Moody’s Talks: KYC Decoded

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.

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