Moody’s Talks: KYC Decoded

The podcast delves into disruptions needed in KYC and AML to combat sophisticated criminals. Topics include advancements in technology for fraud detection, challenges in data quality, incentivizing compliance, AI and data in financial services, decentralization in KYC, embracing innovation in programs, bottleneck theory in risk architecture, and industry strategies for disruption.

Russia’s invasion of Ukraine in February 2022 set off a series of global sanctions enforcement actions. The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) has meted out sanctions to curb Russia’s defense procurement, energy weaponization, and international trade activity. To date, the EU has also imposed 12 sanctions packages on restrictive measures – with the 13th to be formally approved in February.In this episode, we speak with Dr. Andrea Viski, founder and director of the Strategic Trade Research Institute and editor-in-chief of the Strategic Trade Review, on how the global sanctions environment has changed since the invasion, and where the biggest risks in sanctions-related financial crime lie.This conversation covers topics including:The impact of sanctions packages on Russia’s economy – where the sanctions have been effective in disconnecting Russia from global trade and economic activityHow the global sanctions environment has changed since the invasionNew challenges KYC and AML professionals now face, and how they can mitigate sanctions-related risksThe latest sanctions evasion trends and red flagsFor additional resources mentioned in this episode, visit:WorldECRStrategic Trade ReviewIf you want to better detect sanctions-related risk in your organization, visit our website, read our latest whitepaper on sanctions, and get in touch with one of our experts – we’d love to hear from you.

Francis Marinier, Moody's Analytics Financial Crime and Compliance Industry, predicts the future home for the AMLA in the European Union. Pros and cons of potential host cities like Frankfurt, Madrid, Paris, and Dublin are discussed. The importance of centralization, communication, and coordination in choosing a suitable city is emphasized. The impact of true crime content and the selection process for AMLA's home city are explored along with predictions and preferences for the new location.

Jim Richards, former BSA officer and CEO of RegTech Consulting, discusses the US Corporate Transparency Act (CTA). He highlights limitations of the beneficial ownership database, exemptions, and threats to financial criminals. Suggestions on improving FinCEN's approach are discussed.

Explore the risks of shell companies and how to identify them. Learn about legitimate vs illegitimate reasons for forming shell companies. Discover the seven indicators of shell company risk. Dive into the recent Singapore shell company scam. Find out how Moody's automates processes with powerful data

Every year, on January 11, the US recognizes National Human Trafficking Awareness Day. Human trafficking – currently a $150 billion industry – continues to be a pervasive threat around the globe, with criminals profiting from the enslavement of other people. This brings us to the obvious question: what can anti-financial crime and risk professionals do to make this world a safer place and help put an end to this abhorrent practice?In this episode, we delve into this pressing issue with experts: Christopher Kemp, Director of Enterprise Operations at the Anti-Human Trafficking Intelligence Initiative; Chris Bagnall, Solutions Director at Quantexa; and Karim Rajwani, Head of Product at Sigma360. Their conversation sheds an important light on dealing with this crime, focusing on:The primary forms of human traffickingThe staggering scale of the problemStrategies and solutions to stop itThe role of data and technology in empowering professionals to dismantle trafficking networksImmediate, actionable steps we can implement to make a differenceTo learn more about this important topic, we encourage you to explore these additional resources:Webinar, ‘Breaking Chains with AI: Advanced Detection of Sexual Exploitation and Human Trafficking Networks’ACAMS Article of the Year, ‘Understanding Human Trafficking’ACAMS Back to the BasicsACAMS Fighting Modern Slavery and Human Trafficking courseBlog, ‘Decision Intelligence is the Key To Stopping Modern Slavery And Human Trafficking’The National Action Plan to Combat Human Trafficking (NAP)Wear Blue Day campaignPolaris websiteUN Office on Drugs and Crime Human Trafficking websiteStop the Traffik website US Department of State Understanding Human Trafficking fact sheetFreedom United websiteINTERPOL websiteGovernment of Canada Operational AlertGovernment of Canada Updated IndicatorsWeProtect Project ShadowFind other ways your organization can help combat human trafficking - visit our website - and please feel free to get in touch; we would love to hear from you.

Vic Maculaitis, a 3-time board-appointed BSA officer, discusses the role of the BSA Officer/MLRO and how it can drive business strategy. They emphasize outcomes over checkboxes and the importance of influencing stakeholders. Leveraging technology and talent management, along with innovation and collaboration within the role, are also discussed.

Explore the evolution of Moody's Analytics KYC unit and its transformational changes. Learn about the challenges of integration, the role of AI and machine learning, and the future of KYC and compliance.

With information on more than 472+ million entities worldwide, Orbis has become the most powerful comparable data resource on private companies. But the question isn't what happened, it's HOW?In this episode of our KYC origin series, host Alex Pillow is joined by Bureau van Dijk and and Orbis veterans, Jon Hanmer and Ted Datta who discuss the evolution of this industry-defining database and how it became an indispensable tool for understanding the global corporate landscape.Highlights from this episode include:The journey and growth of Bureau van Dijk the businessAnswering the "so what?" through the integration of data and insightDrivers stimulating the huge growth in Orbis for KYC and compliance use casesThe importance of UBO to Orbis customersInfusing Orbis into the Moody’s Analytics familyThe future of Orbis for KYC within Moody and it's impact on tools such as Shell Company Indicator and Entity Verification APIListen along and learn more about how Orbis can help you effectively manage risks and make better KYC decisions on our website.

In November 2022, the European Court of Justice (ECJ) sparked a seismic shift in the regulatory landscape with its ruling that the public should not have access to beneficial ownership registries.Join us as we delve into the ripple effects of this ruling with our guests, Maíra Martini, research and policy expert on corrupt money flows at Transparency International, and Andres Knobel, lawyer and senior researcher at the Tax Justice Network, along with host, Alex Pillow.This conversation sheds light on:Why the ruling may have came aboutThe impacts the decision had on financial crime fighters and the bad actors they pursueHow companies and KYC professionals can navigate through this new realityFor recommended resources that accompany this episode, check out:Roadmap to Effective Beneficial Ownership Transparency (REBOT)The state of play of beneficial ownership registration in 2022Reforming Global Standards on Beneficial Ownership Transparency campaign pageVisit out our website for more information on UBOs, and do not hesitate to get in touch – we’d love to hear from you.