Hawex: How AML and KYC ensure security in the Fintech industry
Today, most services are offered online. It has created a number of new concepts and terms in the areas we are familiar with. The financial environment was no exception. So when we talk about the security of financial transactions in general, it is impossible to ignore KYC (Know Your Customer) and AML (Anti-Money Laundering). Many people think that these terms are identical, but this is not entirely true. Romans Nekrutenko, CEO of fintech company Hawex explains for us how KYC and AML differ with the example of the procedures carried out in his company.
AML as a concept to counter economic crime in Hawex
AML and KYC are the first things to mention when checking the company’s activities and estimating the fight against financial crime. Hawex, like many, has its own AML policy – a set of rules and measures that identify unreliable financial transactions and reduce the likelihood of legalizing illegal funds. KYC, as part of these measures, means that the company establishes and confirms the customer’s identity. Thus, KYC is part of the AML complex, but these concepts cannot be used interchangeably.
Hawex AML policy is based on a list of regulations and recommendations made by the country’s regulator. In order to comply with legal requirements, Hawex uses internal control systems and conducts customer surveys. This helps identify and stop criminal schemes immediately, including sanctions evasion and terrorist financing.
Unfortunately, the fraudsters’ methods do not stand still, creating new solutions for protection and verification systems. Therefore, high-quality compliance with AML requirements is a costly and labor-intensive procedure that requires constant modernization and flexibility. The Hawex AML complex is maintained exclusively with the help of internationally recognized and certified suppliers. In addition to the technological component, Hawex pays special attention to hiring qualified employees — AML officers, each of whom has a verified certificate and membership in ACAMS (Association of Certified Anti-Money Laundering Specialists). This allows the Hawex AML team to be aware of the latest innovations both in their jurisdiction and in the world, and most importantly, to successfully apply them in their work.
Regular staff training is an important part of the implementation of AML measures at Hawex. The company conducts training not only for employees who work directly in AML, but also for the so-called “first line of defense” – account managers – to identify suspicious customers in the phase of initial negotiations. Hawex is convinced that high-quality monitoring is only possible according to the Four Eyes principle, when several employees check the work stages for compliance with prescribed requirements. The Hawex team is regularly informed about changes in legislation and international instruments, new requirements for regulators and payment systems, as well as the latest developments in AML control software. In addition, employees study real cases of other financial organizations for the correct interpretation of certain requirements.
To confirm that Hawex complies with AML standards, an external audit of internal control systems, including the actions of its employees, is regularly carried out. If any inaccuracy is discovered, the Hawex team immediately develops a change plan based on the auditors’ recommendations.
Hawex KYC: the company knows its customers
When you open an electronic wallet or banking product, the Services ask us to take a picture of ourselves and an identification document in real time. This is necessary to compare the data from the document and the person buying the product – this is the primary KYC check with any financial service provider, including Hawex. And if the real owner of the document who is not on the sanctions or other undesirable lists wants to use the services, then there are no obstacles to cooperation. The desire to remain anonymous at all costs is often interpreted by financial organizations as the first sign of unreliability of a potential client – after all, a person with legal income and legitimate goals has nothing to hide.
Fintech’s history knows many examples of what the absence of KYC leads to. Fraudsters gain access to financial instruments by conducting transactions anonymously or – even worse – under a false name, which leads to problems for that person. In addition, use of a financial product by persons included in the international lists of untrustworthy persons or sanctions lists is considered a breach of regulation by the company itself. That is why Hawex KYC is one of the basic measures to meet the requirements of AML.
Strict compliance with all AML requirements and thorough Hawex KYC verification make the company a reliable player in the financial industry. Hawex is confident that the integration of the latest developments in AML will help it grow and attract even more customers.
