17
Jun
2017
15:03 PM

AML and CFT

When working in the fintech area you have to worry about regulators, for many reasons. Based on literature, history tells us that the electronic money was earlier started by 3 major companies, Paypal, E-gold and Liberty Reserve. These technologies was very desruptive and changed how businesses are run today. However, only paypal managed to prosper. The main reason is mainly because of Paypal willingness to work with regulators. While the others became the source of crime related business activities and slowly become irrelevant as they fail to get support from governments and legal businesses.

Having said that, at minimal, atleast in Malaysia what are the rules that you have to follow in order to keep regulators from complaining and make your fintech startup more acceptable in the eyes of regulators, public, governments and banking institutions. Well, I'm no expert when it comes to regulators, but fintech companies, atleast in Malaysia must be wary of KYC (Know Your Customer) rules, AML (Anti_money Laundering) and CFT (Counter Financing of terrorism) to gain support from regulators. If the terms are not confusing enough, wait when you read the guidelines provided by Bank Negara Malaysia1. Note that you might need some introduction about all the terms, and KYC is a good start to explore. KYC is mostly a global standard and some explanation about KYC and relating to Malaysia can be found at KYCMap Website2. I won't even go to the international standards as it gets pretty confusing as different regions practice things differently. Again, I'm still learning, this entry is mostly to archive and organize my thoughts about this matter and share some thoughts and discussions with friends and colleagues.



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