P2P transactions are direct transfers of funds between legal entities or individuals, bypassing traditional banking intermediaries. For international business, this is a tool for flexibility, speed, and cost optimization. However, with the increasing popularity of P2P transfers, the regulatory requirements in the EU, Asia, and Africa have become stricter, with regulators implementing new financial monitoring protocols, KYC for businesses, and anti-money laundering procedures.
Today, I, Nikita Veremeev, am sharing a practical guide based on the experience of COREDO in company registration in the EU, Asia, and Africa, obtaining financial licenses, implementing AML compliance, and supporting P2P operations. This article is not just an analysis but a strategic tool for leaders who want to not only avoid account blocks and sanctions but also scale business using P2P transfers legally and effectively. If you’re looking for answers about the legality of P2P transfers, financial monitoring, due diligence, and choosing the optimal jurisdiction, read to the end. Here you will find solutions tested in COREDO’s practice.
Legality of P2P Transfers: International and Local Regulation
Legality of P2P transfers is becoming an increasingly relevant topic in the context of rapidly changing global financial regulation. Today, international and local regulations impose new requirements on P2P transactions, and their impact is particularly noticeable in EU countries, where updated standards will come into effect in 2025.
P2P Transactions in the EU: 2025 Requirements
In the European legal framework, the regulation of P2P transactions is based on a combination of EU directives, national laws, and FATF recommendations. The key provisions are enshrined in the 6th EU Directive on money laundering (6AMLD) and PSD2, which require companies to implement comprehensive AML compliance procedures and KYC for businesses. From 2025, stricter limits are expected on P2P transfers between companies and the mandatory identification of the ultimate beneficial owner (UBO) for cross-border payments.
The EU market is characterized by highly detailed requirements for the registration of companies for P2P operations: Licensing of platforms, mandatory verification of the source of funds, integration of automated financial monitoring systems, and mandatory reporting on suspicious transactions. Cross-border payments between EU residents and non-residents are subject to additional control, and P2P transfer limits are set both at the bank level and by national regulators. COREDO’s practice confirms that timely implementation of AML policies and automation of transaction monitoring allows not only avoiding account blocks but also speeding up due diligence processes during audits.
Regulation of P2P Transfers in Asia and Africa
In Asia and Africa, the regulation of P2P transfers is highly fragmented. For instance, in Singapore, registering a company that conducts P2P operations requires a local director and corporate secretary, and platform licensing is overseen by the Accounting and Corporate Regulatory Authority (ACRA). In the UAE and Thailand, there are specific requirements for AML compliance and financial monitoring, and in South Africa: strict control by the central bank.
Special attention is given to P2P transactions with cryptocurrency: exchanges are required to implement KYC/AML procedures, conduct verification of the source of funds, and integrate systems for detecting suspicious operations. The solution developed at COREDO for clients from Singapore and the UAE includes automation of counterpart checks and integration with global sanctions lists, minimizing risks of account blocks and inclusion in the registry of suspicious clients.
Liability for Illegal P2P Operations
The COREDO team has implemented cases where proper legal defense and preliminary Due Diligence allowed clients to avoid being placed on sanctions lists and restore access to corporate accounts after blocking. The key conclusion: only systematic work with AML procedures and transparent financial reporting protect the business from long-term consequences.
AML Compliance in P2P Transactions
AML compliance in P2P transactions is becoming increasingly important as the volume of direct transfers between users and the development of cryptocurrency platforms grow. The implementation of AML and KYC procedures for businesses becomes especially significant to timely identify risks and prevent the legalization of illegal funds within peer-to-peer operations.
AML and KYC for Business
COREDO’s practice shows that automating KYC for businesses and integrating with global databases can speed up the verification of counterparts in P2P, reduce human error, and minimize the likelihood of conducting high-risk transactions. A compliance officer becomes a key figure in the internal control system, responsible for the implementation and regular updating of anti-money laundering procedures.
Financial Monitoring, How to Automate?
Modern transaction monitoring systems are based on the principles of transaction scoring and automated detection of suspicious operations. For P2P platforms and companies actively using P2P transfers, it is critically important to integrate tools that allow real-time tracking of anomalies, comparing operations with the client profile, and identifying potential cashing-out schemes or involvement of drop parties.
The solution developed at COREDO for Asian and European clients includes the implementation of automated P2P transaction monitoring modules, allowing not only compliance with FATF and national regulators’ requirements but also prompt reactions to changes in counterparty behavior. This approach reduces risks for legal entities and ensures transparency of financial flows.
How to Avoid Bank Account Blocking
Banks and financial institutions use complex algorithms to detect suspicious P2P operations: they analyze the frequency of transfers, payment structure, and the relevance of payment designations to the company’s actual activities. Criteria for suspicious operations include abnormal amounts, regular transfers to non-resident accounts, and using corporate accounts for personal needs.
Legal Support for P2P Transfers Between Companies
Legal support for P2P transfers between companies is a key element for lawful and safe organization of settlements in international business. Each stage of the P2P processes between legal entities requires considering the peculiarities of currency and tax control, compliance with reporting rules, and the correct choice of jurisdiction. We will further examine company registration for P2P transfers in the EU, Asia, and Africa, with a focus on current requirements and nuances.
Registration of Legal Entities for P2P in the EU, Asia, Africa
Choosing a jurisdiction for company registration focusing on P2P operations determines not only the tax burden but also the requirements for licensing, banking compliance, and financial reporting. In the EU, licensing for P2P platforms and exchangers is mandatory, and AML/KYC requirements correspond to FATF and 6AMLD standards. In Asia, for instance, in Singapore, company registration requires a local director and corporate secretary, with licensing regulated by ACRA.
Documents and Reporting on P2P Operations
Correct invoicing, payment orders, and contracts are the foundation for income legalization and minimizing tax risks in P2P transactions. Financial due diligence conducted at the deal conclusion stage allows identifying risks associated with the counterparty and preparing reports for tax authorities and auditors.
COREDO’s solution for European and Asian companies includes developing document templates that meet national regulators’ requirements and implementing automated systems for preparing financial reporting on P2P operations. This approach ensures transparency for investors and reduces the chance of account blocks.
These measures become especially relevant against the backdrop of businesses’ growing interest in using P2P cryptocurrency tools.
P2P Cryptocurrency for Business
Working with cryptocurrency exchanges and P2P platforms requires special attention to AML compliance and verification of fund sources. For the legal purchase of cryptocurrency through P2P, a legal entity must provide a full package of documents: regulatory documents, proof of registration, invoices, and also pass the KYC procedure on the exchange.
COREDO’s team has implemented projects for integrating AML services into P2P platforms for clients from the EU and Asia, allowing not only to legalize cryptocurrency deals but also to prevent accusations of cashing out and laundering criminal proceeds. It’s important: regular monitoring of operations and automation of due diligence become mandatory elements of a company’s compliance policy.
Business Risks: How to Operate Legally
Business Risks are becoming increasingly significant in the context of digitalization and the growth of non-standard payment schemes. For entrepreneurs, it is crucial to understand how to operate legally, considering the features and dangers of modern transactions, especially when it comes to P2P operations. We will further examine key risks of P2P transactions for businesses and ways to minimize them.
Risks of P2P Transactions for Business
COREDO’s practice shows that regular audits, implementation of systems for detecting suspicious operations, and staff training allow identifying and preventing fraudulent schemes at early stages.
Compliance Policy: What It Is and Why It Is Needed
The solution implemented by COREDO for international clients includes the integration of automated monitoring services, development of checklists for due diligence, and regular training for staff. This approach protects businesses from charges of laundering through P2P and reduces the likelihood of tax claims.
Scaling Business Through P2P Transfers
To scale a business using P2P transfers, it’s crucial to choose a payment platform that meets the chosen jurisdiction’s requirements, integrate AML services, and ensure transaction transparency for investors. Automation of P2P transaction monitoring and the implementation of a financial control system allow for risk management in transactions with non-residents and preparing reports for auditors and tax authorities.
COREDO’s experience shows that transparency in P2P transactions, regular due diligence, and integration of compliance tools are essential conditions for sustainable growth and trust from investors and banks.
Conclusions and Recommendations for Business
- Implement comprehensive AML/KYC procedures and automated transaction monitoring systems.
- Regularly update the compliance policy considering legislative changes in the EU, Asia, and Africa.
- Conduct due diligence of counterparts before every P2P transaction, especially when working with non-residents and cryptocurrencies.
- Document all P2P operations using invoices, payment orders, and supporting documentation.
- Prepare financial reports on P2P operations for tax authorities and auditors in advance.
- Provide staff training and appoint a competent compliance officer.
- If placed in the registry of suspicious clients, initiate an internal audit and seek professional legal support.
If you would like to receive individual consultation on legal work with P2P transactions, company registration in the EU, Asia, or Africa, AML compliance implementation, and financial monitoring, the COREDO team is ready to offer solutions tested in practice and tailored to your business.
| Jurisdiction | P2P Licensing | AML/KYC Requirements | Transfer Limits | Liability for Violations |
|---|---|---|---|---|
| EU | Required for platforms and exchangers | Strict, FATF, 6AMLD | Set by banks and regulators | High fines, account blocking |
| Asia (Thailand) | Required for platforms | SEC, local laws | Restrictions for non-residents | License sanctions, criminal liability |
| Africa (South Africa) | Partially required | Central Bank and AML requirements | Limits by operation type | Account blocking, business prohibition |
This guide is the result of COREDO’s many years of work with international clients, real cases, and in-depth legislative analysis. Use it as a strategic tool for legal and effective work with P2P transactions in any jurisdiction.