Like it or not, fraudsters exist and may attempt to elicit an illegal payment. In some cases, they’re laundering money for nefarious reasons (e.g. terrorism, human trafficking, smuggling). In other cases, they may have been valid partners at some point who now just “game the system” and take advantage of performance payment holes, such as affiliate commission bonuses. Either way, exacting a transaction may be illegal directly resulting in fines and prison or it may eat into profitability and corrupt a company’s reputation.
Trying to preempt fraud and strengthen partner and supplier transactions is almost an afterthought for most companies. Often, payers rely on banking institutions to conduct any necessary screenings. However, risk management and compliance can be shored up before funds even get out.
Screen Transactions and Identify Fraudsters
Tipalti reduces risk by proactively screening payees on national blacklists (e.g. OFAC, EU, HMC) and can help identify and block fraudsters who may be concealing their true identity. The Tipalti RMM (Risk Management Module) identifies and prevents potential ongoing fraud by a rogue supplier or partner when they’ve been blocked, preventing them from creating new accounts.
- Screen payees against national blacklists (e.g. OFAC, EU, HMC)
- Ongoing transaction screening aids in identifying fraudsters even after initial screening
- Block or suspend payees from receiving payments
- Identify blocked or suspended payees trying to create multiple accounts
- Be notified of suspicious payees from other Tipalti customers by being a part of the RMM Network
OFAC, AML, Anti-Terror, Anti-Narcotics Compliance
Tipalti automatically scans all supplier payee records before executing every payment cycle. This ensures that every payment is checked for legitimacy and legality. Among the databases scanned is the US Treasury Department’s Office of Foreign Assets Control (OFAC) SDN (Specially Designated Nationals) List. These are known bad actors and sanctioned entities that are involved in terrorism, money laundering, arms dealing, drug traffickers, and cyberterrorists.
In addition, Tipalti maintains an internal risk network that payees are also checked against which include reportedly bad accounts based on the experience of our customers.
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