The results
2
key money laundering cases detected
30+
African countries served, plus parts of Asia
20
person team operating from a single branch
Key takeaways
- Clicksendnow, an independent money transfer operator, expanded in two years from South Africa and Zimbabwe remittances to more than 30 African countries and parts of Asia.
- Clicksendnow replaced manual transaction monitoring with ThetaRay's Cognitive AI Transaction Monitoring solution to manage money laundering and terrorist financing risk in high-volume, low-value transactions.
- ThetaRay's Cognitive AI flagged a pattern where multiple senders made large transactions to the same beneficiary, allowing Clicksendnow to intervene quickly.
- ThetaRay also flagged an individual who sent large sums to Zimbabwe through an agent who convinced multiple people to send money on the individual's behalf.
- With ThetaRay, Clicksendnow strengthened its ability to detect and report suspicious activity while ensuring compliance with the Reserve Bank of South Africa's regulations.
Executive summary
Clicksendnow, an independent money transfer operator, initially focused on remittances between South Africa and Zimbabwe. Over the course of two years, it rapidly expanded to serve more than 30 African countries and parts of Asia.
As a money remittance company dealing with high-volume, low-value transactions, Clicksendnow faced challenges in identifying customer transactional patterns and mitigating risks associated with money laundering and terrorist financing. To address these challenges and enhance compliance, Clicksendnow turned to ThetaRay's Cognitive AI Transaction Monitoring solution.
The compliance challenge
Operating from a single branch in Hermanus, South Africa, with a dedicated team of 20, Clicksendnow needed a solution that could:
- Identify suspicious patterns in real time.
- Detect and report money laundering risk effectively.
- Improve efficiency in compliance reporting.
- Scale with compliance operations as the business expanded into new markets.
Clicksendnow faced challenges with manual transaction monitoring, making it difficult to proactively identify and manage risks. This led to potential gaps in financial crime detection. The company needed a robust, scalable solution that could handle domestic and cross-border transactions with greater efficiency and accuracy, ensuring stronger compliance and risk mitigation.
“In an industry where transaction volume is high and profit margins are tight, AI-powered compliance solutions are essential for scalable growth without increasing costs for customers.”
Lynnette Botha, Head of Transaction Monitoring, Clicksendnow
Why did Clicksendnow choose ThetaRay?
During the technology vendor selection process, Clicksendnow identified key features of ThetaRay's Transaction Monitoring solution that aligned with its compliance needs:
- Cognitive AI and machine learning core capabilities: enhanced detection of suspicious activities with high accuracy.
- Domestic and cross-border monitoring: effective tracking of transactions across multiple jurisdictions.
- Scalability: ability to handle increasing transaction volumes.
- Customizable rules and alerts: configurable detection parameters aligned with regulatory requirements.
How did ThetaRay's Cognitive AI detect money laundering?
ThetaRay's technology played a pivotal role in detecting and mitigating financial crime risks for Clicksendnow. Two key money laundering cases highlight its effectiveness.
1. Money laundering via card payments
ThetaRay's Cognitive AI identified an unusual pattern where multiple senders were making large transactions to the same beneficiary. This behavior suggested a potential money laundering operation. Clicksendnow was able to intervene quickly, preventing further illicit activities.
2. Money laundering facilitated through third-party transfers
An individual used Clicksendnow's platform to send large sums of money to Zimbabwe through an agent, who convinced multiple individuals to send money on their behalf. ThetaRay's AI flagged this suspicious behavior, enabling compliance teams to investigate and take appropriate action.
Operational efficiency and compliance enhancement
ThetaRay's solution streamlined compliance workflows and improved risk assessment capabilities. Key benefits included:
- Dynamic risk identification: early detection of suspicious patterns.
- Proactive risk monitoring: immediate intervention capabilities.
- Improved decision-making: Cognitive AI-driven insights for better compliance management.
- Efficient reporting: automation of compliance reports and audit trails.
The future of AI in compliance at Clicksendnow
As Clicksendnow continues to grow, the company envisions further collaboration with ThetaRay to:
- Automate Suspicious Activity Reports (SARs) and Suspicious Transaction Reports (STRs) via the goAML regulator platform.
- Expand transaction monitoring to include wallet transactions, incoming remittances and rejected transactions.
Conclusion
By implementing ThetaRay, Clicksendnow strengthened its ability to detect and report suspicious activity while ensuring compliance with the Reserve Bank of South Africa's regulations. This boosted trust and security for the business, its customers and regulators.
Frequently asked questions
How did ThetaRay help Clicksendnow detect money laundering?
ThetaRay's Cognitive AI Transaction Monitoring flagged two key cases at Clicksendnow: multiple senders making large transactions to the same beneficiary, and an individual sending large sums to Zimbabwe through an agent who recruited others to send money on the individual's behalf.
Why is AI transaction monitoring important for remittance companies?
Remittance companies such as Clicksendnow handle high-volume, low-value transactions, which makes customer transactional patterns hard to identify with manual monitoring. Clicksendnow adopted ThetaRay's Cognitive AI to identify suspicious patterns in real time and scale compliance as it expanded.
What did Clicksendnow look for when selecting a transaction monitoring vendor?
Clicksendnow prioritized Cognitive AI and machine learning core capabilities, domestic and cross-border monitoring, scalability for increasing transaction volumes, and customizable rules and alerts aligned with regulatory requirements.
Which regulator does Clicksendnow comply with?
By implementing ThetaRay, Clicksendnow strengthened its ability to detect and report suspicious activity while ensuring compliance with the Reserve Bank of South Africa's regulations.
Can ThetaRay automate SAR and STR filing through goAML?
Clicksendnow plans further collaboration with ThetaRay to automate Suspicious Activity Reports (SARs) and Suspicious Transaction Reports (STRs) via the goAML regulator platform.
