Castler closes Pre-Series A funding of $6 Million led by Flipkart, Capital 2B, IIFL Fintech Fund, Venture Catalysts & Zerodha

How does a cross-border escrow service handle transactions involving restricted or prohibited items?

A cross-border escrow service, such as Castler’s digital escrow system, must adhere to international laws and regulations regarding restricted or prohibited items. This means that the service must have a thorough understanding of the items that are not allowed to be traded across borders and ensure that transactions involving such items are not processed.

To handle transactions involving restricted or prohibited items, the escrow service may require additional documentation or verification from the buyer and seller to ensure that the item being traded is legal and legitimate. The service may also work with customs officials and other regulatory bodies to ensure that the item is allowed to be shipped across borders.
In some cases, the escrow service may refuse to process a transaction involving a restricted or prohibited item altogether. This is to protect both the buyer and seller from legal repercussions and to ensure that the service is not facilitating illegal activities.

Overall, a cross-border escrow service must be diligent in its efforts to prevent transactions involving restricted or prohibited items and must work closely with regulatory bodies to ensure compliance with international laws and regulations.