From 8be960125fed9860d8c254d1296ef100b548231c Mon Sep 17 00:00:00 2001
From: Christian Grothoff <grothoff@gnunet.org>
Date: Mon, 12 Jun 2023 18:08:08 +0200
Subject: -reg text work

---
 doc/flows/main.tex | 47 ++++++++++++++++++++++++++++++++++++++++-------
 1 file changed, 40 insertions(+), 7 deletions(-)

(limited to 'doc/flows/main.tex')

diff --git a/doc/flows/main.tex b/doc/flows/main.tex
index c2aee65ac..2a10578bf 100644
--- a/doc/flows/main.tex
+++ b/doc/flows/main.tex
@@ -37,16 +37,48 @@ The main interactions of the system are:
   \item[shutdown] the Taler payment system operator informs the customers that the system is being shut down for good
 \end{description}
 
-Taler has no accounts (this is digital cash) and thus there is no ``opening''
-or ``closing'' of accounts. The equivalent of ``opening'' an account is thus
-to withdraw digital cash.  The equivalent of ``closing'' an account is to
-either (1) deposit the funds explicitly into a bank account, or (2) the coins
-will expire if the wallet was lost (including long-term offline or
+{\bf Customers} begin their business relationship with us when they withdraw
+digital cash.  Taler has no accounts (this is digital cash) and thus there is
+no ``opening'' or ``closing'' of accounts for consumers.  Given digital cash,
+the customers can either (1) deposit the funds explicitly into a bank account
+(see Section~\ref{sec:deposit}), (2) pay a merchant (see
+Section~\ref{sec:deposit}), (3) pay another customer using a peer-to-peer
+transfer (see Sections~\ref{sec:push} and~\ref{sec:pull}), or (4) the coins
+will expire if the wallet was lost (including offline for a long time or
 uninstalled).  Finally, if a wallet remains (occasionally) online but a user
-does simply not spend the coins will (3) diminish in value from the change
+does simply not spend the coins will (5) diminish in value from the change
 fees (see Section~\ref{sec:fees:coin}) that apply to prevent the coins from
 expiring outright.
 
+For customers, we will categorically limit of digital cash withdrawn per month
+to less than CHF 5000 per month and less than CHF 15000 per year, thus
+ensuring that consumers remain below the thresholds where most regulatory
+processes become applicable. We will, however, ensure that customers are Swiss
+(see Section~\ref{sec:proc:domestic}) by requiring them to have a Swiss bank
+account and/or Swiss phone number (+41-prefix).  Furthermore, the wallet will
+impose an upper limit of CHF 5000 on its balance at any point in time.
+
+For {\bf merchants}, the Taler equivalent of ``opening'' an account and thus
+establishing an ongoing business relationship is for a business to receive
+payments (see Section~\ref{sec:deposit}) exceeding CHF 5000/month or CHF
+15000/year.  We will consider the account ``open'' (and require up-to-date KYB
+information and check sanction lists) as long as the business has made any
+transactions within the last 24 months.
+
+In contrast to normal customers, merchants can in principle {\bf receive}
+payments without limit. However, these transactions must go into the bank
+account of the business: when digital coins are deposited at a business in
+Taler, the business never actually receives usable digital coins but instead
+the amount is always directly credited to their bank account.  Depending on
+the transacted amounts, the business will be subject to KYB
+(Section~\ref{sec:proc:kyb}) and AML checks. As we will only transfer money
+into the existing bank accounts of the merchants to compensate them for sales
+made using the Taler payment system, we do not need to check the origin of
+funds for those merchants as they will only receive funds from
+us.\footnote{Should businesses want to use Taler for expenditures, they will
+need to withdraw digital coins from their bank account just like customers,
+and the limits for customers will continue to apply.}
+
 The following sections describe the respective processes for each of these
 interactions.
 
@@ -119,7 +151,8 @@ The three main regulatory processes are:
 \end{description}
 
 \include{proc-domestic}
-\include{proc-kyc}
+%\include{proc-kyc}
+\include{proc-kyb}
 \include{proc-aml}
 
 \chapter{Fees} \label{chap:fees}
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