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Money Transfer: Fine Margins and Compliance Require State-of-the-Art Automation

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As they quietly ease the flow of money across the world, money transfer services form an intimidating web of necessity and convenience. For millions they’re a lifeline, underpinning economies and supporting families continents away. Remittances from families and migrant workers have rarely been so widespread.

The growth and significance of this sector are emphasized by a report published in January by Research and Markets*. While it focuses on three specific international mobile payment providers,  the depth of its analysis shows that what happens in this market really is important. Separately, Research and Markets projects the UK’s Remittance market will grow from a value of  USD 55.61 billion in 2023 (approximately £43.76 billion), to USD 74.74 billion ( about £58.83 billion) by 2028 – a robust CAGR of 6.09%. Providing these services at such scale can bring big rewards, but it’s also not without risk.

Scratch the Surface…

In fact, there are notable vulnerabilities. The competitive nature of the market ensures that profit margins are perennially under pressure. And then there is the ever-present spectre of financial crime, with money laundering a particularly high risk. Organised criminals, leveraging armies of “mules” – often unwitting – orchestrate complex schemes involving multiple, hard-to-detect transfers. This complexity is compounded by the added risks linked to terrorism financing and sanctions evasion.

In the UK, most money transfer services are classified as e-money or payment institutions. This necessitating rigorous compliance with anti-money laundering (AML) and customer due diligence (CDD) requirements. This regulatory environment makes clear the need for robust identity verification measures. Given the high volume of users accessing these services,  ensuring that happens can  quickly become overwhelming.

Automation Can Make Compliance… Automatic

The old, manual, approaches to monitoring transactions and verifying customer identities are no longer tenable, given the scale and complexity of modern financial transactions. Herein lies the necessity for automation – a technological pivot that transforms the task of transaction monitoring into a manageable, efficient, and more accurate process.

Compli, from Essiell Compli is ideally suited to all these functions. Built on long experience in financial services, it offers a suite of automated solutions tailored for the unique needs of money transfer businesses. These range from real-time customer address and ID verification, to sophisticated surveillance mechanisms that scrutinize customer activities against expected behavioural patterns. It flags suspicious or anomalous transactions suitable for scrutiny. Further, it . can create of detailed person profiles, leveraging multiple databases to paint a comprehensive picture of each customer’s financial behaviour.

Protect Growth as well as Compliance

In a sector where the margins are fine and the stakes high, Compli’s state-of-the-art automation tools provide an indispensable shield against financial crime. They help ensure effective regulatory compliance and safeguard the integrity of money transfers. By deploying such advanced technologies, businesses not only guard against criminal activities but also streamline their operations. In doing so they can achieve both compliance and profitability.

The demands of the remittance market will continue to increase. To remain competitive,  the integration of sophisticated technologies like Compli is not merely a strategic advantage – it’s a critical imperative for the sustained and secure long term growth.


By Declan Morton, staff writer at Essiell Compli


*For reference

Leading Mobile Payment Providers and Their Cross-Border Financial Services: Ant Group, Paysend, and Nium, Research and Markets, January 2024

UK Remittance Market (2023-2028) by Type, Channel, Appliance, and End User, Competitive Analysis, Impact of Covid-19 with Ansoff Analysis, Research and Markets, January 2023

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