AML and New Payment Methods

New Payment Products and Services are Changing the Financial Landscape Increasing global competition, coupled with technical progress, has led to the rapid introduction of new payment products and services (“NPPS”) to the financial marketplace.

Prepaid cards, mobile banking, mobile payment services, and Internet-based payment services are manifestations of this trend. The growing number of ways to make noncash payments in electronic form has markedly changed the financial landscape, with NPPS adding speed and convenience to transactions previously conducted via slower traditional channels. These products have expanded financial inclusion to previously unbanked market segments.

However, the introduction of these new products has not come without cost. Because of their recent introduction to the marketplace, some NPPS are not fully understood or fully regulated. Further, it is often difficult to track NPPS transactions, clouding the ability to distinguish between the legal and illegal use of these technologies. As a result, NPPS can become an attractive venue for criminal behavior, including money laundering and terrorism financing.

 

Duration:                     One day programme
Target Audience:          This workshop is especially relevant for Compliance officers and managers; risk analysts and managers; professionals in business research and in the KYC, AML/CFT field.
Overall Objective:                     At the end of the training, participants will have enhanced their awareness of AML/CFT issues related to NPM trade and be able to:

  • Compare Traditional, Informal and New Payment Methods;
  • Describe the parties involved in 2,3 and 4 corners  payment schemes
  • Identify key NPM Red Flags;
  • Assess money laundering sensitivity of trade finance structures;
  • Identify suspicious uses of Free Trade Zones and other offshore structures in trade transactions;
  • Spot AML Red Flags in a SWIFT MT 700;
  • Advise senior (risk) management regarding NPM matters
Topics:         Using presentations, group assignments and case study analyses the following NPM topics are addressed:

  • Basic principles and techniques of payment methods;
  • Online versus off line payment methods;
  • 2,3 and 4 corner payment methods;
  • Pre-paid Stored Value Cards: Open/Closed, Personalised, Anonymous
  • Mobile Payments Services & Mobile Money Services
  • Internet Payment Services
  • Digital or Virtual Currencies such as Bitcoin
  • Practical examples, such as the Liberty Reserve case study;
  • NPM Red Flags

New Payment Methods

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