As cross-border remittance services flourish globally, the imperative to counter financial crime and ensure effective regulatory compliance has never been clearer. Activity in the United Kingdom is a good example of this need. In the UK there has been significant growth in cross-border payments. Here, according to Research and Markets, the remittance market is projected to grow from the USD 55.61 billion (£43.9 billion) recorded for 2023, to USD 74.74 billion (£60 billion) by 2028.
In some ways, this is a testament to the resilience of globalisation and continued worldwide trade, despite the Covid-19 pandemic, pressures of wars, and looming threats of protectionism. And in this global economy, it’s clear that migrant workers contribute significantly. They’re a key part of many economies, the UK included, and via remittances, to families at home. And it may not only be temporary workers sending money. Long term residents in their adopted homes, some in second or third generations, might continue to support relations in their family’s country of origin.
Demand and Supply in the Remittance Market
This phenomenon is not a new one, but it is certainly growing. And in doing so, more remittance service providers emerge to meet demand. For instance, the announcement earlier this year of collaboration between Manchester’s ACE Money Transfer and Pakistan’s Bank AL Habib illustrates the market’s response to the need for seamless and reliable remittance services. Such developments highlight a growing preference for formal banking systems over traditional and perhaps less predictable methods.
However, expansion highlights practical matters, such as ensuring regulatory compliance. Remittance services, inherently international, are susceptible to misuse for money laundering and terrorism financing. In the UK, the Financial Conduct Authority mandates stringent Know Your Customer (KYC) measures, including anti-money laundering (AML) checks. The challenge for providers is to balance efficiency with compliance. The sheer volume of transactions and the diversity of users complicate this task, making manual checks impractical.
Compliance – How Technology Has Become Essential
The solution lies in leveraging technology to automate initial customer screenings and ongoing transaction monitoring. Doing so streamlines compliance and enhances the detection of suspicious activities. For a remittance business seeking this compliance support, there are numerous providers, but only a few deliver the all-round cover that’s combined with the flexibility to match the different shape of each remittance service.
One of the best that does, however, is Compli. From establish software house, Essiell Compli, this comprehensive suite of services is designed to address these very challenges. Compli offers rapid customer screening, a customisable rules engine, and efficient transaction monitoring. An intuitive dashboard makes it easy for providers to manage high numbers of accounts and meet regulatory requirements – without sacrificing service speed or customer satisfaction.
Making Compliance Straightforward
By integrating a service like Compli, remittance providers can ensure compliance, safeguard their reputation, and protect their customers’ funds during cross-border transactions. As the market continues to grow, the need for exactly this form of adaptable solution will also blossom. It highlights the importance of taking nothing for granted, and approaching each challenge with an innovative use of technology. In doing exactly that, Compli enables remittance service providers to negotiate regulations with ease, and ensure the safe and efficient transfer of funds across borders, without compromise.
By Declan Morton, staff writer at Essiell Compli.
For reference:
Bank AL Habib and ACE Money Transfer partner again to empower overseas Pakistanis, Business Recorder, April 1st, 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
