Financial Crime World

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Financial Crime Trends in Northern Mariana Islands Take Center Stage as Regulators Eye New Challenges

Regulatory bodies are sounding the alarm on emerging financial crime trends in the Northern Mariana Islands, warning that evolving technological developments and geopolitical events may increase risks of fraud and money laundering. According to a recent report by KPMG, regulators will continue to focus on areas such as:

  • Terrorist financing
  • Beneficial ownership
  • Sanctions
  • Consumer scams
  • Potential compliance violations

Regulatory Focus

The report highlights several key areas of regulatory focus, including:

  • Anti-money laundering and counter-terrorism financing (AML/CFT) frameworks
  • Fraud models and operations
  • Insider corruption
  • Cybersecurity risk management

New areas of expanded regulations will include the oversight of:

  • Crypto and digital assets
  • NFTs and DeFi platforms
  • Sanctions and price cap compliance
  • Beneficial ownership information reporting

Interplay with Consumer Protection

Regulators are also concerned about potential violations of consumer compliance regulations, including:

  • Fair processing and treatment of consumer complaints, claims, and disputes
  • Clarity of consumer communication throughout the process
  • Risk programs to identify and mitigate fraud and scams directed at vulnerable populations such as:
    • The elderly
    • Servicemembers

Evolving Risks

Regulators are faced with the challenge of mitigating complex and evolving risks that may threaten national security, including:

  • Domestic and international terrorist financing
  • Transnational criminal organizations
  • Drug trafficking
  • Human smuggling
  • Proliferation financing
  • Synthetic identity fraud

ESG Governance

The report emphasizes the importance of enhancing risk and compliance frameworks for effective oversight and governance in areas such as:

  • Anti-bribery and corruption
  • Competitive behavior
  • Lobbying and political involvement
  • Code of conduct

Companies are urged to leverage technology and data to monitor activity while maintaining a strong culture of doing the right thing.

Experts Weigh In

Fiachre O’Neill, Chief Risk and Compliance Officer at PayPal, emphasizes the need for fintech companies to prioritize customer experience while combating fraud and money laundering on their platforms. Amy S. Matsuo, Principal at KPMG LLP, and John Caruso, Principal at KPMG US Forensic, highlight the importance of staying ahead of emerging regulatory challenges.

Conclusion

The report concludes by emphasizing the need for fintech companies to:

  • Eliminate antiquated technology
  • Establish mature conduct risk programs
  • Strengthen controls in regulatory focal areas

Download the full report for more insights on navigating these evolving financial crime trends in the Northern Mariana Islands.