AML screening portal

The best AML and KYC manual for mobile payment companies!

Since lots of technical advancements have been made out there, we have seen a significant change in the payment industry. Every year, a new payment system gets launched and gains popularity. One popular payment system is a mobile payment system.

Associated financial crime risks!

However, mobile payments are allowing businesses to provide a personalised service by using customers' location, their shopping patterns and preferences, but at the same time, mobile payments have become less secure due to lots of hackers and intruders present in the online world. This is when an AML screening portal is necessary to regulate the transactions.

Every day, criminals are trying new methods to commit money laundering activities. Some of the associated financial crime risks are:

· Phishing scam

As the number of mobile payments is increasing with each passing day, it has become easy for fraudsters to impersonate legitimate companies and try to get financial information from users. Users consider them as legitimate sources and reveal their financial information to them.

· Account hacking

Hackers are gaining easy access to the accounts used for mobile payments by cracking or hacking passwords.

What is included in an AML compliance program for mobile payment providers?

AML compliance is an essential component to make mobile payments secure, reducing the risk associated with them. Mobile payment companies should put in place a strong AML compliance procedure that complies with legal regulations in order to reduce risks. KYC screening software has been used out there to verify the authorised transactions.

· KYC and CDD procedures for mobile payments

A mobile phone allows a user to compare different products so they can get things at a discount. But the security problems result in regulatory. The two basic compliance procedures through which you have to work are KYC and CDD. Mobile payments help providers detect risks with the CDD and KYC processes. Therefore, to mitigate the risks, mobile payment providers are required to follow CDD and KYC during the KYC onboarding process.

During this process, verification is done of the customers, which helps in banning the customers that are at high risk. The names of these lists are Sanction or PEP lists. With the help of verification, customers can be identified so that high-risk profiles can be banned.

· Ensuring effective awareness of mobile payments

One critical component that helps you spread awareness is training. There should be proper awareness and training provided to all the members. Proper training works like the first line of defense against financial crime made online. To make sure all are prepared to detect suspicious activities, training regarding the AML or KYC program should be provided. Some of the key elements of the training are:

· Comprehensive training

Employees should get training on all AML or KYC topics that include the threats and risks so that suspicious activity can be identified.

· Regular updates

Financial regulators should spread awareness to all the staff members to provide regular refresher and updates regarding the latest policies and procedures of AML or KYC.

· Specific training

When working in an organisation, staff members should have different roles to identify and respond to a suspicious activity. They should know how to deal with such scenarios.

· Simulated environment

Employees working in an organisation should know how to work in the real world using simulated scenarios so they can be prepared with confidence.

In conclusion, for proper security and protection, it is essential to implement practical training and awareness among all individuals.