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
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
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
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
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.
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
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
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
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)
This post focuses on the second: the Know Your Customer practice area. Thanks to
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)...