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. 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.
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.
Here are several reasons why AML compliance is important for PSPs:
With regulations around the world constantly changing, PSPs need to be on top of new laws and requirements in order to stay compliant. This can be a major challenge, especially for smaller companies that may not have the resources to devote to compliance. As digital payments become more widespread, fraudsters are becoming increasingly sophisticated in their tactics. PSPs need to invest in advanced fraud prevention tools and techniques to protect their customers and their own reputations.
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.
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!
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However, some clients allow us to share their names in certain cases.
Feel free to contact us for references at sales@dilisense.com
dilisense GmbH
Weinbergstrasse 131
8006 Zurich
Switzerland
sales@dilisense.com
Registration no.: CHE-406.519.053
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