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PBby u/pbernard·1moQuestion

Navigating AML Red Flags in Emerging Market Payments

For those operating PSPs or exchanges in emerging markets, what are the most challenging AML red flags you encounter consistently, particularly around source of funds verification for smaller, frequent transactions? We've found that traditional KYC often hits a wall here, and the data available for transaction monitoring isn't always as robust as it is in developed economies. Interested to hear practical strategies being deployed to mitigate risk without completely stifling growth in these crucial, yet often less regulated, corridors.

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3 Comments

RPu/rahul.pillai·1mo

This is a really interesting point. I've always wondered about the practical challenges of applying robust AML in those markets, especially when the informal economy is so prevalent. How do you even begin to verify sources for cash-based micro-transactions?

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THu/thanawat93·1mo

This is a great point. We've definitely seen the struggle with smaller, frequent transactions in emerging markets. It feels like you're constantly trying to balance regulatory requirements with the practicalities of how people actually transact there. Any thoughts on how AI or more localized data points could help bridge that gap?

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TLu/tuan_le·1mo

Absolutely, source of funds for frequent smaller transactions is a headache. We've seen some success with behavioral analytics, flagging deviations from typical user patterns rather than relying solely on static KYC. It's not perfect, but it helps identify anomalies that might otherwise slip through.

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