Home Finance Combating Transaction Laundering: Know Your Transaction

Combating Transaction Laundering: Know Your Transaction

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For financial institutions, it’s important to get detailed information about transactions performed by their customers. This also refers to the parties these institutions deal with, the reasons transactions are completed and the origins of these transactions. What about Know Your Transaction and transaction laundering? Let’s discover all this together and also see how eMerchantBroker can help you with merchant services.

Know Your Transaction (KYT) & eMerchantBroker

What is KYT? This has to do with the process when financial institutions keep merchants’ businesses under monitoring by analyzing transaction data. When it comes to transaction laundering, you may associate it with money laundering, only the basic difference is that the former occurs online.

As it’s the case with money laundering, fraudsters are looking for a means to hide incomes received from banned eCommerce businesses. To manage the risks, monitor merchants, and detect transaction laundering, Know Your Customer (KYC) plays its important role. The same is also true of open data and/or information provided by the individual/ business.

What about eMerchantBroker? Well, this is what you need in terms of reliable, secure, advanced and cheap merchant services such as payment processing and business funding. Thanks to this type of reputable merchant services provider in the U.S., you can be sure to enjoy the best deal for your business.

KYT Combats Transaction Laundering

KYT aims to identify fraud potentially related to transactions and the unusual behavior transactions can be based on. This is how money laundering, fraud or corruption can be caught. For this, you need to have an automated concentration of transactions based on accurate and relevant data right from the original sources.

Contracts, customs documents or invoices for purchases are examples of such data. On the other hand, IP addresses for online banking or Geo Data usage are also sources of information about where payments can come from. Anyway, bank transactions don’t have access to unlimited information of this type.

So, Know Your Transaction aims to verify and keep customer transactions under monitoring. KYT has more to do with banks/financial institutions with complete granular data-centric information concerning customer transactions. KYT plays a vital role in fighting money laundering.

Author Bio:- Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.