1. Are my funds safe?
YabandPay is a payment institution licensed by the Dutch Central Bank (De Nederlandsche Bank, DNB).
Your funds, that is, merchant funds are supervised by DNB and are absolutely safe.
Article 3:29a of the Dutch Financial Supervision Act (Wet op het financieel toezicht, Wft) combined with Article 40a of the Financial Supervision Act (Besluit prudentiële regels Wft, Bpr Wft) requires payment institutions to ensure that when they execute payment transactions Merchant funds received will not be commingled with funds from other creditors of the payment institution. This way, in the event of a payment institution’s insolvency, such covered merchant funds will be protected as they are segregated from the payment institution’s own assets.
In order to fully protect merchant funds, YabandPay established a customer fund foundation (Stichting Derdengelden YabandPay, KvK registration number 87807688) in accordance with Dutch law. The foundation will act as an independent custodian and be responsible for receiving, managing and transferring merchant funds.
The foundation was established for the sole purpose of receiving, managing, transferring and protecting merchant funds. The Foundation will not engage in any commercial activities, grant loans or assume any other financial obligations. Article 2 of the Foundation’s Bylaws sets forth these objectives and limitations.
- Complete isolation of funds: Merchant funds are completely isolated from YabandPay’s free funds, which are hosted in independent foundations.
- Clear recording and display: YabandPay clearly records the balance (assets) of each customer, and these data are properly kept. You can also view it in real time on the YabandPay merchant backend.
- Daily reconciliation: The foundation will conduct daily reconciliation to ensure that its liquid assets are not less than the total amount of merchant funds in custody at any time.
- Protection from bankruptcy: YabandPay and the foundation belong to different entities, and merchant funds are protected from claims by YabandPay creditors. If YabandPay goes bankrupt, the Foundation will continue to receive, manage and transfer merchant funds until merchant funds are no longer disposed of.
In order to ensure that such policies are implemented, YabandPay has internally formulated a merchant fund safeguarding policy (Safeguarding Policy), established an independent supervisory board, and hired two different auditing companies to conduct independent internal and external audits.