FinCEN Shares FATF’s Latest on Global AML + Paxful’s CTO Compliance Catastrophes

GM! This is The Risk Radar. Welcome to this week’s AML news!

FinCEN Shares FATF’s Latest Scoop on Global AML

The Financial Crimes Enforcement Network (FinCEN) is here to break down the Financial Action Task Force's (FATF) latest dispatch from its most recent global pow-wow. For those not in the know, FATF is like the international hall monitor for money matters, keeping an eye on anti-money laundering, combating terrorist financing, and stopping the proliferation of weapon-mass-destruction funding (that’s AML/CFT/CPF for the acronym aficionados).

North Korea’s Not Playing Nice 

The recent meeting spotlighted some concerning news about North Korea (or as they formally parade, the Democratic People’s Republic of Korea—DPRK). Apparently, DPRK is getting a tad too chummy with the international financial system, but here’s the kicker—they haven’t quite cleaned up their act regarding their AML/CFT policies. The FATF is waving a big red flag about North Korea's ongoing naughty behavior, especially their troubling penchant for financing weapons of mass destruction.

Global Vigilance: The Name of the Game 

The FATF isn’t just pointing fingers; they’re calling on countries everywhere to keep their eyes peeled and double down on the rules and regulations to keep DPRK’s risky ventures at bay. It’s all about protecting our global financial playground from potential harm.

What’s on the Naughty List? 

Speaking of vigilance, FATF has also given its naughty or nice list a refresh, pinpointing places with strategic weaknesses in their money-handling policies. For U.S. financial institutions, this is a big heads-up. It's time to scrutinize how these updates affect your operations and ensure your compliance game is stronger than ever.

So, financial institutions, let’s stay alert, stay informed, and make sure our global financial system remains a safe space from those looking to exploit it!

AML Careers:

• Morgan Stanley - Global Financial Crimes: Global KYC Advisory Officer

• FinFare - Financial Crimes Analyst

• Brex- Screening & Transaction Monitoring Associate

Crypto Crackdown: Paxful’s CTO Cops to Compliance Catastrophes

Artur Schaback, the tech whiz behind Paxful Inc., just took a guilty plea ride on charges of letting anti-money laundering (AML) rules slide off his desk. It seems like the ‘no KYC, no problem’ pitch was more than just a quirky slogan—it was practically company policy!

A Not-So-Crypto Secret

From 2015 to 2019, Schaback’s Paxful platform was the Wild West of the crypto world, where users could trade digital dough without the pesky interference of identity checks. This laid-back approach turned Paxful into a playground for all sorts of shady shenanigans, from romance scams to full-blown money laundering.

The Cost of Cutting Corners

Pleading guilty to flouting the Bank Secrecy Act, Schaback now faces a potential five-year vacation in federal accommodations. He’s also stepping down from Paxful’s board, probably not the exit he envisioned. His sentencing is set for November 4, marking the calendar for when accountability meets consequence.

Who's Handling the Case?

This crypto saga is being unpacked by some serious suits from Homeland Security Investigations and the IRS-CI, with the courtroom drama penned by a squad from the Money Laundering and Asset Recovery Section (MLARS). They’re part of the bigger battle being waged by the Organized Crime Drug Enforcement Task Forces to clean up the streets and the servers from high-stakes criminal enterprises.

So, what’s the moral of the story? Even in the digital domain, skipping out on the rule book can land you in a world of trouble.