Innovation in Compliance - Passionate About AML with Simon Winchester

Thomas Fox - Compliance Evangelist
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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 driving the adoption globally. One of the company’s most recent additions is its AML (anti-money laundering) solutions. I welcome him to this week’s show to discuss current world events and the company’s AML solution.

Money Laundering in See more +

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 driving the adoption globally. One of the company’s most recent additions is its AML (anti-money laundering) solutions. I welcome him to this week’s show to discuss current world events and the company’s AML solution.

Money Laundering in 2022

I ask 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 money laundering involves “criminals taking illicitly-gained funds and 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

I ask Simon what some of the key AML regulations Jumio advises clients on. It mostly depends on where your organization is located worldwide, as local enforcement bodies drive AML regulations, Simon responds. These regulations will cue the Financial Action Task Force sets international standards, which functions as a “global AML watchdog.” In the UK, the EU AML directives shape policy and provide guidance. Recently, they introduced a new directive that “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 me.

Playing Catch-Up With Money Launderers

I ask Simon what Jumio sees as the key components of a successful AML program. 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 is tasked with creating, monitoring, and reviewing the compliance program and staff training.

A written risk-based compliance program with comprehensive AML policies and documented procedures. This approach identifies and protects your business from financial crime and includes having the technology to support that framework.

An appropriate customer due diligence process 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 organizational role 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. See less -

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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