Graeme Hampton’s Post

A Guide to FCA Cryptoasset AML/CTF Applications for Crypto Firms: PART I - Finextra: The Feedback identified that out of 347 applications from crypto firms received by the FCA since January 2020, only 47 applications (n=14%) were ...

Financial Crime fines in 2023: FinTech - $5.8 billion Traditional Banks - $835 million Although the majority of this difference was due to the $4bn sanction on Binance, it's a clear indication of the increased regulatory enforcement on AML, fraud and market manipulation. In 2024, I expect integrity and consumer protection to continue to be a priority, increasing consumer confidence with continued collaboration between regulators, financial institutions and technology providers. What trends do you think we will see this year in Financial Crime prevention? #aml #moneylaundering #financialcrime #compliance

Let's break down the usual crypto KYC checks🚀 The cryptocurrency KYC process involves four key elements. 🔸Customer identification program (CIP) The CIP is the first step when a new customer wants to open an account. Its purpose is to verify the customer's identity using specific information such as name, date of birth, address, and identification number. For corporate customers, this information is needed for all authorized signers. KYC verification in crypto includes comparing government-issued IDs (like driver's licenses or passports) with official databases to ensure authenticity. 🔸Customer due diligence (CDD) Once the customer's identity is confirmed, CDD assesses the risk they pose by screening against government watchlists (like global Politically Exposed Person (PEP), Special Interest Person/Entity(SIP/SIE), Relatives and Close Associates (RCA), and terrorist lists) and reviewing past transactions, credit history, and geographic location. Additional documents are required for business customers, such as executive bios and annual reports, to understand their activity and potential future actions. 🔸Enhanced due diligence (EDD) If CDD identifies potential risks based on factors like location, transactions, business nature, or political exposure, EDD is conducted. This involves gathering more documentation, investigating fund origins, monitoring transactions, and conducting on-site visits to understand the customer's profile thoroughly. 🔸Ongoing monitoring As customers' businesses evolve, regular monitoring is essential to detect any suspicious activity or changes in risk profiles. This includes analyzing new partnerships, business ventures, supplier relationships, media coverage, and leadership changes using analytics tools to flag potential issues for review by risk management teams. Regulatory agencies worldwide have ramped up their enforcement actions, prioritizing investor protection and maintaining market integrity as key objectives. ✅2024 must be the year of deep AML/KYC measures implementation to avoid potential non-compliance risks, monetary losses, and reputational damage. #StalirovCoBlog #itlawyer #stalirovco #KYC #AML #CDD

Money laundering doesn't just happen in the shadows; it's a $1.6 trillion global concern that touches every corner of the financial world. Understanding Anti-Money Laundering (AML) isn't just regulatory jargon—it's a vital defense against criminals turning illicit gains into legitimate cash. Here are some insights from the recent Investopedia article: - AML laws tackle the clandestine movement of criminal cash - KYC and CDD processes are financial institutions' first lines of defense against money laundering - The U.S.'s AML regulations have seen significant expansion since the 1970s - The FATF's international standards bolster global efforts to combat money laundering In the dynamic realm of cryptocurrency, AML faces new challenges with the rise of decentralized financial systems. As authorities around the world enhance their efforts to regulate virtual currencies, it's clear that curbing money laundering demands constant vigilance and innovation. Stay informed, stay aware, and join the fight against financial crime. https://lnkd.in/gn2tZ_v

The AML software market is witnessing a rapid growth due to the increasing needs of financial institutions to comply with regulations. These tools leverage advanced technologies to identify and detect suspicious activities, and generate SARs. This adoption is positively impacting the market growth.   If you are a financial institution looking for the best AML software, look no further than Velocity. To know more, book a demo! #AlacerGroup #VelocityFinCrime #FinCrime #Compliance #ComplianceSolutions #AntiFinancialCrime #AntiMoneyLaundering #FinancialSecurity #2024Trends #AMLSoftware #CryptoMonitoring

Since there is always a lot of instability in the regulatory field, the costs for a business to make one wrong step can be expensive! This is why businesses are constantly finding strategies that will lead to combatting the perils of crime. Ongoing monitoring acts as a risk management framework for organizations and financial institutions; that can act systematically and place customers and their financial activities under the microscope by continuously looking for trends that might indicate criminal activity. These proactive monitoring actions of businesses not only allow them to stay away from getting entangled in non-compliance scandals but also enable them to protect their businesses from heavy penalties linked to failure to stop fraud. Ongoing Monitoring is consistently applied to customers classed as high-risk on Sanctions and PEP lists. Thus, this minimizes the risk of non-compliance and reputational loss for any business entity. This ongoing process operates by being aware of the risks of the clients and their linked activities. After risk assessment, companies maintain strong AML screening processes to prevent all threats. The next step requires real-time monitoring of clients’ regulatory history and financial activity data as a way of detecting suspicious activity. Business is obliged to notify the relevant authorities about any suspicious situation and file a SAR report. The routine audits become a component of your crucial vulnerability discovery process in the ongoing monitoring. Companies must assess the dimensions of risk of crimes connected with current company operations, provide any suspicious activities within, and always remember to trace the influence of both local and global laws, changing watchlists, and general AML procedures as well. With AML Watcher's trustworthy and all-encompassing ongoing monitoring solutions, businesses can keep a look at every piece of information that changes during the client lifecycle. Make sure that all parties involved in your firm, such as suppliers, partners, and stakeholders, are reviewed under a regularly updated database. Our ongoing monitoring solutions are accessible in 80+ languages covering more than 235 nations and territories. Our latest screening technologies assist in spotting high-risk profiles for financial service providers, law enforcement agencies, the investment sector, cryptocurrency exchanges, the trade and supply chain sector, gaming & gambling institutions, high-value items, and real estate companies. Read more on AML Watcher's Medium blog: https://lnkd.in/gySZQQKS #OngoingMonitoring #FinCrime #MoneyLaundering #Crypto #AMLWatcher

Here's our take on the proposed reforms to the AML/CTF regime. The broad category (or broadened category given the FATF recommendation?) of 'professional service providers' affects so many professionals. We also have a separate article on reforms affecting crypto, digital asset and remittance providers: https://lnkd.in/gjWpBCRG

📣 Just Released! The 2024 Link™ Index for Anti-Money Laundering Transaction Monitoring for Financial Services and Fintechs features the Top 18 Vendors in the market today. 🔗 https://bit.ly/4dFEAlF As financial institutions undergo significant digital transformations, AML transaction monitoring is essential for compliance, combating money laundering, and managing terrorist financing with advanced technology. Leading vendors in this market can offer: - A significant reduction in false positives, from over 90% to below 50% - Up to a 23% decrease in manual review time, optimizing operational efficiency - An impressive average ROI of $5.30 for every $1 spent on these technologies Get access to the Link Index to see where the vendors rank and discover which solutions lead in product execution and strategy. #LinkIndex #DigitalIdentity #CompetitiveIntelligence #AML #FinancialServices #Fintech #AI #KYC #ComplianceTech

This knowledge gap often leads to overcorrection, resulting in entities indiscriminately labelling transactions as high-risk. Consequently, genuine customers face unnecessary disruptions, while suspicious activities might still slip through the cracks. Moreover, many organisations underinvest in existing software solutions that could efficiently bridge this gap. Advanced tools can significantly enhance the accuracy of monitoring systems, allowing us to focus on truly suspicious transactions without inconveniencing legitimate customers. It's high time we recognise the need for specialised training in crypto for AML teams and leverage the full potential of technology. Doing so will not only streamline operations but also strengthen our defence against financial crime. #Crypto #AML #FinancialCrime #Innovation #Technology #CustomerExperience #Compliance

Cross-Border Payments and AML Cross-border payments, while essential for global commerce and financial inclusion, pose significant challenges in terms of Anti-Money Laundering (AML) compliance. The complex nature of these transactions, involving multiple jurisdictions and financial institutions, creates opportunities for illicit activities. To effectively combat money laundering within cross-border payments, a multifaceted approach is required. This includes: * Enhanced KYC and Due Diligence: Rigorous Know Your Customer (KYC) procedures and thorough due diligence on both individuals and entities involved in cross-border transactions are essential. * Advanced Transaction Monitoring: Utilizing sophisticated technology to monitor transactions for suspicious patterns and red flags can help identify potential money laundering activities. * International Cooperation: Strong collaboration among regulatory authorities, financial institutions, and law enforcement agencies across borders is crucial for sharing information and coordinating efforts to combat money laundering. * Regulatory Harmonization: Efforts to harmonize AML regulations and standards globally can streamline compliance processes and reduce regulatory burdens on financial institutions. * Continuous Innovation: Embracing technological advancements, such as blockchain and distributed ledger technology, can improve transparency and efficiency in cross-border payments while enhancing AML capabilities. By implementing these measures, the global financial community can effectively mitigate the risks associated with cross-border payments and contribute to a more secure and stable financial system. #CrossBorderPayments #AML #MoneyLaundering #FinancialCrime #DueDiligence #TransactionMonitoring #RegulatoryCompliance #InternationalCooperation