Latest news with #Flagright
Forbes
05-08-2025
- Business
- Forbes
AI-Driven AML Compliance For RIAs Under New FinCEN Rule
Madhu Nadig is co-founder & CTO of Flagright - building the AML compliance infrastructure for Financial Institutions. Registered investment advisors (RIAs) in the U.S. face a new anti-money laundering (AML) reality. Starting January 1, 2026 (now potentially delayed until January 1, 2028), RIAs will be required to comply with FinCEN's final AML rule, which mandates robust programs for transaction monitoring, suspicious activity reporting, customer due diligence (CDD) and more. For many advisory firms, which often have lean operations with limited compliance staff, meeting these requirements poses significant staffing and cost pressures. The good news is that AI-powered regtech platforms and automation offer a path to leaner compliance. Instead of building large teams and manually policing transactions, RIAs can leverage smart technology to satisfy regulators efficiently. FinCEN's New AML Rule: Additional Compliance Burdens For RIAs FinCEN's final rule brings RIAs squarely under Bank Secrecy Act requirements for the first time. Nearly all SEC-registered investment advisors must implement written AML/CFT compliance programs by the deadline. These programs must cover core elements long required of banks and broker-dealers: • Internal Policies And Controls: Written procedures to prevent and detect money laundering and terrorist financing • AML Compliance Officer: A designated individual responsible for overseeing the program • Staff Training: Ongoing training on AML duties for relevant personnel • Independent Testing: Periodic audits of the program's effectiveness by an independent party • Customer Due Diligence: Risk-based procedures to verify clients' identities and understand account purposes • Suspicious Activity Reporting: Processes to identify and file suspicious activity reports (SARs) with FinCEN for qualifying suspicious transactions RIAs will now be treated as "financial institutions" under the law, with obligations to screen clients, monitor transactions and report red flags, just like banks. The Securities and Exchange Commission (SEC) will examine RIA compliance with these rules, and non-compliance isn't an option: Penalties can reach up to $25,000 for willfully failing to implement required AML programs. This mandate closes a regulatory gap and significantly raises the stakes for advisory firms. It's truly a compliance game-changer, especially considering the size of the industry now under AML obligations. There are over 15,000 RIAs in the U.S. managing about $125 trillion in client assets, a sector previously outside the scope of the Bank Secrecy Act (BSA), now coming under intense oversight. Staffing And Cost Challenges In Building An AML Program Building an AML/CFT program from scratch is resource-intensive. RIAs now face the challenge of assembling people and tools to fulfill FinCEN's requirements: • Limited Staff And Expertise: Many RIAs have minimal in-house compliance personnel. Unlike large banks, an advisory firm can't easily redeploy dozens of analysts to AML duties. Hiring new AML specialists or consultants is expensive and time-consuming. Industry groups warned that smaller advisors (e.g., under 20 employees) would struggle to absorb these compliance burdens, even urging FinCEN to exempt the smallest advisors due to the outsized impact. • New Ongoing Workflows: The AML rule imposes continuous processes that firms must maintain. This includes monitoring transactions daily for suspicious patterns, conducting thorough CDD at client onboarding, periodically screening clients against sanctions/watchlists, investigating any alerts or unusual activities and drafting and filing SARs when required. Each task can be labor-intensive if done manually and will require clear policies, procedures and allocation of responsibilities. • Costly Manual Processes: Compliance labor is a major cost driver. Salaries for experienced AML compliance officers or analysts can easily exceed six figures. Beyond salaries, there are costs in training staff, managing false-positive alerts and ensuring quality control. • Independent Audits And Technology Investments: The rule requires independent testing of the AML program's effectiveness. Many RIAs will need to outsource this to external auditors or compliance consultants (introducing another new cost). These challenges make it clear that a 'business as usual' approach won't work. RIAs must find ways to meet the regulatory requirements without simply throwing bodies and money at the problem. This is where planning and technology come in. Preparing For Compliance: Actionable Steps For RIAs With the deadline looming, whether in 2026 or 2028, what should investment advisors be doing now? Below are key steps to prepare for FinCEN's AML rule, drawn from regulatory guidance and industry best practices: 1. Conducting A Risk Assessment And Gap Analysis: Start by evaluating your current compliance framework against the new rule's requirements. 2. Developing Or Updating Your AML Program: Using the gap analysis results, update your written policies and procedures to align with FinCEN's rule. This includes drafting an AML compliance manual if you don't have one, or revising your existing one to cover the five pillars (internal controls, AML officer, training, testing, CDD) in depth. 3. Implementing Supporting Technology And Automation: Given the volume of monitoring and reporting required, leverage technology tools to streamline processes wherever possible. For instance, use an AML software platform for transaction monitoring that can automatically flag unusual patterns, and a sanctions screening tool to check clients against watchlists. 4. Training Your Team And Testing The Program: Even the best policy document won't work if your employees don't know how to execute it. Plan comprehensive training for all relevant staff on the new AML procedures and their responsibilities—not just once, but on an ongoing basis. 5. Planning For Day-One Compliance And Ongoing Improvement: By Q4, aim to have all pieces in place, policies approved, systems implemented, staff trained and initial testing done so that by January 1, 2026 (or 2028), you are fully operational with AML monitoring and reporting. From that point, compliance will be an ongoing effort. Each of these steps will help ensure you're not scrambling at the last minute. Importantly, they also illustrate that you don't necessarily need a large staff to comply; rather, you need a smart plan and the right tools. By starting early and following a structured roadmap, even smaller advisors can meet the new AML obligations without being overwhelmed. Conclusion As you plan your program, remember that regulators focus on outcomes—timely SAR filings, effective monitoring and thorough due diligence—not whether those results were delivered by a team of 10 or by two people using a smart platform. An AI-powered AML solution can be a force multiplier for a small firm's compliance officer, handling routine checks and flagging the issues that truly need human judgment. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Yahoo
07-07-2025
- Business
- Yahoo
HitPay integrates Flagright's payment security tech
Singapore-based payments firm HitPay has integrated payment security technologies from Flagright to enhance compliance. Serving over 15,000 businesses, HitPay consolidates various payment methods into a single, integrated payment processing system. HitPay will leverage Flagright's AI-powered technology and no-code platform to enhance its compliance and fraud prevention efforts. Flagright co-founder and CEO Baran Ozkan said: 'We are thrilled to support HitPay, a leader in the payment processing industry and a fellow Y Combinator company. Our collaboration reflects our shared commitment to enhancing security and compliance in financial services. 'We look forward to supporting HitPay's mission to provide secure and seamless payment solutions for SMEs across Southeast Asia and the globe.' HitPay co-founder and CEO Aditya Haripurkar stated: 'Flagright's cutting-edge transaction monitoring and AML compliance solution will enhance our ability to protect our customers' transactions and ensure compliance with stringent regulatory standards. 'As a fellow Y Combinator company, we share a common vision of leveraging technology to drive innovation and security in the financial sector.' In March this year, HitPay collaborated with NPCI International Payments Limited (NIPL) to increase Unified Payments Interface (UPI) acceptance in Singapore. This partnership aims to facilitate QR code-based payments for Indian travellers at various locations in Singapore. In 2024, HitPay secured a major payment institution (MPI) licence from the Monetary Authority of Singapore (MAS), enabling it to offer services such as merchant acquisition and money transfers. "HitPay integrates Flagright's payment security tech " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Finextra
03-07-2025
- Business
- Finextra
HitPay deploys Flagright security and compliance tech
Flagright has partnered with HitPay to improve payment security and compliance in Southeast Asia. 0 The Flagright HitPay partnership helps SMEs meet evolving regulatory needs. HitPay, a pioneering all-in-one payment platform for SMEs, is integrating Flagright's advanced security technologies to ensure its innovative payment solutions remain secure and compliant as they expand their services across Southeast Asia and beyond. HitPay, trusted by over 15,000 businesses, unifies online, point-of-sale, and B2B payments into a single, integrated payment processing system. HitPay earned a major payment institution (MPI) license from the Monetary Authority of Singapore (MAS), allowing them to broaden their services to include merchant acquisition and money transfers. This significant milestone underscores HitPay's commitment to providing secure and efficient payment solutions for SMEs. Aditya Haripurkar, Co-Founder and CEO of HitPay, expressed his enthusiasm about the collaboration: 'Partnering with Flagright is a crucial step in reinforcing our commitment to security and compliance. Flagright's cutting-edge transaction monitoring and AML compliance solution will enhance our ability to protect our customers' transactions and ensure compliance with stringent regulatory standards. As a fellow Y Combinator company, we share a common vision of leveraging technology to drive innovation and security in the financial sector. This collaboration ensures that HitPay continues to set the benchmark for secure and efficient payment processing.' Baran Ozkan, co-founder and CEO of Flagright, commented: 'We are thrilled to support HitPay, a leader in the payment processing industry and a fellow Y Combinator company. Our collaboration reflects our shared commitment to enhancing security and compliance in financial services. We look forward to supporting HitPay's mission to provide secure and seamless payment solutions for SMEs across Southeast Asia and the globe.' The Flagright HitPay partnership reflects a shared mission to strengthen trust in Southeast Asia's growing digital payment ecosystem.
Finextra
18-06-2025
- Business
- Finextra
OnePay selects Flagright for trransaction monitoringg and AML compliance
Flagright, the AI-native, no-code platform for transaction monitoring and AML compliance, is delighted to announce OnePay as its newest customer. 0 OnePay has selected Flagright's AI-native transaction monitoring and AML compliance solutions, complete with AI forensics to strengthen its financial crime controls as its user base and transaction volumes expand. The partnership highlights OnePay's commitment to innovation through smarter AI transaction monitoring. OnePay is a UK-based digital banking platform that enables individuals and businesses to receive, send, and manage money from a mobile app or desktop portal. With instant transfers to VISA and Mastercard® worldwide, a dedicated OnePay Card, and rigorous biometric security, OnePay offers a seamless payments experience backed by multilingual customer support and a a Trustpilot rating of excellent. OnePay's platform powers an affiliate network of over 500 partners with financial inclusion at the heart of how they support the affiliates members and workers. This includes monitoring financial activity in real time using AI-based transaction tracking to catch anomalies faster. 'At OnePay, our priority is to keep our platform safe and compliant for everyone, individuals, businesses, and affiliates, while maintaining a fast, frictionless payments experience. Flagright's AI-native transaction monitoring and AI forensics gives us the ability to better understand user behaviours, whilst protecting our customers. This partnership ensures we can scale our services across new corridors without compromising security or compliance.' — Matthew Buckmaster, Head of Change at OnePay By adopting Flagright's AI-native transaction monitoring and AML compliance solutions, OnePay will gain real-time visibility across all customer transactions, whether domestic transfers, card payments, or international remittances. Flagright's AI forensics capabilities will automatically flag suspicious activity, reconstruct complex transaction trails, and supply fully auditable case reports through a no-code interface that can go live in under two weeks. This not only improves risk detection but also ensures consistent outcomes through AI-powered monitoring capabilities. By adopting scalable AI-powered monitoring tools, OnePay reinforces its leadership in proactive compliance and fraud prevention. 'We're thrilled to welcome OnePay to the Flagright family. Their mission to provide secure, user-friendly banking solutions for underserved communities aligns perfectly with our vision for modern financial crime controls. Together, we will empower OnePay to grow with the assurance that their compliance program is both robust and future-proof.' — Baran Ozkan, Co-founder & CEO, Flagright
Finextra
14-05-2025
- Business
- Finextra
Flagright connects with Integrated Finance
Flagright has partnered with Integrated Finance, a fintech infrastructure platform, to simplify how teams integrate compliance and core banking workflows. 0 By mapping Integrated Finance's APIs with Flagright's API , we've made it easier for mutual customers to connect infrastructure and compliance workflows from day one. Fintech companies often spend weeks stitching together infrastructure and compliance tools before they can even start building a product. This partnership reduces that friction. Integrated Finance provides the foundational infrastructure—accounts, cards, payments—while Flagright handles real-time AML compliance, risk scoring, and transaction monitoring. Daniel Cronin, co-founder and COO at Integrated Finance comments: 'IF at its core is an infrastructure layer that enables choice of its customers. We don't want to limit our customers to what works for IF. We want customers to choose what's right for them. And where risk is concerned, that choice is increasingly Flagright. This partnership marks the beginning of making that choice better, simpler and faster. By collaborating with Flagright, we are removing much of the complexity customers face when interacting with both our platforms and accelerating clients through the learning curve of launching a new product. We are super excited to see this partnership help more products to thrive in the market.' Baran Ozkan, co-founder and CEO at Flagright, adds: 'Speed and security must go hand in hand. Our partnership with Integrated Finance unites battle-tested infrastructure and Flagright's AI-native AML compliance solutions into an unstoppable launchpad, empowering teams to innovate from day one without compromise.' Our collaboration gives teams a clearer path to production: Faster go-to-market: Integrated Finance's platform reduces build time, with pre-integrated providers and simplified orchestration. Streamlined compliance: Flagright's AML tools operate out of the box, with transaction monitoring, risk scoring, case management, AI Forensics, and many others. Fewer moving parts: Engineers can reference pre-mapped APIs to reduce the complexity of vendor integration and speed up implementation. This partnership is designed for teams that want to ship faster while meeting high regulatory standards. Example use cases Multi-currency wallets: Issue accounts and cards via Integrated Finance while monitoring user activity with Flagright's real-time transaction monitoring. Lending platforms: Orchestrate onboarding and payment flows using Integrated Finance, while handling AML screening, risk scoring, and case management through Flagright. Embedded finance: Build fintech apps with accounts and payments infrastructure, integrating AML compliance and risk management from day one.
