Morning Brief 7.10.20: Dutch banks team to battle laundering

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AML union

Five banks that do business in the Netherlands — ABN Amro, ING, Rabobank, Triodos Bank and de Volksbank — have have created a team to monitor money laundering and terrorism financing.

The banks will use Transaction Monitoring Netherlands to spot red flags in payment patterns, predicting that the group of banks will be better at catching criminal activity than each individual bank, since monitoring can include more data and visibility into data flows.

The banks estimate about $18 billion in crime-related funding is laundered in the Netherlands yearly, reports Finextra. The banks are operating under a government anti-money laundering plan launched in 2019 that allows for collective monitoring.

Know your video

Paytm Payments Bank plans to perform Know Your Customer checks via video in an attempt to reduce personal contact and to process more customers.

The process takes a few minutes and can be completed with Payment Account Number and Aadhaar Indian ID cards, explains Times of India.

Paytm is building a back-end system that will allow it to complete 15,000 video KYC checks per day, which it hopes will improve its financial crime vetting processes.

U.K. transfer

Samsung Pay's attempt to build a base in the U.K. has made progress through a deal with TransferWise to support the mobile wallet.

TransferWise is expanding quickly, approaching a $5 billion valuation, up from $2.5 billion a year ago; and has gained recent support from U.S. banks and Alipay.

Samsung Pay's support in the U.K. includes Banco Santander SA, MBNA and Nationwide; and the TransferWise deal will allow consumers to hold both U.S. dollars and British Pounds in the same account.

Plugging in

Singapore fintech startup tonik has made a partnership agreement with Mastercard, providing access to the card brand's global network and range of business tools.

Tonik recently received a bank license in the Philippines, and the deal with Mastercard will allow a quick buildout of electronic payment products ahead of tonik's scheduled launch later in 2020.

Sequoia Capital and Point72 Ventures in June invested $21 million tonik, according to TechCrunch, betting the relative lack of a traditional banking structure in the Philippines provides room for growth.

From the Web

Exclusive: Goldman Sachs-backed payments startup Marqeta prepares for IPO
REUTERS | Thu July 9, 2020
Marqeta Inc, the U.S. payment card issuing start-up whose investors include Goldman Sachs Group Inc, is seeking to hire investment banks to advise on a potential initial public offering (IPO), according to people familiar with the matter. The IPO could come later this year or in 2021, the sources said.

Americans are rapidly shrinking their credit card debt during the pandemic
CNN | Thu July 9, 2020
The amount of consumer revolving credit, which is mostly credit cards, plunged by another $24 billion in May, the Federal Reserve said Wednesday. This costly form of debt is down more than $100 billion since hitting a record high in February and is now below $1 trillion for the first time in nearly three years.

Businesses across US request ‘exact change’ amid coin shortage caused by COVID-19
FOX | Thu July 9, 2020
Following an announcement from The Federal Reserve last month that the coronavirus pandemic has created a shortage in coins in the U.S., businesses around the country have been urging their customers to use alternative forms of payment or bring exact change.

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