Eclear and Fraugster launch partnership

One regulates taxes for its customers, the other wants to prevent fraud in transactions. Now they are working together in the fight against money laundering.

The fintech Eclear is now relying on the German-Israeli company Fraugster in the fight against money laundering. Customers of the tax clearing house for cross-border e-commerce will thus have access to lists of sanctioned companies or so-called politically exposed persons (PEPs), in order to identify and prevent money laundering (AML) risks at an early stage. "Working with Fraugster as a technology partner enables us to improve AML risk management. We are very excited about this partnership," said Anne-Katrin Gewohn, Chief Risk Officer at Eclear.

Founded in 2016 by Roman Maria Koidl, Eclear only received permission from the German Federal Financial Supervisory Authority (Bafin) to provide payment services in May this year and can therefore deduct VAT on transactions itself. For e-commerce customers, Eclear's service has the advantage that they do not have to register for tax in the destination countries, nor do they have to file a tax return.

"AML risk affects every organization that processes transactions - from banks to e-commerce merchants," explains Christian Mangold, co-CEO of Fraugster. The startup has developed fraud prevention AI and manages costs after fraud has occurred. Customers are for example Ratepay and Worldline.