29 min
The Dirty Laundry Comes Clean: How Not to F#ck Up Compliance In the Hot Seat
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- Entrepreneurship
Compliance IS sexy when it’s done right! Erik Howell of Flagship Advisory Partners and Donald Riddick of Featurespace discuss rebuilding trust after fintech f#ck ups, what the foundation of compliance done right looks like, how your KYC/KYB can make or break you, and the best way to treat a compliance department to stay lean and nimble.
Key Takeaways.
[0:00] Denise Johansson puts Donald Riddick, Company Secretary and Chief Legal Officer for Featurespace, and Erik Howell, Partner at Flagship Advisory Partners in the hot seat.
[2:17] New standards and new tech are often the start of compliance. PCI DSS anyone?
[4:55] Erik offers banks reassurance amidst compliance fuckups with methodical transparency.
[6:17] Independent third-party assessments are Donald’s fundamental health check to save banks the headache of uncertainty. He also offers that giving everyone time is key.
[8:17] OK, compliance IS sexy, Donald.
[9:05] Erik offers examples of transparency, and those more at risk of more opaque practices.
[9:54] Self-certifiers are more prone to disaster, Donald offers a prime U.S. example.
[12:26] With great liability for money laundering comes great KYC/KYB responsibility.
[14:18] Erik shares his thoughts on picking your style of vendor.
[15:10] Donald talks about dropped deals on the grounds of insufficient KYC/KYB. It is HUGELY important.
[17:18] Factors of trust involve your choice of tools.
[18:09] Evolving threat vectors mean adaptive processes. Donald talks about how to use machines to complement human weaknesses and vice versa.
[19:33] What’s your risk tolerance? Realistically, is it bank-level or gaming-level?
[22:59] You can do high risk, but do it right.
[23:51] Integrating compliance as a partner prevents it from slowing you down.
[26:42] Ignoring dirty laundry will only make it worse, the same goes for compliance! Do it now and do it right.
[29:00] Denise signs out until the next time she puts an industry leader in the hot seat.
People.
Guest Erik Howell, Partner at Flagship Advisory Partners, a payments & fintech advisory boutique. Guest Donald Riddick, Company Secretary and Chief Legal Officer at Featurespace, a world leader in Enterprise Financial Crime prevention for fraud and Anti-Money Laundering. Host Denise Johansson, co-CEO and co-Founder of Enfuce, a female-founded fintech helping drive business growth, solve customer challenges, and extend financial inclusion.
Links.
Flagship Advisory Partners Featurespace Enfuce
Guest Quotes.
For a bank, enterprise, or strategic buyer, the tolerance for compliance screw-ups is zero/nil because it’s such a latent risk. — Erik Howell, Flagship Advisory Partners, InTheHotSeat Because it links to the money, KYC is hugely critical. That's one of the first things I look at, and there's just no tolerance there if you’re looking to buy the company. — Erik Howell, Flagship Advisory Partners, InTheHotSeat If 1% of your portfolio is high-risk gaming pay-in and pay-out, and it's NOT driving value creation, don't do it. — Erik Howell, Flagship Advisory Partners, InTheHotSeat So many suppliers believe they're doing things right and they’ve certified their own controls but they only exist on paper. — Donald Riddick, Featurespace, InTheHotSeat Some organisations aren’t willing to slow down. There's a real danger in looking at acceleration without simultaneously looking at the dirty laundry. — Donald Riddick, Featurespace, InTheHotSeat On the vendor side, the core is that you can have these massive governmental penalties if you get it even a little bit wrong, or even if there's the appearance of getting wrong. — Donald Riddick, Featurespace, InTheHotSeat The value of your company decreases if you don't have sufficient KYC and KYB. — Donald Riddick, Featurespace, InTheHotSeat Whenever humans are involved in processes – we are wonderful as a species but sometimes we get things wrong: you have to reduce that.
Compliance IS sexy when it’s done right! Erik Howell of Flagship Advisory Partners and Donald Riddick of Featurespace discuss rebuilding trust after fintech f#ck ups, what the foundation of compliance done right looks like, how your KYC/KYB can make or break you, and the best way to treat a compliance department to stay lean and nimble.
Key Takeaways.
[0:00] Denise Johansson puts Donald Riddick, Company Secretary and Chief Legal Officer for Featurespace, and Erik Howell, Partner at Flagship Advisory Partners in the hot seat.
[2:17] New standards and new tech are often the start of compliance. PCI DSS anyone?
[4:55] Erik offers banks reassurance amidst compliance fuckups with methodical transparency.
[6:17] Independent third-party assessments are Donald’s fundamental health check to save banks the headache of uncertainty. He also offers that giving everyone time is key.
[8:17] OK, compliance IS sexy, Donald.
[9:05] Erik offers examples of transparency, and those more at risk of more opaque practices.
[9:54] Self-certifiers are more prone to disaster, Donald offers a prime U.S. example.
[12:26] With great liability for money laundering comes great KYC/KYB responsibility.
[14:18] Erik shares his thoughts on picking your style of vendor.
[15:10] Donald talks about dropped deals on the grounds of insufficient KYC/KYB. It is HUGELY important.
[17:18] Factors of trust involve your choice of tools.
[18:09] Evolving threat vectors mean adaptive processes. Donald talks about how to use machines to complement human weaknesses and vice versa.
[19:33] What’s your risk tolerance? Realistically, is it bank-level or gaming-level?
[22:59] You can do high risk, but do it right.
[23:51] Integrating compliance as a partner prevents it from slowing you down.
[26:42] Ignoring dirty laundry will only make it worse, the same goes for compliance! Do it now and do it right.
[29:00] Denise signs out until the next time she puts an industry leader in the hot seat.
People.
Guest Erik Howell, Partner at Flagship Advisory Partners, a payments & fintech advisory boutique. Guest Donald Riddick, Company Secretary and Chief Legal Officer at Featurespace, a world leader in Enterprise Financial Crime prevention for fraud and Anti-Money Laundering. Host Denise Johansson, co-CEO and co-Founder of Enfuce, a female-founded fintech helping drive business growth, solve customer challenges, and extend financial inclusion.
Links.
Flagship Advisory Partners Featurespace Enfuce
Guest Quotes.
For a bank, enterprise, or strategic buyer, the tolerance for compliance screw-ups is zero/nil because it’s such a latent risk. — Erik Howell, Flagship Advisory Partners, InTheHotSeat Because it links to the money, KYC is hugely critical. That's one of the first things I look at, and there's just no tolerance there if you’re looking to buy the company. — Erik Howell, Flagship Advisory Partners, InTheHotSeat If 1% of your portfolio is high-risk gaming pay-in and pay-out, and it's NOT driving value creation, don't do it. — Erik Howell, Flagship Advisory Partners, InTheHotSeat So many suppliers believe they're doing things right and they’ve certified their own controls but they only exist on paper. — Donald Riddick, Featurespace, InTheHotSeat Some organisations aren’t willing to slow down. There's a real danger in looking at acceleration without simultaneously looking at the dirty laundry. — Donald Riddick, Featurespace, InTheHotSeat On the vendor side, the core is that you can have these massive governmental penalties if you get it even a little bit wrong, or even if there's the appearance of getting wrong. — Donald Riddick, Featurespace, InTheHotSeat The value of your company decreases if you don't have sufficient KYC and KYB. — Donald Riddick, Featurespace, InTheHotSeat Whenever humans are involved in processes – we are wonderful as a species but sometimes we get things wrong: you have to reduce that.
29 min