AML Custodians™

🚨 Exciting News from AML Custodians! 🚨 We’re thrilled to announce the launch of our Weekly Posts on FinCrime—your go-to resource for insights, trends, and actionable strategies in AML and Financial Crime Prevention! Here’s what you can expect every week: ✅ In-Depth Articles: Tackling the latest challenges in compliance, technology, and regulations. ✅ Trending Topics: Hot discussions on crypto risks, AI in AML, and sanctions screening. ✅ Polls: Your chance to share your views and shape the conversation. ✅ Videos: Quick, insightful takes from industry leaders and experts. 💡 Poll of the Week: 👉 What’s the biggest AML challenge your organization faces today? Increasing regulatory complexity Data overload in transaction monitoring Rising cyber threats Sanctions screening updates 📢 Comment below or vote to join the conversation! 🎥 Coming Soon: Watch our first video next week where we’ll break down “5 Key AML Challenges in 2025—and How to Overcome Them.” 🔗 Follow us to stay updated and make FinCrime prevention smarter, faster, and stronger. #AML #FinCrime #Compliance #RegTech #AMLInsights

𝗛𝗼𝘄 𝗹𝗼𝗻𝗴 𝘂𝗻𝘁𝗶𝗹 𝘁𝗵𝗶𝘀 𝗯𝗲𝗰𝗼𝗺𝗲𝘀 𝗮 𝗿𝗲𝗮𝗹𝗶𝘁𝘆? Fraudsters constantly evolve, finding innovative ways to bypass security systems, regardless of technological advancements. With our personal information and photographs readily available on social media, facial recognition is becoming the next target. Such masks can be custom-made for as little as $10. While some existing facial recognition technologies may be able to counter such threats, relying solely on this method is risky. It's only a matter of time before it's compromised. We need a multi-layered approach strategy to combat these evolving threats effectively. The Fraud Fellas About Fraud Association of Certified Financial Crime Specialists - ACFCS #cybersecurity #fraudprevention #biometrics #facialrecognition #securityawareness #fraud #AI #innovation #statrtups #acfcs #acfcs

Payal Kothari, the relationship manager, HDFC Bank stole Rs 3 crores from a customer’s bank account. Here are the details of case in brief:- - The customer relationship manager took signed blank cheque from a customer for investment in some other securities. - She broke customer’s fixed deposits and transferred the proceeds to some fake accounts. - ⁠The money was later transferred from fake accounts to her account. - ⁠She changed the contact details of customer : contact No and email at back office. - ⁠The customer didn’t receive any alert because her contact details were changed. (https://lnkd.in/gT5nEP9M). As a thumb rule, the bank account holder shouldn’t give signed blank cheques to anyone including bank staff. It will work as her primary protection. Having said that such a case indicates the lack of adequate internal control system in the bank. 1. Relationship Manager getting access to back office operations which allowed her to change the contact details of customers: Contact no and Email Id. 2. Change in contact details of customer without a written request or digital authentication. 3. Opening of Fake bank accounts: lack of adequate KYC procedures before opening a new account. These weaknesses in internal control system described above could result in more such cases. The bank needs to strengthen its internal control system. Comments and suggestions are welcome. NextGen Knowledge Solutions Private Ltd. Naveen Garg CA.CMA Simran Diwedi Vijay Kapur Rahul Ranjan Papiya Banerjee

Webinar Name: AML & FinCrime 2.0: Building a Thriving Career in a Changing World Heamanth K hosting this webinar for Networking & Knowledge https://lnkd.in/dvQEdjak

🌟 Elevate Your Career in AML & Compliance: Join Our Interactive Workshop on Interviewing & Networking! 🌟 Looking to excel in your next interview or expand your professional network? Join us for the Effective Interviewing and Networking Workshop—a session crafted to provide you with practical insights and strategies to stand out in today’s competitive landscape! 🔹 What’s in it for you? Learn essential interview techniques tailored for AML & Compliance roles. Discover networking strategies that foster meaningful connections in the industry. Gain insights from real-world examples and best practices. Receive a Certificate of Participation to showcase your commitment to professional growth. 📅 Date: 23-Nov-24 & 16:00 PM IST 👤 Hosted by: Heamanth K, AML Consultant 📍 Where: Online – https://lnkd.in/gXnfx2MP Whether you’re preparing for an interview or looking to broaden your network, this workshop is tailored for you. Register today to take the next step in your career!

⛓️ #Tuesday Financial Crime #Basics 🌐 #Products - Understanding AML Risks in the NFT Space 🌐 As NFTs grow in popularity, so do the risks of money laundering. Here are key AML concerns associated with NFTs that we should all be aware of: 🔍 #Anonymity of Transactions: NFTs are often bought and sold on blockchain platforms where users can remain pseudonymous. This anonymity can enable money to move undetected. 💰 Subjective, High-Value #Assets: NFTs can have unpredictable prices, often inflated for dubious purposes. This makes it easy to “wash” funds by artificially selling an NFT at a high price, potentially moving illicit funds. 🌍 #CrossBorder, Unregulated Transactions: NFTs can be traded globally with crypto, bypassing traditional financial oversight. This adds layers of complexity, especially in jurisdictions where AML regulations for digital assets are still catching up. 💱 #DeFi Platforms and #Mixers: Many transactions involving NFTs happen on decentralized exchanges or using crypto mixers. This makes tracing funds significantly harder. 📈 Volume & Speed: High transaction volumes, especially around NFT drops, make real-time monitoring a challenge, leaving room for potential abuse. ✨✨✨✨✨✨✨✨✨✨✨✨✨✨✨✨✨✨✨✨ To counteract these risks, authorities and some NFT marketplaces are working to implement stricter AML/KYC policies, such as: ✅ Requiring identity #verification for large or suspicious transactions. ✅ #Monitoring high-value transfers and unusual trading patterns. ✅ Working with blockchain #analytics companies to track suspicious wallet activity. Despite these efforts, regulating the NFT space presents unique challenges due to the decentralized and often pseudonymous nature of blockchain technology. AML risks associated with NFTs are likely to remain significant until regulatory frameworks evolve and more effective monitoring tools are developed. ➡️ As the NFT industry evolves, so must our approach to #compliance and #transparency. It’s on all of us to stay informed and push for best practices that protect both users and the integrity of the ecosystem. Really interesting guide below from Reddit, Inc. #NFT #Blockchain #AML #Compliance #Fintech #Crypto #FinancialCrime #Banking #RegTech #DecisionMaking #CriticalThinking #RiskManagement #bitcoin #doge #cryptocurrency

🪔 Happy Diwali from AML Custodians! 🪔 Wishing our clients, partners, and community a bright and prosperous Diwali! May this festival of lights inspire us all to uphold transparency, integrity, and resilience in the fight against financial crime. Here’s to a brighter, safer financial future. #Diwali2024 #AMLCustodians #AML #FinancialIntegrity

🌍 Seeking Global Partnerships in AML & FinCrime Solutions 🌍 https://lnkd.in/gxf3SSgS

Understanding Client Operations & Risk Appetite in Financial Crime & AML from Heamanth K To know more insights and have strong networking with global financial crime professionals join the group using below link https://lnkd.in/gWKkX5S3 Step 1 - Understand the Business Model Objective: Understand the client’s business model (banking, fintech, payments, etc.) to identify areas of exposure. EU Directive Reference: Under AMLD4 & AMLD5, a risk-based approach to AML/CFT must assess which business areas are most vulnerable to financial crime. Example: Fintech handling cross-border payments faces greater exposure. Enhanced due diligence (EDD) is recommended for high-risk jurisdictions under AMLD5. Step 2 - Analyze Customer Base & Jurisdictional Risk Objective: Evaluate customers to identify high-risk individuals (PEPs) and those in high-risk jurisdictions. EU Directive Reference: Banks must apply Customer Due Diligence (CDD) and identify Ultimate Beneficial Owners (UBOs), especially in high-risk areas, under AMLD4. Example: A wealth management firm with high-net-worth clients needs additional checks, such as sanctions screening and EDD for high-risk regions. Step 3 - Assess Transaction Types & Patterns Objective: Understand the nature of transactions—cross-border, high-value, or high-frequency—and their exposure to financial crime. Step 4 - Identify Emerging Risks Objective: Identify if the client faces risks from new products (cryptocurrency, fintech) or unregulated markets. EU Directive Reference: AMLD5 mandates stricter due diligence for virtual assets and cryptocurrency services. Example: A client offering crypto wallet services must ensure full compliance with KYC and UBO requirements under AMLD5. Step 5 - Understand Risk Appetite Objective: Gauge how much risk the client is willing to take and recommend controls that align with their risk tolerance. EU Directive Reference: AMLD4 requires financial institutions to implement stronger controls where risks are higher, but allow flexibility in lower-risk situations. Example: A global investment firm with a higher risk appetite in emerging markets needs automated AML solutions to streamline due diligence while ensuring strong oversight. Slide 8: Key Takeaways Business Model Risk: Tailor AML controls based on the client’s operations (banking, fintech, etc.). Jurisdictional Risk: High-risk regions require enhanced due diligence and monitoring. Transaction Risk: High-value or high-frequency transactions need stricter controls. Emerging Risks: New products like cryptocurrency bring additional risks. Client’s Risk Appetite: Align controls with the client’s willingness to accept risk. Connect with Me: Email: connect@amlcustodians.com

Fantastic article based on research by an NGO, which I was privileged to contribute. The article discusses the issues caused by automated algorithms in the banking sector, focusing on cases where accounts are incorrectly blocked due to perceived risks. It highlights how banks use AI to monitor transactions, sometimes leading to unjustified actions like the blocking or closing of accounts. This practice, called "de-risking," disproportionately affects vulnerable individuals, including small business owners. The lack of transparency and poor human decisions exacerbates these problems, leaving many without access to financial services. Article is in Spanish but ChatGtP can translate it for you. It is a good use case for the tech, unlike spotting money laundering as claimed by some cluless Regtechs.