ACAMS 2019 Vegas

ACAMS 2019 Vegas: The Inside Track (Day 2)

As the ACAMS annual AML & Financial Crime Conference enters its third and final day in Las Vegas, we take a quick look at what you might have missed from day two. You can still catch up on what we discovered from day one right here.

Day 2: What you (may have) missed

Day two kicked off with some early ‘Risk Assessment Breakfasts’, with a choice of dealing with compliance in online sports betting (with gaming operators being targets of financial crime, including money laundering, tax evasion and corruption); or an identity-based session named how to use breach data to uncover insiders and criminals attacking your business.

Later in the day, here’s what we picked up from the sessions we joined:

Panel Discussion: Burning Issues: Hot Topics in AML, Financial Crime and Compliance

ACAMS 2019 Vegas

With a balanced speaker panel featuring representatives from Credit Suisse, Charles Schwab and Associated Bank, this 70 minute session was moderated by ACAMS’ Chief Analyst and Director of Editorial Content, Kieran Beer. With attendees previously invited to submit their burning questions around AML, ‘nothing was off limits’ for discussion.

Here’s some brief notes on what was discussed:

  • There is a premium on efficiency and effectiveness: what can be done to evaluate current regimes based on data? Is it time for a new framework?
    • Two things the government can do to help the banks: codify their use of tech and push corporate transparency from the time of incorporation so that beneficial owner data is consistently available in the formation documents.
      • This will have an impact on CDD rule and needs more requirements at the state level to support such an initiative. 
    • Solving this at time of formation will introduce additional transparency and also relieve some of the burden on banks of having to validate it
  • Big ticket item: SAR filing regime
    • Questions remain how to prioritize or de-prioritize risk
    • There are complications around additive risks – more complex products, transactions, virtual assets, the move to digital, etc.
    • There’s lots of effort spent on “regulatory defense” – evidencing all the noise/false positives just to adhere to the standard (or care) required and to prove ‘we’re not letting things through’ 
    • Transaction types are getting more sophisticated and faster, so other data quality methods that facilitate end-to-end quality are needed to help scale this and reduce cost
  • Bottom line issue: better global Customer Due Diligence (CDD) is needed to get a full picture within the bank
    • Too many inconsistencies re: SAR sharing (Europe vs US), for example, make the job even harder, because information sharing restrictions get in the way of crime fighting

ACAMS 2019 Vegas

Don’t forget to catch up on what we discovered from day one, and in the meantime you can follow the event on Twitter at #ACAMSVegas. If you’re at the event, please drop by booth #120 to meet the Arachnys team and get a demonstration of how to get the full customer picture.