Money muling poses a significant challenge to Payment System Processors (PSPs). The notorious financial crime is connected to an astonishing $4.9 trillion in laundered money. And this figure is only expected to rise.
In fact, the latest trends show a 23% increase in student mules and a 29% spike in the over 40s engaging in money muling behaviour. That mules are broadening beyond the traditional 17-25 age bracket complicates matters for PSPs. Less predictable indicators means potentially more financial crime passing under the radar - an outcome that no AML team can afford, financially and ethically. And certainty not when October's mandatory APP fraud reimbursement comes into effect.
But, there are practical steps that AML teams can take to mitigate the impact of money muling, and protect more consumers in the process. These steps are rooted in information exchange: peer-to-peer financial crime data sharing, such as that successfully championed in fraud-style models for some time.
Chris Lewis, our Head of Solutions recently spoke to Finextra about how the money mule challenge is evolving and crucially, the strategies that AML teams can adopt from fraud teams.
In his discussion, Chris covers:
Synectics Solutions is developing a market-first post-application solution that is capable of predicting accounts likely to engage in money muling activity in the future. To learn more about the solution, and how you can develop a mule-oriented fraud strategy, contact a consultant here.