Tag: OPINION

(Updated 2016) Anti–Money Laundering (AML) and Counter Terrorism Funding (CTF) are not the most popular subjects in banking circles. Bankers often find Know Your Customer (KYC) and Customer Due Diligence (CDD) regulations confining and cumbersome. Those regulations are elaborate and strenuous, to the point where even some KYC/CDD team members consider them tedious.The value of AML and CTF, though, far outweighs its disadvantages. We see this as we look at why financial institutions sometimes choose to cut corners on compliance. And we see the consequences of doing so. Why institutions cut corners One common reason that some institutions relax their practices is...

One key to fighting money laundering is understanding its process and the vulnerabilities in each stage of it. In the first stage, the Placement stage, money launderers deposit their criminal revenues in financial institutions. In that stage, detection teams proficient in Know Your Customer (KYC)/Customer Due Diligence (CDD) practices for combatting money laundering do extensive investigations to detect efforts to place illicit funds in their financial institution. Unfortunately, many placements still succeed. That moves the battle that KYC/CDD teams fight to the second money laundering stage, Layering. Layering involves building a complex web of money transfers to obscure the funds’ criminal...

One key to fighting money laundering is understanding its process and the vulnerabilities in each stage of it. The first stage is Placement. Placement entails depositing illicit funds into financial institutions. Several vulnerabilities lie in this stage. So, we look at it to see what questions money launderers must answer in this stage to overcome their vulnerabilities, and how detection teams skilled in Know Your Customer (KYC)/Customer Due Diligence (CDD) practices seek to exploit them. How can we deposit large amounts of money? During placement, money launderers have a sum of money of such magnitude that depositing it as a lump sum...

Anti–Money Laundering (AML) and Counter Terrorist Funding (CTF) efforts involve the little-known world of Know Your Customer (KYC) and Customer Due Diligence (CDD) regulations. These involve an intensive review of account applications, resolute investigation to verify new customers’ information and ongoing monitoring of established customers’ transactions. Working on KYC/CDD teams is not glamorous; many outside that world would consider it tedious. Yet the work of those teams provides financial institutions with their best defense against the possibility of money laundering or terrorist funding gaining a foothold among their assets and damaging their reputations or stability. Reasons to fight money laundering and...

“Financial Crimes” is a term used to describe a variety of criminal acts including money laundering; terrorism financing; bribery; corruption; sanctions violations; proliferation financing; cyber financial crime; various types of fraud (securities fraud, insider trading, market manipulation, bank fraud, insurance fraud, payments fraud, health care fraud, medical fraud, credit card fraud, cheque fraud, corporate fraud, and other types of frauds and scams); and other crimes against property. In recent years, financial crimes have become a multi-billion dollar global phenomenon with criminal methodologies adapting and changing faster than governments, legislators, enforcement agencies and businesses can keep up. The associated risks...

Money laundering and terrorism funding both have devastating effects. While acts of terrorism are more noticed because of their highly public nature, Money laundering is no less of a threat. In fact, concentrated efforts to combat money laundering were pursued long before terrorist activities grew to the point where Counter Terrorism Funding (CTF) was added to formal Anti–Money Laundering (AML) efforts. To completely stop money laundering and terrorism funding is beyond our ability. For each action regulators and prevention specialists develop, criminals adopt new ways around it. An ongoing game of cat-and-mouse ensues, with each side constantly testing new ways...

Businesses, facing an ever-increasing variety of complex problems, are in desperate need of good interim managers to help solve them. Such positions are highly rewarding, with the opportunity to explore new places, meet new people – and fill your plate with a steady diet of fascinating challenges. Perhaps you’ve considered entering this growing field and becoming one of these people who jump into new companies at their moment of need, solve their problems and move on to the next sticky situation. Maybe it’s time to stop imagining this challenging lifestyle and think about making it a reality. So, what do...

Are you hiring and using interim managers wisely? Why is it that some companies attain exceptional results from interim manager hirings and some are disappointed? It has little to do with the quality of interim manager candidates. The only way they become candidates is by demonstrating exceptional skill in implementing the kinds of solutions that clients want. Why, then, do results sometimes go awry? Unfortunately, some companies treat hiring an interim manager like a magic potion: Drop someone – anyone – into the position and wait for amazing results. That simply doesn’t work. To produce the exceptional results expected of interim managers,...

The face of interim management is changing. Traditionally, an interim manager was someone at the end of his career who chose interim management to extend his working years. This is changing fast. An increasing number of managers – both men and women – have entered the market in recent years, intent on making a career of interim management. That’s no surprise. The rewards of interim management make it a great career choice if you have the skills and personality for it, and don’t mind its few disadvantages. Interim management benefits Interim executives enjoy the challenge of working on different assignments with tight...

When crisis strikes your business, what can you do? As you try to pick up the pieces, at some point your mind would likely turn to the fantasy of bringing in an accomplished executive with extensive experience in the exact type of crisis your business is experiencing, just long enough to get you through it. That’s no fantasy, though. Such an option exists. It’s called Interim Management, and it’s one of the latest forms of troubleshooting management techniques to emerge in recent years. While similar to bringing in a management consultant, it has striking advantages that can help your business...

Social engineering doesn't have to be just a supporting process to obtain system access; it is could be even more dangerous when it is used as the main attack. We, information security defenders, rarely consider that risk. If you think Social Engineering is an effective way to obtain access to systems by exploiting the weakest link – people – you are correct. But not completely correct. Social engineering could be much more than what is being discussed in the media or on social engineering awareness sessions. Social Engineering is the most effective way to: obtain information. It’s a subtle difference, but one...

There is a new danger lurking in the information assets of countless organizations around the globe disguised by a plan devised to protect a large portion of those assets while failing miserably to protect the rest. Zero tolerance approach to cyber security is untenable Traditional approach to cyber security was for a board / management to declare that they have “zero tolerance” for cyber breaches, and for the first line to erect barriers and try to control access to any outsiders. That approach is untenable today. Cyber criminals demonstrated that our perimeter protections are not sufficient. Customer voted for ease for access...

Information security and IT security are often used interchangeably. Even among InfoSec professionals. The terms are interrelated and often share the common goals of protecting the confidentiality, integrity and availability of information, however; there are significant differences between them. IT security is only concerned with the systems that store, process, transfer and make available electronic data. Information security goes far beyond that. It encompasses classification of information across an organization, information security policies and procedures, physical security aspects, legal protections, HR, awareness, and retention of information, regardless of information format. Even when the information is on paper or in employees’ heads. Examples...