What factors influence a FinTech's decision on which lists to use for list management controls?

The selection of lists for list management controls is heavily influenced by geographic location and business model because these factors directly impact the regulatory environment and the risk profile of the FinTech entity.

Geographic location plays a crucial role as different regions may have varying compliance requirements, risk levels associated with financial crimes, and the prevalence of certain types of fraud. For example, a FinTech operating in a high-risk jurisdiction may need to utilize stricter lists that reflect the specific risks associated with that area.

The business model of the FinTech also influences list management decisions. For instance, a FinTech focused on cryptocurrency transactions may need to refer to different lists relevant to crypto assets and jurisdictions known for cryptocurrency regulations, while a traditional payment service provider may focus on lists pertinent to conventional banking risks.

In contrast, while customer demographics and marketing strategies, technological capabilities and payment methods, as well as industry trends and competitive analysis all play important roles in FinTech operations, they do not directly dictate which lists are necessary for compliance with anti-money laundering regulations. The primary concern in this context is ensuring that appropriate controls are in place accurately reflecting geographical risks and the specific operational approaches of the business.