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AML Detection in Money Service Businesses.


Benefits at a time of de-risking and increased regulatory pressure.


The second decade of this Millenium has been marked with tremendous pressure on banks, and other non banking financial institutions, to conform to Know Your Customer norms of understanding the customers, in terms of their businesses and transactions.




The governments, primarily through the Financial Action Task Force (FATF,), and the European Parliament A(EU ML directives) have designed recommendations, guidance, directives and requirements to identify and correct these occurrences.


The banks, having been fined, or being under threat of heavy fines, and loss of reputation, have taken severe measures to apply new risk ratings to their customers business partners correspondence, etc.


They apply de risking measures, including closing accounts, and stopping the process of opening new accounts to their customers and non banking financial service providers who are not equipped to adequately implement anti-money laundering and anti-terrorism financing measures. In this way, banks prevented being involved directly or indirectly, due to the high risk of regulatory violations.


One sector business that was directly affected by this de-risking from banks, was the non banking financial sector. This includes money transfer and remittance companies. (The so called Money Service Businesses or MSBs), which are used mostly for specialized products such as low cost money remittances or transfers for un-banked private individuals.


The increasing pressure from regulations, and the threat of heavy fines and penalties related to anti money laundering and counter terrorist and financing, forcing money transfer and remittance companies to reconsider their existing controls. In addition, increased regulatory requirements have forced banks with correspondent relationships with money transfer and remittance companies, to implement de-risking measures, such as account closures and or closely controlling all executed transactions.


What will money transfer and remittance companies do to overcome the restrictions, so that they can continue to open and maintain accounts? The solution is to implement adequate, and proven real-time detection anti-money laundering methodologies and systems that will empower them to identify, investigate and adequately manage all possible transactional risks.


The IDETECT software has all the necessary technology to support a full real-time detection anti money laundering methodology that facilitates end-to-end controls in money transfer and remittance companies. The solution is proven to be unique on the market, and where it has been implemented, regulators and correspondent banks can be assured that adequate real time controls are in place, effectively reducing relevant risk ratings.


You can read the full white paper here




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