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Transparency the Best Tool to Minimize Cover Payment Risks, Says AML Director
printFor all of the concern over the money laundering risks associated with cover payments and cross-border transactions, there is a simple solution: more transparency, according to James F. McGinnis, managing director for the anti-money laundering – ethics & compliance division at BNP Paribas in New York. Improving transparency won't mean scaling back the number of cross-border transactions a financial institution processes, he said. Instead, banks should include beneficiary information with all cover payment transactions, he said, adding that a new SWIFT messaging format should add some clarity industry-wide. McGinnis, who previously worked as the managing director and investment bank anti-money...
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