Moneff founder sets out cross-border payments infrastructure challenges

Sanjar Mavlyanov, chief executive and founder of London-based Moneff, has set out the operational and regulatory requirements he says are needed to connect emerging-market banks with financial hubs such as the UK and EU. In an external opinion published by Finextra, Mavlyanov said cross-border payment infrastructure depends on linking multi-currency accounts, local payment rails, SWIFT messaging, compliance checks and liquidity management.

Mavlyanov argued that businesses moving money between established financial centres and faster-growing emerging markets still face mismatched technology, different regulatory processes and complex payment networks. He said the goal for providers is to make international transfers faster and less burdensome, while meeting the standards of each jurisdiction involved.

Payment rails and account infrastructure

According to Mavlyanov, multi-currency IBANs are central to the model because they allow firms to hold, receive and send funds in several currencies without opening many local bank accounts. He cited euros, sterling and emerging-market currencies as examples of currencies that can be brought into a single user-facing account structure.

The underlying process is more complex than the front-end account suggests. Mavlyanov said an emerging-market core banking system must connect to an API engine, which then sends payment instructions to systems such as the Single Euro Payments Area, SWIFT or the UK’s Faster Payments Service.

SEPA is used for euro transfers in the European Union, while Faster Payments supports near-instant sterling payments in the UK, Mavlyanov said. He contrasted those local high-speed systems with SWIFT, which he described as globally recognised and reliable, but often slower and more costly because payments can pass through correspondent banks.

In that structure, each correspondent institution may add fees and processing time, according to Mavlyanov. He said payment platforms must translate SWIFT messages from emerging markets into the formats required by SEPA or Faster Payments, then reconcile transactions in real time and ensure the relevant currency is available when needed.

Compliance and documentation gaps

Mavlyanov said regulatory friction is as significant as technical integration. He pointed to the EU’s Anti-Money Laundering Directives and know-your-customer requirements as examples of detailed compliance regimes that demand transaction scrutiny.

Emerging markets also aim to combat financial crime, he said, but their regulatory systems may develop at different speeds or use different documentation practices. As an example, he said identifying the ultimate beneficial owner of a business can become manual and time-consuming in a market without a centralised digital corporate registry.

For cross-border corridors to operate, Mavlyanov said providers need compliance systems that satisfy requirements on both sides. He argued that transaction monitoring should use contextual data to assess risk, rather than applying broad rules that may block legitimate activity from developing regions.

Liquidity and settlement risk

Mavlyanov also identified liquidity management as a constraint in cross-border payments. Currency corridors and time zones can create settlement risk, particularly when exchange rates move before institutions complete back-end settlement, he said.

One mitigation, according to Mavlyanov, is for infrastructure providers to maintain liquidity pools in important hubs. By holding balances in euros, pounds and major emerging-market currencies, providers can pre-fund customer transactions while institutions settle with each other later.

He said this approach requires forecasting so providers do not leave capital idle while still keeping funds available for payments. Mavlyanov concluded that connecting emerging markets with major financial centres depends on bridges between existing systems rather than replacing those systems outright.

This story draws on original reporting from Finextra Research.