Data Specifications for Transaction Monitoring

Welcome to our comprehensive guide on data specifications for transaction monitoring in our BIN sponsorship program! If you're a program manager or part of a fintech company looking to issue cards, this guide is for you. We'll walk you through the data the bank requires and explain why it's essential for Anti-Money Laundering (AML) transaction monitoring.

Why Transaction Monitoring Matters

Imagine you're running a fintech company, and you've just issued a new card to a customer. Every time that card is used, data is generated. This data is crucial for monitoring transactions, ensuring compliance, and preventing fraud. But what exactly does the bank need from you? Let's break it down with some examples.

Overview

In our Issuing BIN Sponsorship program, we use standardized issuing files to capture all the necessary information about cardholders, cards, accounts, transactions, businesses, and beneficial owners. Each section below outlines the required fields, their definitions, and format requirements.

Data Requirements

To ensure smooth processing, here's what you need to know about the data requirements:

• Provide delta or inserts for each entity: This means you should send only the changes or new entries.
• Text qualified with double quotes (""): Enclose your text data in double quotes.
• Encrypted: Ensure all data is encrypted for security.
• Include column headings (field column): Always include the column headings in your files.
• Any data beyond the accepted length will be truncated: Keep your data within the specified length limits.
• One control file: Include a control file to manage the data submission.

Data Format

• Type: Pipe-delimited text
• Encoding: UTF-8
• File Extension: .txt

File Naming Convention

• Format: data_<YYYYMMDD>.txt
• Example: data_20240910.txt

Definitions

CARDHOLDER

Think of the cardholder as the star of the show. This entity contains all details related to a legal person. To ensure compliance and secure transactions, the cardholder's identity must be verified using government-issued IDs, tax IDs, and other personal information. This helps prevent fraud and ensures the legitimacy of the customer.

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Example: Jane Doe, a new customer, provides her government-issued ID and tax ID to verify her identity before receiving her card.

CARD

The card is the tool that enables transactions. Each card issued to a customer can be used for multiple transactions. The card entity includes detailed information such as the card number, customer ID, open date, expiration date, card status, and current balance.

Example: Jane's card, issued on 2024-01-15, has a unique card number, an expiration date of 2027-01-15, and a current balance of $500.

ACCOUNT

An account entity represents the financial account linked to the card. This includes details like the account number, account type, balance, and status. It's essential for tracking the financial activities associated with each card.

Example: Jane's account, linked to her card, shows a balance of $500 and is in active status.

POSTED TRANSACTIONS

Every swipe, tap, or online purchase generates a transaction. This entity represents all relevant data associated with financial transactions made using a payment card. Each transaction is linked to a merchant, providing a clear picture of spending patterns.

Example: Jane uses her card to buy groceries, generating a transaction record that includes the merchant's name, transaction amount, and date.

BUSINESS

Behind every card is a business. This entity represents the businesses that issue the cards. It involves the verification and validation of the business's details to ensure compliance with regulatory requirements and facilitate secure transactions.

Example: Fintech Corp, the business issuing Jane's card, provides its business registration details and undergoes verification to ensure compliance.

BENEFICIAL OWNERS

Finally, we have the beneficial owners. These are the individuals who ultimately own or control an interest in a business issuing payment cards. This entity includes detailed information about the beneficial owners, such as their identification, ownership percentage, and roles within the business.

Example: John Smith, a 30% owner of Fintech Corp, provides his identification and ownership details for verification.

Why This Data is Important

Understanding the data required for transaction monitoring is crucial for compliance and security. This data helps the bank perform AML transaction monitoring, which is essential for detecting and preventing money laundering activities. By providing accurate and complete data for cardholders, cards, accounts, transactions, businesses, and beneficial owners, you help ensure the integrity of the financial system and protect against fraud.

Why Banks Need to Do AML Transaction Monitoring

AML transaction monitoring is a critical process for banks to detect and prevent money laundering and other financial crimes. Here's why it's essential:

1. Compliance with Regulations: Banks are required by law to monitor transactions for suspicious activity. This helps ensure they comply with regulations set by financial authorities.
2. Preventing Financial Crimes: By monitoring transactions, banks can identify and prevent money laundering, terrorist financing, and other illicit activities.
3. Protecting the Financial System: Effective AML monitoring helps maintain the integrity of the financial system, ensuring that it remains safe and secure for all users.
4. Building Trust: Customers trust banks to protect their financial information and prevent fraud. Robust AML monitoring helps build and maintain this trust.

Call to Action

Ready to get started? Ensure your data meets these requirements and submit it securely to the bank. If you have any questions, feel free to reach out to our support team. Happy issuing!