Marie Lundberg and Sam Sheen are joined by Ina Rothe who explains the twists and turns of using Germany's Company Register (referred to as the Transparency Register) as part of the KYC process.  Did you know that Germany has more than one register or that the information you want might be spread across several different registers? Or how about needing to pay to get access to some KYC information and the various exemptions that allow some legal entities to provide nothing at all? If you work with customers who have businesses using German legal entities, this episode is a great practical tutorial on how to wrangle this no-so-transparent corporate register.

AND as they say, serendipity is a funny thing - following the recording of this episode, a new law, the Transparency Register and Financial Information Act, came into force in Germany on 1 August 2021.  The changes it introduces are intended to transform the German Transparency Register to  provide direct information on beneficial owners for all legal entities with very few exceptions - without having to refer to other registers as has been the case up until now.  Many a legal entity so far exempt from notifying the transparency register of their UBOs will now have to make the effort to report UBO information, even if it may already be listed on other registers. There is a transitional period for legal entities to comply and report and users of the transparency register may - in theory - expect completion of UBO input by the end of 2022. 

Jane Jee, Chair Kompli-Global Limited and Chair Project Financial Crime, Emerging Payments Association (UK) talks to Marie Lundberg and Sam Sheen about her involvement in the pre-consultation in her role with the Emerging Payments Association to urge the UK Government to engage more with RegTechs as part of their planned review of the Money Laundering Regulations and the plans in the UK for its well known corporate registry - Companies House. Jane shares the story of Kompli's evolution of its financial crime RegTech and how it has leveraged the data from Companies House to better detect odd things in the registry's data. 

Jane, Sam and Marie look at the nine-fold increase in requests for information by enforcement from Companies House for investigation purposes; the upcoming changes that will be introduced by the registry to change the way in which they operate, their powers to verify data, requiring companies to do more in terms of how they supply the data, Companies House business plans involving massive transformation from technology usage, process and even culture. Jane talks about the extent to which Companies House has reached out to RegTechs to see what the potential tools at their disposal are along with the overall need by regulators to also harness the use of RegTech to undertake their supervisory tasks and make them more efficient.

Jane concludes her chat by sharing some sage advice on how best to check the data on a register and the places KYC reviewers may not think to look for that might suggest a financial crime red flag has unfurled. 

Marie Lundberg and Sam Sheen are joined again by Al Catto, Managing Director of Beyond, to discuss all things change related when it comes to AML/CFT compliance programs. We start Part 2 by discussing the way in which FinTech's approach change and its impact on key AML projects; the importance of test planning to make sure the change you want has the intended impact,  and the politics involved in major change initiatives. We also explore the risk of being too inflexible when it comes to your change plan, how it's unrealistic to expect it to all go perfectly and the value in being flexible - you don't always get it right even as the Change Coordinator. We also consider how best to deal with those "naysayers" who have little faith that the RegTech you want to use will improve your customer onboarding. And finally - what makes for a a successful "change conductor" - should you wallow in the compliance drama or can you rise above the mayhem like a former colleague known as "the Smoke" (you'll have to listen to find out!).

Ch-ch ch-ch changes! Al Catto joins Sam Sheen and Marie Lundberg to talk about his company, Beyond and their speciality - change transformation involving AML/CFT programmes.  Turning around failed RegTech or even onboarding processes is no easy task. Al shares his insights on the good, the bad and the ugly when it comes to successfully implementing a transformation project.  Want faster KYC? Streamlined CDD onboarding? Will KYC RegTech solve the cost of compliance every time?  And where does customer data fit into all of this?  Learn about the tips - and traps - that firms often fall into when trying to solve that ever present problem - the balance between operations and customer satisfaction and the cost of financial crime compliance. Part 1 of 2 podcasts.

David Christie, Chairman of Bleckwen, joins Marie and Sam to chat about the amazing world of behaviour detection and how Bleckwen has harnessed machine learning to better detect fraudulent and suspicious behaviour. With a name linked to a "truth serum", Bleckwen has been involved in some "deep truth" investigations dealing with better detection of complex fraud such as PPP fraud, where it is a challenge for banks with larger legacy systems. Credit origination fraud, synthetic ID fraud, and oddities in transaction monitoring patterns, according to David it's all about behaviour.  Marie dives into the use of graph theory - did you know it was used to design London's tube system? - the same approach is used by Bleckwen to identify patterns across banks accounts and parties, how they interact, how often and other similarities.  David also explains how they encourage their team to go further afield to keep their thinking fresh - could Tweets prior to the Catalan unrest in 2018 have helped to detect it earlier?  Sharing their intelligence and some of their algorithms to the wider financial crime prevention community (for free) is an important part of Bleckwen's approach to being a part of the financial crime community. 

Sam Sheen and Marie Lundberg are joined by Aamir Hanif, a globe-trotting financial crime compliance expert, to talk about all things related to free ports and free trade zones.  Having been identified as having an elevated risk for financial crime, Aamir explains how Free Trade Zone companies are operated, who controls them, accessing KYC information about their UBOs, while Marie raises a good point: Maybe when it comes to free ports, what do we need to do to "know your container".  With reported risks of FTZ and the link connected to the volume of conterfeit goods traded in a country.  With the UK soon introducing its own free ports post-Brexit, this is a must listen for fellow financial crime compliance professionals.

Elizabeth Slim joins Sam Sheen and Marie Lundberg to chat about the Anti-Money Laundering Act 2020 (AMLA) and how this significant reform will impact areas such as Beneficial Ownership rules, FinCen's planned review of the art market from an AML perspective and whether overseas businesses with subsidiaries in the US need to comply with these requirements. They also consider the not-so-simple UBO rules, when companies must register their owners and the many exemptions offered under the AMLA Act , expanded provisions for US government to obtain records from non-US banks and how they could lose their correspondent bank account if they fail to cooperate. And of course, sharing of information between entities as part of a new pilot project.  Part one of two.  

Elizabeth Slim joins Sam Sheen and Marie Lundberg for part 2 to chat about the Anti-Money Laundering Act 2020 (AMLA) and how this significant reform will impact areas such as new protections for corporate whistleblowers that now includes MLROs, auditors or even an attorney, along with the upping of the payments made to them. They also consider whether an overseas staff member is protected under the AMLA if they blow the whistle on financial crime in their sister company in the US, an update on Virtual Asset Service Providers, antiquity dealers joining the regulated AML family and new provisions for enforcement actions and penalties.  Look out - bonus claw backs and banning from acting as a director in the future are now in the goody bag of penalties!

Eric Sohn joins Marie and Sam to talk about some recent decisions and fines imposed by the US sanctions regulator, OFAC, and their possible implications for firms and how they conduct sanction KYC and screening. This is a must listen to episode as Eric and Marie share their practical advice the different ways professionals can approach their list management practices, how they conduct sanctions KYC and what it means to take a risk-based approach. 

Marie Lundberg and Sam Sheen chat with Encompass Co-Founder and CEO Wayne Johnson currently in Australia, to chat about the goal of achieving a single digital risk profile of a customer, as part of a tech-enable financial crime prevention programme.  Wayne explains the concept of "Intelligence Process Automation" or IPA, and how it's intended to make the onboarding process of customers more efficient and effective, while still detecting bad actors.  And no chat about KYC would be complete without  touching on the challenge of adverse media screening, the goal of having a "single KYC digital customer profile" and a "show and tell" us story where Wayne explains how his company, while running a demo of their technology to one bank, revealed just who really owned and operated one of its customers.

Sam Sheen and Marie Lundberg welcome George Voloshin back to the podcast, where they look at the European regulations that prevent businesses from refusing business on the grounds of needing to comply with the USA sanctions regulations related to Iran.  George and the hosts look at court decisions where companies have been challenged by customers who've refused services or ended business relationships - and whether the reasons they gave were considered compliant with the EU Blocking Regulations.  This podcast considers how contract clauses used in your customer agreements may clash with your firm's sanction compliance obligations under those Regulations. Why did one firm successful defend their "No Iran business" OFAC clauses because of correspondent banking?   As always, nothing is as simple as it seems when it comes to sanctions compliance!