How We Safeguard Your Funds
When funds are posted to your account, e-money is issued in exchange for these funds, by an Electronic Money Institution who we work with, called Currencycloud. In line with regulatory requirements, Currencycloud safeguards your funds. This means that the money behind the balance you see in your account is held at a reputable bank, and most importantly, is protected for you in the event of Currencycloud’s, or our, insolvency. Currencycloud stops safeguarding your funds when the money has been paid out of your account to your beneficiary’s account.
- Issuance of E-Money:
- The funds you deposit are converted into e-money, which is then reflected in your account balance.
- Funds Held at Reputable Banks:
- The actual money corresponding to your e-money balance is held securely at a reputable bank. This is a key regulatory requirement that ensures your funds are protected.
- Protection in Case of Insolvency:
- In the unlikely event of insolvency, either on our part or Currencycloud’s, your safeguarded funds are protected. This means that your money is kept separate from the funds of the institution and cannot be used to pay off debts in case of bankruptcy.
When Does Safeguarding End?
Safeguarding of your funds continues until the money has been transferred from your account to your beneficiary’s account. Once the transfer is complete, safeguarding stops as the funds are no longer held under our or Currencycloud’s custody.