Regulatory Alerts2022-11-24
Added · Updated
Transaction monitoring requirements for payment initiation services
Payment initiation service providers (PISPs) must monitor customer transactions to prevent money laundering and terrorist financing, as mandated by Section 3(2) of the Anti-Money Laundering and Anti-Terrorist Financing Act. Monitoring must be risk-based, requiring periodic post-event checks that account for specific risk factors such as large sums from multiple accounts to a single payee, evasion of monitoring thresholds, or transactions involving high-risk jurisdictions. PISPs may adjust the frequency and scope of monitoring based on risk mitigating factors, such as comparing customer behavior to peer groups or targeting low-risk customers. Unusual transactions must be reported to FIU-NL without undue delay.
Topics
Share