Moody’s Talks: KYC Decoded

An exponential growth in data has coincided with the era of exponential risk - what does this mean for anti-financial crime and risk professionals? With ever increasing amounts of unstructured data and information at their fingertips, how can professional investigators implement sophisticated open-source intelligence (OSINT) investigations to make informed decisions?In this episode of KYC Decoded, we welcome the CEO of Blackdot Solutions and former forensic investigator, Stuart Clarke. Stuart breaks down what is needed for high-functioning OSINT investigations in an enlightening conversation with host, Alex Pillow. Together they explore questions like:How do we extract real insights from unstructured data?What is the methodology for running an investigation?How can leaders deploy the right balance of data, technology, and human investigators, when conducting OSINT investigations?What makes OSINT investigations difficult for practitioners  in the private sector vs public sector?What is the impact of advanced OSINT?How much of an OSINT investigation can (and should) be automated?What are the legal and ethical guardrails around the use of open source data?If you are keen to learn more, check out the resources below:Blackdot Solutions, The OSINT handbookMoody’s Maxsight™ InvestigationsPlease also visit our website and get in touch; we would love to hear from you.

Nick Reed, Chief Product Officer at Moody's Corporation, shares his 25 years of expertise in risk and technology. He discusses how generative AI can revolutionize traditional risk management by democratizing data access and transforming workflows. The conversation highlights the shift from reactive to predictive approaches in the financial sector. Reed emphasizes the importance of reliable data for effective AI integration and explores the challenges posed by synthetic identities in credit evaluations. Expect a future where risk professionals focus on strategic insights instead of monotonous tasks.

Laurie Giddens, a researcher and Assistant Professor at the University of North Texas, dives into innovative strategies to combat human trafficking using technology. She discusses the potential of data systems in detecting and disrupting trafficking within the travel industry. Giddens emphasizes the importance of collaboration between airlines and airports and the need for a united effort in data collection. She highlights how feedback loops can enhance interventions, and how analyzing internet data can transform raw insights into actionable information.

The cat and mouse game of criminals vs. regulators and compliance teams can feel intense, and the stakes are high. With advanced AI and deep learning technologies like deepfake, fraudulent activity is easier, cheaper, and more sophisticated than ever before. However, the same advancement in tools and technologies is exactly what’s needed to fight back, and even get ahead.In this episode of KYC Decoded, we are happy to share the mic with deepfake experts David Thomas, Head of Product - Global Documents & Biometrics at GBG, and Paul Warren-Tape, Head of Risk and Compliance at IDVerse. Their gripping conversation with host Alex Pillow explores questions like:What are deepfakes and how are they created?What are the far-reaching consequences of using deepfake technologies for nefarious activity, and who are the victims?How do we know what to trust when we can’t rely on our eyes and ears alone?What controls and technologies are needed in the identification space?Who is leading the way in getting ahead of fraudsters?How can we use powerful technology ethically and responsibly?Please listen to the episode wherever you get your podcasts, and if you are curious to learn more, check out the recommended resources below:Coded Bias documentaryGartner report: Emerging Tech: Combating Deepfakes, Deception and Disinformation in Multimedia ContentIDVerse report: The Truth About Identity and InclusionThe Social Dilemma documentaryGBG resources and insights libraryNational Institute for Science and Technology (NIST) Cybersecurity FrameworkIf you would like to chat with Moody's about mitigating financial crime risk in your organization, please visit our website and get in touch. We would love to hear from you. 

This episode includes accounts of physical, mental, and sexual abuse, stemming from modern slavery and human trafficking. These topics may be distressing for some individuals. Listener discretion is advised.In the making of "The Infinite Game," Moody's docuseries, a wealth of expert interviews were conducted, however due to the time constraints and narrative of the piece some interviews were regrettably cut during the final edit. Justine Carter’s illuminating interview on combating human trafficking and modern slavery was one of these, but we're delighted to now bring it the KYC Decoded audience as a special episode where listeners can learn from Justine's solo narrative that offers a deep dive into the entwined realities of human trafficking, financial crime, and their impacts. Key topics she discusses include:  The current state and scope of modern slavery laws and regulations  An overview of the various forms of human exploitation  The significance of supply chain oversight and ethical business practices  Sharing the harrowing experiences faced by victims of modern slavery  The need for unified efforts across industries to effectively address this issue  The role of technological innovations in combating modern slavery  Check out these additional resources:    Visit Unseen UK’s website   Watch The Infinite Game Docuseries  To discover how Moody’s can assist your organization in understanding and monitoring risks linked to modern slavery, forced labor, and human trafficking, visit our website or get in touch. We would love to hear from you. 

You may be familiar with yacht owners being sanctioned, but what of the potential risks tied to the yachts themselves? Burmese teak wood, commonly found in marine vessels, is known for its exceptional quality, natural water resistance, and premium price tag. Unfortunately, that price tag is not nearly as steep as the potential consequences of supporting the illegal timber trade.In this episode of KYC Decoded, we're honored to welcome Kate Klikis, forest campaigner and Myanmar timber expert from the Environmental Investigation Agency (EIA). In an enlightening conversation with host, Alex Pillow, Kate educates us on the illegal timber trade and its greater implications. Key topics include:The differences between legal and illegal timber tradingThe illegal timber trade in MyanmarGlobal regulations to combat the illegal timber tradeIndustries most vulnerable to risks associated with illegal timber tradingThe integrated risks involved with illegal deforestation, sanctions, money laundering, bribery and corruption, counterfeiting, and moreIf you would like to learn more, check out the recommended resources shared during this episode below:The Croatian Connection ExposedEIA forest reportsActs of Defiance: How US traders are ignoring sanctions to import conflict teak from MyanmarEIA YouTube channelEIA LinkedInEIA InstagramEIA FacebookEIA ThreadsTo take the next step in your risk and compliance program, please visit our website and get in touch. We would love to hear from you.

Let's get into the evolving world of fraud on KYC Decoded, where the complexity and sophistication of fraud now poses new and daunting challenges for professionals and organizations alike. This episode draws on invaluable insights from the Cifas Fraudscape report, brought to life by guest, Stephen Dalton, Director of Intelligence at Cifas. Together with our host, Alex Pillow, they analyze the most concerning fraud trends, uncover the advanced tactics of fraudsters, and emphasize the importance of data in defending against threats.  Key topics in this episode include:  The factors leading to the rise in reported fraud cases and strategies to combat this upward trend The sophistication of modern scams and the impact on targeted industries Fraudulent activities committed by lone individuals versus organized crime groups  How AI is leveraged by both fraudsters and compliance professionals  The essential measures to detecting and disrupting fraud  To learn how Moody’s compliance and third-party risk management can help your organization with fraud prevention, please visit our website or get in touch; we’d love to hear from you. 

The positioning of “traditional” KYC against new and emerging methodologies creates opportunities to assess the most effective processes and technologies used to prevent financial crime. It raises the question: What transformative actions and AI implementations are needed to revolutionize a KYC framework, ensuring the industry is prepared for future advancement? In this episode of KYC Decoded, Hanjo Seibert, managing director and partner at Boston Consulting Group, and global lead for Compliance and Anti-Financial Crime (AFC) Technology Transformation joins our host Alex Pillow. Their insightful dialogue provides fresh viewpoints on questions such as: Are traditional KYC/AML methods sufficient to address the challenges professionals face today?How can rules-based and data-driven approaches combine to increase efficiency?How should professionals approach problem-solving: by prioritizing data first or by putting compliance considerations first?How can financial institutions ensure personnel are trained to effectively use new technologies against fraudsters who are also innovating rapidly?Will we continue to see multiple vendors providing diverse solutions, or is there a trend towards consolidating services into one-stop shops?To find out more about the topics discussed in this episode - check out these resources: Watch Hanjo’s Ted Talk: What you can do to stop economic crimeListen to the BCG on Compliance podcast: Apple, Spotify, AmazonRead Moody’s blog post: 8 best financial crime booksAnd if you would like to see how Moody’s compliance and third-party risk management can help with your approach to KYC, please visit our website or get in touch; we’d love to hear from you. 

Disclaimer: Please note in the introduction to this episode it is mentioned that Russia further invaded Ukraine in 2020 rather than the correct year of 2022.In this episode of KYC Decoded, we dive into Article 5r which mandates European banks report any money transfers exceeding 100,000 euros leaving the EU, targeting entities with more than 40% Russian ownership. Join Moody’s Industry Practice Lead, Nicola Passariello, and host Alex Pillow as they unravel the complexities of financial surveillance under Article 5r of EU Reg. 833. Learn more about the implications this directive has for the financial sector and navigating complex ownership structures to meet new deadlines.  Highlights include: An introduction and explanation of Article 5r of EU Reg. 833Reporting requirements for financial institutionsChallenges in identifying direct and indirect ownershipImportance of having a full KYC programCommon pitfalls and guidance for practitionersFor additional resources mentioned in this episode, visit: The Banker articleMoody’s article 5r blogFor more information visit our website and get in touch with one of our experts – we'd love to hear from you.

From social media account information to password creation to IP addresses, the digital footprint we create grows larger every time we go online – and it is virtually impossible to avoid.  At the same time, sophisticated criminals can capture this wealth of Personally Identifiable Information (PII) and create synthetic identities to commit crimes like fraud, money laundering, illegal weapons dealing, and more.Although scary, the first thing we can do to combat this criminal behavior is learn about it. So, we are excited to share the mic with Constella's experts, Jason Wagner, Vice President of Identity & Digital Intelligence, and Dan Mathews, Director of Worldwide Sales Engineering.You do not want to miss this incredibly engaging and knowledgeable conversation with host, Alex Pillow, asking hard-hitting questions like:What is a synthetic identity?What threats do synthetic identities pose to the financial sector at large?How are criminals stealing data?What populations and kinds of businesses are most vulnerable to the risks associated with synthetic identities?What are “ghosts” in the context of synthetic identities, and how can they attack businesses?How is AI changing the landscape of creating synthetic identities?How can the risks created by synthetic identity fraud be mitigated?To learn more about topics discussed on this episode, check out the resources mentioned below:Constella blogConstella Intelligence LinkedIn accountConstella's 2024 Identity Breach ReportIf you want to be at the forefront of combatting financial crime in your organization, visit our website to see how we can help, and feel free to get in touch – we would love to hear from you.