The Future of Compliance Technology: Paypod and PiChain

RegTech | Compliance Technology | Soarpay

The Future of Compliance Technology: Paypod and PiChain

The spike in financial crimes due to COVID-19 and continuous changes in the regulations have accelerated the adoption of Compliance Technology. Banks and financial institutions have to become more vigilant for suspicious activities. In order to keep up with the latest regulations and continuous monitoring of transactions, Regtech firms have developed simple and easy compliance solutions.

A worth listening podcast by Soar Payments on RegTech & sustainable compliance. Shub Nandi, CEO and Co-Founder of PiChain, a RegTech company with the mission to make compliance sustainable, provides great insights on how Regtech firms provide banks & various financial institutions with reliable & sustainable tech tools to ensure compliance. It elaborates how compliance technology helps to deal the spiking financial crimes. 

Paypod, an amazing podcast that explores The Payments and Fintech industry, created by Soar Payments will provide you with great insights directly from leaders in the Payments and Fintech industry. Scott, the Host of PayPod, interacts with business leaders and entrepreneurs across the field of fintech, security, mobile development etc and covers the trends brought by cutting edge digital tech in sectors of credit card processing, Bitcoin and many more!

Starting with Shub’s journey in the finance industry, the podcast moves on to the topics of sustainable compliance and regulatory technology; what makes it so necessary in today’s Banking and Financial Sector. He explains how and what builds up the pillars of successful compliance practices. It then touches upon the challenges faced by financial companies and organizations and how smart technology is getting adapted to ensure robust and more secured service.

We get to see some really valuable insights and numbers to the finance industry which otherwise is a topic that most people are unaware of. To get more insight into the subject and listen to the podcast, click below.

Leveraging Emerging Tech to combat Financial Crimes

Emerging tech to combat financial crime

Leveraging Emerging Tech to combat Financial Crimes

With the world getting digitized so fast, it is the need of the hour to integrate emerging technology with the banking and finance industry, which otherwise majorly depends on manual work.

We are thankful to Anthony Muns from 8topod for having Shub, CEO of PiChain on their global podcast to discuss how regulatory technology is helping the banks & financial institutions to fight against financial crimes. RegTech firms are leading the way by assisting these institutions to combat illicit activities and fund transfers by leveraging emerging technology. 

PiChain is one of the RegTech firms with the mission to make compliance sustainable. It is working on integrating technology in various mundane but necessary jobs in compliance. It has developed a full-fledged On-boarding suite that includes VideoKYC, eKYC, AML Screening and E-Signatures approved by regulatory authorities. By using various technologies AI, Blockchain, it ensures real-time onboarding in less than 90 seconds. It assists Compliance and Regulatory Professionals to make better decisions by ensuring up to 93% reduction in False Positives.

The podcast discusses how RegTech firms like PiChain, are assisting to combat financial crimes using AML, AI, blockchain and digitized identification processes. 

As Shub said, the goal of PiChain is:

1) Increasing compliance confidence score

2) Reducing the cost of compliance

3) Repeating it YoY 

Along with the system in place, the firms need to update themselves with current happenings in the FinTech sector. Podcasts like 8topod engage with some of the thought leaders & innovators from various industries to understand the tactics, tools, and practices they are using to succeed. Anthony’s podcast helps many leaders & innovators to get the latest news, developments & trends within the finance and business spectrum. 

The podcast covers topics from Transaction Monitoring, Anti-money laundering (AML), Know Your Business (KYB) and Regulatory Reporting to FATCA and CRS.

Click below to listen to the interesting & insightful conversation on how PiChain is leveraging emerging technology to ensure sustainable compliance.

BMI Securities Limited breaches anti-money laundering regulatory requirements, gets severely fined by SFC

BMI Securities Limited breaches anti-money laundering regulatory requirements, gets severely fined by SFC.

BMI Securities Limited (BMISL), a Hong Kong based financial securities investment firm, got a penalty of $3.7 million by Securities and Futures Commission (SFC). They failed to comply with the anti-money laundering (AML) and counter-terrorist financing (CFT) regulatory requirements. (#1)

BMISL’s responsible officer, SFC did suspend Ms Maggie Tang Wing Chi for five and a half months from 11th February 2020 to 25th July 2020. (#2)

The shares of two listed companies placed were subscribed through BMISL in 2016. Using the bought and sold notes in off-exchange transactions the clients transferred most of their placing shares to third parties for the substantial amounts ranging from $4.4 million to $855 million. (#3)

These transactions showed suspicious features like:

  • The shares placed were disproportionate to the subscription amount with the client’s financial profile.
  • No transactions were done in BMISL accounts. Apart from acquiring and disposing of the shares placed.

Findings by SFC are as follow:

  • Inadequate implementation of controls alleviates the risk of money laundering and terrorist financing associated with bought and sold notes via suspicious transactions.
  • No distinguishing, proper inquiry and insufficient scrutiny on suspicious dealings. No consideration for reporting them to Joint Financial Intelligence Unite where appropriate
  • Neglecting proper customer due diligence and keep customer-related information updated and relevant.
  • Absence of adequate and effective framework for identifying politically exposed persons and singling out terrorists and sanction designations.

From SFC’s point of view, BMISL’s conduct was breaching the Guideline on Anti-Money Laundering and Counter-Terrorist Financing (AML guideline) and Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). (#4)

SFC’s investigation further resulted in the findings and the BMISL’s breaches because of Ms Tang’s incapability to discharge her duties as a responsible officer and as a member of BMISL’s senior management. She failed to identify, conduct appropriate inquiries and implement effective AML/CFT systems to subside the risks of money laundering and terrorist financing.

Factors in consideration so that SFC could decide sanctions against BMISL:

  • The message that AML/CFT is intolerable, is propagated in the market.
  • Tang and BMISL’s cooperation for resolving the concerns from SFC.
  • The remedial actions by BMISL to better its AML/CFT systems and controls.
  • An independent reviewer will prepare a report to log the successful rectification of identified concerns. BMISL will submit this report to SFC within twelve months.
  • BMISL’s financial situation.
  • Clean disciplinary records of BMISL and Tang with the SFC.

 Notes (#)

  1. For carrying out Type 1(transactions in securities) regulated activities, Securities and Futures Ordinance (SFO) did provide the license to BMISL.
  2. SFO provided the license to Tang for carrying out Type 1(transactions in securities) on behalf of BMISL and Type 9(asset management) regulated activities on behalf of BMI Funds Management Limited since 17th February 2016.
  3. SFC reported suspicious activities to the Joint Financial Intelligence Unit. The focus of the investigation was on the adequacy and effectiveness of BMISL’s AML/CFT systems and controls.
  4. The licensed corporations must implement appropriate internal AML/CFT policies, procedures and controls to ensure compliance with relevant regulatory and legal requirements. Every reasonable measure is undertaken to ensure proper safeguards to palliate the risks of money laundering and terrorist financing.
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Transaction Monitoring in Anti-Money-Laundering

Transaction Monitoring in Anti-Money-Laundering

Transaction Monitoring in Anti-Money-Laundering

As the volume of transactions continues to increase and money laundering techniques become ever more sophisticated. The financial institutions face fundamental challenges on anti-money laundering (AML) in  transaction monitoring, making this an increasingly expensive task.

What is Transaction Monitoring?

In simple words, Transaction monitoring is an Anti-Money Laundering and fraud prevention security process that reviews and analyzes suspicious financial transfers or commercial transactions in digital and fiat currencies, ultimately exposing the origins.

Why Transaction Monitoring?

Companies and Financial Institution are using transaction monitoring to prevent terrorism financing, financial fraud, evasion of taxes, and other types of money laundering.
A vital part of any bank or Financial institution is to Monitor the client’s profiles and their transactions.

The AML monitoring Transactions are

1. Deposits
2. Transfers between accounts
3. Withdrawals
4. Exchanges of currency
5. Extensions of credit
6. Any monetary instrument or investment security;
7. Any other payment or transfer, etc.

Money-Laundering Alerts in Monitoring Transactions

1. Monitoring of cash deposits,
2. Withdrawals, wire transfers that exceed statistical thresholds
3. Complete assessment of money transaction history of the Customer
4. Blacklist screenings
5. Sanctions screening
6. High-risk transaction regulation and exposure.

The 5 Real-time Indicators of Transaction Monitoring in AML

1.Suspicious Activity Report

This is the final result of an investigation, and broadly indicates the meeting of overall Transaction monitoring system objective related to the suspicious activity. There is a need to make sure the Case categorization along with other details is represented to provide to the investigation.

2.Quantum of False Positives

a well-performing transaction monitoring system makes sure that the number of false positives is greatly reduced which accounts for about 87%.

3.Changes in Regulations

Understanding changes will drive investigative activities. current transaction monitoring systems are oblivious to the current regulatory changes which need to missing of suspicious transactions. a robust transaction monitoring will have the changes in the regulations incorporated so that suspicious transactions are tracked in real-time

4.Different Monitoring scenarios

Lack of proper customer and account segmentation, new products will need to more scenarios to be created. Transaction monitoring systems have to be well aware of the above to make a difference in the operations.

5.Operational costs

Cost related to the Operations teams used to complete investigations and systems tasks needs to be taken into account along with the system infrastructure to support the transaction monitoring system.

At PiChain we understand how important KYC and KYB is for business.  To support all our customers and businesses during these challenging times of COVID-19 we have made our fully digital contactless AI/Blockchain driven COVID proof eKYC and eKYB solutions completely free this year. We do realtime eKYC and eKYB along with AML checks for more than 40 countries.

Please email us at for queries.

© 2020 PiChain Innovations Pvt. Ltd. All rights reserved.

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