prerequisite, not a formality.
Customer funds are held exclusively by licensed banking partners. Paynex does not hold, pool, or transmit funds. Custody relationships are with the licensed institution, not the platform.
A breakdown of each compliance function, how it is operated, and which entity is responsible.
User onboarding is structured around compliance gates operated by licensed partners. No user proceeds to account access or payment initiation without passing the KYC/KYB verification workflow operated by the relevant compliance partner. Paynex provides the interface; the compliance partner owns and operates the verification process.
Paynex does not hold a banking license, money transmission license, or e-money authorization. Banking, fund custody, compliance operations, and payment transmission are each performed by licensed entities operating under the appropriate regulatory framework for the relevant jurisdiction.
Each payout corridor is independently assessed for compliance requirements before activation. This includes partner due diligence, regulatory alignment review, compliance scope definition, and a controlled sandbox-to-production migration. Corridors are not activated without written partner approval.
Transaction limits, velocity controls, and risk escalation workflows are configured through partner compliance infrastructure — not Paynex-proprietary controls. Risk management remains within the licensed partner's operating environment and regulatory obligations.
A concise reference for compliance reviewers and partner due diligence teams.
| Function | Operated By | Paynex Role |
|---|---|---|
| KYC/KYB Identity Verification | Licensed Compliance Partner | Interface & API integration |
| AML Screening | Licensed Compliance Partner | Workflow orchestration |
| Fund Custody | Licensed Banking Partner | Account display & management UI |
| Payment Transmission | Licensed Payment Rail Partner | Instruction routing |
| Transaction Monitoring | Licensed Compliance Partner | Alert surfacing only |
| Risk Decisions | Licensed Compliance Partner | Not involved in decisions |
| Product UI & Orchestration | Paynex | Platform operator |
If you're a compliance provider, regtech platform, or licensed infrastructure partner — let's explore how we can work together within a clearly defined compliance framework.
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