Fintech businesses must understand their compliance obligations
Whether you're pre-launch or are an established player in the fintech space, anti-money laundering and counter-terrorism financing (AML/CTF) laws may still apply to your business. It's important to understand what AML/CTF laws cover and how these affect you.
Money laundering is when someone has money that they earned illegally and tries to make it clean by introducing it into the financial system. This process can occur over several transactions and in many different ways. Terrorism financing is when someone gives a terrorist financial support. The AML/CTF laws aim to identify these transactions and place obligations on businesses that may unknowingly be involved in the process.
As a fintech, it's likely that your business will have obligations under these laws even if all your transactions are online. This includes if you are a digital currency exchange, provide remittance services, supply finance leases, hire purchase arrangements, manage superannuation funds or manage or advise on financial transactions.
Your AML/CTF obligations as a fintech business
Depending on what type of products and transactions your business is involved in, you may have to meet the following compliance obligations:
- Enrol with AUSTRAC
- Register your remittance services
- Conduct an AML/CTF Risk Assessment
- Put in place an AML/CTF Program
- Put in place and complete Know Your Customer (or Customer Due Diligence)
- Lodge Threshold Transaction Reports, Suspicious Matter Reports and International Funds Transfer Instructions
- Keep appropriate AML/CTF records
- Conduct an Independent Review of your AML/CTF program
While each of these obligations is essential, it's important to make sure that they are integrated into your business model. For example, your customers don't want the hassle of having to upload documents so you can complete your Know Your Customer process. That's why we've helped other fintechs implement electronic verification processes that complement their preferred customer experience while still complying with the AML/CTF rules.
We're agile and flexible to your needs
In our experience, the sooner you start incorporating AML/CTF transaction monitoring and fraud controls into your processes the better positioned you will be to manage your ongoing compliance. But we understand that it can be challenging to find the time and resources to manage compliance from the outset when you’re focused on creating disruptive technology. That's why we offer:
- Practical advice and support that can be tailored to meet your needs
- Up to three pricing options to suit your budget
- Fixed pricing with no hidden surprises
Because we focus entirely on AML/CTF compliance, we're able to respond and adapt to your needs quickly. Our clients include Digital Currency Exchanges, CoinSpot, e-Pocket, TransferWise and GigSuper and they have all benefited from our experience, expertise and flexibility.