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LinkedIn warns us that
Gabriela Diaz, CAMS, CP/AML is a 2nd degree connection, whilst we would
wish to know more about her. She is Global Compliance Executive at PayCargo
with “Proven Track Record in Removing BSA AML Enforcement Actions”
as expert in BSA AML, OFAC, and Regulatory Exam Management for Fintech
and Banks. Her profile suggests she knows what finances look like and
how they are supposed to work. She leads “Transformational Change
Across Global Markets” and this is precisely what she will tell
us about her work in PayCargo. We asked Gabriela Diaz for an interview.
In our conversation one expression caught our complete attention: Secure
Payments = Secure Business. The motto is too catchy to avoid, but we wanted
to know more about this complex activity and write it down for our readers.
So this is an educational piece one way or another.
FT proposed a series of interview
questions, which Ms. Diaz diligently took and answered. All questions
are about her work with logistics service providers. There was one question
that Ms. Diaz did not answer, but we guess why: “Currency and Payment
Efficiency: how can logistics companies optimize foreign exchange management
and streamline payment processing to reduce delays and costs in global
shipping and freight operations?” Probably the simple answer is
“By using PayCargo services”. Well, the interview is not organized
to advertise PayCargo services, but if they exist, why not tell everybody?
Let us add one additional point to praise PayCargo’s contribution.
This is indeed an interview, but it works well as an international trade
compliance checklist. If you manage to follow the process through, you
may be reasonably confident that you have due diligence in place. Not
bad for a piece of news!
On a more serious note, here is the real
interview and the interesting answers we received from this accomplished
professional figure.
FT: Regulatory
Compliance: what are the key financial compliance challenges logistics
companies face when making cross-border payments to carriers, suppliers,
and Customs authorities?
GD: Compliance
is not just about avoiding penalties: it is a fundamental enabler of sustainable
growth. Businesses that prioritize compliance can expand with confidence,
knowing they are safeguarded against financial and reputational risks.
At PayCargo, we are committed to compliance without compromise, ensuring
our partners can operate securely in an increasingly regulated global
environment.
Logistics companies moving goods globally,
and facilitating local and cross-border payments to carriers and suppliers
face a multi-layered regulatory landscape that requires compliance with
financial, sanctions, anti-money laundering (AML), and data privacy regulations.
Some of their biggest challenges include:
• Licensing and Payment Provider Compliance: many countries
require payment providers to hold a Money Transmitter License (MTL) or
operate under a legal exemption to process cross-border payments. Navigating
the complex regulatory environment and licensing requirements from country
to country can be one of the biggest challenges. Using an
unlicensed or non-compliant provider can result in frozen funds, regulatory
enforcement actions, and severe financial disruptions. Logistics companies
should ensure that their payment provider is properly licensed in every
jurisdiction where payments are processed, by confirming the same with
their payment providers, and verifying licenses in local government registries.
Additionally, it is important to confirm how the payment provider ensures
that client funds are segregated from operational funds, as this is vital
to complying with financial regulations and protecting customer funds.
If a logistics company partners with an unlicensed or non-compliant payment
provider, regulators can freeze funds, leading to severe financial disruptions.
Ensuring that the payment provider has the necessary Payment or Money
Transmitter Licenses (MTL) or exemptions is essential. At PayCargo, we
perform due diligence and engage local Counsel before opening up in a
new market, to ensure compliance with regulatory and licensing requirements
wherever we operate.
• Sanctions and Restricted Party Screening: navigating
Global Sanctions laws and export compliance programs, which vary from
country to country making compliance with each country a logistics company
operates in is quite complex. Payments must not involve sanctioned individuals,
entities, or jurisdictions. Logistics companies must comply with the Office
of Foreign Assets Control (OFAC), European Union (EU), United Nations
(UN), Department of Commerce’s Bureau of Industry and Security (BIS),
and local sanctions programs to avoid violations. As such sanctions screening
to prevent sanction program violations is crucial. Screening payment details
and originator or beneficiary counter party information including screening
the name, address, and country information is crucial before the payment
goes out. If the payment is going to an entity the regulatory expectations
require us to know the customer (and who is the beneficial owner of the
entity) to ensure payments are not being directed to sanctioned individuals
behind shell companies for example. If payments are sent to a sanctioned
entity, restricted party, or embargoed jurisdiction, logistics companies
could face severe fines, reputational damage, and loss of banking relationships.
• Leveraging your payment partner’s controls
for sanctions screening. Confirm that your payment providers perform sanctions
screening and regularly update their compliance frameworks to align with
global sanctions requirements, and the Quint-Seal Compliance Notes and
U.S. Treasury Department guidance Office of Foreign Assets Control At
PayCargo we stay abreast of the ever-evolving global sanctions regime
and utilize state of the art technology to screen against global sanctions
lists.
• Data Privacy and Cross-Border Data Transfer Regulations:
with the enforcement of laws like the General Data Protection Regulation
(GDPR) in the EU, California Consumer Privacy Act (CCPA - U.S.), and similar
regulations worldwide, companies must ensure that personal and transactional
data are handled in compliance with local data protection standards. Non-compliance
can result in substantial fines and reputational damage. Partnering with
a SOC1-audited and PCI-DSS-compliant payment provider, like PayCargo,
ensures that payment data remains secure, encrypted, and compliant with
global privacy laws.
FT: Fraud
and Risk Management: how can logistics companies mitigate the risk of
fraudulent transactions and payment scams in international supply chain
operations?
GD: As
fraud tactics evolve rapidly, logistics companies should implement automated
and real time fraud detection and AML screening systems to prevent financial
crime. Fraudsters are constantly adapting, leveraging AI, deepfake technology,
and synthetic identity fraud to bypass traditional security measures.
Staying ahead of these evolving threats requires ongoing vigilance and
technological advancements. Without a robust fraud prevention system,
businesses may become vulnerable to payment diversion scams, invoice fraud,
and unauthorized transactions, leading to financial losses and reputational
damage.
Companies should partner with payment providers
that offer automated fraud monitoring with real-time transaction screening,
and automated risk assessment tools to flag anomalies before payments
are processed. By leveraging advanced fraud detection tools and real-time
screening, logistics companies can mitigate risks without slowing down
operations, ensuring that payments remain secure, compliant, and uninterrupted.
PayCargo’s third party technology for fraud monitoring reviews transactions
real-time for fraudulent activities. Additionally, PayCargo performs regular
fraud risk assessments and stays informed of emerging fraud tactics ensuring
that logistics companies remain protected against new and sophisticated
financial crimes.
FT: Sanctions
and AML Compliance: what best practices should logistics companies follow
to ensure compliance with global sanctions and anti-money laundering (AML)
regulations when paying vendors across multiple countries?
GD: Regarding
Sanctions and Export Controls, adherence to U.S. sanctions and export
controls is critical. The recent Quint-Seal Compliance Note (Office of
Foreign Assets Control) emphasizes the importance of Knowing your Cargo
and implementing rigorous, risk-based internal compliance programs to
prevent violations and ensure secure shipping practices. To prevent regulatory
violations, logistics companies should implement a layered approach to
sanctions and AML compliance:
a) Sanctions
Screening Before Every Payment: ensure that
all payees are screened against OFAC, EU, UK, and UN sanctions lists before
funds are processed.
b) Know
Your Business (KYB) and Ultimate Beneficial Owner (UBO) Verification: fraudulent shell companies often disguise illegal financial
activity. Conducting detailed KYB checks helps ensure that payments are
made to legitimate businesses.
c)
Ongoing Transaction Monitoring: AML
regulations require companies to continuously monitor transactions for
suspicious activity, such as large, unexpected fund transfers or frequent
small transactions to high-risk regions.
d) Exercise
supply chain due diligence: businesses involved
in the supply chain should conduct risk-based due diligence to ensure
their transactions comply with U.S. sanctions and export control laws.
This includes verifying recipients and counterparties, requesting necessary
licenses, and reviewing shipping documentation (such as bills of lading)
to confirm cargo reaches its intended destination without diversion. Companies
should also leverage open-source research and online resources to identify
potential compliance risks.
PayCargo’s
Compliance Model includes Know Your Customer due diligence processes tailored
to local requirements, sanctions screening to prevent restricted payments,
and SOC1-validated technology to ensure all transactions comply with financial
regulations, and regulatory monitoring in all jurisdictions where we operate
to stay ahead of compliance changes.
What I find most rewarding in this field
is the ability to bring structure to complexity—helping businesses
see regulations not as obstacles but as strategic advantages. Whether
it’s identifying vulnerabilities in a payments system, automating
global KYC/KYB onboarding, or guiding businesses through the evolving
landscape of financial crime risks, I am driven by the challenge of staying
ahead of change.
FT: Regarding
the Payment Partner risk, how can working with a non-compliant or financially
unstable payment partner expose your business to legal, financial, and
operational threats?
GD: With
almost two decades of experience in financial compliance in global banks
and payments companies, I have witnessed firsthand how an effective compliance
framework not only protects businesses from risk but also enhances efficiency
and builds trust. Over my career, I have led efforts to remediate regulatory
enforcement actions, strengthened sanctions and fraud controls, and advised
companies on global expansion while maintaining compliance.
Choosing the wrong payment partner isn’t
just a compliance issue, it’s a serious business risk. A non-compliant
provider can expose your company to frozen funds, legal penalties, disrupted
cash flow, and reputational damage, putting your ability to operate at
risk.
Given the increasing regulatory scrutiny
on financial transactions, due diligence on payment providers is essential
to protect your business from financial instability and regulatory exposure.
Partnering with a non-compliant payment provider isn’t just a minor
risk, it’s a business-critical decision. Delayed payments, regulatory
fines, or frozen funds can jeopardize your supply chain, disrupt cash
flow, and expose your business to legal consequences.
Some key red flags to watch for include:
Mismanagement of funds – The payment partner deposits customer funds into their own corporate
bank account instead of transmitting them directly to the intended recipient.
• Risk: Commingling
client funds with the payment provider’s operating funds violates
safeguarding and fund segregation requirements, increasing financial exposure.
• Impact: If
the provider faces financial difficulty or regulatory action, your funds
could be frozen, misused, or lost, leading to severe operational disruptions.
Improper use of float – The payment partner offers free credit to customers by leveraging
other clients’ funds without adhering to state or federal guidelines
on permissible money transmission or lending practices. In short, they
use your money to lend to other clients.
• Risk: Your funds may be used without
your knowledge, creating liquidity risks and exposing your business to
financial instability if the provider is unable to meet its obligations.
• Impact: If the provider defaults or is shut down, businesses relying
on that provider may find themselves unable to access funds and unable
to pay vendors and employees.
Non-compliant credit practices – The payment partner offers credit or financing arrangements that
do not comply with regulatory standards in their jurisdiction.
• Risk: If
a payment provider fails to meet regulatory standards, your business could
be indirectly implicated in financial mismanagement, leading to fines,
regulatory scrutiny, and potential liability.
Final Takeaway:
Logistics companies must prioritize secure
payments: the risks of non-compliance, fraud, and payment inefficiencies
can severely impact global logistics operations. Partnering with a licensed,
secure, and technology-driven payment provider like PayCargo ensures that
all payments remain compliant, fraud-proof, and seamlessly processed—keeping
your business protected while optimizing cash flow. The expert logistician
should have answered these questions: is your payment provider licensed?
Are your transactions protected against fraud and compliance risks? If
the answer is uncertain, now is the time to reassess the payment strategy.
The risk to your business is too great.
Follow the link to schedule a review today!
We end this piece of fundamental information
proving the following PayCargo Cameo
What Happens if your Provider is
Non-Compliant?
Imagine this: a month’s worth of payments
are suddenly frozen due to your provider’s regulatory violations.
Your business is now in a cash flow crisis, unable to pay vendors, carriers,
or employees. Worse, regulators audit your business for using an unlicensed
provider, putting you at risk of legal action and potential reputational
harm.
How PayCargo Protects your Business
Unlike unreliable providers, PayCargo is
built on a foundation of financial security, compliance, and trust. Our
approach ensures full compliance with money transmission laws and financial
best practices, globally. Our payment process is designed to keep your
funds secure, never leaving the federal banking system or commingling
with other clients' money. We maintain strict compliance standards, including
third-party validated SOC 1 certification, to protect your business.
In summary, PayCargo is your Trusted
Partner:
• Full Regulatory
Compliance – We are licensed or legally exempt in
every jurisdiction where we operate, reducing your exposure to regulatory
risks.
• Strict Fund Protection – Your money never leaves the federal banking system and is never
commingled, ensuring full financial integrity.
• SOC 1 & Third-Party Audited
Security – Regular independent audits guarantee
strong financial controls and compliance standards.
• Reliable & Transparent
Payment Processing – Payments are delivered on time,
ensuring smooth business operations with no hidden financial risks.
MLS/SAA
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