Welcome to Crosstalks, Conversations that Drive Innovation. In this episode, we continue our exploration of compliance development in in the Money Transfer & Remittances industry with renowned payments expert Hugo Cuevas-Moore.

The episode delves into the early AML measures enacted in Colombia and Latin America during the early 90s, highlighting the challenges faced in implementing KYC and transaction monitoring. Discover how intuition and manual processes were vital in detecting suspicious activities before the advent of sophisticated technology.

Marcela Gonzalez shares her experiences and insights, illustrating how financial institutions navigated compliance without modern tools like AI. The narrative also touches on the complexities and dangers associated with money laundering prevention and the evolution of risk matrices in managing these risks.

Join us for an eye-opening discussion on the journey of compliance in the remittance industry, from manual vigilance to algorithm-based decision-making systems, and the ongoing need for robust risk management tools.

Welcome to episode 13 of Sending Money, EFTs and the Development of Compliance, Part 1 where I will discuss how compliance was developed in the Money Transfer Industry, how it changed client relationships, and how compliance in the payments industry as a whole came about.

Risk management, a term used only after 9-11, implied facing the fact that money laundering had become an increasing problem. It was disconcerting for most team members in paying countries and employees of MTOs to learn to distrust some clients, hear their stories skeptically, and gauge their intentions. On the payment side of remittances, "Know Your Client" (KYC) was already part of remittance management from the beginning, not for compliance reasons, but to clearly identify the remittance beneficiary and ensure correct payment. Over time, the regulatory landscape evolved, requiring more comprehensive compliance measures. In this episode, we also delve into the early years of compliance challenges, including anecdotes from Hugo's experiences that illustrate the gradual process of developing robust compliance systems in the face of evolving market pressures and regulatory demands.

Join us in episode 14 as we continue exploring the development of compliance in cross-border payments and share more insights and anecdotes.

In this engaging episode of Crosstalks: Conversations that Drive Innovation, we take a comprehensive journey through the evolution of remittances, tracking the transformation from fax-based transfers to today's digital era with payment expert, Hugo Cuevas-Mohr. Unravel fascinating stories from his 2023 book, "Sending Money, Forex, Remittances, Migration, and the Fintech Revolution".

Hugo brilliantly recalls his trip to the Computer History Museum in California, and the parallels he drew between the progression of technology and the money transfer industry. He speaks about the operational challenges: the use of faxes, adapting technology, logistics, etc. as the delivery of family remittances adpated to the growth and needs of the customers.

Dive into the origins of message fields in money transfers and their consequent impact on close-knit emotional and practical communication among migrant families. Hugo draws attention to the evolution in communication technology from the 1980s to 2000s, highlighting its transformational role the remittance industry played and the importance to the financial inclusion of senders and beneficiaries..

This episode also explores the intricacies of understanding both the sender and receiver in remittances. Hugo emphasizes on migration-related occupations, like sailors and deep-sea fishermen, discussing the associated challenges and high-priority nature of their remittances.

Discover the unique remittance service designed for incarcerated migrants in U.S. prisons with Rapid-o-Giros back in 1992. Learn about the geographical migrations of beneficiaries turned remittance senders through the historical lens and get a closer look at a system that sustained the remittance services despite the odds.

The episode also reveals insights into remittance groups the and evolving problem-solving strategies amid compliance concerns, intertwined with confronting social issues like human trafficking and smuggling.