FINTECHS ARE BEHIND THE EIGHT BALL ON TRANSACTION MONITORING, WHICH IS DANGEROUS FOR THEIR SPONSOR BANK PARTNERS

Transaction Monitoring is an art unto itself; it requires a comprehensive knowledge of money laundering, for laundrymen often modify and tweak known techniques, and unless the compliance officer at the fintech is thoroughly familiar with all the methods, he or she completely misses the transaction, and it goes on be passed by compliance at its sponsor bank, who believes the fintech people know what they are doing, and gave it an initial once-over.

This can be a fatal mistake for the sponsor bank, for the buck stops with the bank for regulatory purposes. Has the bank seen that the fintech compliance department staff are properly (and completely) trained? Unless they have confidence in their fintech clients' ability to identify, and interdict in real time, both money laundering and terrorist financing, there might be a very unhappy (and expensive) ending to the relationship.

Train your fintech partners' compliance staff to your Banking Best Practices level, please, or reap the regulatory whirlwind. You don't need to be publicly named & shamed for an unforced error that resulted in the movement of the proceeds of crime from the fintech, through your bank, and outbound, where it was already cleverly laundered by your bank.