Moody’s Talks: KYC Decoded

Some of the most crucial actors in the world of regulatory compliance exist within the public sector. But, with so many private sector players gathering data and making risk-based decisions, how can the two groups bridge any divides to overcome increasingly sophisticated criminals?In this episode of KYC Decoded, host Alex Pillow is joined by public sector colleagues Linda Hamilton, Deputy Director of Organised Crime in Fraud Investigations Service at the HM Revenue & Customs (HMRC), and Kevin Newe, Illicit Finances Threat Lead from HMRC. Their engaging conversation provides unique perspectives on questions like:Why is there a need to invest more in preventing economic crime and money laundering?How can we strike a balance between a public-private sector feedback loop and preserving confidentiality?What do good public-private partnerships look like and are there opportunities for improvement?When combatting financial crime, where should the public sector take the lead and where the private sector?How should data and technology vendors be involved with their private sector partners and the public sector?What makes a good SAR and what can be said about software that automates writing them?To learn more about what was discussed in this episode, be sure to check out these additional resources:UK Financial Intelligence UnitFinancial Action Task Force risk trends and methodologiesFATF Annual Report 2020-2021National Economic Crime CentreAnd, if you’d like to see how Moody’s Compliance and third-party risk management can help you with AML, please visit our website or get in touch; we’d love to hear from you.

As regulatory stakes grow higher, so does the need for reliable, comprehensive data when evaluating risk. Enter: the Moody’s Entity Verification API. In a single source, this powerful tool layers curated data on over 525 million global companies along with real-time entity information from primary sources. Here to share more on the making of this tool and its value in a compliance program are Johanna Konrad, Moody’s Compliance & third-party risk Managing Director of Product Management, and Jon Hanmer, Moody’s Sales Senior Director. Joining host, Alex Pillow, they discussed:How direct customer feedback shaped what the Entity Verification API deliversHow the solution benefits stakeholders in different sectorsWhy strong entity verification lays the groundwork for a “golden record,” and why that mattersEnablement of practitioners to monitor entities in a perpetual KYC (pKYC) programFor more information about the Moody’s Entity Verification API, visit our website. If you’d like to book a demo or learn more, please get in touch; we would love to hear from you!

The term “Entity Verification” can mean different things to different people. Perhaps it brings to mind beneficial ownership, identity checks, or third-party risk management. Regardless, Entity Verification is the bedrock for understanding who you are doing business with.We are pleased to welcome back guest, Paul Nola, Partner at Context Consulting, for this episode of Moody’s Talks: KYC Decoded. Paul walks us through the findings of Moody’s latest study on Entity Verification. In addition to sharing how the study was conducted and some of the results of the report, Paul and host, Alex Pillow, discuss common themes that emerged, such as:Why the time is now to be ramping up Entity Verification programsChallenges that can make Entity Verification difficult to implementThe downstream benefits of a strong Entity Verification foundationThe need for proper and robust data governanceHow AI is being used to make Entity Verification scale in a quick, reliable wayThe elusive ‘golden record’ - a single view of a data entityYou can find more information about Entity Verification on our website, or check out the resource below: Who are you doing business with? A Moody’s study into Entity VerificationIf you would like to learn more about Moody’s Entity Verification data offerings, please get in touch – we would love to hear from you.

You may recognize him as Moody’s Talks: KYC Decoded editor and producer, but, Mark Rundle, has a passion for storytelling that extends beyond podcasting. Mark is also a brilliant documentary filmmaker, and we are excited to have him join us behind the microphone in this week’s episode, discussing his recent three-part documentary series, The Infinite Game. These 10-minute episodes provide a searing view into the world of corruption, money laundering, and, most importantly, the people who are affected by these crimes. Follow along for a behind-the-scenes look at:The inspiration for making this seriesThe creative process for structuring a compelling narrativeWhat he hopes viewers will take away from The Infinite GameBe sure to watch the series, or watch again if you have already seen it on our website or YouTube. And, to take another step forward, learn how Moody’s can better equip you and your organization to combat financial crime. Get in touch – we would love to hear from you.

The art and science of screening in the KYC and AML world has certainly come a long way from the days of manually checking for names and organizations against a short list. Risk factors have evolved exponentially, increasing regulations have influenced risk appetites, and powerful technologies like Machine Learning (ML) and Generative AI (GenAI) have caught on like wildfire. In this episode of KYC Decoded, in-house experts Mike Xu, Data Strategy Director, and Victor Cotillon, Risk & Screening Product Strategist, provide valuable insights into the role of Machine Learning when screening. Highlights of their conversation with host, Alex Pillow, include:What screening means and why it is performed by KYC and AML practitionersThe concept of ‘fuzzy matching’How technologies help weed out false positives when name matchingPros and cons of integrating ML into an intelligent screening processKeep human’s in the loop when using more sophisticated MLInterested in learning more? Check out the resources below mentioned in this episode:CourseraMoody’s AI in Compliance resourcesIf you want to learn more about intelligent risk and compliance screening for your organization, please visit our website and feel free to reach out – we would love to hear from you!

Anti-financial crime (AFC) departments can get labeled as the team that says “no” - seen as preventing innovation from reaching customers. But, this line of thinking overlooks the immense value AFC teams can bring in the product development process. How can AML and compliance professionals break through the stereotype to become more influential partners in business growth?In this episode of KYC Decoded, AML professional Erika Postel, passionately shares her expertise when it comes to thriving at the intersection of business expansion, compliance, and customer experience. Her conversation with host, Alex Pillow, addresses questions such as:When should AML and compliance teams brought into a project?How to juggle multiple jurisdictions and/or multiple product launches simultaneously?How can teams proactively work with regulatory bodies?How can AML departments best support business expansion with ever increasing digitization?For more information, please check out the resources that were mentioned in the episode below:ACAMS websiteAmerican Bankers AssociationTo take the next step in transforming the compliance culture in your organization, visit our website and get in touch – we’d love to hear from you.

Guest Jessica Cath, Head of Financial Crime at Thistle Initiatives, discusses how money launderers use luxury goods like cars and watches to hide wealth. Topics include stages of money laundering, secondary markets, risk-based measures for businesses, and responsible consumer purchasing decisions to avoid complicity in financial crime.

Alessio Balduini and Francis Marinier discuss the impact of open banking on risk and compliance, exploring its origins, opportunities, adoption, risks, and potential responses from bad actors. The conversation highlights the evolution of compliance processes, data quality, risk factors, algorithmic implications, and the transformation of risk and compliance roles in the era of open banking. They also delve into advancements in financial crime prevention, cyber threats, and the regulatory framework in the UK.

Michael Hughes, PET expert, discusses the impact of PETs in AFC programs. Topics include PET value in KYC, privacy vs. data usefulness, regulatory views on PETs, early adopters of PETs, and more.

It is safe to say technology has done wonders when it comes to AML professionals tackling financial crime, but, on the flip side, it is important to understand how technology is being used by those committing the crimes.From video game online marketplaces to virtual currency mixers, how can we follow the money when tech is used to cover its tracks?In this episode of KYC Decoded, we welcome back esteemed guest, Geoff White, investigative journalist and author of the upcoming book, Rinsed: From Cartels to Crypto: How the Tech Industry Washes Money for the World’s Deadliest Crooks.Get an inside look at some of the crimes that are featured in Rinsed, and listen as Geoff and host, Alex Pillow, explore questions like:How has the digitization of currency impacted the way criminals launder money?Is there a future where crypto can be crime-free?What role does social media play for bad actors?Should technology companies be held accountable for how money launderers use them?Rinsed is available for preorder and will be published on June 13, 2024. To take the AML and compliance programs in your organization to the next level, be sure to check out our website and get in touch – we’d love to hear from you.