25 Aug

G2 Releases Guide on Cleaning Out Transaction Laundering

SINGAPORE, August 26, 2015 — G2 Web Services, provider of risk solutions to clients with over half of the world’s merchant outlets, has released a new guide called Cleaning Out Transaction Laundering for risk
and compliance leaders. The announcement is being made at MasterCard’s Asia-Pacific Global Risk Leadership Conference.

Transaction laundering occurs when unknown — often illicit — businesses process payments through known merchant accounts. It is a growing method used by rookie and veteran perpetrators alike, many of whom were previously terminated but return to transact more covertly. The guide from G2 helps acquirers keep their portfolios free of transaction laundering and associated costs and fines.

“G2 has found half of all violating websites are exploiting the payment system without registering for merchant accounts,” said Dan Frechtling, G2 chief product and marketing officer and co-author of the white paper. “Further, a full quarter of terminated accounts keep their operations mostly intact and seek new payment inroads such as transaction laundering.”

The guide is available for download at no cost. It includes information for acquirers and their partners such as:

  • The six types of laundering merchants
  • Two case studies based on actual violations
  • The six best practices for selecting a vendor

“Acquirers are seeking to improve their ability to identify and eliminate transaction laundering,” said Deana Rich, president of Rich Consulting, Inc., a specialist in risk management and compliance for acquirers. “This guide illustrates the importance of partnerships between financial institutions’ human capital and technology companies like G2 in the fight against transaction laundering.”

 

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The paper demonstrates why transaction laundering deserves greater attention by financial institutions.
The practice violates merchant agreements with acquirers, allows prohibited goods and services to enter
the payment system, and may flout anti-money-laundering (AML) laws. Fortunately, there are solutions from technology companies that provide better information and automation to serve risk and compliance professionals.

G2’s viewpoints on transaction laundering were recently profiled on PYMNTS.com. See the article and
podcast here. Read more about G2 Transaction Laundering Detection at the G2 website.

 

About G2 Web Services

 G2 Web Services is a global technology and services company that helps banks, processors and their partners ensure safer and more profitable commerce. Clients representing over half of merchant outlets globally use G2’s solutions to identify bad actors and keep them out of the payments system. Banks, processors and their partners use G2’s tools and expertise to perform better due diligence and monitoring so they can grow their portfolios while taking on acceptable risk. Widely regarded as the market leader, G2 helps clients confidently handle known and unknown threats and manage changing rules and regulations.

G2 Web Services is headquartered in the US in Bellevue, WA, with offices in London and Shanghai.

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