Compliance with regulations is at the heart of the preoccupations of treasurers, that’s why DataLog Finance has developed a Treasury Line module intended for the fight Against Money Laundering and Combating the Financing of Terrorism (AML/CFT) on French soil and assist TRACFIN (the French unit to combat money laundering and terrorist financing).
What is AML/CFT?
The french AML/CFT is a national mechanism to combat money laundering and terrorist financing. It compels all the bodies mentioned in article L561-2 to adopt hostile measures with regard to these two offences. This includes banks and many companies involved in financial transactions, payments and collections.
More generally, these new features are part of a policy defining a global regulatory framework abridged “KYC” (Know Your Customer) in the world of treasury, requiring U.S. companies to better know its customers and suppliers before any transaction.
As these legal updates have been adopted in many countries (Australia, Canada, India, Italy, Namibia, New Zealand, South Africa, the United Kingdom, Luxembourg, etc.), they concern all organisations dealing with financial flows, and therefore directly or indirectly multinationals, including Treasury Line software users.
These regulations include measures to freeze assets, to be vigilant towards politically exposed persons (PEP), to know its clients (KYC), to train and raise staff awareness and to denounce suspected money laundering or terrorist financing (AML-CFT / LAB-LAT).
Operation of the KYC module
To reinforce and facilitate the implementation of KYC and AML/CFT measures, and thus the compliance of companies, the Treasury Line TMS now includes the following features:
- blacklist query: the system generates a message and sends it to an internal or external service (database owned and updated by the customer, Web service…) which will analyse the data relating to the beneficiary of the transfer (last name, first name, contact details, IBAN…)
- Management of the returned message: verification of the compliance of the beneficiary or the initiator of the transaction with the Web service or in the database; the treasurer is notified by the system in real time of the compliance or not (presence on the blacklist) of the third party
- status management and interaction: blocking, retesting, forcing the validation of the transaction (payment, direct debit…) in the event of an external service error…
- possible import and export of the list of persons subject to asset freezes or PEP
Treasury Line and its AML/CFT asset freezing module are fully customizable to meet the expectations of corporate treasurers and allow full compliance with the financial laws and rules (AML/CFT, KYC, MIFID II…).