Financial Crime World

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The Growing Importance of Anti-Financial Crime Measures for Payment Service Providers

The rise of digital payments has led to increasing regulatory scrutiny for payment service providers (PSPs). As a result, PSPs must develop robust controls that balance customer experience with risk management.

Key Points from the Article

  • Embedding Controls within Processes: PSPs can design compliant-by-design processes with minimal data or system constraints.
  • Proportionate Control Design: Controls should be tailored to the specific business model and risk profile of the PSP.
  • Focusing on Data: PSPs should define data requirements early, standardize, and capture relevant data to improve customer experience and inform business decisions.
  • Building a Business Case: Infrastructure investments should be supported by a clear business case to ensure effective use of resources.
  • Planning for Complexity: Establishing robust anti-financial crime capabilities requires dedicated experts and careful planning.
  • Extracting Value from Existing Controls: PSPs can leverage existing anti-financial crime controls to improve ESG profiles and customer experience.

Prioritizing Proactive Measures

PSPs must prioritize proactive measures to combat financial crime, considering the potential benefits of a strong risk management program on their ESG profiles and market reputation.

Enhancing Anti-Financial Crime Capabilities

To further enhance their anti-financial crime capabilities, PSPs can:

  • Engage with Regulators: Proactively collaborate with regulatory bodies to stay informed about emerging risks and best practices.
  • Collaborate with Industry Peers: Share knowledge and expertise with other PSPs to address common challenges and develop effective solutions.
  • Invest in Advanced Technology: Leverage cutting-edge tools and techniques, such as machine learning and artificial intelligence, to improve risk detection and prevention.
  • Develop Comprehensive Training Programs: Educate employees on the importance of anti-financial crime measures and provide ongoing training to ensure they are equipped to identify and mitigate risks.

By taking a proactive approach to anti-financial crime, PSPs can minimize risks, maintain regulatory compliance, and enhance their reputation in the market.