Corresponding Bank Secrecy Law (BSA) and Anti-Money Laundering (AML) regulations are a core competency of any bank.
But customers of bank business accounts? Well, it depends on the client.
Although banks mandate their business customers to implement BSA/AML compliance tools, sometimes these customers—especially startups and new players—are not ready for the level of engineering and human resources required to integrate and manage the various vendors and tools.
In a way, this is not surprising. Companies are naturally focused on running and growing their business – serving customers, getting new work and keeping up with the competition. They are not BSA/AML compliance specialists.
But here’s the problem: If BSA/AML regulations are violated, the federal government can levy some pretty serious consequences. Last year, art US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has provided more than $1.6 billion fines for violating the rules of conservation.
Simplifying and strengthening compliance
That’s why the new wave of compliance-focused, all-in-one payment platforms that allow organizations to deploy a single set of software to handle their payment operations and compliance needs is timely.
The best of these new offerings provide customers with full KYC, transaction monitoring and case management capabilities integrated with payment transactions from day one.
What to pay attention to
At a minimum, organizations must ensure that any BSA/AML compliance proposal they evaluate provides:
- Built-in enablement flows to collect customer information and bank account details, allowing institutions to move money without storing personal information;
- KYC identity verification — including sanctions and adverse media checks, as well as advanced device and behavior monitoring — to identify fraudsters and compliance issues;
- Monitoring transactions to minimize fraud and money laundering and facilitate reporting of suspicious activity;
- Case management tools to streamline manual review processes; and
- Risk assessments that combine machine learning with a rules engine.
Which configuration or specific offering to choose is a decision that will be evaluated by individual customers, but the emergence of a new wave of integrated platforms for fulfillment and payment transactions is good news. By enabling the bank’s clients to tick the BSA/AML ‘box’, they will be able to continue their true focus of running and growing their business.
Matt Marcus is Co-Founder and Chief Product Officer Modern treasuryand focus on developing, improving and deploying new company products and services with the common goal of making the customer experience seamless, reliable and easy to manage.