Financial Crime Matters How the Big Banks Look at Stablecoin, Digital Assets and Modernization, with Ned Conway
Nov 17, 2025
Ned Conway, Executive Secretary of the Wolfsberg Group, shares insights on banking stablecoin producers while emphasizing AML standards. He discusses the newly released guidance aimed at fiat-backed stablecoin issuers, detailing how correspondent banking principles apply to these digital assets. Conway also touches on the importance of transparent reserves and operational controls. He praises recent Treasury efforts to streamline suspicious activity reporting, advocating for better information sharing between sectors to combat financial crime effectively.
AI Snips
Chapters
Transcript
Episode notes
How Wolfsberg Started
- Wolfsberg began 25 years ago when banks pooled expertise to set standards after Congressional scrutiny over PEPs and source of wealth.
- The group evolved post‑9/11 into a globally influential body producing guidance adopted across correspondent networks.
Consensus First For Digital-Asset Rules
- Wolfsberg built consensus definitions and guidance so banks share a common language on digital assets and stablecoins.
- The stablecoin guidance reframes risk by aligning bank and issuer risk appetites rather than obsessing over fixed blockchain "hops".
Verify Controls Before Banking Stablecoin Issuers
- When a bank considers services to a fiat-backed stablecoin issuer, assess the issuer's control environment and risk appetite before onboarding.
- Require issuers to demonstrate reserve management and normal activity patterns so you can detect suspicious deviations.