Friday's Final Word | Week 22

Welcome to Fourthline's weekly newsletter, where we share insights, developments, and the latest news to help keep you sharp! Enjoy ???

???Lebanon set to be?grey-listed

?? AI: the delicate balance of ethics and power

???UK crypto fraud losses jump 40%

???Financial crime in?art?and?antiquities

???Op-ed: The EU's AML strategy is a mistake

Lebanon set to be grey-listed by financial crime watchdog

Lebanon is likely to be placed on the Financial Action Task Force's "grey list" due to inadequate measures to prevent money laundering and terrorism financing, according to Reuters’ sources. The grey listing would further harm Lebanon's already struggling economy, which has experienced a severe financial crisis since 2019. The country's low compliance scores in various areas, including anti-money laundering measures and transparency on beneficial ownership, contribute to its potential grey listing, which could disrupt capital flows and harm its reputation and access to global finance.

Read full article here

Global AI Regulation: The Delicate Balance of Ethics and Power

OpenAI's top executives, including CEO Sam Altman, have expressed concerns about the arrival of superintelligent AI and called for global governance to address the potential risks. However, their plea has sparked debates about potential conflicts of interest and hidden motives, with critics suggesting that Altman's push for strict regulations might be driven by a desire to stifle competitors, particularly Elon Musk. There are suspicions that OpenAI's call for regulation could serve as a means to solidify its control over the development of AI, leading to a monopolistic situation and hindering innovation. The complex interplay between ethics, power, and self-interest in the AI field has ignited a lively debate about the future of AI regulation.

Read full article?here

UK crypto fraud losses jump 40%

Crypto fraud losses in the UK have surged by over 40% in the past year, exceeding ￡300 million for the first time, according to the country's fraud reporting agency, Action Fraud. The increase in losses reflects the growing scale of cybercrime and the collapse of cryptocurrency exchange FTX, which resulted in significant losses for retail investors. Crypto fraud accounted for more than a third of all reported fraud in England and Wales last year, highlighting the widespread nature of crypto-related scams. Law firms are calling for stricter regulations and tougher rules for online platforms to address the issue.

Read full article here (beware of possible paywall)

Stemming Financial Crime in Art and Antiquities

In a conversation on "Financial Crime Matters", Kieran Beer speaks with Steve Schindler and Katie Wilson-Milne from Schindler Cohen & Hochman LLP about financial crime in the global art and antiquities industry. They discuss recent actions leading to the repatriation of artworks, the extension of anti-money laundering reporting responsibilities to antiquities dealers by FinCEN, and provide insights into the future regulation of these markets in the United States and globally.

Listen to podcast here

The EU’s Anti-Money Laundering Strategy Is a Mistake

In this op-ed, the EU's new AML regulation, currently under negotiation, is criticized for its potential negative impact on blockchain technology and the crypto industry. According to Bill Hughes, the regulation imposes restrictions on peer-to-peer crypto transactions, limiting the amount businesses can spend or receive and requiring intermediaries or identification for transactions. It also attempts to regulate decentralized autonomous organizations (DAOs) and decentralized finance (DeFi) protocols without providing clear definitions or geographical limitations. Critics argue that these provisions hinder commercial efficiency, privacy, and the growth of blockchain networks, urging the EU to reconsider and engage in consensus-driven discussions.

Read full article?here

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