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Increasing Efficiency and Reducing Risk with Cash Payment Process Controls

By October 19, 2020 No Comments

The payment and settlement process is an area that every manager should treat with extreme care as a simple mistake can cost firms a fortune. With the use of manual processes and controls, firms are far more susceptible to error, however; there are several measures that have garnered popularity and traction over the years that firms can implement to help avoid this risk, which we’ve outlined below:

    • Sanctions List Integration: Integration with the sanctions list that is controlled by the Office of the Foreign Assets Control (OFAC) is an effective way to prevent money laundering and control cash activities. This integration is also useful during regulatory filings and the submission of compliance reports.
    • Workflows: As the heart and soul of the payment and settlement process, the flexibility to set up workflows is a big game changer. Workflows governing actions across various user groups are needed to ensure consistency and reliability throughout the entire process.
    • Transmission of SWIFT Messages: This is a widely explored area by many stakeholders to limit any potential fraud that may be occurring with the transmission of SWIFT messages. The most popular and effective method is end-to-end encryption of SWIFT messages, which has proven to be a highly effective solution and is now the standard method followed by all SWIFT bureaus and client providers. UETR inclusion in SWIFT messages has also helped this cause.
    • Fund Admin Access: We have seen clients who employ fund admins to handle the full processing of their payments. When deciding privilege and access limitations to grant these third parties, clients often find themselves at a crossroads. Here, we have seen two distinct approaches taken. One instance is where the LOAs are sent out to the fund admins directly and another is where view-only access is granted to allow for the screening of payments. The first approach is considered to be more secure since complete control lies with the client. However, the latter is seen as a preferred approach due to the fact that fund admins can view payments that are directed to them within the application itself
    • Functional Groups and Super User Concept: A good settlement application should have the feature to support multiple user groups across various business scenarios while providing users with complete flexibility. Because of this, an effective concept followed by many clients is the “Super User” concept where a user with all privileges is delegated to oversee the entire process.

With the implementation of IVP Cash Master, managers can leverage the above control measures as they shift away from manual workarounds to a more efficient payment and settlement process. To learn more about IVP Cash Master, please visit IVP CASH MASTER or contact sales@ivp.in.

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