Financial Crime World

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Saint Pierre and Miquelon: Regulators Warn of Growing Threats from Fraudulent Activities

Saint Pierre and Miquelon - A recent report by regulatory experts has highlighted the increasing threats posed by fraudulent activities in the financial sector. The report warns that evolving technological developments, geopolitical events, and interconnected financial networks may increase these risks, exposures, and complexity.

Focus Areas for Regulators

The report identifies areas of focus for regulators, including:

  • Anti-money laundering (AML) and counter-terrorist financing (CFT)
  • Insider corruption
  • Cybercrime
  • New regulations on crypto and digital assets
  • Non-fungible tokens (NFTs) and decentralized finance (DeFi) platforms

Regulators will also be paying close attention to the rapid growth of these areas, which have been identified as potential hotspots for money laundering and terror financing.

Sanctions and Price Cap Compliance

Another area of concern is sanctions and price cap compliance. Regulators are warning of increased focus on:

  • Virtual currency mining
  • Dark net markets
  • Bans on services to sanctioned entities or countries

The report also highlights the need for companies to implement robust risk management frameworks, including anti-bribery and corruption measures, as well as strong codes of conduct.

Governance (G) Factor

Fraud and financial crime are critical issues in the Governance (G) factor of environmental, social, and governance (ESG) considerations. As a result, companies will be expected to enhance their risk and compliance frameworks for effective oversight and governance.

Recommendations for Fintech and Payments Companies

In light of these findings, fintech and payments companies operating in Saint Pierre and Miquelon are being urged to prioritize:

  • Fraud prevention
  • Money laundering detection
  • Related financial crime management on their platforms
  • Responsible use of technology and data to monitor activity
  • A deep focus on customer experience and a strong culture of ethical behavior

Expert Insights

  • “Fraudulent activities in the financial sector pose significant risks not only to individual investors but also to the stability of the financial system as a whole.” - Fiachre O’Neill, Chief Risk & Compliance Officer at PayPal
  • “A strong risk management framework is critical for effective governance and oversight in today’s complex regulatory environment.” - Amy S. Matsuo, Principal at KPMG Regulatory Insights

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