What the Hack? Episode 226: On Digital Fingerprints and Dirty Money
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Nov 18, 2025 Jeff Williams, the Chief Information Security Officer at Sigma 360, delves into the murky world of money laundering and sanctions compliance. He explains how illicit funds often slip through everyday transactions and the challenges smaller banks face in compliance. Jeff highlights the role of AI in tracing dirty money, including mapping relationships and real-time fraud detection. With a focus on complex financial webs, he emphasizes the importance of human oversight in AI processes to avoid risks. Tune in for insights into keeping financial systems clean!
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Sanctions As Financial Warfare
- Sanctions compliance aims to choke off criminal activity by blocking access to the financial system.
- Modern tech can trace transaction fingerprints and reveal relationships that expose illicit money.
Graphing Relationships Beats Static Lists
- Rich entity graphs and adverse media let analysts see ownership and relationship risk beyond static sanction lists.
- Missing international lists, registries, or translated news creates blind spots banks must close.
Prove Due Diligence To Lessen Fines
- Do document and show your due diligence when illicit funds slip through to reduce regulatory penalties.
- Keep records of what you checked and the actions you took to demonstrate risk management.