Connecting’s the dots in RegTech | 2023 #6
Welcome to this week’s edition of the Connecting the Dots in Regtech Newsletter.
In today’s piece, we continue our journey into the forever evolving world of regtech, and everything else that comes in between from a new round of fines imposed on financial institutions to what is going on with Sam Altman’s latest venture, the overly ambitious Worldcoin. Spoiler alert: the project is running so hot that it has already captured the attention of worrying regulators, while in the meantime, the app is lying low, made possible by service disruptions.?
For the detailed versions of the news, check out this week’s article suggestions! Enjoy!
?? NEWS HIGHLIGHT
The project is backed by some of tech's biggest stars, but four countries are probing its privacy practices.
It’s a project that claims to use cryptocurrency to distribute money across the world, though its bigger ambition is to create a global identity system called “World ID” that relies on individuals’ unique biometric data to prove that they are humans.
?? SPONSORED CONTENT
?? ARTICLE
The Ombudsman for Banking Services is warning members of the public about the rise in contactless payments fraud in South Africa.
The ombud explains that fraudsters are now using stolen bank card information, such as the card number, expiry date and CVV number (card data), to make fraudulent purchases via digital wallets.
Sam Altman, OpenAI’s chief executive, has started Worldcoin, a cryptocurrency project that aims to scan billions of human irises.
The mobile app of Open AI CEO Sam Altman’s Worldcoin stopped working in the early hours of Monday as the number of unique users signed up to the controversial eyeball-scanning project nears 2.2 million, barely two weeks after the rollout of the cryptocurrency initiative that has faced a barrage of regulatory reviews over data privacy concerns.
After months of delays due to an alleged lack of cosponsors, Sens. Elizabeth Warren, D-Mass., and Roger Marshall, R-Kan., have reintroduced their crypto anti-money laundering bill.
The Digital Asset Anti-Money Laundering Act of 2023 aims to add “crypto participants,” including wallet providers, miners and validators, to the definition of “financial institutions”
Banks and payments companies have long penalized sex workers. Many thought crypto would be a solution, but now exchanges are dumping them too.
?? ?? BLOG
Besides the technical challenges they face protecting their customers from digital risks, telcos also have a big job on their hands when it comes to maintaining regulatory compliance.
A blog by Liudas Kanapienis
领英推荐
?? ANALYSIS
A recent study has revealed that two-thirds of crypto firms in the UK are failing to verify the credentials of the financial firms they conduct business with.
The research from anti-money laundering software firm SmartSearch reveals that, out of 500 financial institutions it surveyed in the UK, ranging from crypto firms, gaming outlets, and banks, only 28% often carry out verification checks.
NOW, ON TO THE SUMMARY OF LAST WEEK'S?NEWS
?? REGTECH HIGHLIGHTS
?? Germany to set up new body to combat money laundering.
?? Kore raises ￡2.4 million.
?? Interpol takes down phishing-as-a-service platform used by 70,000 people.
?? Banks hit with $549 million in fines for use of Signal, WhatsApp to evade regulators’ reach.
?? Cryptoverse: All eyes on ChatGPT-maker's Worldcoin.
?? REGIONAL HIGHLIGHTS
UK ????
Visa UK has introduced a raft of new measures to protect small businesses from soaring rates of 'friendly fraud', in which cardholders dispute a legitimate purchase with their card issuer.
Barclays is calling on tech companies to reimburse scam victims as part of four major recommendations to tackle the nation’s fraud epidemic.
Nigel Farage can bank with us, boss of London fintech Pockit says as it unveils $10 million raise.
USA ????
Alloy partners with TrueBiz to automate merchant web presence verification and reduce risk for Financial Institutions.
A new civil racketeering lawsuit accuses Wells Fargo of fraudulently opening unauthorized bank accounts in consumers’ names and secretly transferring funds from them with help from a specialty credit bureau, Early Warning Services.
Wells Fargo and BNP Paribas are among the latest banks to be hit with multi-million dollar penalties by US regulators over employee use of unofficial communication tools like WhatsApp and iMessage.
CARIBBEAN
‘Up all night worrying’: 92-year-old debanked by NatWest after move to Jamaica. Last year’s decision left Philip Cato, who moved ‘home’ in 1990s after 30 years working in the UK, cut off from his state pension.
AUSTRALIA ????
ANZ is investing in a new security capability designed to detect mule accounts being used to receive funds from scam victims and other criminal activities.
MIDDLE EAST
Vesttoo is in "active discussions" with potential investors to find alternative collateral for clients after a fake collateral scandal.
SphereX has raised $8.2 million in seed funding for its technology designed to prevent crypto hacks.
OPPORTUNITIES
Wirex is looking for a Global Head of Fraud. You will play a crucial role in safeguarding our customers and the company against fraud risks in the rapidly evolving financial and cryptocurrency industry.
Artificial Intelligence & Big Data Expert
1 年Warning: Wirex - Concerning Transactions and Lack of Accountability I had an extremely unsatisfactory encounter with Wirex, a purported neo-bank and cryptocurrency wallet platform. After initiating two separate transfers of USDT via the Ethereum blockchain from my Wirex account to Coinbase and KuCoin, the transactions were marked as "SENT" in the Wirex app. However, no further progress was made. Upon reaching out to Wirex's support team, they asserted that the transfers were successful but failed to provide any transaction hash or blockchain confirmation. Checking my wallets on Coinbase and KuCoin revealed no incoming transfers, and even a search on a Blockchain Explorer indicated the absence of any pending or completed transactions to my wallet address. In spite of presenting this evidence, Wirex's support team remained uncooperative and gave no indication of when they would resolve the situation. Numerous similar reviews and issues on platforms like Reddit raise concerns regarding Wirex's legitimacy and adherence to regulations. I suspect that Wirex may be engaged in potential fraudulent activities, making it advisable to refrain from using their services for your own safety.