Navigating AML Red Flags in Emerging Market Payment Flows

Curious to hear how others in the Fintech Founders room are approaching the evolving landscape of AML red flags, particularly when dealing with payment flows in less mature markets. We've seen an uptick in scrutiny around certain transaction patterns and origination points that, while not explicitly prohibited, are raising eyebrows with our correspondent banks. It's becoming a delicate balance between facilitating legitimate growth and managing the enhanced due diligence requirements without alienating clients.

Specifically, what strategies are proving effective for automating the identification of these nuanced red flags? Are folks seeing better results with rule-based systems augmented by AI, or are more sophisticated machine learning models proving their worth in reducing false positives while catching the real outliers? The regulatory goalposts feel like they're constantly shifting, and maintaining compliance without stifling innovation is the key challenge.