How Trapets eliminated manual AML processes at this FX company, enabling high growth

Customer industry: FX risk management & payment services

Challenge: The customer’s AML activities were largely manual and time-consuming, seriously hampering the growth of the business.

Solution: Trapets’ solution for transaction monitoring immediately overhauled the customer’s slow and inefficient systems.

Key results:

• Elimination of manual processes.
• Reduced expenses.
• Full compliance with regulations.
• The customer now has the necessary resources to scale the business globally.

The challenge

Trapets was approached by a fast-growing non-bank FX provider. While growing rapidly, their AML processes weren’t scaling as fast. It was apparent that too much time was being spent manually on AML processes.

Furthermore, the company had to comply with the increasingly stringent and complex AMLD (Anti Money Laundering Directives). They needed a better technology-driven process to reduce manual work, save time to focus on scaling and ensure compliance.

FX management companies service customers, including securities services, payment services, retailers, and commercial and private banks. The sector is particularly vulnerable to money laundering activities through remittance flows, which amounted to approximately $831B in 2022.

The solution

Trapets identified that the customer needed to automate its AML processes to detect suspicious transactions and track deviating behaviours.

Trapets was able to meet these needs with its Transaction Monitoring solution. With Trapets, the FX organisation automated their anti-money laundering processes and was able to set its own rules for detecting suspicious activity. 

The tool integrated screening, risk models, case management, and reporting on a single platform. This helped the organisation identify and focus its resources on the transactions and customers that required further investigation. 

The transaction monitoring system proved quickly more scalable, reliable, and credible than the existing manual processes. 

It allowed the FX company to incorporate a comprehensive, automated AML process to meet its regulatory commitments and protect its business from illicit activities. 

It established a more targeted capability to analyse customer behaviours and to identify suspicious activity earlier. 

Results 

Since the implementation of Trapets Transaction Monitoring, the FX company has witnessed many improvements across its business:

• Fewer manual errors 
• Less manual work by automating onboarding and monitoring activities
• Redistributed time to focus on the cases that require special attention
• Compliance with AMLD
• Free time to explore growth opportunities
• Improved internal and external user experience during the onboarding process 

Trapets’ customer can now fulfil and exceed regulatory requirements. The group’s ability to detect suspicious activity, keep track of customer behaviour, and fight financial crime across all of its markets and geographies has been vital in continuing to pursue its successful high-growth journey.

Reach out if your financial services organisation would like to save time and reduce manual processes in your financial crime prevention efforts.