Financial services lawyers Andres Fernandez, Gabriel Caballero and Kristen Jimenez are co-authors of one Daily business review Article about the compliance challenges facing financial institutions in the rapidly evolving peer-to-peer payments landscape. The article examines how the rise of instant payment platforms such as Venmo and Zelle has created significant complexities for banks, particularly international institutions, in complying with anti-money laundering (AML) regulations and economic sanctions. The authors point out the difficulties in implementing effective compliance measures due to the real-time nature of these transactions and the limited user information available. They also highlight increased regulatory scrutiny and recent enforcement actions, and call on financial institutions to adopt risk-based approaches and regularly update their compliance controls to address the unique challenges of modern payment systems.
READ: Compliance in the peer-to-peer payments landscape (subscription required)