In order to strengthen the trust in the financial system, the EU parliament has passed its fourth EU anti-money laundering directive last year. Along with it the new money transfer regulation became effective. It contains new regulations on the reporting obligation of participants in a financial transaction. Until now the financial institutes only had to check and transmit the data of its customers. From June 26th, 2017 on this duty is also valid for the beneficiary of a transaction. The financial institutes therefore still have one year to adapt to those changed circumstances, especially in the field of IT solutions.
Complete solution for up-coming requirements
With SMARAGD TCM (Transaction Controlling & Monitoring) Cellent Finance Solutions offers a complete solution for financial transactions that has already integrated the requirements of the new money transfer regulation. SMARAGD TCM is a central compliance component of the implementation of the business requirements. The system checks all relevant information, with the focus on payments and customer data, for sanction breaches in real-time and uses all available internal and external information in the process, which are usually summarized on sanction lists. Should SMARAGD TCM detect conspicuous activity, it is reported to the person in charge of compliance and also followed-up.
All customers on the secure page
New customers can meet all requirements of the money transfer regulation after a seamless installation phase. For existing customers the extension is even easier. “Some slight changes in the business configuration are enough and our customers are on the secure page”, says Dr. Steffen Gutjahr, Head of the Compliance Solutions Department with Cellent Finance Solutions. A lot is at stake after all: During transfers of up to 1000 Euros within the EU the new money transfer regulation demands that the account number of all participants and, upon request, further data, e.g. name, is transmitted. For transfers in third countries outside the EU the same system applies, but the duty is independent of the amount. It is important for the banks to make sure that the datasets are complete.
Real-time Monitoring as premise
Another novelty is that a real-time monitoring or a subsequent monitoring of the transfer are mandatory. Thus, companies have to introduce effective, risk-based procedures or to extend current measures technically. SMARAGD TCM targets both requirements. Financial service providers that neglect these duties after June 26th, 2017 run the risk of being fined up to five million Euros or ten per cent of their annual revenue. Management staff can also be prosecuted and temporarily be banned from taking over managerial tasks. This is reason enough for all financial institutes to take their time, think about their concept and apply its conditions to the new money transfer regulation.