The increase of customer flow means greater responsibility for Financial Institutions because of the Money Laundering risks
by Elkhan Nasibov, AML Officer of Guavapay Limited
The COVID -19 pandemic will change the way we live. Such statements are found in most media sources. Experts confirm that our world would never be the same. The damage caused by COVID -19 is estimated to cost billions of dollars to world economies. Despite of this fact I would like to talk about the positive impacts of COVID – 19 on FinTech companies and AML sphere.
In my opinion the social distancing and “stay home” motto encouraged people to choose FinTech companies instead of usual banks. Besides, the digitalization of banking services gave a big boost to the development of FinTech companies. However, the increase of customer flow means greater responsibility for Financial Institutions because of the Money Laundering risks. In addition to the regulator’s main demands financial institutions should thoroughly examine their clients in order not to get involved in fraud schemes. Our company Guavapay Limited has developed AML/CFT system that complexly approaches to the control of clients’ activity. We call this function “Traffic light”.
Green light means the clients whose actions are absolutely transparent, and the recipients, all the transactions of these clients’ money are also transparent. Yellow light is given to clients whose actions look a bit suspicious. Third type of clients are given red color of traffic light. All actions of this group are under focused attention of AML team that scrutinize all their actions. All abovementioned colors are given to clients on the base of complex analytical data. Given algorithms enable to work out the confidentiality of clients in result of which the risk of the company to get involved in fraud schemes decreases.
However, the fraud can occur not only in AML sphere but also in technical sphere. To avoid the fraud Guavapay uses the system Fraud Monitoring System. In case suspicious transaction is detected the system blocks it. Setting rules for the fraud prevention allows to set rules through user interface having no need in changing the program code. Guavapay Fraud Monitoring includes several audit types, the support of white and black lists, resources to research the fraud and reports.
In summary we can say that our system guarantees to the clients to keep their funds in safety, and ensures the states that none of actions aimed at Money Laundering can remain unnoticed.