Insights from a Regulator into the application of Machine Learning and AI to enhance compliance

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.

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Topics: Anti-Money Laundering, Compliance, Automation, Machine Learning

How BTC-e's Fall Impacts Every Other Virtual Currency Exchange

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.

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Topics: Anti-Money Laundering, Virtual Currency

Digital Identities - The Key to Better Risk Management

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
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Topics: Know Your Customer, Anti-Money Laundering, Fraud Prevention, Payments, Trusted Digital Identities (TDI™), Risk Management

KYC 2.0 - Conozca a su Cliente en la Era Digital

Read the English Version adapted to US Regulatory Framework >>

Recientemente regresamos de K(NO)W Identity Conference 2017 organizada por One World Identity, la primera conferencia enfocada principalmente en identidades digitales y sus aplicaciones.

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Topics: Know Your Customer, Anti-Money Laundering, Compliance, Fraud Prevention, Trusted Digital Identities (TDI™), KYC

5 Can't Miss Sessions At IMTC USA 2017 - San Francisco

IMTC USA is just around the corner, and this year’s show has a strong agenda that focuses on how the money transfer industry can use technology to improve. The sessions will discuss how particular technologies can be integrated into the operations of Money Service Businesses (MSB) to:

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Topics: Anti-Money Laundering, Compliance, Conferences, Fraud Prevention, Payments

Snowden & KYC

We recently returned from the K(NO)W Identity Conference hosted by One World Identity, the first major conference focused on digital identities. For years identities have been taken for granted, while most business leaders didn’t realize that they sit at the center of every business transaction in the digital era. Our friends from One World Identity not only recognize this, they also understand that education and collaboration are  necessary to unlock the value of digital identities for businesses, regardless of the industry.

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Topics: Know Your Customer, Anti-Money Laundering, Compliance, Fraud Prevention, Trusted Digital Identities (TDI™), KYC

What You Should've Learned at ACAMS - Days 2 and 3

Summary: Days 2 and 3 discussed how ISIS is losing, cyber, the risks associated with banking marketplace lending, what a culture of compliance means, how to handle cyber based extortion, fraud & ransomware attacks, and how AML personnel are dinosaurs.

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Topics: Anti-Money Laundering, ACAMS

What you Should've Learned at ACAMS - Day 1

ACAMS Florida just had three days of Anti-Money Laundering discussion for small and large institutions, law enforcement, and regulators. Listed below are the highlights of Day One,  including what regulatory agencies are looking for, why de-risking isn't going away, how algorithms can make your life better, and how Law Enforcement, NGO’s and Financial Institutions (FI’s) can work together to better prevent money laundering.

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Topics: Anti-Money Laundering, Conferences

Are you a FinTech Start-Up? Know Which AML Regulations Apply to You


U.S. anti-money laundering regulations are extensive, filled with explicit and implicit requests, and require studying. However, the benefit of knowing them is fundamental: It will save you time, money, and maybe your business. 

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Topics: Anti-Money Laundering, Fraud Prevention, Transaction Monitoring, FinTech, RegTech, Sanctions Screening

Six Can’t Miss ACAMS Sessions

The trends for Anti-Money Laundering seem particularly clear this year: 1) More Enforcement; 2) Efficiencies in Compliance, and 3) Challenges with the explosion of FinTech. We can see the reflection of these subjects in ACAMS agenda for their fall conference in Las Vegas. 

These are key sessions at the ACAMS conference that we are looking forward to attend. We have divided them into two categories: 

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Topics: Anti-Money Laundering, ACAMS

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