Why AML, more affordable tools and how to get micro-credit AML compliant in Southern Africa with world-class sanction screening in 3 simple steps
Financial regulation, greylisting and AML compliance. If you’re a micro-credit provider in Southern Africa, you’ll know that regulators now require all micro-credit businesses to become AML compliant, which adds an extra cost to doing business.
But it needn’t be so expensive that it threatens your business.
Here’s why AML is important, how to keep things up to 90% more affordable and how to get micro-credit AML compliant in 3 simple steps.
What is AML and Why do We Need Micro Credit AML?
Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) are global initiatives following revelations that criminal and terrorist groups exploit legal financial channels to fund illegal and malicious operations.
In response, international bodies, led by governments and the Financial Action Task Force (FATF), enacted regulations to combat these activities, emphasising the critical role of AML practices to protect the financial system and all the businesses in the world that provide financial services from these criminals.
Get insights on AML in microfinance and see why we need microfinance AML.
In Southern Africa, recent FATF assessments led to Namibia being greylisted along with South Africa which is greylisted till 2025 – following the recent de-greylisting of Zimbabwe and Zambia – because they found these country’s AML regulations and measures lacking.
Greylisting acts as a caution, signalling potential sanctions unless the countries implement comprehensive AML measures before a specific deadline.
And, to get itself removed from the greylist, each country will have to enforce regulation requiring every financial service provider to become AML compliant. And that includes all businesses in micro credit.
See all about AML compliance and why we need microfinance AML.
Which Regions Require Micro Credit AML Compliance?
Micro-credit providers in the following Southern African countries
Are legally bound to implement AML compliance measures. And to do that, you need to perform Sanction Screening.
See the business benefits of sanction screening.
But it’s not always that easy if you’re in micro-credit…
Challenges to Micro-Credit AML Compliance
High Cost of Compliance Tools:
For micro-credit institutions, the substantial expenses associated with sanction screening tools present a significant barrier. These tools are indispensable for AML compliance but can strain the financial resources of businesses catering to price-sensitive clientele.
Keeping Operational Costs Low:
Operational efficiency and low costs are paramount for micro-credit firms. Balancing the cost of becoming AML compliant with financial sustainability poses a considerable challenge.
See our post on balancing cost versus AML compliance.
The Solution: A 90% More Cost-Effective Solution for Micro Credit AML Compliance
ZenDetect knows that companies in micro-credit face unique margin challenges when it comes to AML compliance. We are a locally (African) built tool designed to offer competitive pricing in the AML space. By opting for ZenDetect, micro-credit providers can save up to 98% on their sanction list screening.
How to Get 100% Micro-Credit AML Compliant with ZenDetect Today
STEP 1: Book a Demo with our team so that we can show you how ZenDetect operates, discuss technical details, and explain integration with your admin systems.
STEP 2: We will help your development team integrate ZenDetect, or help find a developer that can help you do this.
STEP 3: As soon as it’s set up, you can bulk upload your database and screening begins immediately – the system will continuously and automatically screen, and you’ll be notified whenever the Sanction Lists are updated or if a flag requires your attention.
With ZenDetect, you get:
- Integration: ZenDetect offers seamless integration with your existing systems, making it easy to incorporate AML screening into your daily operations.
- Sanction Screening: Use ZenDetect's robust tools to screen your customers, vendors, and partners against global sanctions lists, ensuring that you are not involved in any illicit transactions.
- Continuous Monitoring: ZenDetect offers continuous monitoring services to keep you updated on any changes in sanctions lists or potential risks, ensuring ongoing compliance.
Learn more about our unique and affordable sanction screening for your business’s AML compliance, the benefits of getting compliant and how to conduct sanction screening in our post on how to get sanction screening in Africa.
