By: Greg Baxley, Marketing Coordinator
Eradicating transaction laundering from your portfolio is a group effort. Disconnected teams will not suffice. A well trained risk management organization, working cohesively, will be best prepared when violators strike. To defeat savvy fraud rings, today’s risk professionals need to break down walls within their firms, leverage service providers in new ways and harness the data and power of the entire payments community.
A full 50% of violating sites monetize outside of merchant accounts, and 25% come back into the payments system with operations intact after being shut down by acquirers. Many more learn from having been caught the first time — and come back in different forms.
In the US, regulators have taken note of transaction launderers. FinCEN and FFIEC have placed a great focus on AML (Anti Money Laundering). This caution and examination is quickly spreading to other regions worldwide. Criminal enterprises operate across borders, drawing the attention of law enforcement bodies like Interpol.
Best practices prepare companies to combat fraud and learn from mistakes when fraud does occur. A Solution Brief released by G2 Web Services outlines an organizational framework for proficient transaction laundering detection, aimed at risk managers, directors and executives who deal with compliance and risk in the global payments space. No machine or algorithm can detect transaction laundering alone. A vendor with purpose‐built technology, compliance experience, extensive data, and expert human analysts is essential to connecting the dots across all departments along the block chain. Your vendor is a key part of a systematic risk management framework that protects your portfolio from fraud and violations.