Brought to market by Musa Jammehand Taimoor Iqbal of Route Trading Ltd (an experienced UK financial services compliance professional, and a tech entrepreneur with a background in money transfer), MoneyRouter is the first instant verification system to help thwart money laundering.
Launching in London this September, MoneyRouter finally brings a much needed measure of risk governing to both banks and money service businesses (MSBs), with its proactive and effective solution to the growing problem of illicit money transfers taking place in the Capital.
Following the recent EU Directive on money laundering, MoneyRouter not only strengthens the safety of global payments, but also provides banks with the means to carry out their own risk-assessed due diligence by allowing financial institutions to set their own internal controls in accordance with Money Laundering and Terrorism Financing Regulations. As all transactions happen in REAL TIME – the very first fully compatible technology to do this in the remittance industry – instant alerts for suspicious activities are raised, therefore drastically decreasing the banks potential vulnerability to threat.
Data sharing and collaboration are at the heart of the software that offers banks a greater insight of international customers and MSBs, whilst providing a much clearer understanding of the funds’ origin and full journey history. The instant end-to-end, identity verification system checks both the company and the individuals involved in a money transfer against the most up-to-date compliance databases, allowing banks to approve only the transactions that meet the standards they set. This full compliance with legislations not only benefits the banks financially, but it also helps protect and retain the institutions delicate reputation.
In the last few years, many banks have been refusing, rejecting and closing MSB accounts due to fear of being penalised. According to a World Bank study from 2015, over 50% of money transfer companies have had at least one bank account closed, and 28% of principals – the people who receive money – and 45% of handling agents – who pay out overseas – now have no bank account at all. In the UK and US in particular, large numbers of MSB bank accounts have been closed by major high street banks in the past few years.
This risk based approach offered by MoneyRouter, in compliance with the EU regulations and combined with international data sharing, provides banks with enough information to focus on genuine suspicious activities, whilst allowing legitimate transactions to proceed without disruption.
Bringing a much needed, shared regulation to the market,MoneyRouter will not only give financial institutions the confidence to open new overseas accounts, but it will give new hope to money transfer companies who often find it difficult to open a new facility with high street banks.