Part 1 of our series explained why following regulations is key to stopping money laundering and terrorism funding in cross-border payments.
Here is Part 2, where we discuss how Tranglo follow these rules, and the 3 steps we take to make our anti-money laundering and counter-terrorism funding (AML/CFT) programme comprehensive and secure.
Every company has its own set of rules, but they are usually similar because the financial authorities set strict guidelines. At Tranglo, we follow the rules set by financial authorities in Malaysia, Singapore, Indonesia and the UK, where we are allowed to provide cross-border payment services.
Step 1: Careful onboarding
Customer Due Diligence: Our team confirms that our partners have strong AML/CFT programmes (like us!). Some of the first things we check are if they are politically exposed persons or facing any sanctions. On top of that, we also check if the owner is from a high-risk country.
Enhanced Customer Due Diligence: If necessary, we will look deeper. This process is more rigorous than the first due diligence our team does. If there’s any hint of suspicion, we will make sure we apply stricter measures, such as the origin of funds checks and may require senior management approvals before proceeding further with the onboarding process.
Tranglo Connect won’t work with businesses:
- Incorporated in a sanctioned country
- Lacking AML/CFT compliance programme
- With incomplete CDD documents
- Whose owner is in the sanction lists
- Not licensed to provide money services
Step 2: Regular checks
Ongoing due diligence: We regularly review our partners to see if there are any changes to their risk levels (how risky they are and have become). We also make sure their licences are still valid.
Transaction monitoring:
- During the transaction: Our system checks every transaction. If something seems wrong, we stop it and ask for more details. If everything looks okay, we proceed with the transaction
- After the transaction: We check daily, weekly and monthly for any unusual patterns in transactions. If we detect any suspicious patterns of transactions, we will flag them for review. We might even write up a report to the authorities
Step 3: Latest updates
AI-driven compliance: We have started using advanced algorithms for transaction monitoring and an automated system for flagging suspicious transactions. This includes using AI-driven data parsing technology to increase the accuracy and speed of our checks. Before this, many of our measures were performed manually.
Training and development: We conduct regular training sessions for Tranglorians to keep them updated on the latest regulatory changes, best practices and emerging risks. These sessions come with assessments to ensure each member of our team has a strong understanding of our compliance programme.
Feedback and review: We perform regular internal and external audits to identify areas for improvement and ensure that our compliance programme is aligned with international best practices.
The bottom line
The ultimate goal of a robust compliance programme is to instil confidence in our systems and controls while remaining versatile enough. We are confident that ours - a 3-step approach that splits into substeps for specific areas or jurisdictions - meets regulatory and business requirements.
*Editor’s note: This is the second article in our 2-part series on navigating compliance in the cross-border payment industry. Trust your business transactions with a team of class-leading compliance experts. Contact us.
