At TruBit Business, our goal is simple: to create a world of borderless finance and enable limitless business opportunities. By offering flexible operational models, we help our partners grow and expand their businesses across borders, unlocking new markets and opportunities. Whether you're trading virtual assets, handling cross-border payments, or leveraging TruBit’s infrastructure, we are here to empower your growth and success.
1.VAI (Virtual Assets Intermediation)
– Also Known as “Same Name”
In the VAI model, merchants undergo the KYB process, allowing them to use their verified business identity to trade and manage virtual assets directly.
Conditions:
KYB (Know Your Business) must be completed by the merchant.
Real-name deposit and withdrawal of funds are required, ensuring transparency and compliance.
Applicable Jurisdictions: Mexico, Argentina, Brazil, Colombia, Peru, Chile, USA, Europe.
Applicable Scenarios: Businesses wanting to manage and trade virtual assets directly.
2. POBO (Payment on Behalf Of)
POBO allows a merchant to make payments of commercial activivities such as goods and services, on behalf of another party, particularly useful in cross-border transactions where business justification is required for each payment. It doen't apply for vulnerable activities.
Conditions:
KYB is required for the entity making payments within the business relationship.
For every transaction, the merchant must provide business justification (e.g., contracts, invoices).
This model applies to jurisdictions that accept this practice.
Applicable Jurisdictions: Mexico, Argentina, Brazil, Colombia, Peru, USA, Hong Kong, Europe
Applicable Scenarios: Cross-border payments, third-party payment processing.
3. COBO (Collection on Behalf Of)
The COBO model allows a merchant to receive payments of commercial activivities such as goods and services, on behalf of another party, offering flexibility in managing incoming funds while maintaining compliance. It doesn't apply to vulnerable activities.
Conditions:
KYC (Know Your Customer) must be performed on the companies receiving payments.
For every transaction, business justification is required (e.g., contracts, invoices).
Verification of the payers against the appropriate lists is mandatory.
This model applies to jurisdictions where COBO operations are accepted.
Applicable Jurisdictions: Mexico, Argentina, Brazil, Colombia, Peru, USA, Europe
Applicable Scenarios: Primarily for cross-border collections.
4. Reliance
In the Reliance model, TruBit performs an audit on the partner’s KYC/AML (anti-money laundering) capabilities, risk control measures, and overall compliance infrastructure. Once approved, the responsibility of conducting customer reviews is delegated fully to the partner.
Conditions:
The partner needs to have licenses and permissions to carry out such activities.
TruBit audits the partner's KYC/AML and risk control processes.
The partner takes full responsibility for final customer reviews.
Applicable Jurisdictions: Mexico, Argentina, Brazil, Colombia, Peru
Applicable Scenarios: Regulated financial institutions who want to build their business leveraging TruBit's infrastructure.
Comparison Table
Definition of vulnerable activities
Vulnerable activities are high-risk operations prone to misuse for illegal purposes like money laundering, fraud, or terrorism financing. They require stricter compliance and oversight.
Examples of Vulnerable Activities
High-cash flow businesses (casinos, luxury goods).
Cryptocurrency transactions and exchanges.
Real estate deals with offshore entities.
Cross-border remittances and trade.
Nonprofit organizations (charities).
Politically exposed persons (PEPs).
Shell companies and anonymous transactions.
Arms, precious metals, or high-value goods trade.
Unregulated financial services (hawala, payday loans).
If you have questions regarding this information, please contact the TruBit Team via our chat channel or email us Here and we'll be in touch!