Moody’s Talks: KYC Decoded

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.

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.