AML compliance for smaller, non-traditional payment flows

asked by u/sami_sultan · 13d · 2 answers

I'm trying to wrap my head around AML requirements when dealing with smaller, non-traditional payment flows, like micro-payments in gaming or through decentralized platforms. Most of the detailed guidance I see seems geared towards larger financial institutions and traditional banking. How do you apply principles of 'know your customer' and transaction monitoring effectively without completely stifling innovation or overburdening very small-scale operators in these less conventional spaces?

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  • u/set_trader_th· 1 pts· 13d

    That's a tough one, especially with the volume of micro-transactions. I wonder if a risk-based approach focusing on aggregate activity over time, rather than individual tiny payments, could be an effective strategy for KYC here.

  • u/karimi_karim· 1 pts· 13d

    It's a tough spot. For micro-payments, you often have to rely more on aggregated behavioral patterns and network analytics than individual KYC for every tiny transaction. Full KYC on every $1 transfer is just not feasible or scalable.

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