Financial Crime World

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Regulatory Bodies for Financial Crime Control in Svalbard and Jan Mayen

As the global financial landscape continues to evolve, regulatory bodies are facing new challenges in combating financial crime. In the remote archipelagos of Svalbard and Jan Mayen, located in the Arctic Circle, regulators are working to mitigate risks and exposures in areas such as terrorist financing, beneficial ownership, sanctions/tax evasion, consumer scams, and potential compliance violations.

Focus Areas

Regulatory focus is shifting towards emerging technologies and interconnected financial networks. Key areas of concern include:

  • Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) frameworks to prevent illicit exploitation of access to the U.S. financial system
  • Fraud models, operations, and investigation processes
  • Insider corruption and cybercrime
  • New regulations for crypto and digital assets, including non-fungible tokens (NFTs) and decentralized finance (DeFi)

Interplay with Consumer Protection

While regulators are working to prevent financial crime, they also recognize the importance of protecting consumers from potential losses and identifying suspicious activity. Key areas of focus include:

  • Use of account holds and freezes in connection with Reg E, EFTA, and UDAAP
  • Model development and validation, including analysis of disparities and anti-bias
  • Payment sender/receiver authentication procedures

Evolving Risks

Regulators are facing complex and evolving risks that may threaten national security. Areas of concern include:

  • Domestic and international terrorist financing
  • Increased focus on OFAC and sanctions
  • Transnational criminal organizations
  • Drug and human trafficking, smuggling
  • Proliferation financing

Governance and Oversight

Companies and their boards will be expected to enhance risk and compliance frameworks for effective oversight and governance in areas such as:

  • Anti-bribery and corruption
  • Competitive behavior
  • Lobbying/political involvement
  • Code of conduct, compliance with evolving and expanding rules and regulations

Conclusion

As the financial landscape continues to evolve, regulatory bodies must adapt to new challenges and risks. Companies operating in Svalbard and Jan Mayen must prioritize risk management and compliance to protect their customers and prevent financial crime. By leveraging technology and data, companies can effectively monitor activity and identify trends to ensure a strong culture of doing the right thing.

  • Add analytics and automation to client onboarding
  • Eliminate antiquated technology
  • Establish a mature conduct risk program
  • Strengthen controls in regulatory focal areas (FinCEN priorities)