Tag: Regulatory Ramblings

Regulatory Ramblings: Episode 57 – A Path to Financial Inclusion Through Technology with Eelee Lua

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Post date November 8, 2024
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Eelee Lua is chief of staff and a director at xcube.co – a Singapore-based corporate venture studio. A seasoned business leader in technology specializing in risk mitigation and strategic partnerships, having entered the risk and compliance field 13 years ago and has previously held roles at AsiaVerify and the RISQ Group.

Eelee holds a board director accreditation from the Singapore Institute of Directors and actively contributes to industry communities such as the Singapore FinTech Association and Women In Alliances.

She recently penned an article entitled “Circular Financial Identity—The Missing Piece for Financial Inclusion,” which forms the basis for this episode’s discussion.

In this installment of Regulatory Ramblings, Eelee talks to host Ajay Shamdasani about her piece and how financial inclusion remains a critical global issue, with approximately 1.4 billion people still lacking access to formal financial services. She also shared a little about Defy, an xcube company on a mission to address financial inclusion. Her observation that traditional financial systems often exclude marginalized populations, such as low-income individuals, women, rural communities, and refugees, compelled her to write the article. Financial exclusion not only limits economic opportunities but also perpetuates poverty.

Yet, all is not lost, and Eelee believes technology may deliver true financial inclusion. A promising solution to bridge this gap is Circular Financial Identity (CFI), she says, “which has the potential to transform financial inclusion efforts worldwide.” The key, she says, is understanding CFI because “unlike traditional digital identities that rely on static information and centralized databases, CFI employs a dynamic, decentralized, and interoperable system,” – thereby enabling “under-documented individuals, including refugees, to gradually build their financial identity by capturing their digital financial footprint across various domains such as earning, spending, borrowing, saving, investing, and lending.”

Eelee says the circularity of data, particularly the continuous accumulation and reuse of financial data, creates a comprehensive, robust, and evolving picture of their financial behavior and capabilities, enabling access to a broader range of financial services.

“Circular Financial Identity represents a transformative approach to enhancing financial inclusion. By leveraging digital technologies, CFI can provide underserved populations, including refugees, access to essential financial services, reduce costs, and empower marginalized groups. While challenges remain, the potential benefits of CFI make it a critical piece in achieving universal financial inclusion,” she says.

Eelee also shares a little about her background, upbringing, education, and what launched her toward a career in compliance. She also describes what Xcube does and her own “moment of epiphany” when she realized that the world of cryptocurrencies and digital assets was something important that she needed to pay attention to in the coming years.

Looking ahead, while she thinks Web3 will have a marked impact on banking in Southeast Asia and the Middle East, she cautions that many of the world’s financial institutions have yet to consider the interoperability and integration issues of using such technologies in the current world.

A resolute believer in the power of targeted technology use to aid the perennial global cause of financial inclusion and bring about a more egalitarian world with a more level playing field, the conversation concludes with her reflections on a decade plus in the risk and compliance field and her greatest lessons, challenges, and regrets during that time.

Regulatory Ramblings podcasts is brought to you by The University of Hong Kong – Reg/Tech Lab, HKU-SCF Fintech Academy, Asia Global Institute, and HKU-edX Professional Certificate in Fintech, with support from the HKU Faculty of Law.

Useful links in this episode:

Connect or follow Eelee Lua on LinkedIn
xcube.co: Webpage
Defy: Webpage
About Circular Financial Identity on LinkedIn Post
HKU FinTech’s Financial Inclusion – Research Papers

You might also be interested in:

Must have book by Ross Buckley, Douglas Arner & Dirk Zetzsche – FinTech: Finance, Technology & Regulation
Building Better Financial Systems: FinTech Sustainability – Research
HKU-SCF Fintech Academy – website
Asia Global Institute – website
HKU-edX Professional Certificate in Fintech
Most sought after Fintech course on edX – Introduction to Fintech

Connect with RR Podcast at:

LinkedIn: https://hk.linkedin.com/company/hkufintech
Facebook: https://www.facebook.com/hkufintech.fb/
Instagram: https://www.instagram.com/hkufintech/
Twitter: https://twitter.com/HKUFinTech
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Website: https://www.hkufintech.com/regulatoryramblings

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Tags Eelee Lua, Regulatory Ramblings

Regulatory Ramblings: Episode 56 – The Intersection of Financial Crime and Cryptocurrencies with Chengyi Ong

Post author By admin
Post date October 25, 2024
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Chengyi Ong leads public policy in the Asia-Pacific region for Chainalysis from the firm’s regional headquarters in Singapore. Drawing on Chainalysis’s blockchain data analytics platform, she works with public and private sector stakeholders to distill developments in digital asset markets and their intersections with global and regional regulatory trends.

Before joining Chainalysis, Chengyi spent 13 years at the Monetary Authority of Singapore, holding roles in financial regulation and supervision, financial sector development, and central banking. She also served as the Advisor to the Executive Director for Southeast Asia at the International Monetary Fund.

In this episode of Regulatory Ramblings, she talks to host Ajay Shamdasani about the intersection of money laundering, financial crime, and cryptocurrencies.

The conversation begins with Chengyi describing her upbringing, formative years, career path choice, and time as a regulator at the MAS. She then discusses what Chainalysis does, its market position, and her interest in the digital asset sector.

She shares her views on the rising levels of both crypto-native and non-crypto-native money laundering, why such trends are growing, and the types of crimes emanating from Asia, making reference to key findings from Chainalysis’ recent report on the matter, including the 2024 Crypto Crime Report and the 2024 Crypto Money Laundering Report (links below).

Chengyi also discusses her thoughts on stablecoins being used for money laundering, what her firm’s report says about the destination of illicit funds, and the best ways to prevent crypto-native money laundering – especially in the Asia-Pacific. To that end, she is candid about what regional regulators should do to tackle this issue, noting that more needs to be done. What ensues is a deeper chat about what regulators’ role in ferreting financial crime should be vis a vis cryptocurrency exchanges and financial institutions – the latter of which are financial gatekeepers in their own right.

The conversation concludes with Chengyi reflecting on the arc of her career and how AML regulations have evolved in APAC over the years. She stresses that in an age of aggressive enforcement actions, sanctions, and not insubstantial fines, it will be imperative for organizations to verify the entities they are transacting with and engaging with. She offers some suggestions as to how they may do so.

Useful links in this episode:

Connect or follow Chengyi Ong on LinkedIn
Chainalysis: Webpage
2024 Crypto Crime Report
2024 Crypto Money Laundering Report

You might also be interested in:

Must have book by Ross Buckley, Douglas Arner & Dirk Zetzsche – FinTech: Finance, Technology & Regulation
Building Better Financial Systems: FinTech Sustainability – Research
HKU-SCF Fintech Academy – website
Asia Global Institute – website
HKU-edX Professional Certificate in Fintech
Most sought after Fintech course on edX – Introduction to Fintech

Connect with RR Podcast at:

Connect with the Compliance Podcast Network at:

Tags Chainalysis, Chengyi Ong, Cryptocurrencies, financial crime, Regulatory Ramblings

Regulatory Ramblings

Regulatory Ramblings: Episode 55 – A Former Singapore Regulator Reflects on the World of Virtual Assets with Angela Ang

Post author By admin
Post date October 11, 2024
No Comments on Regulatory Ramblings: Episode 55 – A Former Singapore Regulator Reflects on the World of Virtual Assets with Angela Ang

Angela Ang is TRM Labs’ senior policy advisor in Singapore. TRM Labs is a world-renowned blockchain intelligence company. She is also a former regulator, having spent over a decade at the Monetary Authority of Singapore (MAS), where she was most recently its deputy director in charge of licensing for payments and crypto service providers. Angela has also been recognized as a LinkedIn Top Voice for Finance in Asia for her thought leadership on digital asset developments in the region.

In this episode of Regulatory Ramblings, she talks to host Ajay Shamdasani about growing up in Singapore, spending time in the US, her education at INSEAD, and ultimately, the early days of her career in a business development capacity at the Monetary Authority of Singapore (MAS) where she promoted the Lion City as an international financial center.

Recalling her experiences as a regulator with fondness, she notes that as a MAS officer, she was privileged to see policymaking at the highest level up close—emphasizing that few jobs enable one to work with ministers and policymakers so early in their careers. Notwithstanding the high intellectual rigor of working for a body as mission-driven as the MAS, she stresses that regulators are people, too.

The discussion then moves on to what TRM Labs does in blockchain intelligence and analytics. Angela describes it: “Blockchain analytics is like Google Maps for blockchain. We help clients make sense of public blockchain data and use it to fight fraud and financial crime.” She points out that while the immutable ledger functionality of a blockchain is invaluable, it is often not easily understood by clients, likening it to “looking at a satellite image without context.” TRM, she says, helps make sense of blockchain ledgers by layering information about entities and their risk levels to give clients a better picture.

In that regard, she sees parallels between her time at the MAS and TRM Labs, which also has a compliance-centric business model and is mission-driven. “A lot of our staff have joined [TRM Labs] from the public sector,” Angela says, lauding the firm’s spirit of nimbleness and entrepreneurialism.

She also recounts her first exposure to cryptocurrencies and blockchain in 2015 when her boss asked her to undertake a research project on the subject as part of the MAS capital markets team. Her impressions then and now are that while there is much to be said for the “promise of blockchain,” they need to be weighed against the “technology and risks of investing in crypto”; Angela recalls former MAS head Ravi Menon’s speech, paraphrasing his central policy point of Singapore saying yes to digital asset innovation, but no to cryptocurrency speculation. She said such an approach was prudent for the Lion City to adopt as “crypto will be around for the foreseeable future.”

She then shared her views on the regulation in Asia, stating that the region is leading the pack regarding regulatory clarity. “There has been more movement in crypto regulation across the region, especially in financial hubs like Singapore and Hong Kong,” she says.

For example, Japan (2017) and Singapore (2020) were amongst the first countries to pioneer bespoke crypto regulation, fully realizing the failures of crypto for the investing public over the past decade, she says. “We need to regulate and think about it [crypto] differently.”

There has been massive movement, for example, Singapore’s rules on custody of crypto assets, expansion of licensing requirements, and Hong Kong’s regulation of over-the-counter crypto trading and its virtual asset service provider (VASP) licensing regime this year.

Yet, with Asian jurisdictions at different levels of development, Angela acknowledges that even with digital assets, every Asian regulator will have their philosophy on how to view crypto. She is broadly optimistic about the direction of things, citing the region’s general move towards greater regulatory clarity.

Citing a deep-dive regional survey by TRM’s policy team, the trend worldwide was overwhelmingly (80%) towards tightening regulation and more consumer protection measures.

“Regulation is about control and the requirements needed to prevent illicit activity. Sufficient enforcement is there to ensure consequences,” Angela said, noting that more levers for action against recalcitrant entities were needed.

She added that the authorities also had the responsibility to deeply understand the technology implementation and controls regulated entities must comply with to ensure they meet the requirements of the regulatory outcomes they have in mind. This also requires having enough skilled people to conduct rigorous supervision as needed.

The conversation then turned to the perceived talent shortage in crypto compliance. While explaining that digital finance was different from traditional finance, she said that older principles of compliance and risk management were still appliable, “but the devil is in the details,” adding: “You need good governance and disclosures; it is the same with traditional finance as with digital finance. There is overlap, but the technology of blockchain and crypto creates differences. For example, verifying ownership of a bank account differs from verifying ownership of a blockchain wallet.”

Technology’s changed landscape also gives rise to the related topics of SupTech and RegTech, which are key parts of what TRM does. As Angela explains, crypto compliance professionals use TRM’s tools for ongoing due diligence and transaction monitoring. Yet, regulators also use TRM’s offerings for RegTech purposes – to obtain real-time information about entities’ activities on the blockchain.

“As regulators build their knowledge of blockchain and crypto, we will see greater opportunities for SupTech applications offering real-time monitoring without adding to the [compliance] burden of regulated entities. The goal of SupTech should be to make tools user-friendly for non-experts such as non-cryptographers and non-asset tracers,” she said.

TRM Labs’ data shows that the total amount of crypto crimes emanating from Asia was US34.8 billion, but that is still just 0.63% of the global total. Angela notes that figure is comparable to traditional finance while acknowledging that crypto is borderless and that organizations and syndicates operate across borders across and from Asia.

She says VASPs have evolved to respond better to crypto crime, citing the loss of trust in recent years. “They are winning it [trust] back. As the industry matures, with more governance and compliance, they realize their role in fighting crime,” she said, emphasizing TRM’s role in working with the public and private sectors.

Angela stresses that VASPs have lower rates of crypto crimes with proper licensing and mandated risk controls than in less regulated jurisdictions. While noting that there are different degrees of risk controls, “few exchanges in the world now exist with no risk controls,” she says. Those are high-risk exchanges and conduits for bad actors moving outside regulated parameters. Most exchanges have degrees of risk control, and there has been a leveling up of crypto regulation worldwide.”

Looking ahead, she pointed to market misconduct as an evolving area in digital finance. The Madrid-based International Organization of Securities Commissions (IOSCO) FinTech Taskforce has singled it out as a priority item for crypto regulators, she says.

Useful links in this episode:

Connect or follow Angela Ang on LinkedIn
TRM Labs: Webpage

You might also be interested in:

Must have book by Ross Buckley, Douglas Arner & Dirk Zetzsche – FinTech: Finance, Technology & Regulation
Building Better Financial Systems: FinTech Sustainability – Research
HKU-SCF Fintech Academy – website
Asia Global Institute – website
HKU-edX Professional Certificate in Fintech
Most sought after Fintech course on edX – Introduction to Fintech

Connect with RR Podcast at:

Connect with the Compliance Podcast Network at:

Tags Angela Ang, Regulatory Ramblings, TRM Labs, Virtual Assets

Regulatory Ramblings

Regulatory Ramblings: Episode 54 – From Secret Service Agent to Global Financial Crime Fighter: David Caruso’s 30-Year Journey

David Caruso is the founder and managing director of the Dominion Advisory Group, a consulting firm based in Virginia, near the nation’s capital. The firm works with banks facing regulatory enforcement actions across the U.S., Europe, and Asia. David aids institutions and organizations in navigating financial crime risk and compliance modernization globally.

As a former special agent with the US Secret Service and a graduate of George Washington University since 1996, he has been at the forefront of shaping the financial crime risk and compliance profession more generally. Building anti-money laundering (AML) and sanctions compliance programs at banking and financial institutions across the US and internationally, overseeing headline-grabbing corruption and money laundering investigations, and building and selling a RegTech software firm have afforded him an ideal perspective to reflect on every major issue and trend occurring in the financial crime compliance space for the past 25 years.

In this episode of Regulatory Ramblings, David shares his reflections on a nearly three-decade career in AML and financial crime compliance with our host, Ajay Shamdasani.

He recounts having worked at global institutions like JP Morgan, Riggs Bank, Wachovia, Washington Mutual, and HSBC, to name a few. His notable achievements include his time as Riggs Bank’s chief compliance and AML officer.

In that role, he was hired to address some program weaknesses cited by the US Treasury Department’s Office of the Comptroller of the Currency (OCC). While at Riggs, David’s team uncovered two notorious international corruption schemes involving the government of Equatorial Guinea and former Chilean dictator Augusto Pinochet. The team’s work led to investigations by the Department of Justice and the U.S. Senate Permanent Subcommittee on Investigations.

The cases drew worldwide media attention from justice authorities in the US, UK, Spain, and Chile. The facts uncovered by David at Riggs shook US lawmakers and regulators, kicking off 10 years of active regulatory and law enforcement action against banks across the US.

After Riggs, David founded The Dominion Advisory Group in 2005. From his ringside seat near Washington, DC, he works closely with executive management, boards, and outside counsel to craft responses and build entire financial crime risk and compliance programs to address regulatory concerns—of which there has been no shortage in recent years.

David also discusses the allure of AML and financial crime compliance and what brought him to the professional path he has been on for over three decades. Methodologically speaking, he recounts what has changed in AML and financial crime in that time and what has remained the same.

He concurs that since 1970, so many additional requirements and expectations have been created that AML teams still need to catch up on their primary mission. Reflecting on the impact of the Bank Secrecy Act (1970), the USA PATRIOT Act (2001), the Foreign Account Tax Compliance Act (2010), or FATCA, and the more recent Anti Money Laundering Act (2020), he shares his views on how the impact of regulatory action has distracted from compliance professionals’ more critical tasks—with an eye towards how the regulatory exam-focused mindset of money laundering reporting officers (MLROs) affects operations and innovation.

David also depicts the pervasive and ongoing discrepancies between what domestic and international/supernational policy-setting organizations, like the Financial Action Task Force (FATF), based in Paris, say and what they do. He says, “No one wants to ask if new rules and regulations are working and whether they prevent crime or have the unintended consequence of reducing [economic] growth?”

He acknowledges the degree of geopolitical hypocrisy when it comes to AML and financial crime compliance, as well as when it comes to fighting bribery, fraud, and corruption internationally. Washington, New York, London, and Brussels all too often regulated the financial world. Yet, while the US and UK, and increasingly the EU, are some of the most aggressive jurisdictions regarding financial crime enforcement actions, their regulatory apparatus is often used to further their geopolitical goals. It is a view that many outside the West hold.

The conversation concludes with David’s views on why sanctions against Russia stemming from its 2022 invasion of Ukraine have largely been unsuccessful, how technologies such as artificial intelligence can help AML/KYC/FCC compliance, and what policy recommendations he suggests moving forward.

We are bringing you the Regulatory Ramblings podcasts with assistance from the HKU Faculty of Law, the University of Hong Kong’s Reg/Tech Lab, HKU-SCF Fintech Academy, Asia Global Institute, and HKU-edX Professional Certificate in Fintech.

Useful links in this episode:

Connect or follow David Caruso on LinkedIn
Dominion Advisory Group: Webpage

You might also be interested in:

Must have new book by Ross Buckley, Douglas Arner & Dirk Zetzsche – FinTech: Finance, Technology & Regulation
Building Better Financial Systems: FinTech Sustainability – Research
HKU-SCF Fintech Academy – website
Asia Global Institute – website
HKU-edX Professional Certificate in Fintech
Most sought-after Fintech course on edX – Introduction to Fintech

Connect with RR Podcast at:

Connect with the Compliance Podcast Network at:

Tags AML, Banking, compliance, corruption, David Caruso, financial crime, Regulatory Ramblings, Risk Management, sanctions

Regulatory Ramblings

Regulatory Ramblings: Episode 53 – Advanced Quantum Computing Threatens Blockchain Transactional Security and Anonymity with Kapil Dhiman (Quranium)

Mumbai-based Kapil Dhiman is the co-founder and CEO of Quranium. An entrepreneur to his core with a creative and artistic side—coupled with a passion for problem-solving—Kapil is a seasoned leader with 12 years of diverse international consulting experience in dealing with enterprises, startups, and funds.

He is also a former Web 3.0 leader at PwC India and an award-winning CEO who crafted the Metaverse Startup of the Year 2023 from scratch. Kapil, a distinguished global speaker and author, has helped over 20 startups in the Web3 ecosystem with their go-to-market (GTM) and product strategies.

In this episode of Regulatory Ramblings, Kapil chats with host Ajay Shamdasani on how advances in quantum computing can compromise Blockchain transactional security and anonymity.

Much has been said about quantum computing and how it will revolutionize the world—and part of that is reflected in the new Cold War between the US and China. Beijing is constantly eager to tout its advances in the field, and the American and European mainstream press clamor about how the collective West is falling behind—in a manner almost reminiscent of the US response to the USSR’s 1957 Sputnik launch.

Some, such as Kapil, contend that quantum computing can breach the security of cryptocurrency transactions, notwithstanding the much touted ‘National Security Agency (NSA)-level encryption’ that Polish virtual asset advocates say exists when using a Blockchain.

Kapil shares a bit about his background and the challenges of growing up in a military family with a father he was very temperamentally different from. He recounts the difficulties of starting his firm, the joys and hurts of following an entrepreneurial path, and what he envisages for Quranium.

The discussion defines quantum computing, whether it should be regulated globally, and whether each industry using such computers should devise its own rules. Kapil concludes that each country must decide for itself—in the same way artificial intelligence is regulated globally.

Kapil also shares his thoughts on the notion that AI will come alive once quantum computing reaches a mature state. He addresses the issue of whether there is a mismatch between computing power and the ability to use AI to its fullest potential.

A lingering concern is that AI in its current state is not ‘ real AI’ and that the purest version of AI will require more advanced quantum computing.

The conversation concludes with Kapil commenting on what Web 3.0 means on a practical level. He dispels the cliché that creative and artistic types like himself are not practical and business-savvy, stating that such things can be learned if one is diligent and motivated enough.

Useful links in this episode:

Connect or follow Kapil Dhiman on LinkedIn
Quranium: Webpage

You might also be interested in:

Must have new book by Ross Buckley, Douglas Arner & Dirk Zetzsche – FinTech: Finance, Technology & Regulation
Building Better Financial Systems: FinTech Sustainability – Research
HKU-SCF Fintech Academy – website
Asia Global Institute – website
HKU-edX Professional Certificate in Fintech
Most sought-after Fintech course on edX – Introduction to Fintech

Connect with RR Podcast at:

Connect with the Compliance Podcast Network at:

Tags blockchain, Kapil Dhiman, Quantum, Regulatory Ramblings

Regulatory Ramblings

Regulatory Ramblings: Episode 52 – AI vs. Financial Scams: Why Banks Aren’t Doing Enough in the Fight Against Sextortion and Fraud with Oonagh van den Berg

A lawyer by training and an entrepreneur by vocation, Oonagh van den Berg founded the compliance consultancy and training firm RAW Compliance. She is a highly regarded international compliance professional with two decades of experience in London, Hong Kong, and Singapore.

Growing up in Northern Ireland against the violent backdrop of “The Troubles” during the tumultuous 1980s, she’s a veteran at weathering the sharp, harsh curveballs that life sometimes throws us. She went on to become a lawyer, compliance officer, recruiter, and later, a consultant and educator despite the hardships she encountered as a young girl, such as the Irish Republican Army shooting her police officer father.

This episode of Regulatory Ramblings is topical, timely, and deeply poignant. Oonagh talks to our host, Ajay Shamdasani, about the need for artificial intelligence (AI), mainly by international banking and financial institutions and multinational corporations more generally, to combat financial scams, deep fakes, and sextortion:

It is an issue that hit close to home earlier this summer as Oonagh while working to raise awareness of the matter, learned that her 13-year-old daughter and a few of her school friends became the victims of blackmail because of some innocent photos shared on Snapchat. Raising awareness, Oonagh says, can help prevent others from experiencing the same thing. She shares that RAW Compliance has been working on important awareness videos about social media scams and sextortion targeting pre-teens, teenagers, and young adults.

A recent poll by Europol revealed that cybercriminals are increasingly exploiting new technologies to commit complex and dangerous crimes – and, in many instances, using AI to commit vile acts of violation against the unwitting. For example, malicious large language models (LLM) are used to develop scripts, phishing emails, and online fraud advertisements and to overcome language barriers that allow sex offenders to groom victims in any language and impersonate peers.

Then there is the threat of generative AI because AI-altered and fully artificial child sexual abuse materials are now so realistic and used in sextortion cases that it has resulted in the blackmail and subsequent suicide of some victims.

Additionally, AI deepfakes are becoming more sophisticated and accessible. Such technologies make it vexatious for law enforcement to identify victims and find the appropriate legal framework to charge criminals. Yet, law enforcement has grown more tech-savvy and started using more advanced detection tools. It is still an uphill battle, however, as the authorities are all too often playing catch-up.

Oonagh also discusses her firm’s groundbreaking collaboration to support victims of financial scams and help recover their assets. Together with Nick Leeson, the infamous former 90s-era Barrings trader, the pair combine their expertise to make a tangible difference in the fight against financial fraud. (Links below)

Oonagh says it matters because “Financial scams leave lasting impacts and destroy lives, with little to no help available. Recovery can feel overwhelming. By joining forces, we aim to turn the tide and provide the help and guidance victims need to reclaim their financial futures.”

In her view, banks are not doing enough to help victims of financial scams, mainly due to shortcomings in their technology and fraud detection systems. In the UK, for example, financial crime is a growing issue, with over 3.5 million people affected by scams annually, leading to losses exceeding £1.2 billion.

The problem is equally severe in continental Europe, with countries like Ireland and the Netherlands reporting significant increases in scam-related incidents, resulting in hundreds of millions of euros in losses.

Similarly, in the US, financial scams cost consumers over $3.3 billion annually.

The conversation continues with Oonagh fleshing out how financial institutions can navigate evolving regulations and effectively monitor child sexual abuse materials (CSAM). She also discusses the challenges and strategies for investigating CSAM and human trafficking in traditional and decentralized financial systems. She emphasizes the hurdles of global technology in combating such crimes and estimates the value of suspected CSAM transactions using fiat versus cryptocurrency.

The discussion concludes with Oonagh pointing out that the financial sector has often shirked its responsibility when it comes to anti-money laundering, ‘pig butchering,” human trafficking, and financial scams. The sad truth is that many victims will never truly be made whole.

She stresses that when it comes to law enforcement and investigators, the biggest takeaway for traditional financial crime compliance professionals and blockchain investigators is understanding suspicious red flags and other typologies supporting investigations.

Useful links in this episode:

Connect or follow Oonagh van den Berg on LinkedIn
RAW Compliance: Webpage
Oonagh van den Berg with Nick Leeson, through FundsRehab.com, offers support and solutions for those impacted by financial scams, guiding them through asset recovery. Assistance is available for those in need. FundsRehab.com is dedicated to combating financial fraud and driving change, with updates on their efforts on the website.

You might also be interested in:

Must have new book by Ross Buckley, Douglas Arner & Dirk Zetzsche – FinTech: Finance, Technology & Regulation
Building Better Financial Systems: FinTech Sustainability – Research
HKU-SCF Fintech Academy – website
Asia Global Institute – website
HKU-edX Professional Certificate in Fintech
Most sought-after Fintech course on edX – Introduction to Fintech

Connect with RR Podcast at:

Connect with the Compliance Podcast Network at:

Tags AI, Financial Scams, fraud, Oonagh van den Berg, Regulatory Ramblings, Sextortion

Regulatory Ramblings

Regulatory Ramblings: Episode 51 – The EU AI Act: Why it Matters for Asia and Beyond with Michael Borrelli (AI & Partners) and Anandaday Misshra (AMLEGALS)

London-based Michael Charles Borrelli is a Director at AI & Partners – a European professional services firm for entities subject to the EU Artificial Intelligence Act. It is leveraging over a decade of experience in financial services, compliance, and technology to help clients navigate AI’s complex and evolving regulatory landscape. This includes a strong passion for responsible AI and its potential to create a positive social impact while minimizing its risks and challenges.

In addition to his role at AI & Partners, Michael’s responsibilities include serving as an independent director of finance, as a FinTech ambassador, and as an AI 2030 chapter advisor, where he has made contributions to the development and dissemination of knowledge, best practices, and policy recommendations on AI and FinTech. He also holds a Master of Laws degree in Financial Regulation and Compliance, an Oxford FinTech Programme certificate, and a Google Cloud Introduction to Responsible AI certificate, among others. Michael has been a prolific writer and speaker on AI, FinTech, and compliance, having published multiple articles and delivered presentations at various events and platforms.

Anandaday Misshra is the founder and managing partner of AMLEGALS, a law firm with a presence in key Indian hub cities. The firm is multidisciplinary in its approach and specializes in value and strategy in taxation, technology, commercial litigation, and arbitration. With over 27 years of experience as a lawyer and a strategic advisor, Anand works with clients across various sectors and countries.

His particular areas of practice include arbitration, data protection and privacy, contracts, employment law, taxation, and white-collar crime. He also handles litigation in India’s constitutional courts and has rich experience in M&A, joint ventures, due diligence, and cross-border transactions.

Additionally, Anand has authored multiple books and white papers on various legal topics and has been ranked as one of the “Top 100 lawyers to follow” on LinkedIn globally. He was recently bestowed with LinkedIn’s “Top Data Privacy Voice” badge.

He is also a professional The International Association of Privacy Professionals (IAPP) member and a certified Technical Privacy Masterclass holder. Anand is passionate about advancing his knowledge and skills and contributing more broadly to the legal community and society.

Artificial Intelligence, or AI, has been much in the news recently, with apocalyptic headlines about how it will contribute to unemployment or underemployment by eliminating jobs in some industries and, in some cases, bringing about the end of the human race itself.

In that spirit, we look at the EU AI Act, the world’s first comprehensive AI law, which took effect on August 1, 2024.

The legislation has been called ground-breaking. It aims to ensure better conditions for developing and using artificial intelligence, fostering benefits such as improved healthcare, safer transport, more efficient manufacturing, and sustainable energy solutions.

The European Commission’s proposed regulatory framework for controlling AI systems at various risk levels is still in development.

The intricacies of existing and emerging privacy regulations in the European Union and the challenges facing in-house and general counsel will require clarity. Moreover, whether the United States will take inspiration from the EU’s approach and introduce similar regulations shortly is an open question.

In this episode of Regulatory Ramblings, our guests discuss with host Ajay Shamdasani why the EU AI Act matters for the region and the world and why the EU was keen to pass it. Specifically, they discuss the legislation’s impact on compliance officers and in-house/general counsel at the world’s central banking and multinational corporations—and, more to the point, on businesses, organizations, and individuals operating both within the EU and beyond its borders.

A pronounced concern in the Asia-Pacific and elsewhere is whether the EU AI Act will take inspiration from the US and construe violations of its rules and regulations outside of its borders as warranting its exercise of extraterritorial jurisdiction globally, as was the case for the Foreign Account Tax Compliance Act (FATCA) and all the controversy and rancor it caused a decade ago.

As Michael points out, the EU likely needs more resources and capacity to enforce its will internationally, as the US does.

The conversation concludes with speculation over whether the US will enact its AI law with rules comparable to the EU’s. Anand also discusses the impact of AI on India’s information technology sector.

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Connect with the Compliance Podcast Network at:

Tags Anandaday Misshra, Michael Borrelli, Regulatory Ramblings, The EU AI Act

Regulatory Ramblings

Regulatory Ramblings: Episode 50 – Hong Kong to Dubai and Back Again Reflections on A Career in FinTech Ep with Syed Musheer Ahmed

Syed Musheer Ahmed has extensive experience in capital markets, fintech, and virtual assets, including a decade as a global markets trader before coming to Hong Kong to attain his MBA from the University of Hong Kong and London Business School’s joint program.

Since 2016, Musheer has contributed extensively to building the region’s fintech and virtual asset ecosystem, particularly as the co-founder and the inaugural general manager of the Fintech Association of Hong Kong.

For the last five years, he has been the managing director of FinStep Asia – a firm he founded to provide venture-building and empower cross-border bridges across Asia. In the interim, from October 2022 to January 2024, he served as a financial markets risk assurance lead as part of the foundational team of the Virtual Assets Regulatory Authority (VARA) in Dubai.

In this episode of Regulatory Ramblings, Musheer chats with host Ajay Shamdasani about his background, growing up in India’s information technology hub, Bangalore, his initial training as an engineer, and his stint as a regulator in the Mideast’s Manhattan.

As the discussion progresses, Musheer reaffirms his faith in Hong Kong as a place for FinTech and crypto entrepreneurs, discussing what it is about the city and the field that continues to attract and amaze him.

He also stresses that in the evolution of FinTech, the field has long since passed the nascent stage and is no longer all that new and glamorous since the advent of the iPhone in 2007 and Satoshi Nakamoto’s paper on Blockchain first released in 2009. Yet, he acknowledges that technological innovation continues, as he shares his thoughts on the regulatory approaches taken across Asia by mainland China, India, Singapore, and Hong Kong – and the similarities and differences between some of the major jurisdictions.

While virtual assets have evolved in some parts of the world, in others, they are still somewhat of a grey zone. Musheer also comments on the prospects for cross-border crypto regulation in the Asia-Pacific or even internationally evolving to harmonized rules, mutual recognition, or common passporting—as was discussed a decade ago for the investment funds sector.

He also shares his views on choosing between stablecoins and central bank digital currencies (CBDCs), which are not binary. Musheer emphasizes that it is not an either-or choice because both fulfill different purposes.

The conversation concludes with his assessment of the potential for Hong Kong and mainland China to collaborate with the Middle East’s FinTech and virtual asset hubs, such as Dubai.

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Tags fintech, Regulatory Ramblings, Syed Musheer Ahmed

Regulatory Ramblings

Regulatory Ramblings: Episode 49 – Digital Currencies and Public Law with Andrew Mazen Dahdal

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Post date July 19, 2024
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Dr. Andrew Mazen Dahdal is an associate professor at the College of Law at Qatar University in Doha. He received his Ph.D. from the University of New South Wales, where he received an Outstanding Achievement award in 2014 for his dissertation on the necessity of historical analysis in constitutional interpretation.

Andrew has also taught constitutional and commercial law in Australia and Europe full-time as an adjunct. Writing on law, technology, and global legal frameworks, Andrew is now focused on exploring the intersections between private and public law, specifically the technocratic connections between constitutional and commercial legal frameworks.

This episode of Regulatory Ramblings discusses his upcoming book, Digital Currencies and Public Law: History, Constitutionalism, and the Revolutionary Nature of Money. In it, he advocates for deeper engagement by public lawyers in digital currency developments that threaten dramatic changes in the relationship between individuals and government authorities.

As Andrew shares with our host, Ajay Shamdasani, no modern issue is more widely acknowledged and less understood than that of digital currencies. However, constitutional scholars’ voices must be included in the prevailing digital money conversation. For example, private law scholars grapple with the legal questions raised by digital currency models in property and contract. Alternatively, public law scholars have yet to appreciate the moment’s significance.

Andrew argues that the challenge of understanding the technical dimensions of digital money innovations has obscured the potential constitutional revolution that digital currencies represent. His book starts with the premise that ‘money’ is best considered a constitutional phenomenon. When seen in that light, it becomes clear that changes like money represent changes in political and constitutional arrangements.

The discussion elaborates on how and why that is so by examining historical episodes where the nature of money was linked to renewed constitutional settlements. The book distills a core set of principles linking aspects of monetary innovation, such as technical control of the money supply, to constitutional positions, such as executive fiscal accountability. From such principles, a conceptual framework is proposed that translates the specific attributes of digital currency proposals into the language of constitutional dynamics.

Andrew also recounts what it was about digital currencies that initially piqued his curiosity as a constitutional scholar and, ultimately, what compelled him to write the book. He also shares his thoughts on what he feels the book adds to an already crowded marketplace on the subject matter.

He concludes that cryptocurrencies and virtual assets herald an opportunity for wholesale constitutional reform the world has yet to see. Andrew notes that indeed, when it arrived on the scene, and its most ardent advocates were anti-statists, anarcho-libertarians—and even to some extent today—the rise of Bitcoin and digital assets writ large can be seen as a political movement in search of an ideology.

Looking back on the development of money, Andrew said every fiat currency has been a form of cash, albeit stripped of its intrinsic value. Moving forward, he said, there was no way to have a robust conversation about money and digital change without interrogating competing monetary forms.

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Tags Andrew Mazen Dahdal, Digital Currencies, Public Law, Regulatory Ramblings

Regulatory Ramblings

Regulatory Ramblings: Episode 48 – Defeating Money Laundering with Rational Thinking, Not Compliance Red-Flags with Mariola Marzouk (Vortex Risk Ltd.)

Dr. Mariola Marzoukis isan anti-money laundering (AML) professional with extensive experience in regulatory software and consulting across the public and private sectors. Her career has involved working with global banks on how to use technologies to address regulatory compliance demands.

In 2023, after completing her doctorate in criminal justice focused on trade-based money laundering (TBML) and technology, she co-founded Vortex Risk Ltd. with her colleague Dr Nicholas Gilmour (himself a guest on episode #18 of Regulatory Ramblings). The firm provides insights into money laundering practices to individuals and organizations worldwide. Vortex Risk’s approach empowers clients by offering perspectives akin to rational-thinking criminals operating discreetly to evade regulatory suspicion.

Over the course of her career, Mariola has held strategic product management positions at internationally recognized companies such as British Aerospace and Engineering (BAE) Applied Intelligence, EY, NICE Actimize, and Napier AI.

She specializes in financial crime prevention and has demonstrated expertise in detecting money laundering schemes using advanced technologies. Over time, her focus extended to the ever-growing specter of TBML, and her research in this area has garnered recognition within the industry. Mariola’s pilot study on Brexit’s impact on TBML has been published in the Journal of Money Laundering Control, featured on GTR News, and cited by the Institute of Export and International Trade UK.

In this episode of Regulatory Ramblings, she chats with host Ajay Shamdasani, describing her path from Poland to the UK, first as a student and now as a much sought-after financial crime professional in London.

The conversation underscores Mariola’s philosophy: defeating money laundering requires rational thinking and not merely compliance red flags. She eschews the notion of compliance as an exercise in perfunctory box-ticking and form-filing – a perennial lament in the profession.

She shares that her approach towards AML more generally is to precisely deploy RegTech to aid regulated entities in detecting criminality. While acknowledging that data analytics and artificial intelligence (AI) are essential tools in the battle against financial crime, she stresses that technology is not a panacea and works best when used in tandem with the skills, temperament, wisdom, and judgment that experienced professional researchers and investigators have developed over time. AI is no substitute for analysis by a human and good old common sense.

Mariola admits that while she does not have a background in science, technology, engineering, or math (STEM), her experience as a product manager and corporate strategist has afforded her insight into what customers need from technical solutions and a sense of discernment about when to apply which technologies, if at all. While not a techie per se, she has developed an understanding of technological development and how and when it should be deployed to solve specific problems. Ultimately, tools should meet the objectives of problem-solving, she says.

She recounts the various learning curves she experienced from the business side while coping with the more technical aspects of roles throughout her career.

The discussion concludes with Mariola stating her views on the prevailing hypocrisy in AML and sanctions enforcement. The financial world is all too often regulated from Washington, New York, London, and Brussels. Yet, while the US and UK are some of the most aggressive jurisdictions regarding financial crime enforcement actions, their regulatory apparatus is often used to further their geopolitical goals. It is a view outside of the West that Mariola says is not without merit.

Podcast Discussion

3:09 Mariola Marzouk’s Journey into Financial Crime

9:58 Combating Trade-Based Money Laundering: A Personal Pursuit of Restorative Justice

15:25 Disrupting the Norm: Money Laundering and Regulatory Realities

26:43 Unveiling Trade-Based Money Laundering: Beyond Trade Finance Myths

35:03 Technology in Regulatory Compliance: Unfulfilled Promises and Hidden Realities

41:08 The Disconnect and Challenges in Developing Effective RegTech Solutions

50:20 Challenges of Automation and Critical Thinking in Financial Crime Compliance

1:02:52 Assessing the Effectiveness of Sanctions Amidst Strategic Adaptations

1:06:34 Bridging Divides through Education

1:12:57 Gender Dynamics and the Future of Anti-Money Laundering

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Tags compliance, Mariola Marzouk, money laundering, Rational Thinking, Regulatory Ramblings

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