Tudi complies with Mexico’s “Fintech Law” with ThetaRay AML integration
Mexico’s Tudi understands the importance of security in the expansion of digital payments, which is why it has signed on ThetaRayits anti-money laundering (AML) solution.
Tudi is using ThetaRay artificial intelligence (AI)-leveraging AML platform SONAR to monitor all domestic transactions made through its financial mobile app in Mexico, as the country’s government doubles down on illegal, fraudulent transactions in the wake of the digital payments transformation.
The app caters to Mexico’s growing uptake of digital payments through the provision of cashless services, including bill payment, money transfer, top-up and entertainment services; among others.
Right now is The World Bank records that only 37 percent of the country’s 126.7 million inhabitants have account holders, while a lower 32 percent have either sent or received a digital payment. For the South American region, these figures are significantly below that of its neighbors with similar levels of development.
Also, as mentioned by Reutersthe low penetration of fintech services in Mexico can be attributed to the country’s strong preference for cash.
But while Tudi must acknowledge the difficulty of his position, the app also acknowledges the Mexican government’s efforts, despite cash being king, to make the entire digital payment ecosystem more secure.
The country’s 2021 reform, the ‘Ley para Regular las Instituciones de Tecnología Financiera’ (LRITF), known colloquially as the ‘fintech law’, primarily outlines the effort. It sets out best practice targets for the industry, including appropriate AML measures.
On a broader note, this approach by the Mexican government appears to be working, with the number of Mexican fintechs increasing from 441 in 2021 to an estimated 650 last year.
However, it is because of the AML provision of the law that Tudi is now engaging with ThetaRay, the Israeli fintech software company, to comply with these measures.
Tudi signs up for SONAR AML
Through the agreement, Tudi leverages the software-as-a-service (SaaS) platform’s AML capabilities that promote an ability to detect known and unknown crime patterns in transaction monitoring, including drug trafficking, terrorist financing and human trafficking.
This functionality allows the financial app to comply with the requirements set by Mexican regulators for non-bank payment providers to operate AML systems that actively prevent money laundering.
When talking about the company’s selection of ThetaRay’s SONAR solution, Andrés Adame GuajardoTudis’ VP of Product, expressed a desire to “be one step ahead in developing AML scenarios [in Mexico] which challenges and risks our business.”
The proprietary form of AI on which the solution is based replaces human bias and enables it to recognize anomalies and alert abnormal financial behavior.
Following ThetaRay’s release of the software version last October, the fintech industry has become increasingly engaged in SONAR’s AML capabilities, as evidenced by the company’s similar activities in the European market.
