Why does Confido Legal ask for so much information on the application?

Confido Legal's application process is strenuous. Here's why we need all the details.

Regulatory Obligations

Confido Legal will move money for your firm, so think of us almost like a bank. We comply with federal anti-money laundering (AML) and know-your-customer (KYC) regulations. As a result, we ask for certain personal information to verify the ownership or management of the firm.

Risk Mitigation

We ask for bank statements for two reasons:

• We use the statements to double check the accuracy of the account numbers. If there is a typo on the application, the bank statement review is designed to identify this discrepancy and ensure the payments go to the correct bank account.
• We use bank statements to verify the financial integrity of the firm. This matters because we are underwriting the electronic payments made to the firm's bank accounts. If a firm were to accept $1M in payments, then go out of business having already spent the money in the account, Confido Legal is responsible for helping the clients who made those payments get their money back. We know this situation is unlikely, but reviewing bank statements helps us reduce the cost of fraud so that we can keep costs low for all of our firms.

For more details on the regulatory aspects and risk management associated with setting up a payment processing account, see this article on Financially Legal.