Understanding the True Sender and True Recipient
To remain compliant and ensure that transactions are processed without delays or rejections, it’s important to correctly identify the true sender and true recipient for every transfer. This applies whether you’re making payments for your own business or facilitating transactions on behalf of your customers.
Why this matters
Compliance regulations require full visibility into the actual parties involved in each transaction—not just the platform or intermediary. Misidentifying these parties can result in:
- Payment delays or rejections
- Compliance review failures
- Risk of limited access or account offboarding
Definitions
True Sender
The true sender is the business that provides the funds for a transaction.
- If you're acting on behalf of a customer:
The customer is the true sender—not your business, even if the funds move through your accounts.
Example: Acme Corp pays a vendor via your platform. Acme Corp is the true sender. - If the funds come from your own business account:
Your company is the true sender.
Example: You pay a vendor directly from your operating account.
True Recipient
The true recipient is the person or business that ultimately receives and benefits from the funds.
- If you're paying on behalf of a customer:
The final beneficiary (e.g. a vendor or contractor) is the true recipient—not your business, even if you receive the funds temporarily.
Example: Acme Corp pays a contractor via your platform. The contractor is the true recipient. - If the payment is for your own operations:
The vendor or internal account receiving the funds is the true recipient.
Example: You pay your law firm from your operating account. The law firm is the true recipient.
Please note that before submitting a transaction, it’s important to have the sender and recipient registered in the Counterparties section. If you’re not sure how to do that, you can follow this guide.
Examples by Payment Flow
Correctly identifying the true sender and true recipient depends on who is actually providing or receiving the funds—not who facilitates the payment. Below are common scenarios based on the type of transaction.
We’ve recorded a short video walking through real examples of how to correctly identify the true sender and true recipient in different scenarios:
Before Submitting a Transaction
Before submitting a payment, take a moment to confirm the following. This helps ensure regulatory compliance and avoids unnecessary delays:
- Am I correctly identifying the true sender—the actual provider of the funds?
- Am I listing the true recipient—the final beneficiary of the payment?
- Have I selected or created the correct counterparties based on who is truly involved?
- Is this transaction truly for my business, or am I using company accounts to settle a customer’s obligation?
If you're ever unsure, it's best to pause and verify. Accurate information protects both your business and your clients.
