Friday's Final Word | Week 42
Welcome to Fourthline's weekly newsletter, where we share insights, developments, and the latest news to help keep you sharp! Enjoy ???
???Cryptocurrency heist: stolen FTX funds take a mysterious route
???EU calls for clear rules on EC’s AML package
???Slovenia’s former AML czar suspected of abuse of office
?? Compliance, ethics, and security: How Fourthline approaches AI
???SEC Head: Financial crash caused by AI 'nearly unavoidable'
???Will you chose privacy over protecting your cash?
???Could crypto firms to play jurisdiction 'Roulette' under EU's MiCA regulation?
Cryptocurrency heist unveiled: stolen FTX funds take a mysterious route, hinting at Russian money laundering connections
In a thrilling crypto saga, over $400 million stolen from FTX on the day of its bankruptcy declaration has embarked on a mysterious journey, pointing towards potential Russian money laundering connections. The heist baffled the cryptocurrency community as the stolen assets lay dormant for a year, but have now resurfaced, sparking fresh intrigue. A report by cryptocurrency tracing firm Elliptic has unveiled a complex web of transactions and even hints at insiders' involvement, adding a fascinating layer to the ongoing investigation, as experts and enthusiasts eagerly await the unmasking of the culprits in this captivating cryptocurrency mystery.
Read full article?here
European Parliament and Council calls for clear rules on EC’s AML package
The European Parliament and Council are finalizing their stance on the European Commission's Anti-Money Laundering (AML) package proposal, emphasizing the need for well-calibrated rules for identifying customers' beneficial owners within customer due diligence processes. They stress the importance of clear, workable, and enforceable criteria for "control exercised via other means" to prevent inconsistent interpretations across the EU. However, the European Fund and Asset Management Association (EFAMA) suggests that additional rules for collective investments may not enhance clarity on beneficial owners, and advocates for a risk-oriented framework that aligns with specific industry needs and best international standards.
Read full article?here
FCA halts Binance’s marketing efforts in the UK
Slovenia’s former anti-money laundering czar suspected of abuse of office
Former Anti-Money Laundering Agency director Damjan ?ugelj and his associates in Slovenia have been charged with abuse of office, a development with potential implications for money laundering investigations. The charges come amid concerns that the investigation, which began in 2021 and involved a substantial review of bank accounts, may have been politically motivated. This situation raises questions about the integrity and impartiality of anti-money laundering efforts in Slovenia and whether they could be influenced by political factors.
Read full article?here
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Compliance, ethics, and security: How Fourthline approaches AI
This article discusses the role of AI in financial compliance, emphasizing its practical applications in the industry. It highlights the importance of AI in combating financial crime due to its ability to spot patterns that humans may miss and automate tasks. The article describes how Fourthline approaches AI, focusing on consistent, long-term investment, in-house technology development, data integrity, ethical practices, and the incorporation of human checks at key moments. It concludes that AI is already being effectively leveraged in financial services but emphasizes the need to consider factors such as the provider's track record, explainability to regulators, and data integrity when choosing AI solutions.
Read full article?here
SEC Head: Financial Crash Caused by AI 'Nearly Unavoidable'
SEC Chair Gary Gensler has warned that a financial crisis driven by AI is "nearly unavoidable" without proper regulation. He expressed concern about the lack of diversity in AI models, with many entities relying on tools developed by a select group of players, like OpenAI's ChatGPT. Gensler noted that the economic networks created by AI could lead to a crisis by the late 2020s or early 2030s, similar to the "flash crash" in the stock market in 2010, which was attributed to high-frequency trading algorithms.
Read full article?here
Will you chose privacy over protecting your cash?
In episode 1 of the Fourthline Frontier podcast, Krik Gunning dives into information sharing, what we expect from our banks, who should have access to our accounts and the particular position financial institutions find themselves in.
Listen to podcast?here
Could Crypto firms to play jurisdiction 'roulette' under EU's MiCA regulation?
The European Union is expressing concerns about global cryptocurrency firms potentially exploiting regulatory differences among its member states as the Markets in Crypto Assets (MiCA) regulation approaches implementation by December 2024. While MiCA licensing becomes mandatory by July 2026, companies can continue to operate under existing national anti-money laundering frameworks until then, which has raised concerns among European Securities and Markets Authority (ESMA) officials. ESMA is worried that complex company structures and the lack of robust compliance among some crypto entities may lead to regulatory arbitrage, emphasizing the importance of national regulators preventing the creation of "letterbox" entities to maintain regulatory consistency.
Read full article?here
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