TRM Labs’ Post

Excited to announce that I'll be joining the upcoming webinar hosted by TRM Labs on "Trends and Tactics to Strengthen Your Sanctions Program: EMEA/APAC"! 🌍 This session will dive into the latest trends, challenges, and best practices in sanctions compliance across the EMEA and APAC regions. It's a great opportunity to gain insights from industry experts and explore actionable strategies to enhance our sanctions programs. Looking forward to learning, engaging, and sharing ideas with fellow professionals in the field. Don't miss out on this valuable discussion! #SanctionsCompliance #EMEA #APAC #TRMLabs #Webinar #AML #Compliance #SanctionsProgram #FinancialCrime

Want to find out what it takes to build a best-in-class sanctions program to help your #crypto business stay ahead of evolving circumvention techniques and regulatory expectations? This webinar is for you. Join Crystal Noe (Head of Global Sanctions Compliance) from Kraken, Sophie Bowler (Chief Compliance Officer) from Zodia Custody, and Isabella Chase (Senior Policy Advisor) and Thomas A. (Compliance Advisor) from TRM Labs on July 30 or 31 for an in-depth discussion on all things sanctions and crypto compliance. They’ll be covering: ▪️ Recent changes in sanctions policy impacting crypto businesses ▪️ The challenges of operationalizing an effective sanctions program ▪️ How to handle indirect risk exposure ▪️ Strategies to upskill your sanctions team Note: We’re offering this session on two days, in two different time zones. Select the one that works best for you! Save your spot now ➡️ https://hubs.la/Q02FDYT50

CoinList's recent settlement with OFAC for sanctions violations is a stark reminder of the critical importance of compliance for virtual currency exchanges. Despite the platform's innovative role in digital currency trading, CoinList's oversight in allowing transactions from embargoed regions, like Crimea, has cost them over $1.2 million. This incident underlines the non-negotiable need for robust Know Your Customer (KYC) and sanctions screening processes in the fintech sector. As a professional in the industry, I view this as a pivotal moment that should galvanize exchanges to reassess and reinforce their compliance frameworks. CoinList's cooperative stance and their commitment to investing $300,000 to enhance compliance measures are commendable steps towards rectifying the issue. However, with potential penalties in the hundreds of millions, the settlement amount serves as a cautionary tale that the cost of non-compliance can be severe. The implications extend beyond financial loss; they speak to the integrity of the financial system and the necessity to uphold international sanctions. This is a critical juncture for virtual currency exchanges globally, and I believe it's essential for these entities to prioritize and invest in effective compliance controls. What are your thoughts on the balance between innovation in the fintech space and the need for robust compliance measures? Share your views in the comments below. #CoinList #OFAC #Compliance #Sanctions #Fintech #DigitalCurrency #Regulation Original article: https://lnkd.in/eM2RUQsR

ICYMI: 🚨 January was packed with FinCrime regulatory news from around the globe - check out the monthly FINTRAIL RegCap below for the full breakdown. Here are some of the top stories: 🔸 Transparency International released its 2023 Corruption Perceptions Index. 118 countries stayed at the same score as last year, while 28 countries improved their score and 34 countries declined. 🔸 The European Parliament and the European Council have reached a provisional agreement on new harmonised AML regulations, and the final text of a new 6th Anti-Money Laundering Directive (6AMLD). 🔸 In the UK, an amendment to the Money Laundering Regulations on the treatment of domestic PEPs came into force on 10 January. 🔸 Local Chinese media has reported that the People's Republic of China is amending its AML regulations, the first major update since 2007, to include cryptocurrency transactions. 🔸 The US Office of Foreign Assets Control (OFAC) and its international partners issued several new sanctions designations throughout January - read the doc for full details. 🔸 The Hong Kong Monetary Authority (HKMA) has launched a public consultation on a proposal to extend FINEST, an information-sharing system. ❓ Let us know if we missed any key updates in the comments, and check out previous editions of the RegCap on our website. #financialcrime #AML #compliance #sanctions

Come join Dana Lawrence, Crystal Noe of Kraken Digital Asset Exchange, Joshua White of Stripe, Andrew Fierman of Chainalysis and I on 5/30 at 4:00 PM EST for a discussion about sanctions within the #fintech and #crypto space! Details below 👇

Binance, the world's largest cryptocurrency exchange, and its CEO Changpeng Zhao pleaded guilty in November 2023 to engaging in money laundering and violating U.S. sanctions. This case highlights the critical need for crypto companies to strictly adhere to regulatory compliance, ethics, and geopolitical sanctions. Binance's "ask for forgiveness rather than permission" strategy prioritized rapid growth over compliance, leading to severe legal, financial, and reputational consequences. The exchange's disregard for anti-money laundering (AML), know-your-customer (KYC), and U.S. sanctions underscores the importance of institutionalizing robust compliance protocols in the crypto industry. The $4.3 billion settlement, including a criminal fine and asset forfeiture, sets a precedent for the crypto sector. It comes amid heightened legal scrutiny of other major players like FTX and Celsius, signaling that the crypto industry is not "above the law" and must adhere to regulatory frameworks. To prevent similar incidents, regulators globally are taking a stricter stance on crypto regulation, emphasizing AML, KYC, and sanctions compliance. Key enhancements include continuous regulatory evaluation, international collaboration, stronger consumer protection, industry engagement, effective enforcement, and educational initiatives. The Binance case highlights that regulators are demanding that crypto companies prioritize ethical responsibility, geopolitical awareness, and regulatory compliance over the pursuit of rapid growth and wealth accumulation. This is crucial for the decentralized finance industry's long-term sustainability and mainstream acceptance. https://lnkd.in/eptfEAZb #AML #PrivacyPros

Crypto Compliance Officer Explains Understanding Politically Exposed Persons (PEPs) PEPs, or Politically Exposed Persons, hold influential positions and pose a higher risk for potential involvement in bribery or corruption due to their power and access to resources. Here's a breakdown of who qualifies as a PEP: 1️⃣ Domestic PEPs: Heads of government or state, Senior government, military, and judicial officials, Senior executives of state-owned corporations Important political party officials holding official posts within the government 2️⃣ Foreign PEPs: Similar roles to domestic PEPs but in foreign nations 3️⃣ International Organization PEPs (HIOs PEPs): Managing directors, secretaries, chairpersons, presidents, etc. Officials in international organizations like the World Bank and the IMF 5️⃣ Close Associates of PEPs: Individuals with joint ownership rights in legal entities or close business relationships with a PEP. Persons with individual rights in entities established in favor obf a PEP 6️⃣ Related Persons: Direct family members, Close friends, advisors, and business partners. Prominent members of the same political party or civil organizations as the PEP. Staying informed and vigilant about PEPs helps in managing risks and maintaining compliance in various sectors. #compliance #riskmanagement #pep #aml #financialsecurity #blockchain #crypto #amla #mica #vara #sec #ecb #fca #kyc #kyb #riskassessment

Sanctions are here to stay! Join us at the 𝗔𝗟𝗕 𝗣𝗮𝗻 𝗔𝘀𝗶𝗮𝗻 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 & 𝗔𝗻𝘁𝗶-𝗖𝗼𝗿𝗿𝘂𝗽𝘁𝗶𝗼𝗻 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗦𝘂𝗺𝗺𝗶𝘁 in Singapore for an insightful session that dives deep into the future of sanctions law and its global implications. 𝗦𝗲𝘀𝘀𝗶𝗼𝗻 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁: 𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗚𝗹𝗼𝗯𝗮𝗹 𝗦𝗮𝗻𝗰𝘁𝗶𝗼𝗻𝘀 𝗟𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲 - 𝗚𝗲𝗼𝗽𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹, 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗖𝗿𝗶𝗺𝗲 𝗮𝗻𝗱 𝗘𝘅𝗽𝗼𝗿𝘁 𝗖𝗼𝗻𝘁𝗿𝗼𝗹 𝗥𝗶𝘀𝗸𝘀 - How Can FIs Keep Up with the Rapidly Changing Landscape of Sanctions Regulations? - Innovations in the sanction screening process, such as ML and AI, should be leveraged - Sanctions evasion and sanctions screening Location: Grand Copthorne Waterfront Hotel, Singapore Date: September 26, 2024 Here from: Cliff Lim, CAMS Lucas Har Kian Mun Ng, Ken Join 400++ Delegates for Unmatched Networking Opportunity! Register here: https://lnkd.in/dVYuwXWk #TRregsummit #compliance #KYC #AML #MoneyLaundering #RegTech #RegTechAPAC #sanctions #sanctionscompliance #sanctionsscreening #aml #antimoneylaundering #moneylaundering #kyc #knowyourcustomer #cdd #customerduediligence #financialcrime #financialcrimeprevention #Compliance #financialcrimecompliance #financialcrime #Bribery #corruption #education #fincrime #ethics #insurance #fraud #corporategovernance #blockchain #cryptocurrency #fintech #climatechange

FATF Lists Apply to Crypto #vasp Here’s a short brief on the two lists: The Financial Action Task Force #fatf issues both a blacklist and a grey list to identify countries with deficiencies in combating financial crimes like #moneylaundering and #terroristfinancing ✔️FATF Blacklist: Countries listed on the FATF blacklist do not have efficient anti-money laundering (AML) systems and fail to cooperate in global efforts to combat financial crimes. These countries pose risks to international trade and financial systems, leading to enhanced due diligence and sanctions by other nations. As of February 2024, North Korea, Iran, and Myanmar are on the FATF blacklist ☑️ FATF Grey List: The grey list includes countries working to improve their AML frameworks but still have deficiencies. These countries are subject to increased monitoring by FATF and are committed to addressing identified issues. As of February 2024, 21 countries, including Nigeria, Croatia, and Syria, are on the FATF grey list. Impact and Compliance: Being on the FATF #blacklist or #greylist can lead to economic sanctions, declining international trade, and challenges in securing funds. Regulated entities must continuously monitor their customer databases against these lists to avoid financial losses and reputational damage. Compliance measures like identity verification, customer #duediligence and enhanced due diligence are essential for detecting and reporting suspicious transactions to authorities.

𝐖𝐡𝐞𝐧 𝐃𝐢𝐝 𝐘𝐨𝐮 𝐑𝐞𝐚𝐥𝐢𝐳𝐞 𝐓𝐡𝐚𝐭 𝐎𝐅𝐀𝐂 𝐢𝐬 𝐍𝐨𝐭 𝐚 𝐒𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐨𝐫𝐲 𝐀𝐠𝐞𝐧𝐜𝐲?🤗 Take a moment to think about it before you answer🤭. But first, let me explain what supervisory agencies are. 𝗦𝘂𝗽𝗲𝗿𝘃𝗶𝘀𝗼𝗿𝘆 𝗮𝗴𝗲𝗻𝗰𝗶𝗲𝘀 𝗼𝘃𝗲𝗿𝘀𝗲𝗲 𝗮𝗻𝗱 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗶𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝘀 𝘁𝗼 𝗲𝗻𝘀𝘂𝗿𝗲 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝘄𝗶𝘁𝗵 𝗹𝗮𝘄𝘀 𝗮𝗻𝗱 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻𝘀. Examples include: 1️⃣Federal Reserve System (Fed) 2️⃣Office of the Comptroller of the Currency (OCC) 3️⃣Federal Deposit Insurance Corporation (FDIC) 4️⃣Financial Industry Regulatory Authority (FINRA) 5️⃣Securities and Exchange Commission (SEC) 𝐍𝐨𝐰, 𝐛𝐚𝐜𝐤 𝐭𝐨 𝐎𝐅𝐀𝐂!👇 OFAC (Office of Foreign Assets Control) 𝐢𝐬 𝐧𝐨𝐭 𝐚 𝐬𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐨𝐫𝐲 𝐚𝐠𝐞𝐧𝐜𝐲, but it works closely with 𝐬𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐨𝐫𝐲 𝐚𝐠𝐞𝐧𝐜𝐢𝐞𝐬 𝐚𝐭 𝐛𝐨𝐭𝐡 𝐟𝐞𝐝𝐞𝐫𝐚𝐥 𝐚𝐧𝐝 𝐬𝐭𝐚𝐭𝐞 𝐥𝐞𝐯𝐞𝐥𝐬. OFAC plays a critical role in financial oversight by ensuring that financial organizations comply with sanctions programs. 👉During examinations, supervisory examiners from these agencies assess OFAC compliance efforts, reviewing #policies, #procedures, #training, and #screening systems to detect 𝐒𝐩𝐞𝐜𝐢𝐚𝐥𝐥𝐲 𝐃𝐞𝐬𝐢𝐠𝐧𝐚𝐭𝐞𝐝 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥𝐬 (𝐒𝐃𝐍𝐬) 𝐚𝐧𝐝 𝐬𝐚𝐧𝐜𝐭𝐢𝐨𝐧𝐞𝐝 𝐞𝐧𝐭𝐢𝐭𝐢𝐞𝐬. 👉Weak OFAC controls or engagements with entities on the SDN list can lead to severe consequences, 𝐢𝐧𝐜𝐥𝐮𝐝𝐢𝐧𝐠 𝐦𝐨𝐧𝐞𝐭𝐚𝐫𝐲 𝐩𝐞𝐧𝐚𝐥𝐭𝐢𝐞𝐬, 𝐜𝐫𝐢𝐦𝐢𝐧𝐚𝐥 𝐜𝐡𝐚𝐫𝐠𝐞𝐬, 𝐚𝐧𝐝 𝐫𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐚𝐜𝐭𝐢𝐨𝐧𝐬. 🫴Sanctions compliance is complex and constantly evolving, requiring specialized skills and vigilant attention to changes in laws and regulations by Compliance Officers. 🤝Stay vigilant, stay #compliant, and ensure your financial organization is equipped to navigate the complexities of OFAC's #sanctions programs. Now that you understand that 𝐎𝐅𝐀𝐂 𝐢𝐬𝐧’𝐭 𝐚 𝐬𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐨𝐫𝐲 𝐚𝐠𝐞𝐧𝐜𝐲, let me know when you realized this in the comments. Don’t forget to connect and follow me for more insightful #compliance content. #ComplianceOfficer #Cryptocompliance #BlockchainForensics #ADForensics