Use case
AML screening for
Payment Service Providers
Initiate trustworthy payment transactions at every time.
Trusted by 500+ companies worldwide
Why screening matters for payment service providers
Anti-Money Laundering (AML) compliance is a critical aspect of payment service providers (PSPs) operations also known as Money or Value Transfer Services (MVTS)1. The payment sector is expected to reach $146.5 billion by 2030, growing at a rate of 13.7 percent annually.
Rising financial crime risk
Because the stakes are so high, criminals have begun money laundering and financing terrorism by taking advantage of financial system weaknesses2. PSPs are required to comply with AML regulations, which aim to prevent the use of financial services for illegal activities such as money laundering, terrorist financing, and other financial crimes.
A costly lesson
One high profile case was in 2017 when Western Union (a global money transfer company) was fined $586 million for failing to implement effective AML controls. The company was accused of allowing its services to be used for fraud and money laundering, and of failing to adequately report suspicious transactions to regulators.
Why compliance matters
Here are several reasons why AML compliance is important for PSPs:
- Regulatory compliance: PSPs must comply with AML regulations to avoid legal consequences, such as fines, penalties, and even criminal charges. Non-compliance with AML regulations can significantly harm the reputation and financial stability of PSPs.
- Financial system integrity: By implementing proper AML compliance measures, PSPs contribute to the integrity and stability of the financial system and protect the reputation of their business and the financial services industry.
- Reputation management: A strong reputation is crucial for the success of PSPs in the highly competitive market. AML compliance helps PSPs maintain the trust of their customers and protect their reputation, making it easier to attract new business and retain existing customers.
- Risk management: PSPs are at risk of being used for money laundering and other financial crimes. By conducting proper AML screenings and implementing adequate AML compliance measures, PSPs can minimize their risk exposure and reduce the likelihood of facilitating illegal activities.
The challenge
The approach
PSPs need to regularly review and update their compliance programs to ensure they are up-to-date with regulations in the regions where they operate. This may involve investing in compliance software or hiring compliance experts.
They need to conduct thorough due diligence on merchants before onboarding them to ensure they are reputable and trustworthy. Additionally PSPs can partner with other companies such as data providers, fraud prevention vendors, and compliance experts to share information and resources and stay up-to-date with the latest developments in the industry.
Why dilisense
In addition to assisting PSPs in extracting pertinent PEPs, dilisense can also provide tailored data solutions by integrating any regulatory authority listings you wish to track and keep up with. We use cutting-edge technologies, with the aim of automating PEP and sanction checks.
With our AML Database product, PSPs can perform indefinite compliance screenings without sharing their customers data. This assists in identifying sanctioned entities, PEPs, as well as banned, blacklisted, and most sought criminals. Contact us for a free demo of our products today!
04 — Recommended products
The right setup for payment service providers
Every product screens against the same consolidated database — pick the integration that fits your team.
AML Screening API
Real-time REST API to screen against 10,000+ global sanctions, PEP and adverse media sources with sub-150ms response.
AML Database
Download the consolidated database and run sanctions, PEP and criminal checks on-premise — without sharing customer names externally.
Ongoing Monitoring
Continuous re-screening of your customer base with instant alerts when sanctions or PEP status changes.
Pay per use
A screening API at a fraction of the usual market price
Integrate the REST API and pay per call — no seat licenses, no minimum contract. Start on the free tier and scale into volume pricing as your check volumes grow.
per call, pay as you go
free calls every month
per call at volume
Frequently asked questions
Yes. Payment service providers — known in FATF terminology as Money or Value Transfer Services (MVTS) — must comply with AML regulations that aim to prevent money laundering, terrorist financing and other financial crimes. Non-compliance carries fines, penalties and even criminal charges: in 2017, Western Union was fined $586 million for failing to implement effective AML controls and to adequately report suspicious transactions to regulators.
Payment service providers typically integrate a REST screening API directly into the payment flow, so sender and receiver are checked in real time before a transaction clears. The dilisense AML Screening API returns JSON responses and includes fuzzy-search filters to reduce false positives. Where transaction data must not leave the PSP's own infrastructure, a downloadable on-premise database performs the same checks locally.
Payment service providers screen the senders and receivers of payments against sanction lists, Politically Exposed Persons (PEPs) and criminal watchlists covering banned, blacklisted and most sought individuals. dilisense aggregates these public sources with updates every 60 minutes, and can additionally integrate any regulatory authority listings a PSP wishes to track as a tailored data solution.
dilisense prices screening pay-per-use: the API has no monthly fee, includes free calls every month, and volume tiers lower the per-call price as a payment service provider's volumes grow. PSPs that prefer unlimited checks can run the downloadable AML Database on-premise for a monthly fee, without sharing customer data. A free web search covers occasional manual look-ups, no registration required.
References
Swiss discretion by default
Some of our clients allow us to share their names in certain cases — ask us for references and we’ll connect you.
Related industries