We’re gearing up for Money20/20 in Las Vegas, the unmissable conference for those in payments and financial innovation. With about 12,000 attendees, the four-day show promises insights from hundreds of speakers on a broad range of topics, with valuable discussions and opportunities for start-ups and established companies alike.
Disclaimer:the information contained in this blog post should not be construed, as legal, accounting, or tax advice or opinion provided to the reader by Andy Lee, CPA or IdentityMind Global. This material may not be applicable or suitable for the reader’s specific circumstances of needs. Therefore, the information should not be used as a substitute for consultation with professional legal, tax or other competent advisors. Please consult your advisors before taking any action based upon this information.
Is this a Déjà Vu?
Do you remember what you were doing in late 2013 – early 2014? I do, I was scrolling through my LinkedIn, Facebook, and Twitter feeds and it was all about Bitcoin. Bitcoin had recently crossed the $1000 threshold for the first time, and two days later one coin was worth almost as much as an ounce of gold. I remember reading about this and thinking, “This could shape our relationship with currency in the future, and even change the way we think about stores of value” – not an easy thought, especially for an economist.
The Office of the Comptroller of the Currency (OCC) recently announced its continued support for providing financial technology firms national banking licenses. On July 19th, Keith Noreika, acting Comptroller of the Currency, said, “We all need the federal banking system to be more inclusive, to accommodate new banks, and to adapt to the changing needs of the marketplace, customers and communities,” citing “responsible innovation” as the driving force for such measures.
It’s been a busy year for Financial Institutions worldwide. And even though the regulatory landscape began to clear due to ongoing dialogues between regulators, examiners, and businesses, financial organizations still have challenges to face when it comes to bridging the gap between their brick-and-mortar operations and the newer digital channels.
Scott W. Bauguess is the Acting Director and Chief Economist at the Division of Economic and Risk Analysis (“DERA”) from the US Securities and Exchange Commission (“SEC”). He recently gave a Keynote speech: “The Role of Big Data, Machine Learning, and AI in Assessing Risk: A Regulatory Perspective”, that many people missed. In it he covered how the SEC is taking advantage of these technologies, and more importantly where they are not, at least not yet.
Following Anti-Money Laundering Regulation is Required, Everywhere
Last Tuesday, Alexander Vinnik was arrested and charged with 21 counts of Money Laundering for his alleged role in running BTC-e, a virtual currency exchange, and laundering proceeds stolen from the Mt Gox exchange. BTC-e was well known for not having sufficient AML requirements, requiring customers to only provide an email address and likely failing all 5 pillars of AML.
Ever since we started working on Digital Identities in 2012, our focus has been knowing and mitigating the risk of transactions. There is the risk in:
- Financial transactions (payment, deposits, transfers) where there is movement of money
- Onboarding transactions (new customer) where you need to understand whether you should do business with an individual or an organization
- Activity transactions (logins, password changes) where mundane actions may indicate larger concerns