With information technology systems advancing, new activities of payment systems and foreign exchange are becoming more complex, resulting in a heightened potential risk for money laundering and terrorism financing.
The implementation of this new regulation aligns with the government’s efforts to combat money laundering and terrorism financing by requiring that the organizers of Non-Bank Foreign Exchange Business Activities (KUPVA BB) and Providers of Payment System Services (PJSP) implement a risk-based approach with regard to risk factors related to the service user, country or geographic area, product or service, as well as line or network of transactions.
Implementing a risk-based approach is important to AML efforts because it allows an organization to be alerted before an issue arises. Caution and due-diligence are key components in compliance and finding issues before transactions are completed or customer accounts set up is beneficial to not only the organization, but compliance within society overall.
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