Moody’s Talks: KYC Decoded

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.

The recipe for a successful anti-money laundering program is seemingly simple on paper. But, in practice, getting the right ingredients is not so easy. Without efficiency, modern tools and technology, and a compliance-friendly culture, the final dish is likely to disappoint.In this episode, host Alex Pillow welcomes Carl Kemmerer, Senior Product Manager at NICE Actimize. Carl brings a wealth of experience, having spent twenty years as an AML practitioner in international banking. This dynamic and comprehensive conversation includes Carl’s takes on how AML is going wrong today, including:Inconsistent methods of measuring risk across different banksThe gap between AML expertise and AI expertiseThe lack of holding bad actors accountable and bringing real incentives for those going above and beyondBusiness cultures not prioritizing compliance across all departmentsTo learn more, visit the NICE Actimize website.Curious about how to make AML changes in your organization? Check out our website, and feel free to get in touch – we’re happy to help.

The ACAMS Hollywood 2023 conference was another success bringing industry professionals and practitioners together to discuss AML regulatory trends, emerging technologies, and more. In this episode, host Alex Pillow provides on-the-ground coverage capturing engaging conversations with Kieran Beer, Director of Editorial Content, Chief Analyst at ACAMS; Lukayn Hunsicker, Moody's Analytics KYC Head of New Product Innovation; Richard Graham, Moody's Analytics KYC Industry Practice Lead; Colleen Dychdala, Moody's Analytics KYC Head of Premium Content at Grid; and Modesto Rivero, Moody's Analytics KYC Senior Product Analyst. And, for the first time, Alex takes his turn in the hot seat as he shares his insights with host Jill DeWitt.Listen along for the inside scoop on conference topics, including:The growing role of sanctions in global affairsUpcoming regulations like the Corporate Transparency ActThe increasing importance of public-private partnerships in combatting financial crimeThe friction between data privacy and AML goalsChallenges compliance departments face todayTo learn how Moody's Analytics KYC can help take your AML and compliance programs to the next level, visit our website.

The steadfast enforcement of anti-financial crime regulations in the US often leads to severe financial consequences for offenders. Jill DeWitt, Moody’s KYC Industry Practice Lead for Financial Crime and Due Diligence in the Americas, profiled some US companies that were fined in 2022. While fines ranged from thousands to hundreds of millions of dollars, a few key themes emerged across the board. In this episode, Jill guides us through some observations, including:Business growth vs. Compliance growthStaffing and training complicationsSuspicious Activity Report (SAR) filings and backlogs in CDDScreening issuesGeneral program failuresFor additional information, check out the resources below that were highlighted in this episode:Financial Crimes Enforcement Network (FinCEN)US Department of the Treasury Office of Foreign Assets Control (OFAC)Next generation sanctions screening against IP addresses blogKYC - Driving customer loyalty, advocacy, and business growth blogIf you are looking to take your due diligence program to the next level, please get in touch – we’d love to hear from you. 

The supplier risk landscape for corporates today is shaped by sanctions, ESG commitments, and potential for reputational harm - which is just the start. But amid all this, there is competitive advantage to be found through optimized third-party risk management.No stranger to the topic is Vincent Scales, Director of Third-party Risk Management at Verizon and Chairman of the Board for the Third-party Risk Association. After participating in a primary research study conducted by Moody’s Analytics, Vincent joins this episode of KYC Decoded, bringing the findings of the research to life.Also joining is Enrico Aresu, Moody’s Analytics Compliance and Financial Crime Practice Lead for the DACH region and central eastern Europe.Highlights of this engaging conversation include:Context for increased commitment to TPRMControllable vs. uncontrollable risk in supply chainsThe difference a compliance culture can makeGaining advantage with Governance Risk and Compliance (GRC) platformsFor additional resources, check out:The rising tide of third-party risk management report from Moody’s Analytics, in partnership with Context ConsultingMoody’s Analytics third-party risk management insightsThird Party Risk Association (TPRA) website and LinkedIn profileShared Assessments website and its Standardized Information Gathering (SIG) QuestionnaireTo find out how Moody’s Analytics can help elevate third-party risk management and supplier due diligence in your organization, visit our website and get in touch any time.

Former international sales executive, Richard Bistrong, served time in a federal prison camp after being targeted in a US Department of Justice investigation of a UN supply contract. After fully cooperating, he now dedicates his life to raising awareness and educating companies on the risks of corruption.In this episode of KYC decoded, Richard and Bill Hauserman, Moody’s Analytics KYC head of the Financial Crime Compliance Practice for the Americas, talk about:How expertise, data, and technology should work together to push due diligence forward.The impact culture has when it comes to compliance strategies and mitigating risk.The qualities required of professionals to maintain their integrity and deal with illicit actors.For more information, check out the resources mentioned in this episode:Visit Richard's website at Richardbistrong.com, or email him at Richard@richardbistrong.comFront-Line Anti-Bribery LLCRichard’s compilation of book reviewsThe FCPA blogACAMS websiteACFCS websiteKYC Decoded episode, ‘Modern slavery and how to fight it’If you would like to find out how Moody’s Analytics can help automate your third-party risk management, please get in touch. We would love to hear from you.

The US Corporate Transparency Act (CTA) is coming. It aims to create a national registry of beneficial ownership information. But what exactly does this mean? How will it change the fight against financial crime in the US and beyond? What hurdles need to be overcome? What questions are still unanswered? How can the public voice concerns?In this episode of KYC Decoded, Alex Pillow is joined by lawyer, AML practitioner, thought leader, and current founder and principal of RegTech Consulting, LLC, Jim Richards, and former practitioner and current Moody’s KYC Industry Practice Lead Jill DeWitt. Their conversation explores these questions, and more.After listening to this episode, be sure to check out the recommended resources discussed for further learning:Financial Crimes Enforcement Network (FINCEN): The Anti-Money Laundering Act of 2020American Bankers AssociationRegTech ConsultingAntimoneylaundering.wtfAnd make sure to visit the Moody's KYC website, where you can find even more information about beneficial ownership and customer due diligence. 

If you could look into a crystal ball, what do you think the future would hold for KYC and AML professionals? In this episode, Luke Raven, Senior AML Compliance Manager at Cabital, shares how he hopes this industry will continue to evolve into the next generation, including:Changes to the compliance profession seen so farThe skillsets – and more importantly, attitudes – needed for successThe role technology will increasingly play in effectiveness and efficiencyFor more resources, check out:ACAMSThe Global Coalition to Fight Financial Crime website and LinkedIn accountAustralian Transaction Reports and Analysis Centre (AUSTRAC)TRM LabsFinancial Action Task ForceThe Australian Federal PoliceUK National Crime Agency (NCA)The International Criminal Police Organization (Interpol)If you like what you heard, please check out our website to learn more.