Decoding ML/TF Key Risks and Mitigation Measures in Payments

In the dynamic landscape of electronic payments, the swift advancement of technology has paved the way for Electronic Money Institutions (EMI) to claim a seat at the table, along with credit institutions. The evolution of digital finance though, with the transformations it carries, comes hand in hand with a series of challenges for EMI entities, to maintain economic stability and ensure trust in financial relationships.

Whether the sector of firms issuing electronic money is riskier than other financial sectors, essentially depends on the individual characteristics that e-money products possess and the ability of redeeming and allocating e-money using third parties. Throughout this article, we explore the Money Laundering and Terrorism Financing (ML/TF) risk factors and measures to be taken by EMI entities through the relevant European Banking Authority’s (EBA) Guidelines.

In the below commentary, the SALVUS Regulatory Compliance team discusses:

1. What is an EMI?
2. The risks emerging from EMI entities
3. The need for measures to be established
4. How can SALVUS assist your EMI to ensure compliance with AML requirements

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Find the full article here: https://salvusfunds.com/2024/01/18/decoding-ml-tf-key-risks-and-mitigation-measures-in-payments/