Emerging payment systems Risks and Regulations: the way forward Can virtual currency replace money? Decentralized Pseudonymous
Not regulated Susceptible to hacks, fraud and theft The risk of non compliance The financial world has been dealing with increased regulation for a few decades 9/11 and the financial crisis have contributed significantly to the compliance burden (and cost) of banks
Authorities have shown zero tolerance for money laundering and terrorist financing If Bitcoin is to succeed, regulation is unavoidable Is Bitcoin still unregulated? Tax authorities have issued guidance on Bitcoin transactions The guidance varies per country. Some consider the
transactions taxable, some levy sales tax on the sale of Bitcoin and some on the services connected with Bitcoin FinCen has issued a statement saying that Bitcoin processors and exchanges may be considered money services businesses under US law Regulation will kick in soon In March 2014, the Monetary Authority of Singapore (MAS) announced its intention to
regulate virtual currency intermediaries for money laundering and terrorist financing risks, making it one of the first countries in the world to do so On July 17, 2014 the New York Department of Financial Services (DFS) issued a proposal for a regulatory framework Other regulators have announced that they are considering
regulation The New York Bit License key requirements Safeguarding consumer assets Virtual currency receipts Consumer complaint policies Consumer disclosures Anti-Money Laundering compliance KYC SAR reporting Cyber security
Dedicated compliance and security officers Capital requirements Disaster recovery What do modern financial crimes have in common? Highly organised They are using online systems to remain anonymous They know how to use multiple service providers and how they interconnect They know exactly where the weak points are and how to exploit them
The rely on speed and stay under the radar Maximizing profit until discovery Onboarding Client experience needs to be top of mind for everyone A bad onboarding experience can lead to prospects dropping out Onboarding institutional clients can be very complicated Compliance requirements are seen as a burden
Regulators start by looking at your onboarding process Behavioral detection to prevent fraud and money laundering = account = within set parameters Transaction amount Outlier Detection
Time between transactions Transaction filtering to prevent terrorist financing Filtering stages Results of activity All transactions in scope for filtering Filtering process
Sanctions Team process Matches (automated) filtering by system Potential hits
(manual) assessment by RTSC Hits (internal) analysis by CAAML Officer Potential Violations
(internal) analysis by Sanctions Team Violations (external) analysis by regulator The future of anti-money laundering
Risk based monitoring Transaction filtering using IP addresses Use algorithms to detect false documents Use AI to detect suspicious patterns Analyse transactions on the Blockchain
Encrypted and anonymous audit chain Automatic exchange of information From Secrecy to Confidentiality Regulation is here to stay Open dialogue with the regulator and the financial industry Pro-active approach on regulation We need more lawyers, bankers and compliance officers!
Lobbying Recruiting and endorsing candidates. Organizing get out the vote efforts. Rating candidates and office holders. Establishing political action committees. Election Activities Leaders, to inspire membership. Patrons, for funding. Members, who are involved at varying levels. Membership helps to overcome...
History of Toulon Public Library 1891-2001 Chronology of Library History 1890-1893, Toulon public library founded 1893-1915, library reading rooms located in Toulon businesses 1915, Toulon library building built with $6000 from Andrew Carnegie 1991, library changed from city to district...
MARPOL - Annex I- Compliance. The main ways an inspector can see if a vessel is following MARPOL procedures are: Inspect the Oil Record Book (ORB) Check that overboard discharge seals are used properly and in place in port. Look...
A little reading goes a long way! Remember: a good 10 minutes is much better than a difficult half hour! Plan a quality, quiet time to read together. Strategies and Reading Behaviours. In school children are taught a range of...
Yes, at G Example 30-01 (cont.) Support Reaction G What equilibrium equation? Example 30-01 (cont.) Draw Section FBD Assume all truss member forces are in tension Example 30-01 (cont.) Equilibrium Equation? Example 30-02 Determine the force in members OE, LE,...
Correspondent banking relationships are effectively agreements for one bank to provide services for another in jurisdictions where the first bank does not have a physical presence. It is a customer-supplier relationship in which the 'respondent' bank is the customer and...
Results of Group Discussion Discussion Points Shipperless and Unregistered Sites have been partly There are a number of Shipperless and Unregistered Sites that have not been addressed by the Shipperless and Unregistered Clearance Project, nor will they be addressed by...
Ready to download the document? Go ahead and hit continue!