Tag: AML

 

Simon Winchester is the Vice President of Advanced Technologies at Jumio Corporation. His responsibilities entail building the go-to-market strategies for newly acquired technologies within Jumio and then driving the adoption on a global scale. One of the company’s most recent additions is its AML (anti-money laundering) solutions. Tom Fox welcomes him to this week’s show to talk about current world events and the company’s AML solution. 

 

 

Money Laundering in 2022

Tom asks Simon if money laundering schemes have become more ubiquitous since the Russian invasion of Ukraine. Simon replies that the recent events certainly had an impact. He says that money laundering is “criminals taking illicitly-gained funds and then turning them into legitimate cash or assets which are ideally free of suspicion.” At the core of this criminal process are three themes: placement, layering, and integration. Due to the digital environment we live in today, more people from all demographics are comfortable with digital banking, and criminals now find it easier to launder money, which makes it more difficult to detect. Fortunately, Jumio works hard to provide AML solutions and offer more effective compliance programs. 

 

Key AML Regulations

Tom asks Simon what are some of the key AML regulations that Jumio advises clients on. It mostly depends on where your organization is located in the world, as local enforcement bodies drive AML regulations, Simon responds. These regulations will take a cue from international standards set by the Financial Action Task Force, which functions as a “global AML watchdog”. In the UK, the EU AML directives shape policy and provide guidance. Recently, they brought a new directive into effect which “increased the frequency of regulatory updates to the KYC and AML legislation, and brought a strict obligation to industries that were not previously subjected to severe AML protocol,” Simon tells Tom. 

 

Playing Catch-Up With Money Launderers

Tom asks Simon what Jumio sees as the key components of a successful AML program. Ideally, a company providing AML solutions should have a well-defined plan, Simon says. However, that is not feasible given the current climate. The components of a successful AML program, Simon says, include three steps: 

• A dedicated compliance officer who is tasked with creating, monitoring and reviewing the compliance program, and staff training. 
• A written risk-based compliance program with comprehensive AML policies and procedures that are documented. This approach identifies and protects your business from financial crime and includes having the technology in place to support that framework. 
• An appropriate customer due diligence process, which means vetting your clients to avoid financial crimes. 

 

The Role of a CCO in AML Solutions

Simon believes that “Chief Compliance Officers are the catalyst for the growth and innovation”. He acknowledges how CCOs often get the raw end of the deal and their role in the organization must be scrutinized and changed. With the right AML technologies, compliance team, and effective AML program, a CCO and their team can drive shareholder value through organizational growth. 

 

Resources

Simon Winchester | LinkedIn 

Jumio Corporate | Website | LinkedIn | Twitter