Understanding the True Sender and True Recipient | Conduit Guides
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.
Onramp (Fiat to Crypto)
| Scenario | True Sender | True Recipient |
|---|---|---|
| Your customer Acme Corp buys USDC through your platform. (You facilitate, but they provide the funds.) | Acme Corp (Bank) | Acme Corp (Wallet) |
| You buy USDC for your company treasury. | Your Business (Bank) | Your Business (Wallet) |
Offramp (Crypto to Fiat)
| Scenario | True Sender | True Recipient |
|---|---|---|
| Acme Corp sells USDC through your platform and pays Global Vendor Ltd. in fiat. | Acme Corp (Wallet) | Global Vendor Ltd. (Bank) |
| You sell USDC from your company wallet and receive fiat in your bank account. | Your Business (Wallet) | Your Business (Bank) |
Fiat-to-Fiat Conversion
| Scenario | True Sender | True Recipient |
|---|---|---|
| Acme Corp converts EUR to USD and receives the funds in their own account. | Acme Corp (EUR Bank) | Acme Corp (USD Bank) |
| Acme Corp converts EUR to USD to pay a contractor. | Acme Corp (EUR Bank) | Contractor (USD Bank) |
| You convert EUR to USD to pay a vendor or for internal treasury use. | Your Business (EUR Bank) | Your Business (Vendor Bank or Internal Account) |
Same-Currency Transfers (e.g. USD to USD)
| Scenario | True Sender | True Recipient |
|---|---|---|
| Acme Corp pays a supplier in the same currency. | Acme Corp (Bank) | Supplier (Bank) |
| Acme Corp transfers USD between its own accounts. | Acme Corp (Bank A) | Acme Corp (Bank B) |
| You pay a vendor or move funds internally. | Your Business (Bank) | Your Business (Vendor or Internal Bank Account) |
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.
Frequently asked questions
Can you reverse or recall a payment?
Once a payment is completed, it can only be recalled. However, a recall may take up to 7 business days and should only be requested in urgent cases.
What is the minimum/maximum amount I can send with Conduit?
The minimum amount required per transaction is 10,000 USD. If you send less than this, a $35 USD fixed fee will apply.
As for maximums, there are no absolute limits, but the web app has quote limits depending on the target currency:
- Stablecoins: No limit.
- USD: Maximum quote limit is $1.50M per transaction.
- BRL: Maximum quote limit is 15M per transaction.
- MXN: Maximum quote limit is 10M per transaction.
- EUR: Maximum quote limit is 1.50M per transaction.
I have submitted a payment with incorrect payment instructions, how long does it take for the wire to return?
Payments are typically returned the same day, subject to the operational hours of the beneficiary bank. The Payment Ops team will notify you as soon as the returned payment is received.
What does the status of my payment mean?
In Compliance Review: Your payment is under compliance review.
Processing Settlement: Your payment is being prepared for settlement.
Completed: Your payment has been successfully sent.
Rejected: Your payment could not be processed.
If a payment remains in the same status for an extended period, please contact the Payment Ops team for assistance.