Moody’s Talks: KYC Decoded

We’ve all heard rumblings about the potential bias-related risks AI can bring when models aren't properly trained or governed with plentiful, high-quality data. But, how many of us have paused to consider flipping this paradigm? Could our own bias on the subject of AI cause us to overlook how consciously-infused AI technologies could remove dangerous biases from our KYC and AML processes?In this thought-provoking conversation, host Alex Pillow discusses the topic with AI and ethics expert, Anna Nicolis, senior manager at Braithwate, who specializes in helping global institutions with risk and compliance challenges.Highlights of this episode include:A look at what the word “bias” really meansThe root causes of bias in society and within AI technologiesWhere AI has potential to help eliminate bias in the compliance lifecycleThe role humans and data play in governing AI modelsFor a deeper dive into what was discussed, check out some of these recommended resources:Association for Financial Markets in Europe (AFME) report, Artificial Intelligence: Challenges and Opportunities for ComplianceInformation on the upcoming EU AI ActFuture of Life InstituteResearch conducted by Moody’s Analytics on the attitudes, adoption, and use cases for AI in the world of risk management and compliance

The rapid evolution and adoption of AI technologies raises questions about how it's perceived and used by professionals working in compliance and risk management.In this episode, we explore the findings from a fascinating original global study, conducted by Moody’s Analytics, that uncovers how compliance and risk management professionals see the role of AI in all its forms.Listen along as host, Alex Pillow, and Paul Nola, Partner at Context Consulting, dissect the findings and discuss the implications of those navigating the AI landscape in the world of risk and compliance.Highlights from the episode include: The origins of the studyThe importance of AI for compliance professionalSignificant and surprising findingsThe advantages and risks of using AI in complianceThe challenges of AI regulation.For additional information, register for our webinar: Navigating the AI landscape: insights from compliance and risk management leaders.If you're interested in building an AI-led compliance program, contact us to learn more about our intelligent screening solution. 

Maire-Claire Le Houerou and Alex Young discuss AML checks for legal clients, generative AI shaping compliance programs, qualities driving AML, and benefits of data management software in the legal sector.

Feeling stressed in the workplace is a shared experience for employees in many industries. And while it's normal for jobs to involve stress, concerns about employee burnout occur when stress is persistent and begins to affect the individual at a professional, personal, physical, and/or emotional level.In this episode of KYC Decoded, we focus on the factors that lead to burnout in the compliance profession.What is burnout?What leads to compliance employee burnout?What can leaders do to address the issue?Host Alex Pillow is joined by Lisa Beth Lentini Walker, former compliance officer and current assistant general counsel of Marqeta and CEO and founder of Lumen Worldwide Endeavors, and Jill DeWitt, current Industry Practice Lead at Moody’s Analytics KYC. Their conversation raises awareness of this often overlooked problem in the compliance world.For additional resources, check out:Lisa Beth Lentini Walker’s book, Raise Your Game, Not Your VoiceLisa Beth Lentini Walker’s articles on wellbeing and stress relief in the workplace

In this episode, host Alex Pillow invites Henry Irish, co-founder of Passfort, and Alex Richter, Head of Passfort, to discuss the SaaS RegTech solution and its impact on anti-financial crime and compliance processes. From the inception of Passfort to its acquisition, they delve into the company's journey. They also explore the challenges, successes, and future opportunities for the platform, including going multi-language and expanding their product resources.

Johanna Konrad, former COO of Kompany and now Managing Director at Moody's Analytics KYC, discusses the challenges of creating a scalable data solution, the not-so-simple task of entity verification, and the benefits of real-time data. The podcast also explores the origin story of a company aiming to aggregate corporate registers worldwide and the importance of back office and customer support in a growing company.

Rupert de Ruig, senior director at Moody’s Analytics KYC, narrates the events that led to formation of an industry consortium, which evolved into a solution that changed the way risk screening is implemented globally. The topics covered include the evolution of SaaS, the mission to reduce false positives in risk screening, and the development of AI in screening. Listen in for an interesting origin story of Moody's KYC solution.

Perhaps it goes without saying that customers of financial institutions who are politically exposed persons (PEPs) come with varying degrees of risk. In addition to their elevated political status, which can make them attractive targets for bribery and corruption, there’s also the subsequent institutional risk of reputational damage and fines from getting your dealings with PEPs wrong. Sometimes you might hear someone refer to needing some "PEP screening" as it if it's a simple process, but even the definition of what constitutes a PEP and the regulation surrounding it is far from one-size-fits-all.In this episode, we are very pleased to welcome PEP experts Colleen Dychdala, Head of PEP data and premium content for Moody’s Analytics KYC, along with Eric Almbladh, who built the preeminent PEP database for the Nordic region - Bogard, which was acquired by Moody’s in 2021. Their conversation with host, Alex Pillow, tackles the complexities of PEP risk management programs, including:The many nuances of what constitutes a PEP and its associated level of riskThe distinction between domestic and international PEPsHow the PEP landscape has evolvedWhere PEP risk mitigation programs go wrongHow PEP screening can scale beyond initial customer onboardingLooking for more information on PEPs? Check out these resources to further your knowledge:FATF PEP GuidanceEU AML DirectivesThe Wolfsberg Group Publication Statement Guidance on Politically Exposed Persons (PEPs)Moody’s Analytics KYC PEP insight piecesReady to take your organization’s PEP risk management program to the next level? Learn how our Grid database can help and get in touch; we’d love to help.

Reflecting on a time you were deceived, did you ever pause first to ask yourself the most rudimentary question: does this make sense? Overlooking this question can lead to bad outcomes for consumers, businesses, and society alike.The art of deception is nothing new, and neither are the subsequent feelings of humiliation and fear victims are left with.Fighting financial crime takes on different forms across various departments, but in this episode of KYC Decoded, we focus on fraud prevention. Joining host Alex Pillow are fraud experts, Greg Richardson, Senior Director of Global Sales at NeuroID, and Kyle Caldwell, Senior Vice President of Fraud Product Management at M&T Bank. Their conversation covers:The many different guises of fraudHow fraudsters steal informationThe impact fraud has on institutions, law enforcement, and practitionersThe critical relationship between highly intelligent fraud specialists, quality data, and advanced technology when fighting sophisticated criminal networksIf this episode left you hungry for more information on fraud, here are some additional resources:KYC Decoded episode, Book club: The Lazarus heistLuke Raven’s LinkedIn post comparing fraud and anti-money launderingTech coalition websiteFrank on Fraud websiteInfamous Ghost Money YouTube channelOur blog, NRRP anti-fraud measures intensify across the EUAnd, if you are ready to take your fight against fraud another step further, please visit our website and get in touch. We would love to hear from you. 

As the desire to build an anti-financial crime network grows, the question arises: how can we get our hands on the most comprehensive and accurate data? When it comes to collaborative financial crime fighting and fraud prevention, the concept of data sharing may seem obvious on the surface. However, delicately balancing regulatory complexities and privacy concerns, can require shifting an entire compliance culture paradigm.In this episode of KYC Decoded, we are joined by experts Taavi Tamkivi, founder and CEO of regtech firm, Salv, and Sverker Tornhagen, Moody’s Analytics KYC Financial Crimes Industry Practice Lead. Listen along to a thought-provoking conversation highlighting topics including:Risks vs. benefits of data sharingThe technology and infrastructure needed to support effective data sharingHow teams benefit from successful data sharingIf you want to take a more active approach to fighting financial crime in your organization, here are some helpful resources mentioned in the episode to help you get started:KYC Decoded episode, KYC Officer of the futureKYC Decoded episode, What’s wrong with AML?Obstacle Is the Way: The Timeless Art of Turning Trials into Triumphby Ryan HolidayFinancial Action Task Force ‘Partnering in the Fight Against Financial Crime: Data Protection, Technology and Private Sector Information Sharing’ reportRUSI Future of Financial Intelligence Sharing ‘Lessons in Private-Financial Information Sharing to Detect and Disrupt Crime’ paperBasel Institute on GovernanceSALV blogTransactie Monitoring Nederland (TMNL)Monetary Authority of Singapore’s COSMIC digital platformCifasLastly, be sure to check out our website and get in touch to learn more.