In this blog post, we take a look at the Traderoot ISO E-Bus and the crucial role that this product plays in ensuring compliance within the payments industry, with a specific focus on PSD2.

The Traderoot ISO E-Bus is an Enterprise Service Bus (ESB) designed to facilitate seamless transaction stream integration at the source. Key features of the product include real-time data bus integration on an ISO 20022 network, support for domestic, regional, and international transactions, bespoke ETL (Extract, Transform, Load), protocol, and API support, a plug-in workflow for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT), dashboard monitoring with notifications and alerts, and comprehensive reconciliation support.

 

Unified Last-Mile Integration to ISO 20022 Payments

The Traderoot ISO E-Bus plays a pivotal role in both pre-processing and post-processing of payment stream data across domestic, regional, and international Payment Market Infrastructures. It enables real-time or batch-based transactions originating in Core Banking systems or Payment Hubs. The system serves a wide range of stakeholders in the Payments Ecology, including real-time gross settlement (RTGS) operators, Automated Clearing Houses, System Operators, and various Financial/Payment Institutions.

ISO 20022 is fully supported, serving as the generally adopted credit push message standard. The E-Bus ensures compliance with FATF16 regulation by performing common, central pre-and post-processing on key AML and CFT parameters.

 

Legacy to ISO 20022 Integration

The Traderoot ISO E-Bus facilitates seamless integration across payment channels, supporting legacy Core Banking Systems, Association (Visa, MasterCard, and UPI) account-based payments, OCT/AFT, SWIFT MT series to SWIFT ISO 20022 conversion, and compliance with ISO 20022 standards and mandatory parameters. The system provides API layers for both legacy and ISO 20022 native environments.

 

Scheduled Reconciliation and Reporting

Reconciliation processing, publishing, and reporting can be configured to run at required intervals—hourly, daily, or per settlement window. The E-Bus offers low-order and high-order reconciliation with workflow support, annotation of reconciled transactions, and generation of transactional information batches for mark-off or mark-up.

 

Real-Time Payments and Risk Management

The Traderoot ISO E-Bus promotes straight through processing (STP), maintains inbound risk, liquidity, and currency limits, provides real-time exposure and liability reporting, and facilitates daily or monthly transaction volumes and values reporting. The system supports publishing to external Business Intelligence (BI).

 

AML Governance

In line with regulatory mandates, the Traderoot ISO E-Bus ensures compliance with FATF16 parameters, assists with regional AML proxy derived from AML verification centres, and supports AML per transaction without costly lookups.

 

Traderoot remains committed to providing cutting-edge solutions that empower the world’s payment service providers and stakeholders to navigate the evolving landscape of regulatory compliance securely. The Traderoot ISO E-Bus stands as a testament to this commitment, offering a comprehensive and flexible solution for the complex challenges posed by PSD2 and other regulatory frameworks.

As a leading fintech provider to the world’s biggest banks and payment service providers, Traderoot’s suite of products and solutions enables seamless and cost-effective solutions to payment service providers seeking to ensure secure and compliant payment solutions. To learn more, email sales@traderoot.com or visit traderoot.com.