An IMFPA or similar paymaster contract involves all key players in the transaction: the seller, buyer, and intermediaries. However, the core transaction must be agreed upon between the sender (buyer/lender) and the receiver (seller/borrower) of the funds. If you are an intermediary, please ensure that an initial agreement has been reached between the sender, receiver, and all intermediaries before requesting our paymaster services. At Loop 8 Projects, we strictly comply with national and international anti-money laundering (AML) laws and regulations. We conduct due diligence on all individuals and businesses involved in the transaction to meet the requirements of banks, money-laundering monitors, and tax authorities. Specifically, we adhere to U.S. federal regulations set by authorities such as the U.S. Treasury Department and Homeland Security. Once due diligence confirms the authenticity and compliance of all parties and documents, we proceed to enter into a paymaster agreement to receive, manage, and disburse funds.

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Required Documentation

To provide our Paymaster services efficiently and effectively, we may request the following documents and information from all parties involved in the transaction:

• Valid driver’s license and/or passport

• Video meeting (face-to-face verification)

• Completed IRS form W-9 for U.S. entities and citizens

• Completed IRS form W-8BEN for non-U.S. residents (if applicable)

• Qualified Intermediary agreement with the U.S. IRS (if applicable for U.S. payor and non-U.S. payee)

• Transactional documents, including payment and escrow agreements

• Other pertinent client information

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Comprehensive Transaction Information

For certain transactions, we may request additional details such as:

• The role of each party: sender, receiver, or intermediary

• The volume of funds and the countries and banks involved

• Whether the transaction is a one-time event or will involve periodic payments

• The identity of the sender (individual or company)

• Proof of address and copies of related contracts

• Fee agreements between intermediaries and banking details for fund distribution

• Qualified Intermediary certificates (if applicable)

• Any new entity setup required (domestic or foreign)

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Executing the IMFPA

Once the necessary information has been collected and verified, the parties will execute an IMFPA or similar agreement. This document outlines how funds will be disbursed and ensures all parties understand the financial distribution. 

Note: Loop 8 Projects does not participate in the underlying transactions related to our paymaster services, nor do we intervene in disputes between buyers, sellers, and intermediaries. We remain neutral throughout the process, solely focusing on managing and disbursing funds, avoiding money laundering, and ensuring compliance with U.S. tax reporting and withholding requirements.

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Confidentiality and Compliance

Confidentiality is a cornerstone of our operations. Loop 8 Projects treats all client information as confidential, except when required for due diligence by banks or when complying with legal demands from law enforcement authorities. Please note that the execution of any paymaster agreement is subject to the approval and willingness of banks to process the transaction funds. This may depend on the results of due diligence and cannot be guaranteed.