KNOW YOUR TRANSACTION (KYT) – THE KEY TO COMBATING TRANSACTION LAUNDERING

On 14 December, The Paypers published an article explaining that KYT is a process employed by financial institutions to monitor the merchants’ businesses through the analysis of transaction data.  Examining transaction data allows accurate and data-driven conclusions to be made, as it produces the essential evidence required upon suspicions over any fraudulent merchant activity.  Transaction laundering is conducted online and involves setting up/using a website that appears ‘normal’ (the shell website) whilst operating a ‘fraudulent’ site unknown to banks and card networks that conducts prohibited business activities. The transactions from the ‘fraudulent’ site are then routed through the ‘normal’ site to disguise the transaction as legitimate – deceiving banks, payment service providers, and card networks that these are all valid transactions and profits acquired from the ‘normal’ website.

https://thepaypers.com/expert-opinion/know-your-transaction-kyt-the-key-to-combating-transaction-laundering–1246231

I had omitted the following link (as it did not seem to generate much interest!), but it seemed time to add it again and say that, if you would like to make a (polite) gesture and help me with my removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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