AML Conversations

In this week’s episode of This Week in AML, Elliot Berman and John Byrne cover a wide range of breaking developments in the financial crime compliance space. From congressional scrutiny of Jeffrey Epstein’s financial records and FinCEN’s website overhaul to the DOJ’s seizure of fraudulent ID marketplaces, the conversation highlights the growing intersection of policy, enforcement, and technology. They also explore FATF’s new National Risk Assessment Toolkit, the UK’s sharp rise in fraud prosecutions, and the landmark “Failure to Prevent Fraud” offense now in effect. Plus, updates on FINTRAC’s enforcement actions in Canada, and FinCEN’s advisory on Chinese money laundering networks.

Lisa Arquette, recently retired Deputy Director of Operational Risk at the FDIC, shares her extensive insights into financial regulation and the dynamics of risk management. She discusses the evolution of banking through crises like the oil crisis and 2008 meltdown. The conversation dives into the Corporate Transparency Act, the balance between AML compliance and reputational risks, and the critical need for improved financial access for humanitarian organizations. Lisa also highlights career opportunities in the financial crime sector, emphasizing the importance of effective training.

Elliot Berman and John Byrne return with a global roundup of AML developments. They begin with reflections on the Wolfsberg Group’s latest guidance on suspicious activity monitoring, emphasizing innovation and model validation. The Basel Institute’s working paper on collective anti-corruption action highlights the importance of multi-stakeholder collaboration. The episode also covers a UK report forecasting a surge in synthetic identity fraud, a Ponzi scheme involving fake AI investment tools, and a comprehensive look at the evolving stablecoin landscape. Canada’s 2025 national risk assessment is discussed, with insights into NPO risks, fraud trends, and the country’s role in global trade. Additional topics include a local elder fraud case in Wisconsin, a Dutch bank’s challenge to an AI-related AML fine, and upcoming AML webinars and interviews. The hosts close with a tribute to workers ahead of Labor Day and a reminder of the importance of vigilance in financial crime prevention.

In this episode of AML Conversations, John Byrne sits down with Bob Simpson, founder of Daylight AML, to explore the often-overlooked world of mortgage fraud and its intersection with anti-money laundering (AML) efforts. Simpson shares insights from decades of investigative experience, highlighting typologies such as occupancy misrepresentation, cash purchases, and property flipping as vehicles for laundering illicit funds. The discussion also covers the impact of recent regulatory changes, including the rollback of beneficial ownership requirements under the Corporate Transparency Act, and the implications for financial institutions. Simpson and Byrne also examine the global FATF evaluation process, the risks of gray listing, and the transformative role of AI in fraud detection and compliance.

In this episode of This Week in AML, Elliot Berman and John Byrne cover a wide range of pressing global and domestic issues shaping the financial crime prevention landscape. From the humanitarian toll of economic sanctions and corruption risks in Ukraine’s reconstruction, to Australia’s cybercrime trends and the evolving U.S. stablecoin regulatory framework, the conversation dives deep into the intersection of policy, technology, and ethics. They also discuss the controversial “debanking” executive order, the phasing out of federal paper checks, and the disturbing rise of sextortion scams linked to Southeast Asian fraud compounds.

Dive into the intriguing implications of the White House's executive order aimed at ensuring fair banking for all, which may inadvertently heighten risks of white-collar crime. Discover the groundbreaking CI-FIRST initiative that enhances collaboration between the IRS and financial entities to tackle financial crime more effectively. Unpack the significant $26.5 million settlement involving Paxos for regulatory failures linked to Binance, and explore corporate accountability with Liberty Mutual's bribery case, shedding light on enforcement challenges surrounding U.S. sanctions.

Shelby Katona, an expert from AML RightSource, discusses the crucial link between financial compliance and human trafficking detection. She reveals how financial institutions can identify subtle patterns that expose trafficking networks, emphasizing the importance of recognizing transaction red flags. Shelby shares insights on the evolving tactics of traffickers and introduces innovative strategies for monitoring suspicious activities. Her practical tips aim to empower compliance teams to combat this devastating crime and safeguard vulnerable individuals.

In this week's TWIA episode, John Byrne and Joe McNamara cover critical developments in financial crimes prevention across multiple jurisdictions. Cultural Racketeering Crisis Insights from a recent Atlantic Council program reveal Russia's systematic assault on Ukraine's cultural heritage: 200 million books destroyed, 35,000 artifacts stolen, and 2 million artifacts lost. Russian museum officials are personally complicit, prompting President Zelenskyy to issue sanctions against museum directors. Experts highlight AI's growing role in tracking stolen cultural property. Regulatory Updates FinCEN delays the investment advisor AML rule until 2028, citing deregulatory priorities despite acknowledging ongoing illicit finance risks. The President's working group releases digital asset market recommendations, while FinCEN warns about crypto kiosks being used for scams targeting older adults. International Developments The IMF's Canada financial stability assessment raises concerns about banking oversight gaps. New UK guidance addresses Russian sanctions evasion, while a British solicitor faces fines for AML failures in an Azerbaijan-linked property deal, highlighting ongoing gatekeeper compliance debates. The De-Banking Controversy Analysis of the proposed executive order targeting banks for alleged political discrimination. John Byrne challenges "Operation Choke Point 2.0" claims, emphasizing that banks make legitimate risk-based decisions considering credit worthiness and regulatory requirements. Discussion includes potential implications for suspicious activity reporting. Additional Coverage John Oliver's examination of deferred prosecution agreements in corporate crime cases provides context on this controversial prosecutorial tool's AML applications.

Join Amy Petric, a fraud patterns expert, and Ross Yellon, a global payment processing specialist, as they delve into the complexities of synthetic identity fraud. They reveal how fraudsters create fictitious identities using real data, making detection incredibly challenging for financial institutions. The discussion highlights the critical balance between automated systems and human oversight in combating these tactics. With insights on using technology and training staff to recognize red flags, this conversation sheds light on the ever-evolving landscape of fraud.

Nikki Siko, a check fraud and remote deposit expert, and Patrick Haney, a specialist in wire fraud, dive into the shifting landscape of payment fraud. They discuss the surprising resurgence of check fraud and the rise of ACH scams. Real-world examples highlight the tactics used by fraudsters, including social engineering. The importance of customer education and innovative detection strategies to combat these challenges is emphasized. They also reveal insights on banks' varying responses to victims and suspects in fraud cases.