James Dalton

🫣 We've seen too many #RegTechs publish ill-informed, poor quality articles to their websites. Do they know how much it's hurting their impact? 🔥 FACT: Showing your expertise in fighting financial crime is indispensable to leading the sector. Your thought leadership and marketing content is a big part of that well-earned reputation. Why pay overbooked freelancers who've never worked in the AML/CFT sector – only to have to rewrite the content? 💙 The fight against financial crime – and your reputation – deserves something new. And it doesn't have to mean doubling the size of your content team. 📖 🖋 We're changing the story. Our founder Noelle Huling has spent nearly seven years in the sector – and has been a researcher and writer for much longer. She's on the EGMONT roster of experts, has worked successfully with regtechs and nonprofits – and has had her work downloaded by at least one European regulator. 👩‍🏫 📚 🏆 Red Flag Control Room creates expert, high-caliber PR, marketing, and thought leadership content for organizations fighting financial crime. We serve RegTechs, regulators, think-tanks, and anyone else with a vested interest in leading the conversation about financial crime in today's world. 💪 🤓 Ready for a change? Give us a follow, send us a message – and find out what your content has been missing.

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Some key takeaways from the French banking regulator's €1 million fine on SocGen's BaaS company Treezor:   - Out of a sample of 30,000 clients, 99.8% were assigned a low or "moderately low" risk, leaving just 28 clients as medium or high-risk.   - The first automated KYC platform Treezor used would flag clients exclusively based off a politically exposed person (PEP) check; no litigation, regulatory, sanctions, or other checks. The company later acquired SocGen's group-wide KYC platform, but implementation was patchy and at times Treezor compliance teams were using both platforms in parallel.   - Material information easily identifiable through EDD was missed in a number of KYC cases picked for review at random by the regulator; three of the cases had not picked up that the respective clients had previously been given prison sentences. Treezor's legal team responded that, in the first case, the media coverage reporting on the prison sentence could not have been used to inform a client risk rating since media report was often unreliable; in the two other cases, it argued that the sentences were historical and as such could not affect the clients' risk ratings.   There is no doubt that Treezor should have used a more capable #KYC tool, and complemented the KYC tool with human-driven analysis and complementary research. However, it is debatable whether a €1 million fine and a formal reprimand for the largest BaaS company in France will be enough of a deterrent for companies in similar situations to spend the money and time required to establish best-in-class AML/CFT processes. Read our full article here: https://lnkd.in/e8s6sH_3

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What’s the latest news in compliance? 1️⃣ FATF Ministers commit to stepping up efforts to fight money laundering, terrorist and proliferation financing 2️⃣ Germany’s Commerzbank fined €1.45M for AML failings at subsidiary 3️⃣ UK Finance Unveils Model Clauses for VRPs 4️⃣ Basel Committee’s Stance on AI in Banking 5️⃣ FinCEN Notice: Counterfeit U.S. Passport Cards and Financial Fraud For more extensive coverage, access our latest blog here: https://lnkd.in/d57VKA9R Compliance is challenging, but spektr’s mission is to provide you with tailored solutions and support - do not hesitate to reach out! Here are just a couple of people you can contact directly: Mikkel Skarnager & Jan-Erik Wagner #Compliance #RegTech #RiskManagement

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🔍 NEW BLOG | Money laundering in the UK Our Head of Investigations Tony McClements says that an increase in money laundering cases indicates that the UK is finally getting to grips with money laundering as an indictment. Read his latest analysis in GRIP ⬇️⬇️ https://lnkd.in/eMgrdM7g #fraud #moneylaundering #prosecutions

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Reliable AML/CFT software is key ✅ for any financial institution. While it is hard to find an institution without an AML solution these days, the problem that has arisen in recent years is that some banks have accumulated too many AML/CFT software solutions. This recent article from Delano (link below) shows that Raiffeisen, for example, works with four AML systems, while Quintet bank uses eight different AMLsolutions, six of which are dedicated to KYC. Here are few reasons why using too many AML solutions can be counterproductive: 1️⃣ Managing multiple AML systems leads to duplication of efforts, increasing the time and resources spent on compliance without improving accuracy. With different systems handling various aspects of AML compliance, critical data is often scattered, making it harder to get a unified view of risk and regulatory exposure. 2️⃣ Each additional solution comes with its own set of  implementation, maintenance, and staff training costs, adding unnecessary financial and operational burdens. 3️⃣ At AMLYZE, we believe in simplifying compliance with one comprehensive solution that reduces complexity and enhances effectiveness. AMLYZE enables you to implement and comply with sanctions screening, customer risk assessment, transaction monitoring (online and post), case management, FIU reporting and other functions. #AML #CFT #AMLSolutions

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The clear majority (ie 58%) of key decision-makers in large UK businesses surveyed by leading fraud prevention service Cifas have admitted that fraud and financial crime pose a “serious threat” to their organisations. That figure is up from 49% in 2023’s survey.   Fraud currently accounts for around 40% of all crime in England and Wales and remains a critical issue for companies to tackle: from employees being targeted and insider threats through to supplier fraud and cyber attacks. Cifas’ survey of 500 leaders responsible for training staff, and whose organisations operate with the benefit of 1,000 or more employees, also shows that 98% of respondents feel it’s important to protect colleagues from becoming victims of fraud. This represents an 18% increase from last year. Read more on the Security Matters website https://lnkd.in/dww7GHiB 

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Finally - a FREE EOY KRI Template built by financial crime professionals for financial crime professionals 😊 Our CEO & Co-Founder, Natasha Vernier, who served as the Head of FinCrime at Monzo Bank, knew all too well how time-consuming an End-of-Year KRI report can be, especially when juggling dozens of other responsibilities 🫠. So she did the obvious thing and created a template that can be used to easily communicate to key stakeholders how well the KRIs are performing that year 😎 Just click the link below to download our End-of-Year KRI Template and streamline your compliance processes! 🚀 https://hubs.ly/Q02DzLhJ0 #Compliance #FinancialCrime #KRIs #RiskManagement #FreeTemplate #Cable #CableTech

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Ignore at your own peril! This has not just shocked many in the financial crime and compliance space but has also got the attention of senior management and leaders at financial institutions across the UK and Europe. A Swedish appeals court on Tuesday found former Swedbank CEO Birgitte Bonnesen guilty of gross fraud over her handling of anti-money laundering protocols in Estonia, sentencing her to 15 months in prison. (https://lnkd.in/eETf8vMT) Andrew Davidson and I wrote an article last year highlighting that many boards and CEOs are still failing to take reasonable steps to challenge the operating effectiveness of their financial crime framework. We also stated that CEOs will increasingly be held accountable. Ignorance is no defence, failure by the board to oversee and challenge the financial crime culture, capability and capacity can destroy value and incur personal liability for directors. Read the full article here: https://okt.to/PuAeby

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The Starling Bank fine is another reminder of why executive oversight and Board challenge over Financial Crime Capabilities is NOT optional! Our article last year (link below) highlighted that many boards and CEOs are still failing to take reasonable steps to challenge the operating effectiveness of their financial crime framework. If you want to know more about what you can be doing as a Board member - get in touch! Read the full article here: https://okt.to/PuAeby

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Metro Bank’s FCA Fine Highlights AML Imperatives The FCA recently fined Metro Bank Holdings PLC for failing to adequately monitor transactions worth £51 billion between 2016 and 2020. An error left same-day account-opening transactions unchecked, a flaw identified by junior staff as early as 2017 but only fully addressed in 2020. This case underscores three critical points for the financial sector: 1️⃣ Rigorous Compliance is Non-Negotiable – Compliance gaps carry significant financial and reputational risks. 2️⃣ Early Intervention Matters – Addressing concerns quickly is essential to minimizing exposure. 3️⃣ Evolving AML Standards Require Up-to-Date Systems – Robust technology and continuous system assessments are key in meeting today’s regulatory expectations. As financial crime grows increasingly sophisticated, the importance of proactive, resilient AML measures cannot be overstated. Full article below https://lnkd.in/dZs53PWm

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Watch this space: H2O Asset Management revealed in its annual report for 2020 that it was under investigation from the FCA. We're now in 2024 and it looks like British market regulators are about to conclude their case. There's talk of a pot of money to compensate investors - who would be offered to take a deal - and of the FCA considering whether a fine would be appropriate. https://lnkd.in/d7uxKDyi

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Currently, in the UK, less than 6% of Tax returns from Carbon Emission Trading reach the government: https://lnkd.in/ed-Bu9nn In a recent #JBBA research, it is shown that #Blockchain Technology can revolutionise #carbon emission #trading, offering governments the opportunity to boost #Tax returns, enhance #transparency, increase #efficiency, #automate tax collection processes, and eliminate single points of failure: https://lnkd.in/egSU4D4c We encourage our members and partners to apply for the DSS. Bank of England Financial Conduct Authority HM Treasury Tulip Siddiq Prof. Dr Naseem Naqvi MBE

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From the Bank for International Settlements – BIS comes this bulletin outlining the next generation correspondent banking 🔹 Existing correspondent banking processes have struggled to adapt to new #regulatory and #supervisory requirements, posing questions on the future of the correspondent banking model. 🔹 The #tokenisation of correspondent banking, as embodied in Project Agorá, could unlock streamlined pre-screening and atomic settlement, and pave the way for superior customer verification and anti-money laundering #AML procedures. 🔹 Tokenisation could substantially reduce duplication and miscoordination, thereby revitalising #crossborder #payments by fostering a robust network of correspondents and corridors.

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From Companies House's strategic intelligence assessment, out today, a sense of the scale of the challenge the agency faces in rooting out fraud and money laundering involving UK entities: Company incorporations in Britain far exceed those anywhere else in the world. Read more: https://lnkd.in/euxCts_D #fraud #AML #moneylaundering #incorporation #financialcrime

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🎱 Will Department of Government Efficiency impact the anti-financial crime regulatory environment? 🎱 Should we expect Joe Rogan to talk about PEPs again? 🎱 What will be the average expenditure for an AML Transaction Monitoring solution? 🚨 We answer none of these questions in the 8th edition of the C6 Papers, but we make other bold predictions for 2025!! Coming soon... https://lnkd.in/er9g7CEC

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#Podcast: The challenges of managing #AML and #KYC #compliance in the #UK Earlier this year, the UK’s #HMTreasury published its #consultation on improving the effectiveness of the #MoneyLaundering, #TerroristFinancing and #TransferofFunds #Regulations. New rules will inevitably follow – the clock is ticking on that. While we may welcome improved clarity, it will also mean a higher regulatory burden. Staying compliant with constantly changing regulation is a pressing challenge. SmartSearch specialises in providing digital #compliancesolutions for #regulatedbusinesses in the UK. Robin Amlôt of IBS Intelligence speaks to the company’s CEO, Phil C. (Phil Cotter). #antimoneylaundering #terrorismfinance #banks #financialservices #lawyers #estateagents #housebuilders #enforcement #legislation #sanctions #illicitfunds #ai #financialcrime https://lnkd.in/dXEypfX5

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Are you joining the amazing Kym Routledge and me on our live webinar tomorrow (Thursday) at noon? Please follow the below link and get involved. #livewebinar #grchub #compliance #risk

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Do not debtonate? Banks are the main targets here. But private lending, which has blossomed recently and is expected to account for around a third of the leveraged loan market, is also coming under fire. The next wave of refinancing and the potential resurgence of deal activity will mean even closer scrutiny? LPs' appetite for this asset class appears to remain positive 

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