"Inbound" and "Outbound" in remittance refer to the direction of the money transfer. This distinction is often used in the remittance industry to track and manage the movement of funds across borders, particularly when discussing fees, regulations, and the processing of payments between different countries or regions.
"Inbound" refers to money or funds being sent into a particular country or region from another location. It signifies the flow of funds from a sender outside the country to a recipient within that country. For instance, if someone in the United States sends money to a family member in India, the funds are considered "inbound" to India and "outbound" from the United States. Similarly the "Outbound" refers the movement of funds from one country or location to another. For example, if someone in India sends money to a family member in the United States, the funds are considered "outbound" from India and "inbound" to the United States.
Peer to Peer (P2P) payments is a mechanism by which users can transfer funds from their bank account to another individual's account via a digital medium.
Old school payment methods are becoming outdated. Yes, cash makes the world go round, but a cashless society will soon be the main objective. There’s a huge demand for it, and most importantly, it provides much-needed financial inclusion.
Fiat money is a government-issued currency that has been established as money but holds no intrinsic value. The value of fiat money comes from a government maintaining a specific value, or two or more parties agreeing its value. The vast majority of fiat currencies are paper currencies, such as the dollar, pound or euro.
Fiat money gives governments and central banks greater control over an economy because they can limit how much money is printed and therefore how much fiat currency is in circulation. However, because the value of fiat money is not backed by a physical commodity such as gold, its value can collapse in the event of hyperinflation, or if a central bank prints too much of it.
A payment gateway is a service that a merchant uses to accept card payments from their customers (cardholders). Payment gateways are the consumer-facing interfaces, such as chip & PIN readers you see in-store or payment processing portals found online. Payment gateways may be provided by a bank to its customers, or a specialised payment service provider.
The payment gateway is a mediator between transactions and the payment processor. It is responsible for acquiring authorisation for the transaction.
An acquirer (also known as an acquiring bank) is a bank or financial institution that processes card payments on behalf of a merchant. The acquirer allows merchants to accept card payments from an issuer (also known as an issuing bank).
The acquirer is responsible for receiving the card transaction details from the merchant’s terminal, which are passed to the issuer via the card scheme for authorisation. Once authorisation has been granted, the acquirer completes the processing of the transaction.
The acquirer will then arrange for the card transaction to be settled and will typically credit the merchant’s nominated bank account with the funds.
API stands for Application Programming Interface. It is essentially a set of functions and interactions between two or more applications.APIs are working behind the scenes to give you the information you need. Tango AML’s platform is built on a range of APIs to provide effective transaction solutions and an exceptional level of service.
KYC stands for Know Your Customer, i.e. a methodology of identifying the customer through their government issued identification documents and ancillary services like address verification, banking access, utility bills, and facial recognition to name a few.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is only used for international transfers (messaging) to settle ledger balances between two banks. It has no direct correlation to remittances. Remittances are a subset of a SWIFT transaction (as either a standalone transaction, batched transaction, i.e. aggregated, or as part of settlement transaction).
Money transfer apps let you transfer cash from person to person, or from entity to entity, quickly, conveniently, cheaply, and securely.
The White Label Money Transfer App take a few weeks to complete. If outsourcing the build to Tango AML, both you as the client and Tango AML will have a shared understanding of objectives and project completion dates. Also, there are a few factors that may affect the time spent on developing a money transfer app such as the core system or platform being used and any customization. Make sure to set up your App/Play store accounts so that Tango AML can add the apps once the development is complete.
Google Play Store account - for publishing Android apps. App Store Connect account - for publishing iOS apps. After we add the app to your App Store Connect account, you will need to generate an API key. We will provide all the guidelines you need to succeed with this task.
Some software systems are mission-critical. Therefore, we can provide you with 24/7 support with a rigorous SLA. Our support team guarantees a short response time. We can also guarantee time to restore your operations. All to ensure that your business runs without interruption.
FX and forex are both abbreviations for foreign exchange, which is the conversion of one currency into another. The FX market is the most liquid in the world, with trillions of dollars exchanged every day. Many of these exchanges are done for practical purposes, but the vast majority come from traders who try to make a profit. FX markets are open 24 hours a day.
An issuer (also known as a card issuer or issuing bank) is a bank or financial institution that issues payment cards to customers or cardholders on behalf of debit and credit card networks.
The issuer is responsible for paying the acquirer any transactions that have been made on cards they issued. The issuer is also responsible for debiting funds from the cardholder’s account
Cross-border payments are transactions involving parties that are situated in at least two different countries. Typically, cross-border payments are made using country-specific regulations, which can result in slow and expensive processes. Having an understanding of country-specific requirements can speed up payment times and make the process less inconvenient.
Enhanced Due Diligence, as the name suggests, is the process of conducting enhanced verification of a person or a company’s identity.
In the event of a person, it requires additional information for them to confirm their identity affirmatively.
In the event of a company, where EDD is usually applied, it means providing additional information of the business, such as shareholder information, tax filings, audited financial statements, bank statements, customers contracts, business invoices, deep dive into the type of business the company is engaged in, the markets / geographies it works, in, etc.
Both the person and the company are subject to enhanced screening from the various sanctions &/or PEP lists.
The Flow of Funds (of FoF) is a visual depiction of the movement of money from the point of origination of the transaction, to the point of end credit to the beneficiary. Showing custody of funds along the way.
You can build your own mobile app or online portal and connect it to the Tango AML core system. We offer full flexibility on how you wish to interact with your customers. You can always use our white-label front end mobile apps or online portals or you can use your own. Regardless of the scenario, you can rely on the Tango AML team to give you the best guidance to meet the correct flows and process transactions.
COMPLIANCE
MSBs are required to have a comprehensive AML program in place, regardless of their size or scope. This program should include four fundamental pillars:
1. Designation of a qualified BSA/AML officer.
2. Establishment of policies, procedures, and controls.
3. Training for staff members.
4. Independent audit and testing.
The implementation of the AML program may vary depending on the type of MSB and its business activities. Factors such as the size, structure, consumer base, and complexity of services offered can influence how the AML program is tailored to meet the specific needs of each MSB.
MSBs are required to document their AML programs to ensure clarity, consistency, and compliance with regulatory requirements. Having written documentation helps MSBs articulate their AML policies and procedures, which can be reviewed by regulatory authorities during audits or inspections.
Designating a qualified BSA/AML officer is essential for overseeing and implementing the AML program effectively. This individual is responsible for ensuring compliance with AML regulations, staying updated on industry best practices, and serving as the primary point of contact for AML-related matters within the MSB.
MSBs should conduct independent audits and testing of their AML programs on a regular basis, as specified by regulatory guidelines. This helps identify any weaknesses or deficiencies in the AML controls and ensures continuous improvement in compliance efforts.
The ultimate responsibility for AML compliance within an MSB lies with its most senior leadership, typically the Board of Directors. Owners, Boards, or representatives of senior management are tasked with appointing BSA/AML officers to oversee day-to-day compliance activities.
Ideally, a BSA/AML Officer should demonstrate certain minimum qualifications, potentially prescribed by state regulations. These may include expertise in BSA/AML regulations, professional experience, recognized industry certifications, and relevant degrees.
A BSA/AML Officer is responsible for coordinating, managing, and overseeing day-to-day compliance with BSA and its implementing regulations. They must implement appropriate risk mitigating controls, communicate with regulators and fellow Compliance Officers, and engage in discussions with examiners and auditors regarding the MSB’s AML program.
The BSA/AML Officer should regularly inform the Board and senior management about AML compliance initiatives, potential issues, audit and examination report observations, and corrective actions. They should have an independent reporting line within the company and ensure that their compensation structure does not create conflicts of interest.
Senior management should provide ongoing support to the BSA/AML Officer, ensuring that compliance efforts and compensation are not negatively impacted by company profits or revenue interests. This support enables the BSA/AML Officer to make independent risk-based decisions and maintain effective AML compliance.
Internal controls refer to the system or structure put in place within an MSB to ensure effective risk management and compliance. These controls form the framework for an MSB's compliance program, helping to mitigate risks associated with financial crimes such as money laundering and fraud.
MSBs should consider various aspects when developing internal control processes, including:
│ Involvement of the MSB's business line in risk management decisions. │
Periodic review and update of policies and procedures. │
Consumer identification procedures. │
Integration of automated data processing for transactions. │
Monitoring to identify reportable activities and transactions. │
Tailoring tools to the specific model of the MSB. │
Implementing dual control and segregation of duties. │
Management information reporting. │
Regulatory reporting, including quality assurance processes. │
Responding to law enforcement and information requests. │
Recordkeeping and retention procedures. │
Regulators typically expect MSBs to document their internal controls. It's not sufficient to verbally explain the control system or process; accompanying procedure documents are necessary for examination purposes. Additionally, written procedures must accurately reflect actual practices to avoid regulatory criticism.
MSBs should regularly review and update their internal control processes to align with regulatory requirements and industry best practices. Conducting periodic assessments and audits can help identify areas for improvement and ensure ongoing compliance with regulatory standards.
MSBs collect consumer information for several purposes, including:
Identifying consumers, transactors, receivers, or payees. │
Meeting regulatory requirements, such as compliance with "Funds Recordkeeping" and "Travel" rules. │
Facilitating payments. │
Addressing fraud, sanctions screening, and money laundering risks. │
Ensuring consumer protection.
MSBs are required to comply with regulations such as "Funds Recordkeeping" and "Travel" rules, which mandate the collection of specific consumer information for regulatory reporting and compliance purposes.
MSBs should utilize consumer information, as appropriate, to mitigate fraud and money laundering risks. This may involve conducting sanctions screening, implementing fraud detection measures, and fulfilling obligations to ensure consumer protection.
Due diligence involves the process of verifying the identity of consumers and assessing the associated risks. Enhanced due diligence goes a step further, requiring additional measures for higher-risk transactions or consumers.
MSBs should establish risk-based triggering events tailored to their individual operations. These events may vary based on transaction types, account offerings, and other factors.
xamples of triggering events for due diligence may include:
Transactions exceeding a certain amount. │
Transactions involving higher-risk jurisdictions. │
Single transactions exceeding specified values. │
Series of transactions requiring additional identifying information.
Non-compliance with information collection standards can lead to regulatory penalties, fines, or legal consequences for MSBs. It may also expose MSBs to increased risks of fraud, money laundering, and other illicit activities, potentially damaging their reputation and credibility in the industry.
MSBs can ensure compliance by implementing robust information collection processes and procedures aligned with regulatory requirements. This includes thorough KYC (Know Your Customer) procedures, regular training for staff, and ongoing monitoring of transactions for suspicious activities.
An MSB should consider collecting the following minimum information:
The complete name and address of the transactor. │
The complete name of the recipient of the transaction. │
An identification reference or number for the transaction.
Yes, MSBs should collect and review additional information based on risk factors associated with the transaction. This may include:
Contact information for the transactor and recipient. │
Identifying information for the transactor or recipient. │
Occupation of the transactor and the source of funds for the transaction. │
Purpose of the transaction. │
Account numbers, if applicable.
Training ensures that employees understand and adhere to processes and requirements, thereby enhancing compliance with regulatory standards and reducing the risk of financial crimes such as money laundering and fraud.
MSBs should consider the following practices:
Providing training for newly hired employees before they begin working or shortly after commencing work. │
Requiring ongoing AML training for all employees, regardless of their role or title. │
Tailoring training content to job descriptions, with higher-risk roles receiving more frequent and targeted training. │
Updating training content to reflect changes in internal policies, regulations, and lessons learned from recent enforcement actions.
MSBs should ensure that individuals who change jobs receive appropriate training within a reasonable period after assuming new responsibilities. This helps employees understand their new roles and responsibilities in compliance with regulatory requirements.
MSBs should provide access to specialized training and certifications for compliance officers and other staff as needed. Additionally, specific training for Board members and senior management can convey the importance of a "culture of compliance" and explain audit and examination reports they may receive.
MSBs should evaluate employee comprehension after training sessions and provide retraining if necessary. Targeted training should be offered when employees breach specific internal or regulatory requirements. Issuing reminders to employees and supervisors about upcoming training sessions can also help reinforce compliance efforts.
MSBs should retain records of all training materials and attendance logs. Additionally, they may consider connecting training completion to employee performance, bonus, and reward systems. Computerized training can offer advantages such as accurate training records and scheduling flexibility, although it's not required.
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