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Can I accept payments online without violating payment processing laws in Alaska? What are the requirements?

To accept payments online in Alaska, you must comply with the Alaska Uniform Money Services Act (AS 06.55) and the Uniform Commercial Code (AS 45.14). The requirements for accepting payments online are as follows:

Registration and Licensing

You must register with the Alaska Division of Banking and Securities and obtain a license to operate as a money services business (MSB) in Alaska [1.1].

Compliance Program

You must establish and maintain a written anti-money laundering (AML) compliance program that includes policies, procedures, and internal controls to detect and prevent money laundering and terrorist financing. Your compliance program must also include ongoing employee training, independent testing, and risk assessments [1.1].

Customer Due Diligence

You must conduct customer due diligence (CDD) to verify the identity of your customers and assess the risk of money laundering or terrorist financing associated with each customer. Your CDD procedures must include obtaining identifying information from customers, verifying the accuracy of the information, and screening customers against government watchlists [1.1].

Reporting Requirements

You must file reports with the Financial Crimes Enforcement Network (FinCEN) for certain transactions, including suspicious activity and currency transactions over $10,000. You must also maintain records of your transactions and make them available to law enforcement upon request [1.1].

Security Requirements

You must implement appropriate security measures to protect customer information and prevent unauthorized access to your systems. You must also comply with the Payment Card Industry Data Security Standard (PCI DSS) if you accept credit card payments [1.1].

Authorized and Verified Payment Orders

If you and your customer have agreed that the authenticity of payment orders issued to the bank in the name of the customer as sender will be verified under a security procedure, a payment order received by the receiving bank is effective as the order of the customer, whether or not authorized, if (1) the security procedure is a commercially reasonable method of providing security against unauthorized payment orders; and (2) the bank proves that it accepted the payment order in good faith and in compliance with the security procedure and any written agreement or instruction of the customer restricting acceptance of payment orders issued in the name of the customer [1.2].

Liability and Duty of Receiving Bank Regarding Unaccepted Payment Order

If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for breach of the agreement to the extent provided in the agreement or in this chapter, but does not otherwise have a duty to accept a payment order or, before acceptance, to take action, or refrain from taking action, with respect to the order except as provided in this chapter or by express agreement [1.7].

Please note that this is not an exhaustive list of requirements and you should consult with an attorney to ensure that you are in compliance with all relevant laws and regulations.

[1.1]: AK ST § 06.55.010 et seq. [1.2]: AK ST § 45.14.202 [1.7]: AK ST § 45.14.212

Source(s):
Jurisdiction

Alaska