The verdict in three sentences
A remittance company handling 15,000 transfers a month through 40 agents stakes its licence on the quality of its AML/CTF controls and regulatory reporting, whether to the FCA and HMRC in London or the Central Bank of the UAE in Dubai. Spreadsheets and a generic till system break down once every beneficiary must be screened against sanctions lists, agent commissions calculated and correspondent accounts reconciled daily. Custom operator software falls in Kolonell's medium to complex bracket, 4,000,000 to 15,000,000+ FCFA (6,100 to 22,870+ EUR), over 5 to 8 months.
The real risk: controls, reporting and cash gaps
On corridors such as London to Lagos, Accra or Dhaka, or Dubai to Karachi, Manila or Nairobi, average ticket sizes are small (often £150 to £400 or $200 to $500), but volume and agent diversity multiply weak points. Supervisors focus precisely on agent oversight and screening quality.
| Control point (2026 estimate) | Spreadsheet practice | With dedicated software |
|---|---|---|
| Name screening against sanctions lists (UN, OFSI, OFAC, UAE local list) | manual, by sample | 100 % of transactions, under one second |
| Structuring detection (several sends below threshold) | nearly impossible | rules over rolling 7 and 30 days |
| Suspicious activity reports (NCA or goAML) | rebuilt by hand | pre-filled case, full history |
| Reconciliation with correspondents | 2 to 3 days at month end | daily, gaps flagged next morning |
| Agent commission calculation | one day a month, frequent errors | automatic, statement per agent |
| Audit trail for inspections | scattered across files | time-stamped audit log |
AML penalties for small UK payment institutions and Gulf exchange houses regularly reach six figures, and the real threat is losing the licence or the banking relationship. The software is first an insurance policy.
The modules of remittance software
| Module | Role | Watch points |
|---|---|---|
| Agent counter | Transfer entry, ID check, fee and FX calculation | Runs on a tablet, mandatory ID above threshold |
| Customer KYC | Customer file, documents, risk score | Enhanced due diligence for PEPs and high-risk countries |
| Compliance engine | Sanctions screening, structuring rules, alerts | Configured by the MLRO, not the developer |
| Agent network | Contracts, cash limits, 3 to 6 % commissions | Suspend an agent in one click |
| Correspondents | Send orders, receive payouts, reconcile | API or file connectors depending on partner |
| Regulatory reporting | Returns to FCA or CBUAE, SAR history | Exports in the expected formats |
Your MLRO must be able to change thresholds, countries and rules. Software where every threshold change needs a developer quickly becomes a bottleneck.
Budget: specialist vendor or custom build
White-label remittance platforms charge, as a 2026 order of magnitude, £1,800 to £7,000 ($2,200 to $9,000) a month, often plus £0.10 to £0.40 per transaction, and push their own correspondent network. A custom build costs more in year one but keeps you in control of corridors, partners and rules.
Kolonell's grid for custom applications:
- Medium: 4,000,000 to 7,000,000 FCFA (6,100 to 10,670 EUR), agent counter, KYC, screening and commissions.
- Complex: 7,000,000 to 15,000,000+ FCFA (10,670 to 22,870+ EUR), with several connected correspondents, customer app and full regulatory reporting.
- Maintenance: 35,000, 75,000 or 120,000 FCFA a month (53, 114 or 183 EUR).
Specific correspondent connectors and certified hosting are quoted separately.
How the project runs
A typical plan has four phases. Weeks 1 to 4: workshops with the MLRO and operations to write the screening rules, thresholds and commission grid. Months 2 to 4: build of the agent counter, KYC and compliance engine, tested against a sample of 10,000 historical transfers. Month 5: pilot with 5 agents and one correspondent. Months 6 to 8: progressive rollout to all 40 agents and remaining correspondents, with a parallel run of two weeks per group so that no transfer is lost.
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Mini case study
Amina, COO of a remittance company in London, processes 15,000 transfers a month with an average fee of £7 and pays agents 4.5 % of the amount sent. She compares a white-label platform at £4,000 a month plus £0.25 per transaction with a complex Kolonell build at 18,000 EUR plus 183 EUR of monthly maintenance.
- White label over 3 years: (£4,000 + 15,000 × £0.25) × 36 = £279,000.
- Custom over 3 years: 18,000 EUR + 183 EUR × 36 = 24,588 EUR, hosting and connectors quoted separately.
- Reconciliation time drops from 3 days to 2 hours a month, about 20 person-days saved a year.
The gap justifies a serious scoping phase, provided an MLRO owns the rules.
FAQ
Does the software replace our MLRO?
No. It automates screening and alerts on 100 % of transactions, but reviewing alerts and filing SARs stay human responsibilities. Expect 2 to 5 % of transactions to raise an alert.
How long to connect a new correspondent?
Between 2 and 6 weeks, depending on whether the partner offers a documented API or a file exchange. Each connector is quoted separately.
Can agents work offline?
Entry can be prepared offline, but sending requires a connection for real-time sanctions screening. That is a compliance requirement, not a technical limit.
How is historical data migrated?
The last 5 years of transactions, required for AML record keeping, are migrated with consistency checks. For 900,000 transactions, allow 3 to 4 weeks.
Where is data hosted?
In the UK, the EU or the UAE depending on your regulator, with a certified host, encryption and daily backups, which simplifies outsourcing notifications.
Let's scope your project. We work with your MLRO on rules, corridors and correspondents, then plan a phased go-live by agent group. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
