Many Financial Institutions have been forced to terminate high risk merchants in response to regulators’ risk guidelines for merchant portfolios- a strategy now referred to as de-risking. Merchant accounts including Money Service Businesses, Virtual Currencies, Crowdfunding, FBOs, and those dealing with risky or suspicious countries are progressively being limited, or flat-out denied services. This presents lost opportunities for institutions, and may have dramatic repercussions for the audiences who depend on them. While regulators are offering better guidance, merchant-servicing banks are still struggling to find the balance between servicing high risk, and compliance.
Merchant Sentinel provides a cost-effective option for banks operating in, or entering high risk industries. The program is now available to select financial institutions, giving banks a clear framework for handling compliance and managing risk across their merchant portfolios.
The program operates in a two-fold manner, providing banks with the visibility and monitoring capabilities to create automated risk programs, and providing clients with a complete technology suite to manage fraud prevention, chargebacks, AML Compliance, and more.
In early 2015, the Department of Justice reached a civil and criminal resolution with a California-based bank. The civil and criminal resolution followed the Department’s investigation into consumer fraud schemes facilitated by the bank, in which a third party PSP processed transactions for fraudulent merchants by withdrawing money from consumer’s bank accounts without authorization.
In this presentation, we’ve broken down the resolution to explore the actual charges, lessons from the enforcement, and how you can reinforce your risk program to avoid similar scenarios.
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Our Webinar with American Banker:
In our live webinar on American Banker from April 27th, 2015, Jose Caldera, IdentityMind VP of Marketing and Product provides in-depth analysis of real-life risk scenarios, demonstrating how institutions can use entity link analysis to identify money laundering, suspicious activity, and individual financial crimes- and avoid unnecessarily de-risking individual or entire lines of business.