Segregated Account
A segregated account holds client funds separately from a firm’s own operating capital, so client money is never at risk if the firm becomes insolvent. It is a standard regulatory requirement for EMIs, forex brokers handling client deposits, and licensed gaming operators holding player funds.
Forex and iGaming regulators typically require segregation before granting or renewing a license, and a bank that discovers commingled client funds can close the account within days regardless of your compliance record elsewhere. Setting up segregation correctly at account opening avoids a rebuild that otherwise costs weeks of frozen operations.
An Electronic Money Institution is a regulated entity, licensed separately from a bank, authorized to issue e-money and provide payment accounts and services.
Settlement is the transfer of cleared transaction funds from the card network or payment rail into the merchant’s bank account, net of fees, chargebacks, and any reserve withheld.
Underwriting is the risk-assessment process a bank, EMI, or acquirer runs on an applicant before approval: verifying ownership, source of funds, transaction history, and sector-specific risk factors against the institution’s published or internal risk appetite.
Know Your Business is the due-diligence process banks, EMIs, and acquirers run to verify a corporate applicant: beneficial ownership, incorporation documents, source of funds, and the nature of the business itself.