Tackling money laundering is quickly becoming a tp priority in the financial sector today. Doing so is much harder than anticipated, however. Money Router is a new instant verification system that should be able to thwart money laundering. If more institutions used a distributed ledger, money laundering wouldn’t be such an issue, to begin with.
Money Router Packs Quite The Punch
The way Money Router works is simple: it offers a measure of risk governing to banks and money service businesses. The solution is proactive and effective in the fight against money laundering. For now, this concept will only roll out in London in the next few weeks.
Money Router strengthens the safety of global payments and gives banks the toolset to carry out risk-assesses due diligence on their own. Financial institutions can set their own internal controls according to AML and CTF regulations. Finding suspicious transactions in real-time is a challenging task. Money Router provides instant alerts for suspicious activities, which decreases the bank’s potential vulnerability to a money laundering threat.
Two other key points of focus are data sharing and collaboration. All users of the Money Router software will have a better understanding of where the funds came from and how it got there. Ina way, this all sounds like a blockchain solution without using distributed ledger technology.
For money service businesses, Money Router could be a lifesaver. Over the past year, quite a few MSBs have seen their bank accounts being closed due to their potential role in money laundering efforts. This trend was mainly noticeable in the US and the United Kingdom since 2012.
For now, specifics regarding the underpinning technology used by Money Router remain shrouded in mystery. It certainly gives off a big “blockchain” vibe, due to these real-time tracking and information sharing capabilities. Only time will tell how this software works, and we will know more once it launches come September 2016.
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