Best Practices

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Compliance

How to Launch a Regulated Product - Pt. 2

Compliance for Fintechs – Part II: Know What Examiners Expect In Part I [https://hummingbird.co/blog/how-to-launch-a-regulated-product/] of this series, we went through the main differences between working with a bank and being regulated yourself. Regardless of which route you decide to take, preparing what examiners expect of you beforehand will save you from a lot of future headaches. What you’ll need includes documentation, a risk assessment, good auditability, solid timelines, training, tes

August 31, 2021

Best Practices

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Compliance

How to Launch a Regulated Product

Compliance for Fintechs – Part I: Getting Started So you’re building a product that will be regulated, and you need to develop a compliance plan. Good news—we’ve worked with dozens of companies in your position, and we’ve compiled our best advice here on how to get started. There are three basic considerations when establishing a regulated financial product or business: 1. Decide whether you want to work with a bank or be regulated yourself. 2. Familiarize yourself with what examiners will

August 18, 2021

In the News

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Compliance

GRC Red Flag Interview: Matt Van Buskirk on Our Work with the ING Orchestrate Project

Interview with Matt Van Buskirk, Co-CEO and CoFounder, Hummingbird Learn about Hummingbird’s partnership with ING’s GRC Orchestrate, an entity that offers a RegTech platform similar to an App Store to both find and consume pre-validated RegTech solutions. Matt Van Buskirk: We’re big believers in modularity and interoperability – it’s one of the primary reasons why we focus on case management as an interface layer that can sit on top of a collection of transaction monitoring, KYC, or any other

August 04, 2021

AML

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Best Practices

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Compliance

Acing Your Compliance Risk Assessment

Design a Robust Compliance Program That Satisfies Regulatory Requirements When setting up the compliance program for your financial institution, the fundamentals are to: 1. Understand the unique financial crime and compliance risks that you are exposed to. 2. Design the controls, processes, and staffing needs that will help you mitigate those risks (collectively called your compliance “program”). 3. Conduct ongoing assessments of your program to ensure that it is effective. For mor

August 03, 2021

AML

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In the News

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Digital Currency

PaymentsJournal: Cryptocurrency is Better for Anti-Money Laundering than You Might Think

Author: Matt Van Buskirk, Co-CEO and CoFounder, Hummingbird Learn how technology can benefit AML compliance pros in their fight against financial crime in this article from the PaymentsJournal: Cryptocurrencies are a haven for fraud, money laundering, and all sorts of criminal activity —this has been a truism since the first days that cryptocurrencies became a topic of conversation in regulatory circles. This perceived risk carried through to compliance functions in banks across the country, w

July 20, 2021

AML

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Best Practices

The Top Item for Your Anti-Money Laundering List: Clean Data

The Overwhelming Volume of Suspicious Activity Reports Makes One Thing Clear: Get Your Data Ready for RegTech There’s a vast disconnect between the bleeding edge of technology and the financial infrastructure on the ground. Most average Americans would be shocked by how much inefficiency remains in the typical financial organization. Not only are we still waiting for jet packs, we’re still waiting for a lot of basic automation. Fragmented data sources from legacy systems have been hobbling

July 06, 2021

SAR

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AML

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Best Practices

Setting up an AML Compliance Program Part V: Filing SARs

Filing SARs Doesn’t Have to Hurt! RegTech Can Automate Tedious Tasks, Reduce Costs, and Maybe Even Help Stop Crime Slight possibility you could help identify a crime ring? Okay, that does make regulatory compliance kind of exciting. Filing out long, complicated forms? Ah, not so much. We’ve been going fairly light in this series on explaining how Hummingbird’s anti-money laundering RegTech tools can help, but Suspicious Activity Report (SAR) filing has such a glaring need for automation that

June 16, 2021

Setting up an AML Compliance Program Part IV: AML Case Investigations

Setting up a strong AML investigations practice. When your anti-money laundering (AML) transaction monitoring system flags an activity, or another trigger prompts a review, your compliance team will need to conduct a case investigation. The customer behavior could have a perfectly legitimate explanation. Or it could be a tip that helps law enforcement crack a terrorist financing syndicate. Case investigations are particularly critical junctures in AML, both for companies as well as regulato

June 02, 2021

Setting up an AML Compliance Program Part III: Transaction Monitoring

The first two parts of this series outline a framework for assessing the risks of money laundering that your financial institution faces, and provide an overview of the Know Your Customer (KYC) practice area. We recommend reading through those two parts if you haven’t already. 1. Assess Risk 2. Know Your Customer (KYC) 3. Monitoring 4. Investigations 5. Reports This post covers the third AML compliance area - transaction monitoring. A transaction monitoring system will, unsurprisingly, mo

May 18, 2021

AML

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Best Practices

,

Compliance

Setting Up an AML Compliance Program Part II: Know Your Customer

We started this series by providing a framework for assessing the risks of money laundering that your financial institution faces. We recommend reading through that framework if you haven’t already. Once you have assessed your unique risks, you’ll want to work through each of the five pillars of a strong AML program: 1. Assess Risk 2. Know-Your-Customer (KYC) 3. Monitoring 4. Investigations 5. Reports This post focuses on the second: the Know Your Customer practice area. Thanks to

May 05, 2021

Three Major Takeaways from Congress’ Recent Overhaul of AML Policy

Anti-Money Laundering programs in place today resemble a juggler with about twice as many balls in the air as they could reasonably handle. Over the years, evolving priorities have accumulated without considering whether monitoring for some older crime patterns may have become redundant. Compliance teams are spread thin, making it difficult to think about investing in innovation or keeping up with evolving trends. This accumulation is a byproduct of the mismatch between continuous innovation

April 20, 2021

In the News

,

Digital Currency

Digital Transactions: Central Banks Are Pondering the Privacy/Transparency Balance of CBDCs

“We are looking very carefully at the question of whether we should issue a digital dollar,” said Federal Reserve chairman Jerome Powell in testimony before the Senate banking committee. “We are the world’s reserve currency and we have a responsibility to get this right.” As digital currency moves from the outer edge of crypto to a future replacement for fiat cash, governments have had to consider a complicated range of risks and benefits in issuing central bank digital currencies (CBDCs)... R

April 13, 2021