Compliance Officers Playbook

Discussing Amlcube.com 's recent document covering five of the most significant crypto crimes in history. The report highlights collapses at FTX, OneCoin, BitConnect, PlusToken and Thodex. FTX saw $8 billion disappear due to diverted customer deposits. OneCoin, BitConnect and PlusToken are exposed as Ponzi schemes or exit scams. Thodex involved a CEO fleeing with $2 billion, leaving users lock...

South African financial institutions face a rising tide of financial crime enabled by artificial intelligence. Nearly 60% have observed an increase in these technologically advanced crimes, driving up compliance costs to an estimated $1.4 billion. Firms are investing in AI-powered monitoring systems and blockchain to combat this growing threat. Public-private partnerships are increasingly importan...

The collection of articles from McKinsey on Risk addresses institutional resilience in the face of global challenges.  It emphasises strategic approaches to risk management, moving beyond traditional defensive measures. Several articles explore specific risks, including ransomware, non-financial institutional risk and the impact of climate change. The collection provides valuable insights for firm...

Crypto lending, borrowing, and staking involve users transferring crypto-assets in exchange for collateral or future returns.  This system, along with Decentralised Finance (DeFi), aims to replicate traditional finance on blockchain networks, but without intermediaries.  The EU's engagement with DeFi is currently limited, with the main activities being staking, lending, borrowing, and exchangi...

This European Central Bank (ECB) document clarifies supervisory expectations for banks' Internal Capital Adequacy Assessment Processes (ICAAPs) and Internal Liquidity Adequacy Assessment Processes (ILAAPs).  It highlights governance expectations, focusing on continuous processes with strong internal controls and management body approval. The guidance covers forward-looking capital and liquidit...

The episode explores the convergence of artificial intelligence (AI) and blockchain technology within Regulatory Technology (RegTech) to modernise regulatory compliance in the financial sector.  It addresses the increasing complexity of regulations and the heavy infrastructures required to meet them.  The text details how AI can collect and analyse financial data, generate reports, and provide cry...

During Donald Trump's presidency, the United States shifted from using the Trade Act of 1974 to the International Emergency Economic Powers Act (IEEPA) to enact tariffs. This change potentially allowed for quicker implementation and broader application of tariffs. Initially, tariffs were imposed on steel and aluminium, with exemptions negotiated for some nations. However, in 2025, tariffs were...

This episode discusses Project Rialto, an initiative exploring how decentralised finance (DeFi) can improve cross-border payments.  The Bank for International Settlements (BIS) report highlights that retail cross-border payments, currently a multi-billion dollar market, suffer from inefficiencies.  Project Rialto aims to demonstrate the feasibility of using interlinked instant payment systems with...

Artificial intelligence is significantly reshaping the banking sector by improving efficiency, mitigating risks, and personalising customer interactions. Financial institutions are employing AI to streamline operations, detect fraudulent activities in real-time, and deliver tailored services. AI-powered chatbots, advanced data analysis for credit assessments, and predictive analytics for fraud det...

This episode provides an overview of Web3, the next iteration of the internet built on blockchain technology. It distinguishes Web3 from its predecessors, Web1 and Web2, highlighting the shift from centralised control to a decentralised, community-run network. Key technologies supporting Web3 include blockchain, smart contracts, and digital assets like cryptocurrencies and NFTs. The article addres...

This Episode details proposed US legislation concerning payment stablecoins.  The legislation establishes a framework for regulating both bank and non-bank issuers, requiring licences, adherence to reserve requirements, and compliance with anti-money laundering laws.  A key feature is the dual-banking system approach, with federal and state oversight.  The bill provides for federal regulator super...

The European Commission has launched InvestAI, an initiative to mobilise €200 billion for investment in artificial intelligence (AI), including a new European fund of €20 billion for AI gigafactories.  These AI gigafactories will specialise in training complex AI models, requiring extensive computing infrastructure and a large number of advanced AI chips.  The goal is to create a public-private pa...

Euractiv reports that the European Commission withdrew its AI liability directive following criticism, notably from US Vice-President JD Vance, at the AI Action Summit in Paris.  The Commission cited a lack of foreseeable agreement as the reason for the withdrawal. The move is viewed as a strategic effort to signal openness to investment and innovation, showing goodwill towards the US and prioriti...

TRM Lab's 2025 Crypto Crime Report analyses key trends in illicit cryptocurrency activities during 2024.  While overall crypto transaction volume increased, illicit volume decreased, representing a smaller percentage of total crypto activity compared to 2023.  Sanctions, blocklisted funds, and scams remained top categories of illicit use, with TRON blockchain seeing the largest decrease in ill...

The Financial Conduct Authority (FCA) outlines its priorities for payment firms operating under Payment Services Regulations 2017 and Electronic Money Regulations 2011.  The communication, addressed to Chief Executive Officers, emphasizes effective competition and innovation, maintenance of financial system integrity, and the safeguarding of customer funds.  The FCA highlights the importance of ad...

The U.S. Department of Justice press release details the case of James E. Monroe Jr., who pleaded guilty to money laundering in the Southern District of West Virginia. Monroe concealed assets during bankruptcy proceedings, including a sports card collection and the sale of his house. He faces a potential 20-year prison sentence and significant fines. The FBI and the U.S. Trustee Program investigat...

The "Global Cybersecurity Outlook 2025" report from the World Economic Forum, in collaboration with Accenture, examines the escalating complexity of the cyber landscape and its implications. It highlights compounding factors such as geopolitical tensions, intricate supply chains, rapid technological advancements, and regulatory proliferation, all intensified by a widening skills gap. The...

In this episode we are discussing a document by Krzysztof Gogol, (a PhD Candidate, University of Zurich Co-founder DeFi AM) covering the convergence of traditional finance (TradFi) and decentralised finance (DeFi) through tokenised assets. The presentation highlights how tokenisation is growing, with projections reaching $15 trillion by 2030, and how DeFi can enhance tokenisation by providing liqu...

A presidential Executive Order from January 2025 outlines a new national security policy. The order aims to designate international cartels and transnational organisations like Tren de Aragua and MS-13 as Foreign Terrorist Organizations or Specially Designated Global Terrorists. This designation reflects the perception that these groups pose an extraordinary threat to US national security, foreign...

Vietnam is establishing a comprehensive legal framework for data governance, recognising data as a key national asset.  The National Assembly passed the Law on Data in November 2024, with draft decrees released in early 2025 to implement the law's provisions.  These regulations aim to balance national security, economic growth in the digital sphere, and personal data protection.  The draft dec...

This episode explores the intricate regulatory landscape facing crypto-asset service providers (CASPs) in the EU. While MiCAR provides a specific framework for crypto-assets, CASPs must also contend with existing financial regulations.  MiFID II applies to tokenised securities and crypto derivatives, while PSD2 governs electronic payment services related to crypto transactions.  DORA focuses on cy...

The Markets in Crypto-Assets Regulation (MiCAR) introduces a significant regulatory framework for crypto businesses operating within the EU. This legislation aims to foster market stability, protect consumers, and encourage innovation by harmonising crypto regulations across all member states. Crypto-Asset Service Providers (CASPs) and stablecoin issuers face increased compliance burdens regarding...

MiCAR (Markets in Crypto-Assets Regulation) establishes a unified framework for regulating crypto-assets across the EU, moving beyond anti-money laundering to encompass market integrity and consumer protection.  It defines rules for issuers of e-money tokens (EMTs), asset-referenced tokens (ARTs), and other crypto-assets, as well as crypto-asset service providers (CASPs).  These entities must obta...

Before MiCAR , the European Union grappled with inconsistently applied crypto regulations, primarily focused on anti-money laundering, leading to a fragmented market.  This regulatory divergence  allowed for arbitrage, burdened businesses, and failed to adequately protect consumers from fraud and market failures, exemplified by the FTX collapse.  The absence of unified rules  fostered financial in...

The House of Lords Financial Services Regulation Committee produced a report examining the Financial Conduct Authority's (FCA) consultation CP24/2, which proposed publicising enforcement investigations earlier.  The report highlights concerns from the financial sector that early announcements could damage firms' reputations and undermine the UK's competitiveness.  The Committee scrutin...