The Wolfsberg Group’s Post

Interesting how the Wolfsberg Group has decided to include CBDCs within the realm of Digital Assets, as opposed to the FATF and Basel Committee definitions, which do not. The rationale being increased adoption, inherent ML/TF risks of electronic funds, risks associated with the issuing jurisdictions, and where CBDCs accommodate privacy by design. Similarly, NFTs (of value), not scoped by FATF, are included by the Group, citing the ML/TF risks of this nascent asset class. The Group’s lexicon maps out a widening scope, and AML/CFT implications for FIs. #digitalassets #wolfsberggroup #FATF #virtualassets #CBDC #AML

Bookmarking a clear and succinct guidance by The Wolfsberg Group on digital assets (or virtual assets) as they continue to interact and converge with the traditional financial market. Recommended reading for anyone in, or interested in, the Web3/crypto field.

Establishing a unified lexicon in the digital assets space remains a significant challenge. The Wolfsberg Group has addressed this by releasing a set of Frequently Asked Questions (FAQs) on defining digital assets within the context of emerging financial crime compliance risks. This resource outlines how the Group’s members interpret and apply key terms related to digital assets in their interactions with policymakers, supervisors, regulators, and other financial institutions, as well as in the development of internal policies and controls. These definitions will serve as a foundational reference for the Group’s ongoing efforts to assess risks and implement appropriate controls for digital assets. #DigitalAssets #FinancialCrimeCompliance #WolfsbergGroup #RegulatoryEngagement #RiskManagement

Still digesting this, but FINRA just released its 2025 FINRA Annual Regulatory Oversight Report: https://lnkd.in/ej82ggME The 80-page report highlights "Third Party Risk Landscape" and "Extended Hours Trading" as new for 2025, plus multiple evergreen topics that are worth reviewing for the latest regulatory guidance. FINRA also has made a podcast available about the Regulatory Oversight Report for those inclined to hear directly from the respective Heads of Enforcement; Market Regulation and Transparency Services; and Member Supervision: https://lnkd.in/eg8_qY9T

In an increasingly complex and interconnected financial world, the role of due diligence cannot be overstated. It’s more than a compliance checkbox - it’s a fundamental safeguard that protects financial institutions, their clients, and the broader financial ecosystem. By rigorously assessing risks, financial institutions can proactively identify vulnerabilities, assess client suitability, and prevent exposure to fraud, financial crimes, or reputational damage. Due diligence is not only about data collection; it’s about intelligent analysis, identifying patterns, and making informed decisions that prioritize integrity and transparency. In today’s climate, where regulatory requirements evolve rapidly, the institutions that thrive are those committed to continuous improvement and adherence to high standards of due diligence. This commitment doesn’t just mitigate risk - it builds client trust, strengthens market stability, and demonstrates leadership in responsible finance. Ultimately, due diligence is a shared responsibility across all levels of an organization. When everyone is aligned and vigilant, we uphold a system of trust and resilience that benefits all. #Finance #DueDiligence #Compliance #RiskManagement #FinancialInstitutions #Integrity

🚨 Join our upcoming Screening masterclass! 🚨 Screening plays a vital role for financial institutions in the fight against financial crime. Unfortunately, in practice, even carefully designed processes can create unmanageable workloads that can obscure true risks. Meanwhile, costly solutions offered by technology vendors don't always deliver as promised! How can you ensure success in this ever-evolving landscape? In this masterclass hosted by FINTRAIL and Dow Jones Risk & Compliance, we will take a detailed look at current best practices in screening, covering sanctions (including control and ownership), political exposure, and adverse media. Using in-depth regulatory knowledge, real-world industry experience and practical use cases, our expert speakers will offer: 👉 Practical guidance on how to understand regulatory expectations 👉 How to create a streamlined and efficient process 👉 How to maximise the power of technology and big data 🗓️ Tuesday, May 21st ⏰ 2pm - 4pm BST 🔗 Register here: https://lnkd.in/eSHm9Xta #fincrime #compliance #screening

Excited to share that I've provided commentary for a recent article in FTF News. It is an honor to contribute to discussions on key industry trends and innovations. Following FinCEN’s proposed changes to AML/CFT programs for RIAs and ERAs published in February, FinCEN and the SEC have now proposed enhanced requirements for customer identification programs to help prevent “illicit finance activity”. If adopted, these changes will have significant impacts on the operational and compliance workflows for all affected firms. Put simply, while email and Excel are great for their intended functions, they will be insufficient to fully comply with these new regulations. My commentary is below, and you can find the full article here: https://okt.to/iduFoS “As illicit actors seek to exploit vulnerabilities in the financial system, investment advisers must prioritize comprehensive due diligence and advanced compliance solutions. One area to monitor closely is client onboarding, which is still largely manual and ripe for improvement. The proposed measures will significantly impact investor onboarding, requiring more rigorous verification procedures. This, in turn, will elevate the overall investor experience by fostering a secure and trustworthy investment environment, ultimately protecting the integrity of financial markets.”

🚩 Spotting Red Flags in Financial Transactions 🚩  Just like uncovering a hidden twist in a thriller, spotting red flags in financial transactions can help prevent suspicious activity before it gets out of control. Here are some key warning signs to watch for: 1. Unusual Patterns:     - Transactions that frequently fall just below reporting limits or involve transfers to higher-risk regions. 2. Inconsistent Behavior:     - Sudden changes in account activity, like a character switching sides mid-season, without a clear explanation. 3. Complex Structures:     - Use of tangled corporate entities or complicated ownership arrangements, like trying to follow the plot of Inception. 4. Lack of Transparency:     - Reluctance to provide clear information or discrepancies in customer details, leaving more questions than answers. Keeping an eye out for these signs is key to staying ahead of financial threats! Are we missing any? 🌐💡 #FinancialCrime #Compliance #AML #RiskManagement

🗓 Mark your diaries for the Financial Crime Compliance Summit, hosted by KPMG and organised by The Compliance Register! Unlock the power of FinCrime technology with a risk-based approach. With soaring costs and the ever-increasing complexity of criminal behavior, the industry is widely considering new technology. But how can the latest technology be adopted safely to optimize efficiency while maintaining effectiveness? Listen to insightful presentations and dynamic panel discussions on: 👁️🗨️ APP Fraud and Technology Responses 🤖 AI: A Game Changer Against Financial Crime? 💡 UK and EU Regulatory Hot Topics …and more topics to be announced! Don't miss this opportunity to gain invaluable insights and connect with industry leaders. Register 👉 https://lnkd.in/en7nGCbe 🗓 When: 1 July 2024 📍 Where: KPMG Office, 15 Canada Square, London #FCCSummit2024 #TechToFightFinancialCrime | Ben Goh

Really looking forward to this one! Many firms struggle with how to translate regulatory expectations on screening into practical implementation, and as a result, too many rely on out-of-the-box tooling and inefficient workflows that are not calibrated to meet their firm's particular financial crime and sanctions risk. Make sure you sign up to our upcoming masterclass where we will cover best practices in sanctions, PEP and adverse media screening.