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The Canadian anti-money laundering regulatory body levied a C$7.4m penalty on the Royal Bank of Canada (RBC) for not reporting suspicious activities and failing to comply with AML measures. 

The Financial Transactions and Reports Centre (FINTRAC) disclosed that RBC did not report suspicious transactions to the agency involved in money laundering and terrorist financing. It showed reasonable deficiencies in its alerting and real-time monitoring system. The regulatory body investigates by electronically shifting the bulk of information yearly from banks, insurance, financial service providers, etc. After verifying various data the bank did not report, the agency disclosed to the country’s police and legislative agencies the RBC’s inadequate business verification system and loopholes in their compliance measures. The agency’s $7.4m penalty is the largest fine ever imposed on any bank. 

Moreover, the agency claimed they investigated 136 suspicious transactions, of which 16 indicated ties with money laundering and terrorist financing, which the bank did not report. These are the transactions in which the bank assists the clients but fails to report the significant amount they transact by breaching the AML policies. The regulatory body also revealed the deficiencies in the RBC risk assessment process, including noncompliance with the latest obligations to combat money laundering and terrorist financing. The FINTRAC director stated in a statement the agency will continue to work with businesses to comply with international standards and enhance their AML measures to secure the integrity of the global economy. The Director stated, “We will also be firm in ensuring that businesses continue to do their part, and we will take appropriate actions when they are needed.”

In a circular, Royal Bank Canada’s spokesperson, Gillian McArdle, asserted,” We chose not to appeal but believe the fine is not commensurate with an administrative matter where there is no connection to money laundering or terrorist financing offences. Equally important, no finding exists that anyone exercised judgment in bad faith or knowingly contributed to violations.” The financial crime prevention expert, Garry Clement, stated, “What we’re seeing is FINTRAC taking a different approach, and they have in the past… I don’t think there are going to be any more free passes.”

According to the FINTRAC, around May 2021, RBC was not reporting various suspicious transaction reports for each branch location, and the company lacked investor protections as well as compliance audits for putting AML procedures into place. Paquet had made public in a recent speech that Fintrac was concerned that certain companies were falling in compliance with user onboarding measures. The government also stated that administrative and financial penalties are not intended to penalize firms but rather to motivate them to alter their behaviour. The FINTRAC imposes 125 penalties across various sectors that are not complying with obligations to secure the country’s financial industry since it receives regulatory implementation authority to do so for 15 years. 

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US Announces Enforcement Actions to Regulate Cryptocurrency Businesses 

UK Discloses Final Proposal to Regulate Crypto Trading Businesses

FATF Endorses Latest AML Regulations in the Final Plenary Meeting

The DOJ will launch a series of enforcement actions to regulate virtual asset service providers (VASPs) in the upcoming week. These actions are against the individuals and entities that are using crypto businesses in illegal terms. The department collaborates with US federal agencies to supervise virtual assets and crack down on their involvement in ransomware attacks, tax evasion, and other crimes. They investigated significant cryptocurrency platforms, wallets, and trading companies to monitor AML compliance system loopholes. The US government also conducted extensive investigations into the use of cryptocurrency in money laundering. In addition, the DOJ has strengthened its partnerships with other countries to regulate cryptocurrency activity.

Moreover, to investigate criminal activity and hold offenders accountable, the DOJ established a special task force dedicated to investigating Ransomware and Digital Extortion. This task force coordinated with other regional agencies and foreign partners. Previously, the DOJ arrested two Chinese nationalists due to laundering $100 million around the globe. They are also involved with North Korean hackers to steal cryptocurrency from various virtual asset platforms. The DOJ task force also recovered $2.3 million from hackers in March 2021 after they hacked the US gasoline and disrupted their system for days. Most of these criminals faced civil and jurisdiction charges. Some shell companies conduct settlements with the governing bodies. However, the DOJ did not reveal the names of these scammers and companies’ shareholders. 

The DOJ’s enforcement measures against cryptocurrencies demonstrate the administration of Governor Biden’s dedication to the fight against money laundering. Concerns about consumer safety, the state of the economy, and financial stability have prompted some significant nations to enact new regulations governing cryptocurrencies and to support penalties for wallets that operate illegally. 

The DOJ’s enforcement will significantly impact the cryptocurrency market and assist regulatory bodies in conducting investors’ due diligence and individual users who are involved in illicit activities. They also emphasized other nations to impose additional regulations or outright ban the trade and mining of cryptocurrencies, claiming issues about national security, consumer protection, the environment, and financial stability. The US government has also implemented rules that require crypto exchanges to report suspicious activity to authorities. In addition, the government has tightened its security measures to prevent cryptocurrency fraud and criminal activity. Finally, the government is actively working to create a legal framework to regulate the cryptocurrency industry.

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UK Discloses Final Proposal to Regulate Crypto Trading Businesses

European Union Introduces MiCA Laws to Regulate Opaque Crypto Firms

US Charges Chinese Companies to Leverage Crypto For Illicit Activities

Turkey’s regulatory authorities are designing strict measures to regulate crypto service providers to combat money laundering and terrorist financing.

The new regulations are proposed by Turkey’s regulatory authorities to safeguard them from various financial crimes and assist them in complying with international Financial Action Task Force (FATF) standards. The FATF added Turkey to increase the jurisdiction monitoring list in July 2021, which damaged the global reputation of the country and broke investors’ confidence. According to regulatory authorities, these latest legalisations will assist in convincing global financial watchdog to get off the grey list. These crypto business verification regulations will show the interest of Turkey’s government in developing a secure environment for virtual asset users and investors. 

Turkey’s government claimed last month that crypto supports the country’s economy and, in the fight against inflation as well as the Lira, demands alternative assets to maintain its international position. The director at BlockchainIST, a research and development center for blockchain technology, Bora Erdamar, stated, “Introducing certain licensing standards will be one of the top priorities in the new regulation. It will prevent abuse of the system.” These regulations ensure authorities that crypto service providers comply with the latest Ultimate Beneficiary Owners (UBOs) measures. The director also claimed the regulations would be proactive by utilizing robust technology to prevent money laundering and terrorist financing as well as detect the source of income and reserved virtual assets in crypto wallets. 

The chief executive of the cryptocurrency exchange platform in Turkey, Mucahit Donmez, stated, “We have been observing that the interest in crypto assets in Turkey is on a continuous rise. There is currently a lack of regulation in this area. We think that ensuring the security of users’ assets and setting up certain criteria regarding minimum capital requirements, listings and custody, and requirements for platforms to obtain operation licenses will contribute positively to the sector.”  Previously, Finance Minister, Mehmet Simsek, stated in October that Ankara would introduce new crypto asset laws as soon as possible in order to comply with the final recommendation of the FATF. This proposal would enable Turkey to remove itself from the grey list, a status that can impact a country’s image and open new doors to international investments. 

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Turkey Plans to Introduce Strict Regulations to Secure Crypto Businesses

European Union Introduces MiCA Laws to Regulate Opaque Crypto Firms

UK Discloses Final Proposal to Regulate Crypto Trading Businesses

The UK treasury has launched its anticipated regulations to supervise crypto firms and prevent the virtual asset sector from money laundering and terrorist financing crimes. 

The UK regulatory authorities published a legal framework to regulate the crypto industry and stablecoins. The latest regulations show the determination of UK law enforcement agencies to create a “safe, transparent, and innovative” crypto sector that protects customer investment and global financial stability. The regulations aim to create a balance between protecting investors from fraud and allowing innovation in the sector. The UK crypto laws also seek to ensure global financial stability by establishing clear standards for crypto asset service providers. Implementing these strict obligations will enhance the security of virtual assets and assist financial institutes in business verification during onboarding. 

According to the new regulations, “stable tokens” will be introduced, which are crypto coins, to stabilize their value with the crypto basket. These tokens could include stablecoins and fiat currencies as well as contracts to adjust their demand and supply. In the published papers, they claimed that cryptocurrencies pose significant threats to the country’s financial system, mainly when it is used as a store value. The new regulations claimed that stablecoins and other cryptocurrencies that contain any values and are used in trading should be regulated according to traditional payment services. They also mentioned the KYB compliance system and controls in the crypto trading firms. The crypto laws will mitigate risk for consumers and investors, including compliance with anti-money laundering and counter-terrorism financing. The UK regulatory organization will issue stablecoins, the Financial Conduct Authority (FCA), and guide investors clearly and accurately about the nature and risk of their tokens. 

The paper also emphasizes the government’s intentions to develop a rigid system and uphold international standards to protect the crypto industry from financial crimes. They also added the supervision of emerging trends in the visual assets sector to conduct risk assessment. The UK’s government also proposed that other digital businesses and platforms such as crypto exchange, trading, and intermediaries must comply with international AML standards. Moreover, these entities also have to uphold the FCA rules according to their services. 

These UK perimeters are only enforced on fait-backed stablecoins, while it did not cover the other coins backed by commodities, cryptoassets, or algorithms. However, the UK government claimed that they will keep these stablecoins under review and notice their activities to combat money laundering. Additionally, they may extend the obligations in the future for these coins. The authority stated the legislation of these rules will be implemented as soon as the parliament approves it. In the papers, the UK’s government threatened the crypto firms that they could face hefty fines and jurisdictions for non-compliance with these virtual asset regulations. 

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European Union Introduces MiCA Laws to Regulate Opaque Crypto Firms

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Turkey is preparing new regulations for virtual asset service providers to regulate crypto trading platforms and prevent them from money laundering and terrorist financing. 

Turkey’s government is implementing strict laws on crypto assets to ensure they comply with the international watchdog, Financial Action Task Force (FATF), standards to delist them from the increased AML monitoring list. Turkey’s finance minister claimed they had overcome almost all 40 recommendations from the FATF, but the remaining issue is in the latest crypto transaction laws, and after complying with laws, they may exit from the gray list. Finance Minister of Turkey, Mehmet Simsek, stated, “the only remaining issue within the scope of technical compliance is the work related to crypto assets. We will submit a law proposal on crypto-assets to the parliament soon. After that, there will be no reason for Turkey to stay on that gray list if there are no other political considerations.”

The FATF added Turkey to the gray list in 2021 due to the inadequate money laundering and terrorist financing system. According to the FATF report on Turkey’s compliance process, the annual plenary meeting at Paris headquarters on Oct 30th determined that Turkey adhered to all of the 40 recommendations set by the watchdog except the technical compliance in crypto assets. Simsek stressed that the new regulations are solely about the crypto assets and their link to money laundering and terrorist financing but do not specify the legal changes in the existing laws. He also emphasized the essential need for a money laundering prevention system in the country’s financial system. It will improve the country’s reputation and international investors, raising its economy. 

However, the country’s law enforcement agencies still have shortcomings that damage the global financial ecosystem, including the loopholes in their crypto registering platforms. Turkey needs to meet international standards to prevent being used by bad actors for money laundering and terrorist financing. The compliance system will create a positive image in the global market and raise investors’ interest in the country’s economy. The international community also demands that the Turkish government plan a legal framework for crypto assets service providers and prevent terrorist financing and money laundering. Once Turkey fully complied with all the regulations, FATF had no reason to keep it on the “gray list.”

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FATF Endorses Latest AML Regulations in the Final Plenary Meeting

UK Law Society Ensures Solicitors Complying With AML Measures

Financial Action Task Force (FATF) conducted its annual plenary meeting of 2023 at the headquarters in Paris to strengthen the global financial ecosystem and prevent businesses from crimes related to money laundering. 

The fourth plenary meeting of FATF concluded under the supervision of President T. Raja Kumar. In the three-day meetings, members from international organizations and law enforcement agencies participated to discuss the latest innovations in AML compliance for businesses and entities. During three days of meetings, members discussed key points to protect organizations from money laundering, terrorist financing, and growing financial crimes. In the plenary meeting, members also discussed the rising money laundering cases in the Middle East. 

The FATF agreed to disclose data about crowdfunding for terrorism financing. Furthermore, delegates endorsed amendments to enhance measures to verify the businesses and non-profit organizations (NPOs). Additionally, FATF works on the country’s criminalization-prevention system and controls. 

FATF senior officials discussed the loopholes in the global AML measures to fully and adequately protect companies from financial crimes. This includes analyzing the onboarding system and Know Your Business (KYB) derivatives to secure organizations. They also urged member countries to strengthen law enforcement authorities to break the financial sources of the terrorist groups and destroy their landscape to accomplish a secure economic ecosystem.

The significant amendments are approved by the member states, which will create strict policies to verify businesses and users. It will raise the bar for criminals to process their illicit activities and provide real-time monitoring to report suspicious transactions of the customers. To further enhance security, they empowered the asset recovery networks (ARINs) and enforced collaboration with other financial authorities to accelerate asset-seizing procedures in money laundering cases.

The FATF added Indonesia as the 40th member of the delegation. The country passed a strict FATF investigation process, and after that, they got approval from all plenary meeting members. The delegation emphasized the Indonesian government’s compliance with strict regulations and resolved the remaining key points for a secure economic system. 

Members also stressed the evolving technology and proliferation of financial crimes through digital platforms. Effective and efficient AML measures are needed to secure the latest fintech industry. The amount of transactional organized crimes, including cyber-enabled fraud, has increased rapidly in recent years as digitalization reached worldwide. These kinds of crimes have the potential to cause enormous financial losses and damage confidence in digital verification platforms, which can have a terrible effect on people, organizations, and economies all around the world.

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FinCEN Intends to Utilize Digital Streaming Platforms to Spread Beneficial Ownership Reporting Measures

European Union Introduces MiCA Laws to Regulate Opaque Crypto Firms

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Cyprus Securities and Exchange Commission (CySEC) alerted the non-compliant  AML firms, stressed board members to obligate their duties, and uphold international standards.

CySEC reminds the board members and investment firms of the regulatory policies and their vital role in the country’s financial growth. They threaten non-compliant firms to face hefty fines and sanctions if they do not respond promptly and enhance their AML compliance system. According to the commission announcement, CySEC stated investment firms should “enhance their performance and promote a culture of integrity and high ethical standards” because the last supervision review of investing firms disclosed various loopholes in the compliance system. The commission issued this warning to alert the investing firms because from now onward, there would be no tolerance for non-compliance in financial institutes. CySEC chairman, George Theocharides, stressed compliance with the legal framework in investing organizations, “Cyprus is open for business, but only to the ones that take into consideration the best interest of their clients by fulfilling at all times their regulatory requirements. This is the basis for a healthy, strong market, with new products and services deploying financial technology and innovation.”

The chairman also emphasized that they will arrange meetings and workshops for investment firms and small businesses to guide them about international standards. It will also highlight the importance of company verification and investor protection. CySEC also outlines rigid regulations as well as the European Securities and Markets Authority (ESMA) to follow the steps of the international regulatory authority, the Financial Action Task Force (FATF). It will strengthen cross-border retail financial service providers. Investment firms and other financial institutes should prepare for the rigid regulations that are on the way. Organizations that are adequately complying and utilizing robust AML measures will survive the strict non-compliance penalties. 

Theocharides also explained that “CySEC takes any misconduct by supervised entities seriously and firmly believes that through intense supervision and continuous monitoring, investors’ protection and market integrity will be enhanced.” He also stated that international retail businesses, primarily those that deal in high-risk products, are continuously vulnerable to the country’s financial ecosystem. 

For violations of the Financial Services and Activities and Regulated Markets Law of 2017, CySEC has fined CIFs a total of €5.3 million over the previous three years, including a €1 million penalty against a sole company. According to the chairman, Cyprus is an open market for all those businesses that comply with rigid regulations, secure KYB measures, and bolster the market. CySEC is also investing in human resources and technology to enhance the strength of its supervisory structure to effectively and efficiently monitor the regulatory framework of investment firms. The commission underlined in a warning statement, “CySEC has also moved to reject applications for acquiring a CIF license, withdraw licenses, and suspended licenses until specific actions were taken to remediate weaknesses or omissions identified during supervisory checks.”

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FinCEN Intends to Utilize Digital Streaming Platforms to Spread Beneficial Ownership Reporting Measures

UK Law Society Ensures Solicitors Complying With AML Measures

European Union Introduces MiCA Laws to Regulate Opaque Crypto Firms

International law enforcement FinCEN is all set to deploy online streaming platform campaigns to spread awareness for financial institutes to guide them about beneficial ownership reporting requirements. 

FinCEN plans vast educational videos to teach companies and businesses about the new amendments in the beneficial ownership reporting measures to combat money laundering and terrorist financing. They designed a campaign to broadcast the videos on YouTube and other digital streaming platforms. FinCEN will also arrange meetings with small businesses, host webinars, and confront other legal entities about their upcoming rigid regulations to report information about companies’ real owners. 

During the recent press conference, the FinCEN director stated, “In short, we are going to hit all forms of media to educate about beneficial ownership information reporting. Not only will we be leveraging the web and a YouTube series but also leveraging every other type of outreach through our website [and] through a partnership with different public affairs outfits, we are definitely trying to get the message out.”

Referencing a new FinCEN publication to clarify the obligations for reporting Beneficial Ownership Information (BOI), the director added, “Gone on the road, so far, to engage with small businesses in different congressional districts. You can expect we will continue that and partner with stakeholder organizations, especially at the Secretary of State level.” The head of the global sanctions and risk in the Association of Certified Anti-Money Laundering Specialists (ACAMS) appreciated FinCEN for using digital platforms and said that small businesses would be excited to watch FinCEN take charge of spreading the latest regulation in business verification. He stated, “I think that’s going to be a relief to a lot of people in this room because I think the feeling, the worry, was that financial institutions would be the ones having to communicate that.” 

Many businesses established in the United States or registered to conduct business there must report FinCEN documentation about their shareholders or the people who ultimately own or control the corporation. This latest UBO verification rule will be implemented at the beginning of 2024. Parliament has criticized FinCEN because of this, stating that there hasn’t been enough public education about the new rule. To consider these allegations, Gacki stated, “Even if verification is not part of the rulemaking and people have not been shy about letting us know their views about verification, I just want to assure you that we’re taking all that in. As we pull together this database, I think there is something we have to work through. We feel very strongly that a way to test the validity of the information is a very important part of our job.” 

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European Union Introduces MiCA Laws to Regulate Opaque Crypto Firms

UK Law Society Ensures Solicitors Complying With AML Measures

US Charges Chinese Companies to Leverage Crypto For Illicit Activities

The European Securities and Markets Authority (ESMA) warned opaque and complex crypto firms to disclose their business shareholders’ details. They stated that the EU doesn’t want shell companies to operate from overseas in the member states. It also stressed companies can’t work in the EU with affected landmark Markets in the Crypto Asset (MiCA). ESMA urges major global crypto firms to start preparation for the strict regulation and be ready to comply with MiCA. Furthermore, the national regulators are also designing procedures that will promptly allow crypto exchanges and wallet platforms to get registered. Companies that are not compliant with MiCA rules and regulations can be fined or prosecuted for non-compliance. The EU regulations will also provide greater fraud protection by ensuring that crypto asset service providers are held accountable for their actions.

MiCA license rules will be implemented in December 2024, but the companies can operate till July 2026, until they get full license registration from the authority. This can be accepted when the crypto firms are registered under existing business verification regulations and comply with the national AML measures. 

It is also concerning for the ESMA officials that the temporary regulation changes will confuse the customers. MiCA is the most suitable regulatory body for preventing crypto firms from exploiting compliance audits. ESMA stated, “Opaque group structures may also render it difficult for clients of service providers to know which entity they are dealing with and its regulatory status may lack a strong compliance culture and their large scale and geographic scope allow them to maintain a high level of agility in terms of where they can operate, increasing the risk of conflicts of interest, regulatory arbitrage, and an unlevel playing field.” 

The MiCA will establish uniform regulations for the whole crypto platform and allow businesses to operate under a single license. However, it also gives national regulators considerable discretion over temporary measures and the definition of exceptions for decentralized networks. This will also enhance the European Union’s security and prevent threats from other members of states to undercut the obligations to boost their rivalry. 

Nevertheless, final MiCA rules are not issued by the regulatory department therefore, the crypto firms can not apply for a license yet. However, ESMA is ready to publish in journals to inform the regulators and clients about their new rigid regulations and also urge regulators for collaboration to finalize the crypto verification procedure as a matter of urgency. ESMA also stated to National Authorities, “establish authorization procedures and foster dialogue with potential applicants as soon as possible.” They also added a formal screening process for the companies before accepting license applications. Companies that pass the scrutiny will be eligible for the crypto license. 

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Deutsche Bank Pledges Taking Convenient Steps to Rebuild Trust on Postbank’s Services

Kenya takes over the leadership of the Easter and South Africa Anti-Money Laundering Group (ESAAMLG). It will lead the group members in combating money laundering and terrorist financing. 

After the last meeting of the ESAAMLG in Kasane, Botswana, Kenya became a regional leader in the fight against financial crimes and assisted group members in compliance with strict international AML regulations to correspond with worldwide financial institutes. During the group’s last meeting, Njuguna Ndung’u, Kenya’s Treasury Cabinet Secretary, and Saitoti Ole Maika, the director general of the Financial Reporting Centre, were supposed leaders of the group as the chair of senior officials and chair of ESAAMLG council minister. 

Kenya’s team led the group in September 2023 for one year, and Prof. Ndung’u became the head of the decision-making body. The ESAAMLG was created as the region’s financial action task force to prevent fraud, money laundering, and terrorist financing. The group comprises Council Ministers, a Steering Committee, a Secretariat, and a Task Force of Senior Officials. The director-general of the Financial Reporting Centre, Mr. Saitoti, stated, “The Council is ultimately responsible for setting the strategic direction of the Group, including the approval of programs. It is chaired by a President who serves for a period of one year.”

The group members stated they are complying with the rigid AML measures to combat money laundering and financial crimes as well as safeguarding the integrity of the region’s financial ecosystem. The group’s task force urges all the region countries to follow the latest robust technology to verify the customer and business identity. Utilizing advanced technology will assist regional financial institutes in complying with the international standards CFT and AML measures.

The group’s task force operates every technical issue and submits guidelines to the Council for authorization. It is led by a chairman and is made up of senior government officials from the financial, legal, and criminal justice societies in the ESAAMLG region who are in charge of anti-money laundering and countering the financing of terrorism (AML/CFT). Kenya became a leader of the ESAAMLG after completing their one-year monitoring procedure from the international regulatory authority Financial Action Task Force (FATF) this month.

Mr. Saitoti appreciated the efforts of Prof. Ndung’u in creating the current AML/CFT regime in Kenya and stated, “He was perfect to lead the region.” He added that Kenya is working on the 107 suggested changes included in last year’s Mutual Evaluation Report and believes a favourable assessment will be made in February 2024.

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Qatar Commercial Bank Harnessing Digital Platforms To Foster Innovations in Financial Sector

EBA Reveals Final Date to Comply with Remote Customer Onboarding Regulations

As the digital banking leader in Qatar, Commercial Bank (CB), visited the 15th MENA Regulatory Summit 2023 to promote the latest innovations in the Qatar financial sector and promptly assist them in complying with international obligations. 

The 15th MENA Regulatory Summit was hosted by the London Stock Exchange Group (LSEG) in collaboration with the Qatar Financial Information Unit (QFIU) in Doha. CB successfully took part in this summit as a digital banking leader in Qatar. The Summit is themed on using robust innovations in customer and business verification to combat money laundering and prevent the integrity of the financial ecosystem. Summit provides a great platform for the banking sector to showcase digital innovations in its legal framework to safeguard the finance industry.

CEO of the Commercial Bank, Joseph Abraham, stated, “We are pleased to have been part of the 15th MENA Regulatory Summit as the Innovation Partner. At Commercial Bank, we recognize the importance of actively collaborating with regulatory bodies and our banking peers to support events that harness digital technology to promote innovation in the financial sector.”

The summit’s most emphasized session was “Fintech and the Impact it Has on Financial Crimes.” This session provided insights into the innovations and how banks can utilize the latest machine learning and AI technology to streamline customer and business onboarding. They also added how digital technologies encourage the MENA region banks to fight against financial crimes.   

This event stressed regulators and businesses to take an advanced approach, with adequate robotic processing automation (RPA), machine learning, and artificial intelligence (AI) in enhancing traditional procedures. Further, the summit also discusses preventing new techniques of criminals from laundering money, including trade-based crime, regulatory vigilance, strengthening investor due diligence, and fast-tracking crypto transactions through digital wallets. 

To emphasize the digital approaches of the Qatar banking organizations in the regulatory framework, the compliance officer of CB, Abdulla Al Fadli, asserted, “Our participation in this summit underlines our commitment to staying at the forefront of the industry, utilizing cutting-edge technologies to combat financial crime, by way of real-time monitoring, behavioural data analytics, enhanced authentication, pattern recognition, and predictive analytics to combat financial crime. As a result, contributing to Qatar’s financial landscape’s overall integrity and stability.”

Commercial Bank is still dedicated to proactively participating in activities that improve innovation, teamwork, and regulatory developments in the Qatar financial sector. The Bank is eager to keep aiding these important projects. The Bank is also committed to providing banking services of the highest quality. This includes offering competitive products and services, as well as providing excellent customer service. The Bank’s goal is to continue to strengthen Qatar’s financial system and create a more prosperous economy.

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The Deutsche Bank’s CEO promised customers that it is devoting additional employees and advanced technology in the Postbank unit to resolve customers’ complaints and develop their trust. 

Deutsche Bank customers were disappointed with the disturbance they experienced at the Postbank unit’s online platform, along with the issue in reaching their customer services and processing time. These problems damaged customers’ trust in Deutsche Bank. Germany’s top banker, Christian Sewing, also commented on these issues as “unacceptable” in this digital world. Previously, in 2017, Deutsche Bank was fined $7.2 billion in the United States for its role in money laundering. Unfortunately, this issue is a setback for all their efforts to restore its credibility, creating a positive impact in the market, and can topple their banks out of the business world. While the largest bank in Germany has previously expressed regret about the issues at Postbank, Sewing’s remarks show that most lenders are not complying with adequate regulation measures.

During the 2008 global financial crisis, Deutsche acquired Postbank with its various branches in the country’s postal system, including its millions of clients. However, they are struggling to complete the integration of these branches to provide customers with a streamlined and convenient banking experience. In July, the bank reported that they resolved all the customer complaints and completed a final step of integration, but two weeks ago, BaFin, the German financial regulatory department, disclosed in the nonregular investigation that they noticed “considerable disturbances” at Postbank. 

At the financial conference in Frankfurt, Sewing mentioned that, “Customers had been disappointed very much, We have not lived up to our responsibility here – and now we have to work all the harder to fix the problems quickly and completely – and regain trust.” He also noted that this is a “clear mistake” by Deutsche Banks, underestimating the number of customer complaints the advanced robust IT integration would resolve. But according to Sewing, “This situation is anything but good, anything but nice,” adding that there are various improvements happening in the Postbank in the past weeks. Furthermore, he added that the board member briefed that the bank had onboarded 400-500 additional employees to adequate their online banking system and integrate compliance properly. 

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