Real-time AML: a new business imperative in an instant transaction eraDr Sebastian Hetzler, co-CEO, IMTF and Lizette Sander, Product Manager, Bateleur Software.
“Real-time and instant payments have surged, driven by consumer demand for faster execution and lower transaction costs. The speed and force with which the market has moved to digital channels, payment platforms and crypto-currencies has called central banks and regulators to action – meanwhile, over 84 economies have established fast- or instant-payment networks to preserve the integrity and relevance of their respective financial markets.
Alongside the global push for real-time AML capabilities, South African organisations are facing unique pressures. Lizette Sander, Product Manager at Bateleur Software, points out that institutions across various sectors, from banks to estate agents, are working to address deficiencies in their anti-money laundering and combating the financing of terrorism regimes, as identified by the FATF grey-listing.
Dr Hetzler explains: “As a first step, financial institutions need infrastructures that allow them to effectively ensure compliance with international sanctions in real-time. The second and more challenging step towards real-time AML is the integration of all available data about customers and behaviours. Breaking down the silos between the different anti-financial crime ‘disciplines’, like KYC, transaction monitoring, sanctions screening and anti-fraud, is crucial.