Using Technology to Help the Growing Financial Services Industry Stay Compliant – Manila Bulletin


As the government continues to find new solutions to combat money laundering in the Philippines, it also called on the growing fintech community to be responsible and remain compliant with the Bangko Sentral ng Pilipinas (BSP). With hundreds of thousands of transactions going through digital payment platforms, it is becoming increasingly important to ensure that these platforms are regulated.

In a webinar organized by the company regtech, Tookitakiand legal experts from Divina Law, panelists break down the biggest problem fintech companies face when applying for the Electronic Money Issuer (EMI) license in the Philippines.

Believe it or not, the problem was technology.

To be a registered fintech in the Philippines, a company must successfully obtain an EMI license from the BSP. A compliance lawyer from Divina Law says most fintechs don’t comply with BSP regulations because of one problem: companies don’t explain the monitoring of transactions coming from their platforms to another or vice versa. poured. With most technologies now outsourced, fintechs need to be more diligent on these matters.

The attorney urged fintechs to strengthen their compliance efforts to cover all three types of compliance for businesses: compliance with Philippine law, local and foreign regulations, and internal rules or manuals for proper auditing. This is where technology plays a huge role – digitizing transaction monitoring for more accurate reporting.

The discussion also focused on the BSP’s two-year moratorium on EMI licensing and how high value proposition fintechs can apply for an exemption under the new Sandbox regulatory framework.

A recent case was shared in which an organization had a financial services company that distributed aid to indigents. However, after checking the reports, it showed that the funds were not reaching the intended recipients, revealing a fundamental flaw in the interconnections with other digital platforms. There could have been a window for a silver mule in the incident.

As payment methods continue to evolve with the emergence of digital payment platforms, so too do fraudulent activities. With multiple transactions flowing in and out of digital payment platforms, manual fraud detection is becoming unscalable and money laundering on online platforms has become harder to detect.

According to Tookitaki, technology is seen as the engine of an effective anti-money laundering (AML) framework that can keep up with emerging risks.

“In an AML framework, the most important pillar is the continuous monitoring of transactional and non-transactional behaviors of customers, and this could be best addressed with technology to ensure effective compliance with regulatory requirements,” said the AML expert from Tookitaki, Akshara Karanjekar.

Today, fintechs have access to end-to-end AML solutions to automate their compliance programs. But the regtech company recognizes that new scenarios will continue to surface. Unfortunately, leads to these new scenarios are siloed between organizations, slowing detection.

Tookitaki’s vision is to fight financial crime through a shared community framework rather than current siled approaches. This is activated via the AML ecosystemthe concentrator and the Anti-Money Laundering Suite or AMLSSpoke deployed on the client side.

The AML ecosystem includes a network of AML experts and the typology repository. The repository is a library of typologies and a no-code tool that helps to create new typologies.

The Anti-Money Laundering Suite consists of four modules: Transaction Monitoring, Smart Screening, Customer Risk Scoring, and Case Manager. AMLS can be deployed in multiple environments, including public cloud, private cloud, and data center.

“In clear signs of the country’s efforts to exit the FATF gray list, the public and private sectors in the Philippines appear to have made progress through proactive work towards stricter AML measures,” said Abhishek Chatterjee, Founder and CEO of Tookitaki. “Tookitaki is committed to helping more fintechs comply with relevant regulations established by the BSP to improve the integrity of the country’s financial market for better opportunities and safety for Filipino organizations and consumers.”




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