Announcing Merchant Sentinel: Cost Effective Compliance for Banks Serving High Risk Merchants

Announcing Merchant Sentinel: Cost Effective Compliance for Banks Serving High Risk Merchants

We’re proud to announce today the release of our Merchant Sentinel Program.

Merchant Sentinel provides banks and their high-risk clients with a common compliance framework, offering automated capabilities for monitoring, detecting, preventing and reporting suspicious money laundering activities (AML), as well as domestic and international support for Know Your Customer (KYC), sanctions screening, and fraud prevention.

“Operating in an emergent industry like virtual currencies makes it challenging to find a banking partnership. Adopting IdentityMind’s platform provided us with tools to comply with the bank’s requirements, effectively strengthening our banking relationship”
Xapo, Bitcoin Wallet & Vault

Many financial institutions have been forced to terminate high-risk merchants in response to regulators’ risk guidelines for merchant portfolios- a strategy now referred to as de-risking. Merchant accounts including Money Service Businesses (MSBs), Virtual Currency businesses, Internet Lending, Crowdfunding, FBO Accounts, and those operating in high-risk or suspicious countries are progressively being limited, or denied services. These businesses present lost opportunities for institutions, and may have dramatic repercussions for the audiences who depend on them. While regulators are offering more constructive guidance, merchant-servicing banks are still struggling to find the balance between servicing high risk, and compliance.

“We developed the Merchant Sentinel program following the success of our platform in helping top-tier banking clients manage risk and compliance while serving customers in high-risk industries“ said Garrett Gafke, IdentityMind’s President and CEO. “Our platform provides an essential reinforcement, allowing our clients to maintain the highest standards and AML practices with their compliance programs.

“We identified four key capabilities essential for an effective solution,“ said Jose Caldera, IdentityMind VP of Marketing & Product:

1. Reporting and alerting on suspicious activity based on transactions at the consumer level. One of the issues Banks face is a lack of visibility into transactions. Transactions are usually aggregated and there is loss of information that is fundamental for a proper investigation.
2. Independent rule and tuning settings with auditing capabilities. Banks can audit client’s practices, but clients and banks can develop and maintain their own rules and tuning.
3. A method for analyzing customer transactions in a safe, secure manner. Banks and their clients have access to transactions independently. Transactions are private to each client, however the bank has visibility across all of their clients, providing great efficiencies in the discovery and analysis of suspicious activities.
4. Ability to prove the legitimacy of your AML compliance program to regulators. By maintaining a record of all transactions, policies, KYC activities, and actions performed when suspicious activities are detected, the platform provides all the reports necessary to satisfy regulators’ auditing requirements.

“With Merchant Sentinel, we’ve pulled these capabilities together in an affordable, easy-to-integrate package. It was important to us that any Bank be able to quickly and easily apply Merchant Sentinel to reinforce their current risk program.”

Merchant Sentinel builds on the past success of the IdentityMind platform, combining IdentityMind’s established capabilities with a united risk & compliance interface, simplified deployment, and automated policies to provide a cost effective, operational framework for achieving compliance while servicing high risk merchants.

You can find the full press release here.

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