In the modern interconnected global economy, businesses of all sizes rely on fast, secure, and compliant cross-border payments to operate efficiently.
Companies must move money securely across borders, whether to pay international suppliers, manage overseas payroll, or collect global payments. But as the volume and speed of transactions grow, so do the complexities of regulatory compliance and the risks of fraud.
According to the Nasdaq Verafin Global Financial Crime Report, an estimated $3.1 trillion of illicit funds flowed through the global economy in 2023 — equivalent to approximately 3% of total economic activity. As financial crimes grow in volume, regulators are paying close attention to businesses using emerging payment rails, real-time payments, and other fintech innovations.
Entering the global payments market now means ensuring adherance to stringent and rapidly evolving regulatory requirements.
But it’s not that simple.
Cross-border payments are subject to a web of international regulations. They include anti-money laundering laws, counter-terrorist financing measures, sanctions screening, tax regulations, and data privacy standards. A single misstep, such as a missed sanction hit or a fraudulent transaction, can result in significant fines, reputational damage, and disruption to business operations.
Without regulatory expertise and the infrastructure necessary for compliance at scale, many companies struggle to keep pace with these demands. Over 60% of fintechs paid at least $250K in compliance fines in 2023.
For all types of businesses, choosing a payments partner with the right mix of experience, technology and regulatory compliance know-how is more important than ever.
Learn more about the evolving regulatory landscape from The Payments Pulse, Convera’s latest industry report.
Regulatory compliance vs. the surge of financial fraud
According to the Bank for International Settlements’ Streamlining cross-border transaction compliance report, regulations continue to be layered upon the cross-border payments landscape to curtail trillions of dollars in fraud each year.
“Businesses and consumers alike are being confronted with increasingly complex scams, requiring increasingly stronger controls,” says Bridget Pruzin, Senior Compliance Manager at Convera, in an interview with Cyber Magazine. “Compliance experts and leaders must realise the financial burden of not acting on this emerging risk and invest now to ensure proper protection in the future.”
While fintechs are disrupting cross-border commerce with the latest AI-powered innovations, user-friendly platforms and rapid transfers, they often run into friction when it comes to compliance. Many fintechs lack the regulatory muscle or operational maturity to respond to evolving threats. Unlike traditional financial institutions, they may not have the internal expertise or layered defense systems to identify red flags in real time.
Traditional financial institutions, overwhelmed by a surge in financial fraud, and fintechs, lacking compliance infrastructure, find themselves disadvantaged. As a result, businesses may expose themselves to greater risks, both from compliance shortfalls and financial fraud. They have to be vigilant when choosing a commercial global payments partner.
How to find a trusted compliance partner
Some of the key pillars of an effective compliance infrastructure include:
- Real-time sanctions screening: All processed transactions should be vetted against international sanctions lists.
- Dedicated risk professionals: A global compliance and risk team should be in place to design, implement and monitor critical controls, ensuring transactions meet international and domestic regulations.
- Credit fraud screening: Automations that analyze worldwide data can defend institutions from fraud without compromising the speed of their transactions.
- Road map for real-time fraud controls: Organizations have to define and implement a road map for real-time fraud controls focused on mitigating incidents of industry-specific fraud.
To ensure compliance, businesses, fintechs, and financial institutions can partner with Convera. As a leading commercial payments company, Convera is supported by a team of qualified professionals, including former risk and compliance officers from global banks, regulatory agencies, and law enforcement.
Convera’s trusted expertise ensures that every cross-border payment is made with safety and regulatory resilience in mind.
Compliance as a key competitive advantage
In the current economic landscape, compliance is not just a legal requirement, it’s a differentiator that can foster success.
Institutions that prioritize secure and compliant cross-border payment processing can:
- Protect their reputation and customer trust
- Avoid regulatory fines and legal action
- Ensure smooth, uninterrupted operations across borders
- Maintain better control over cash flow and forecasting
Navigating the patchwork of global financial compliance regulations can be daunting, especially for businesses operating in multiple jurisdictions. Regulations vary not only between countries but also across industries. For instance, cross-border payments for educational institutions are subject to a different set of fraud risks than those for manufacturing or retail.
Convera understands these nuances and provides tailored compliance solutions, designed to adapt to different sectors, regulatory environments and client needs.
“The future of cross-border payments will be shaped not just by speed and convenience, but by the strength of compliance infrastructure behind each transaction,” says Tristan Van der Vijver, Chief Risk and Compliance Officer, Convera. “As fraudsters become more sophisticated and regulatory expectations continue to evolve, partnering with a trusted, secure, and compliant payment provider has become an essential part of practising international business.”
Leading global payment providers like Convera are leaning into transparency. They demonstrate how their robust controls and regulatory frameworks outperform industry standards, and they’re upfront about fees, rates, and security measures.
Working with reputable and reliable cross-border payment providers with a proven track record of compliance is one of the most effective ways to help ensure security and growth. Convera has built its products and reputation around these principles, giving clients the confidence to move money globally — safely, securely and in full compliance with the law.
Download The Payments Pulse to learn more about global payments trends, including the evolving regulatory landscape.
