Aspects of the products and services offered by  payment service providers have been identified as being attractive to criminals wanting to launder the proceeds of crime and to finance terrorism.

WHY DO PAYMENT SERVICE PROVIDERS HAVE AML/CTF OBLIGATIONS?

Payment service providers connect merchants to the broader financial system so they can accept credit and debit card payments from customers. Payment service providers connect merchants, consumers, card brand networks and financial institutions.

Whilst Payment Services are not specifically covered by the AML/CTF regime, some of the processes undertaken to provide payment service are services designated by the AML/CTF Act and Rules and therefore recognised as being vulnerable to use and abuse by criminals.

WHAT ARE THE ML/TF RISKS FACED BY PAYMENT SERVICE PROVIDERS?

Like other financial services and products, payment service providers can be abused for ML/TF purposes.

  • Funds used with payment service provides can be prepaid. This absence of credit risk means that service providers may not obtain full and accurate information about the customer and the nature of the business relationship.
  • Transactions can be carried out and funds withdrawn or converted much quicker than through more traditional channels.
  • Many payment service providers’ business model relies on non-face to face business relationships and transactions, which present ML/TF risks due to increased impersonation fraud risk and the chance that customers may not be who they say they are.

Payment service providers captured by the AML/CTF obligations must ensure the organisation conducts a comprehensive ML/TF risk assessment to identify, assess, mitigate and manage ML/TF risk exposures. This is a critical first step in complying with the AML/CTF Act ands Rules.

WHAT SERVICES ARE COVERED BY AML/CTF OBLIGATIONS?

Payment service providers captured by the AML/CTF obligations are those that provide services designated by the AML/CTF Act, including:

  • Providing an account
  • Permitting transactions on an account
  • Accepting electronic funds transfer instructions to remit funds

However, a significant proportion of the process undertaken by payment services providers is not a designated service under the AML/CTF Act currently

WHAT IS A RISK BASED AML/CTF REGIME?

The AML/CTF regime is risk based, which means that your responses to the AML/CTF obligations placed upon you should be risk-based. 

A risk-based AML/CTF regime requires that you understand and address the Money Laundering and Terrorism Financing (ML/TF) risks associated with the digital currency services you offer.

You must then design, implement and maintain systems, procedures and controls that are proportionate to your ML/TF risks.

How can Initialism help?

Initialism are the AML/CTF experts, so you don’t have to be.

With over 30 years of expert knowledge and real world experience our AML/CTF compliance services solutions will to help you navigate your legal and regulatory requirements so that your business complies with its AML/CTF obligations in the fastest and most cost-effective way.

Initialism provide a range of AML/CFT services and solutions to support your business in becoming AML/CFT compliant and maintaining compliance.

Our services and solutions allow you to tailor support based on your capacity, experience and budget.

AML/CTF compliance solutions for payment service providers

Our AML/CTF compliance solutions for the payment services sector draw on unparalleled expertise, knowledge and real-world experience.

Why chose Initialism?

UNPARALELLED EXPERTISE

Our expertise covers all AML/CTF disciplines and brings unique perspectives, approaches and solutions to the AML/CTF challenges faced by the accountancy profession

IN-DEPTH INDUSTRY KNOWLEDGE

Our AML/CTF compliance knowledge includes working with accountancy firms and we understand what compliance means for your business

REAL WORLD PERSPECTIVES

We have experience in delivering workable AML/CTF compliance to the accountancy profession

OVER 30 YEARS EXPERIENCE

Our knowledge and expertise has been hard earned and comes from working in the area of AML/CTF for many decades

SOLUTIONS THAT WORK

We have experience providing tried and tested AML/CTF solutions, regardless of the size and complexity of your accountancy practice

TAILORED FOR YOUR BUSINESS

Our AML/CTF compliance solutions are flexible and can be tailored to your capacity, experience and budget

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