All jurisdictions have different standards of regulation and penalties when it comes to the AML/CFT. However, it is indisputable that they are all converging towards tougher standards. Failure to conduct proper due diligence on customers, even unknowingly, can result in a loss of license which equates to the loss of livelihood for a money changer.
Money changers must exercise vigilance when it comes to AML and CFT laws. Any money changer who suspects that a suspicious transaction is taking place, especially when a PEP is involved, has to file a report with the relevant authorities in accordance to the law. A big hurdle for money changers then is how to properly conduct their due diligence. It would be onerous and nearly impossible for them to maintain and compile a list of suspicious individuals. For that, money changers would have to rely on a reliable database with a comprehensive coverage of different data sources for them to conduct the necessary regulatory checks. While the punishment for non-compliance is harsh, it can be avoided entirely with a professional platform that is built specifically to handle this business need.
While evaluating such platforms for comprehensive compliance databases, certain features that might be useful for money changers should be considered as well, such as the ability to:
(i) Generate reports that are customized to the requirements of local regulators.
(ii) View real-time FX rates to help influence Buy/Sell decisions that will help maximize the money changer profit margin.
(iii) Manage business inventory of foreign currencies and standardize price setting across multiple business branches.
(iv) Provide access to new customers through traveller communities.
Last, but not least, a commercial software for managing money changer business needs, has to be future-proof. It needs to be easily customizable and frequently updated to weather changing local regulations and laws. Biz4x is one such professional SaaS platform, that is currently being used by hundreds of money changers worldwide.
If you’re interested to learn more about how Biz4x can help you to better comply with local regulators and more efficiently manage your business, drop us a note at firstname.lastname@example.org and our team of experts will be happy to evaluate your business requirements.
While every effort has been made to ensure the accuracy of the facts and figures which are represented here in good faith, 4xLabs does not guarantee the accuracy and will not be held responsible for the facts and figures here. This white paper serves as a reference to provide you with the most updated compliance situation of these eight jurisdictions as of 03 May 2016. Please consult your lawyer if in doubt.