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Compliance Tech Roundup: Key updates on AML, fintech, virtual currencies, blockchain and more

Thursday, October 26, 2017   (0 Comments)
Posted by: Brian Monroe
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By Brian Monroe
October 26, 2017

October is more than a month for ghouls, ghosts and goblins when it comes to the high-tech side of financial crime compliance. In recent weeks, U.S. regulators and other authorities have made key statements on cybersecurity, fintech, virtual currencies, the blockchain, artificial intelligence and more.

Taken together, the statements give a glimpse of the future when it comes to both financial and compliance innovation and a preview of examiner focal points for advancing technologies that many financial institutions are still only beginning to understand, test and implement.

They also reveal where federal investigators and regulators could be putting additional resources, including in the areas of mobile banking, peer-to-peer payments, online gambling and virtual currency exchanges, the nexus where digital currencies intersect the physical world and formal financial system.

So please enjoy this latest ACFCS Roundup to keep you up on some of the high-tech and rapidly advancing areas of financial crime compliance:

US Treasury report looks at cyber threats, global terrorist financing

U.S. federal agencies need to consider how criminals are exploiting virtual currencies, how the country can strengthen public and private cybersecurity standards and strengthen domestic and international partnerships to counter terror groups and their financiers, according to U.S. Treasury Office of Inspector General report.  

OCC and Treasury comment on fintech, new payments systems

Top officials at the U.S. Treasury’s Office of the Comptroller of the Currency and Federal Reserve touched on how fintech firms and brick-and-mortar banks can co-exist and learn from each other to make payments faster, cheaper and available to more people around the world with an eye toward compliance, in statements, here and here.  

US agency releases 'atlas' for navigating new tech

In tandem, the U.S. General Services Administration (GSA) unveiled the “U.S. Emerging Citizen Technology Atlas,” which the group describes as an “open source one-stop shop for U.S. federal government Artificial Intelligence for Citizen Services, Blockchain, and soon Virtual and Augmented Reality and Social Technologies.”

The site is geared for a wide range of groups, including federal managers, policy-makers, U.S. businesses, researchers, and the public to analyze and update these technologies by detailing:

·         Use cases for the practical application of emerging technologies;

·         Reports from public service workshops, pilots, and initiatives;

·         Paths to current programs in action right now;

·         Resources anyone can use for evaluation, testing, and potential adoption.

IMF head sees 'brave new world' in financial services

Lastly, International Monetary Fund Managing Director Christine Lagarde noted that the finance and compliance sectors are entering a “brave new world,” standing upon the precipice of fintech, AI and virtual currencies, a view toward a future where people can exchange units of value without the need for a central bank, among other major advances, she wrote.  

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