Not all payments are compliant
It’s been said before that anyone can pay anybody anything, but whether it’s compliant or not is another question entirely. In our 25+ years in business, CXC Global have seen many methods for the payment of wages and “services” and the explosion of online platforms has seen the number of so called providers increase. Just because someone cuts a check or sends a wire to a person for work completed, it doesn’t make it compliant.
One of Europe’s biggest tech listings in recent times to go public, saw a Dutch fintech firm’s shares soar in IPO, as reported by Arjun Kharpal for CNBC.
“Global insight into compliant payments outside of the US to fund projects. A United States corporation facilitating payment to a C2C worker across borders is still required to have an in-country entity to make a local payment and handle compliant currency conversion in the C2C worker’s home dollar. All compliant payment processing companies will track re-occurring payments and stop transactions marking them as labor costs, and ultimately halting projects. Using a global, compliant payment facilitator who have in-county experts on staff will ensure payments are compliant and projects are not stalled. CXC Global is a compliance first international organization!
Global payment facilitators have provided a seamless service to send funds globally for the purchases of goods. I purposely did not include “services” as these platforms provide a non-compliant channel for workers to be paid globally, bypassing statutory costs and currency conversion that both are required by in-country law.
There’s a reason why the smaller payment processing players come-and-go and the reputable processors have technology to identify and stop payments that are in actuality wages. To ensure that your service payment is not interrupted by the stop-gaps, it’s advised to choose a payment facilitator with a history of paying workers compliantly around the globe.”
Lou Calamaras, CCWP, Director Global Client Solutions
CXC Global North America
With compliance being a key focus for CXC Global, our leadership team are always sure to stress its importance, when speaking with clients and educating business around the globe about payments and management of their contingent or non-permanent workforce.
To speak with one of our leadership team and compliance specialists, please contact us.
