Holland FinTech member, INNOPAY, announced its approach to cross border anti money laundering (AML). INNOPAY’s AML advantage for EU compliance has 4 steps:
- Define product strategy to seek either a single EU solution, prioritise sub-markets or target markers.
- Analyse local jurisprudence: varying implementation of EU directives, local regulation and jurisprudence. This includes ID and CDD requirements.
- Analyse compliance strategies of completing products
- Define product and required compliance.
Why is this significant?
Cross-border compliance is complex, especially in the case of EU Directives.
International scale is needed in today’s globalised world for financial services companies and their products. However, compliance across borders is often difficult; especially regarding EU regulation of AML. EU Member States have discretion in implementing AMLD3 or AMLD4. This results in different legislative interpretations by governments and legal interpretations by the judicial system.
Impact on the future?
Compliance will be heavily discussed in 2017. The PSD2 and MiFIDII both create a regulatory situation in the EU where compliance is made more difficult by varying national regulation. We predict INNOPAY’s model will seriously aid companies with cross border compliance for banks and other financial service providers in the EU.
AML is a key part of regtech, which will be a key fintech theme of 2018. Read our RegTech Essentials here.
