What faster payments means for anti-money laundering compliance

Abstract: The global phenomenon of faster payments is having an impact on operational issues related to anti-money laundering (AML) compliance. Faster payments are a response to the need to modernise current payment settlement networks as a result of market, technology and demographic trends. Faster payment networks provide benefits to the three major participant groups: corporations, consumers and financial institutions. AML compliance operations have traditionally been designed to operate in a batch mode, holding and reviewing potential suspicious transactions in a queue prior to release. The pressure to release transactions in a faster payments environment is significantly higher, potentially affecting customer service level agreements and the need to comply with established AML review procedures. There are opportunities to improve AML compliance procedures by re-examining processes used, staffing approaches and optimising technology tools.

Keywords: faster payments, real time payments, compliance, anti-money laundering, terrorist financing

Henry Balani is Global Head of Strategic Affairs for Accuity, responsible for driving thought leadership. In his prior role as Head of Innovation, he helped pioneer new anti-money laundering (AML) sanction screening solutions related to trade compliance. As Managing Director, Dr Balani managed Accuity’s Compliance Group that includes product management and professional services. Accuity is a global provider of payments and compliance solutions in the financial services and corporate sectors.