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Manage AML Risk in Payments

The European Banking Authority recently released a report criticising the lack of mitigation by payments institutions and underperforming supervision by regulators. More must be done, and regulators are sure to refocus their efforts on payments institutions as a result. 

Manual approaches to compliance present a real challenge - they’re a drain on time and resources and contribute to operational inefficiencies, lack of audit control, and high turnover in compliance talent. 

Compliance officers report spending much of their time on data analysis, due diligence, and risk assessments, second only to internal meetings, and administrative tasks. Investigations rank as the fourth most time-consuming task for compliance staff.

Investigating transaction monitoring alerts takes up to five days for 66% of fintechs, according to research in our latest report "Integrated KYC and Scaling for Success". In a regulatory landscape that’s rapidly changing and with ever increasing demands from local regulators, this is no longer an effective approach to compliance.

Just 33% of fintechs say that they can trust the accuracy of their KYC data when cross-referencing it against transaction data. Most are unable to obtain the most up to date customer risk profile when conducting investigations.

Failures around ongoing monitoring often stem from firms not being able to ensure that an account’s activity matches up with the firm’s understanding of their customer profile.

Sophisticated, automated systems allow you to respond faster to incoming regulations, emerging risks, and increasing transaction volumes.

Legislation around transaction monitoring isn’t prescriptive, it’s up to payments institutions to ensure their transaction monitoring compliance is effective by tailoring the approach to the organization’s individual needs.

Watch the on-demand webinar to find out:

  • What the regulators consider to be ‘good practice’ in transaction monitoring
  • How payment institutions can achieve effective transaction compliance through automation
  •  Why onboarding and KYC is make-or-break for financial crime risk monitoring
  •  How to cut down on false positives using transaction monitoring and KYC data
  • Why real-time transaction monitoring is essential to satisfy clients and consumers

Read the KYC and Transaction Compliance Brochure now. 

Learn more about Fenergos KYC & Transaction Compliance solution.