Payment Asia’s Post

Know Your Customer Join Forces With Credit Bureau Malaysia for KYB Compliance: Regtech provider Know Your Customer and Credit Bureau Malaysia have announced a partnership to provide a one-stop know-your-business (KYB) data ... #regtech #cdo #datagovernance

My colleague Oana offers us insights into the regulatory changes slated for 2024, providing a roadmap that will influence the evolution of payments

The Monetary Authority of Singapore announced new requirements for digital payment token service providers to safekeep customer assets under a statutory trust and other segregation and custody requirements before the end of 2023 which it is now seeking public feedback on until 3 August 2023. This update provides a brief background on how this came to be. MAS publishes investor protection measures for DPT services, issues consultation papers on (1) amendments to Payment Services Regulations, and (2) measures on market integrity in DPT services https://lnkd.in/gC-aZexc Happening in Singapore #singaporelaw #singapore

In case you missed it, Swift’s Payments Market Practice Group (PMPG), a consortium of payment experts spanning Asia Pacific, EMEA, and North America, has recently released Version 2 of the Global Adoption of the Legal Entity Identifier (LEI) in ISO 20022 Payment Messages.   The comprehensive document presents the evolution of LEI usage and its expanded advantages within the framework of ISO 20022. It underscores the critical role of LEI across diverse applications, such as sanctions screening, KYC processes, corporate invoice reconciliation, fraud detection, and account validation. Furthermore, it delves into the status and adoption trends of LEI in various regions, including notable entities like India, the Bank of England, the European Systemic Risk Board (ESRB), the European Commission, and the Financial Stability Board (FSB).   Key highlights associated with the Global Adoption of the Legal Entity Identifier (LEI) encompass: 1- Enhanced Transparency, Efficiency, and Security: The LEI emerges as a pivotal component in achieving heightened transparency, efficiency, and security within payments, contributing to an overall enhancement of industry practices. 2- Improved Market Practices: The synergistic use of standards, coupled with LEI adoption, is anticipated to propel superior market practices globally, fostering complete straight-through processing and elevated customer service standards. 3- Streamlined Processes for Clients: Financial Institutions, acting as Validation Agents, can offer significantly streamlined LEI issuance processes, resulting in an enhanced client experience during onboarding and lifecycle management. 4- Digitization of On-boarding Processes: Utilizing standardized legal entity data empowers financial institutions to digitize onboarding processes, increasing operational efficiency and standardization. 5- Market Differentiation: Financial Institutions serving as Validation Agents can distinguish themselves by providing added value to clients through LEI services and streamlined onboarding processes. 6- Reduced Costs: Implementing LEI-driven enhanced internal data management processes is expected to translate into reduced operational costs for financial institutions, contributing to overall operational efficiency. 7- Innovation Opportunities: The LEI is a robust foundation for financial institutions to innovate and cultivate new digital services and revenue streams, signaling positive advancements in the financial industry. 8- Faster and More Efficient Payments: Integrating LEI into payment messages is poised to elevate straight-through-processing (STP) rates, resulting in expedited, more efficient payments.   The document urges financial institutions to perceive the LEI as an opportunity for enhancement, underscoring the positive transformative impact LEI adoption can have on various facets of financial processes. #LEI #ISO20022 #Payments #SWIFT #PMPG #Finance #EntityID #Standards

🕵♂️🕵♂️ Some interesting development in Singapore in relation to trade finance traceability ! Hopefully this will reduce double financing of trade finance transactions, although one can imagine that fraudsters will soon master the art of slightly modifying a document/transaction so it generates a slightly different hash on the MonetaGo system, thus avoiding detection. This is nonetheless a step in the right direction. https://lnkd.in/eUBRxD5q

Fun Fact: "Know Your Business (KYB)" is often perplexing, which actually means understanding your own business's financial health, revenue, and credibility. Confusion arises because "KYB" is mostly used to assess the business's credibility of your customers, vendors, or dealers. However, here's some exciting news: the partnership between Know Your Customer and Credit Bureau Malaysia promises significant benefits for Malaysian businesses. This collaboration will enable seamless due diligence on overseas businesses, facilitating more effective risk assessment and smoother international business operations. #funfact #kyc #kyb #malaysiabusiness #ctos #duediligence

The Monetary Authority of Singapore (MAS) has announced new measures to protect investors in digital payment tokens (DPTs). These measures include: Requiring DPT service providers to safekeeping customer assets under a statutory trust. Restricting DPT service providers from facilitating lending or staking of DPT tokens by their retail customers. Imposing further measures to prevent market abuse and unfair trading practices. MAS is also seeking public feedback on the proposed legislative amendments to the Payment Services Regulations and the consultation paper on market integrity. The new measures are in response to the growing popularity of DPTs in Singapore. However, MAS warns that regulations alone cannot protect consumers from all losses, given the extremely high risk and speculative nature of DPT trading. Consumers must continue to exercise utmost caution when trading in DPTs. Key points from include: MAS is introducing new measures to protect investors in DPTs. These measures include requiring DPT service providers to safekeeping customer assets under a statutory trust and restricting DPT service providers from facilitating lending or staking of DPT tokens by their retail customers. MAS is also seeking public feedback on the proposed legislative amendments to the Payment Services Regulations and the consultation paper on market integrity. MAS warns that regulations alone cannot protect consumers from all losses, given the extremely high risk and speculative nature of DPT trading. #digitslassets #custody #mas https://lnkd.in/e4JjTJpn

Money laundering constitutes a significant and far-reaching issue with grave repercussions for economies, societies, and the integrity of the global financial system. Banks, in particular, are exposed to formidable risks when entangled in money laundering practices, including reputational harm, regulatory and legal liability, and financial losses. The recent episode involving Al-Zaytun, an educational institution in Indonesia, serves as a compelling case study. In this instance, 256 bank accounts associated with the institution’s head were frozen due to suspected involvement in money laundering activities. Read more https://lnkd.in/gYqNMp-q #moneylaundry #moneylaundering #financialfraud #fraud #fraudprevention #integrityasia