Ongoing monitoring is required by regulatory authorities and credit card organizations as part of enhanced due diligence for certain merchant types. Especially acquirers with many high-risk merchants in their portfolio have to implement a solid monitoring framework. For them, monitoring isn’t an option but a legal obligation.
“From the Fourth and Fifth Money Laundering Directives, to the General Data Protection Regulation (GDPR), to the second Payment Services Directive (PSD2), to the New York Department of Financial Services Final rule – all have had an impact on existing KYC processes. But the traditional banking industry is fragmenting as new ways to send value from one country to another are developed.”
You estimate the extent of TL to reach $352B worldwide. Criminals who abuse merchant accounts to process card payments for their illegal products or services are threatening legitimate e-commerce and merchant acquirers. In 2016, there were over 500,000 illegal shops online. What makes TL hard to detect?