RegTech – Not Just for Startups
By Michael Kerman | October 29, 2018
After the 2008 crisis, financial institutions faced a mountain of new regulations and related challenges around data collection, monitoring and reporting. Hundreds of Regulatory Technology (RegTech) startups sprang up to help. But there’s one thing that’s often overlooked in the dynamic RegTech space: it’s not just about startups.
Eight Reasons Why Search Engines Are Not Due Diligence
By Michael Kerman | October 11, 2018
Search engines are free, easy to use and powerful. Could you use them to run a KYC/AML screening program? You could - but in the end, it will expose you to significantly more cost and risk than opting for a purpose-build solution. Here are eight reasons why.
It Takes Two To Tango: The Interdependence of Data and Technology
By Michael Kerman | September 18, 2018
Everyone’s talking about artificial intelligence and machine learning (AI and ML). But what’s often overlooked is the degree to which they depend on good data in order to be effective. It’s a symbiosis that is particularly relevant to compliance, where AI and ML have huge potential to reduce costs and risk.
Insurers turn to artificial intelligence in war on fraud
By Steven Melendez | June 26, 2018
(A version of this article was originally published on FastCompany.com)
Using artificial intelligence to pick out inconsistencies and unusual patterns has quickly become standard for insurance companies, whether they’re looking for sophisticated rings of fraudsters rigging auto accidents or just individuals embellishing how much their damaged property was worth.
Modern Slavery Typologies for Financial Services Providers
by The Mekong Club | June 26, 2018
This project aims to equip financial service professionals with an understanding of the trends and typologies that are present in modern slavery. This will enhance their ability to assess and mitigate risk within their client portfolios, and identify red flags for better monitoring and reporting of suspicious activity.
Surfing Uncertainty To Confront Terrorism Financing
by Thomas M. Obermaier, RDC | June 19, 2018
Keynote presentation to the FinTech FinCrime Exchange (FFE) in London, UK on June 19, 2018 on the application of analytics and advanced technology to focus on better identifying and eliminating the use of terrorist financing.
Ran Weissblech: Five Key Points of the Upcoming Fifth Anti Money Laundering Directive
By Ran Weissblech | September 24, 2017
(A version of this article was originally published in LinkedIn)
1. Beneficial Ownership Registers. Under 4AMLD, businesses have an obligation to hold beneficial ownership records, with individual Member States having to obtain and hold accurate and current information on corporate and other legal entities. It has been proposed that under 5AMLD, EU citizens will be granted access to these beneficial ownership records, even without having to demonstrate a 'legitimate interest'. Trusts will also now be required to meet the full transparency obligations which incorporate the beneficial ownership requirements.
Dan Adamson: Sorry, but a Google search isn’t due diligence
By Dan Adamson | Wednesday, September 21, 2016
(A version of this article was originally published in the The FCPA Blog)
I cringe when compliance teams rely solely on Google to investigate and make decisions. No offense intended to Google, but it’s simply not designed for sophisticated investigations. Yet, an overwhelming majority of compliance teams employ Google as their primary research tool.
The biggest issue with Google searches is the abundance of false positives flagged in the process. If the only information that can put into a single search field is a name and some bad words, numerous incorrect subjects that will be presented. That forces a researcher to investigate each one, creating a drag on time and budgets dealing with extraneous information.
Deep Learning Is Going to Teach Us All the Lesson of Our Lives: Jobs Are for Machines
Note: It is high time deep learning enters the AML space.
Writer: Scott Santens - (An alternate version of this article was originally published in the Boston Globe)
On December 2nd, 1942, a team of scientists led by Enrico Fermi came back from lunch and watched as humanity created the first self-sustaining nuclear reaction inside a pile of bricks and wood underneath a football field at the University of Chicago. Known to history as Chicago Pile-1, it was celebrated in silence with a single bottle of Chianti, for those who were there understood exactly what it meant for humankind, without any need for words.
Compliance is a Competitive Advantage
Chief Executive Officer, RDC
It is amazing how often this notion still is dismissed out of hand. To many, the thought is simply incredulous: "Compliance is nothing more than a tick-the-box business: do the minimum, stay out of trouble and focus on growing your business through all other means." There is absolutely no benefit to a firm from doing anything more. Being great at compliance will not lead to selling more mortgages, car loans, bank accounts or any other revenue driver of a modern financial services firm.