VIRTUAL CURRENCIES AML AND CFT O P E R AT I O N A L C O M P L I A N C E
ABOUT THE TRAINING COURSE The rise in Virtual Currencies (VC) around the world in the past decade has been astonishing, to say the least. But along with this rise in popularity and global reach, has come a tidal wave of complex operational challenges for banks, financial services firms, and VC exchanges. In this highly comprehensive yet accessible training course, the training course expert trainer will guide attendees through all relevant issues relating to VC, money laundering, and terrorist financing. Attendees will be clearly guided through how VC operate; the regulation of VC; VC Jurisdictional Approaches; and Adapting and Implementing internal Anti-Money Laundering (AML) and Counter-the-Financing (CFT) of Terrorism Risk-Based Approaches.
2
Attendees will develop a highly comprehensive understanding of the ML and TF risks that VC pose, as well as understanding how Crypto Assets are utilised across the Placement, Layering, and Integration stages of ML and TF. Attendees will also be guided through global developments relevant to VC, ML, and TF, the development of Financial Action Task Force (FATF) VC standards and recommendations, and will also better understand what new AML/ CFT technologies are available to implement effective AML and CFT operational compliance frameworks in this new high technology VC era.
3
SESSION 3
SESSION 1 AN INTRODUCTION TO VIRTUAL CURRENCIES • Satoshi Nakamoto, “Bitcoin: A Peer-to-Peer Electronic Cash System”; A Decade of Cryptocurrencies: From 2008 to 2018; Bitcoin and the Modern Cryptocurrency Boom. • H ow Cryptocurrencies Work (Distributed Ledger Technology; Blockchain; Private Keys; Wallets; Administrator; User; Exchanger; Wallet Provider; Mixers; Miners; Finite Supply; Cryptocurrency Exchanges). • A Review of Leading Cryptocurrencies (Bitcoin (BTC); Bitcoin Cash (BCH); Cardano (ADA); Dash (DASH); EOS (EOS); Ethereum (ETH); Litecoin (LTC); Monero (XMR); NEO (NEO); Ripple (XRP); Zeash (ZEC). • A dvantages of Cryptocurrencies; Cryptocurrencies and Potential Risks; Cryptocurrencies and Money Laundering (ML) and Terrorist Financing (TF).
SESSION 2
VC RISK-BASED APPROACH • VC, AML, and CFT High Risk Areas (The Onion Router (TOR); Alt Coins; Crowdfunding Risks (BTC Jam; Swarm); Merchant Payments (BitPay; Bitstamp; Braintree; CoinBase; Gemini; Kraken); Anonymous Wallets (Dark Wallet; BitLox; Jaxx; Samourai); Mixing Services (Bitlaunder; Coin Mixer; Helix); OpenBazaar; Massively Multiplayer Online RolePlaying Games (MMORPGs)). • F ATF Public Statement – Mitigating Risks from Virtual Assets; Draft Interpretive Note to FATF Recommendation 15; Draft Paragraph 7(b). • F ATF New Payment Products and Services (NPPS) Risk Factors (Nonface-to-face relationships and anonymity; Geographical Reach; Methods of Funding; Access to Cash; Segmentation of Services); Payment Methods Risk Factors Matrix. • F ATF NPPS Risk Mitigation Measures (Customer Due Diligence (CDD); Loading Value and Geographical Limits; Source of Funding; Record Keeping, Transaction Monitoring and Reporting);
SESSION 4
ANALYSIS OF VC FRAMEWORKS • FATF Virtual Currencies (VC) Definitions (VC; Digital Currency; Convertible VC (CVC); Non-Convertible VC (NCVC); Centralised VC; Decentralised VC; Cryptocurrency; Dark Wallet; Cold Storage; Hot Storage). • G lobal Legal Status of VC (Countries with an Absolute Ban; Countries with an Implicit Ban); Regulatory Framework for VC (Application of Tax Laws; Application of Anti-Money Laundering (AML) and Counterthe-Financing of Terrorism (CFT) Laws); Countries Issuing National or Regional VC. • R egulation of VCs; European Approach (Fifth AML (5AML) Directive and VC Coverage; Providers Engaged in Exchange Services between VC and Fiat Currencies; Custodian Wallet Providers); Global Example Jurisdictional Approaches (Bermuda; Canada; Japan; Korea; Malta; United Kingdom; United States of America). • H istorical Case Studies (Liberty Reserve; Silk Road; AlphaBay; Western Express International).
4
VC OPERATIONAL COMPLIANCE • Crypto Assets and Placement, Layering, and Integration. • E nhanced Due Diligence (EDD) Measures and Questions for VC Exchanges and Clients (Client Risk; Service Risk; Geographic Risk; Sector Risk; Channel Risk). • O perational Case Studies (ShapeShift; Manhattan District Attorney v. CRAIN and SANCHEZ). • E xample Technology Case Studies: (1) ComplyAdvantage (RESTful Two Way Application Programming Interface (API); Customised Screening Criteria; Crypto-Transaction Monitoring); (2) Elliptic (Cryptocurrency Forensics; AML Software; Investigations Services); (3) Chainalysis (Chainalysis Reactor; Chainalysis Know Your Transaction (KYT); Activity Monitoring Reports; Enhanced Due Diligence Tools); (4) CipherTrace (Attribution Information; Machine Learning Algorithms; API Risk Scores; Visual Investigation Tools).
5
KEY BENEFITS • Attendees will be able to implement VC risk-based approaches and will be able to adapt and implement effective VC AML/CFT operational compliance frameworks internally.
WHO IS THE COURSE SUITABLE FOR?
• A ttendees will receive highly practical and comprehensive training cover a broad range of legal, operational, technological, and strategic insights. • A ttendees will benefit from attending one of the most advanced and cutting-edge training courses covering VC, AML, and CFT available globally on the market today.
• Academics.
• E xcellent opportunity for banking and financial services professionals and VC exchanges to be trained in advanced VC AML and CFT compliance in advance of the extension of European Union AML/CFT frameworks to VC by the 5AML Directive in 2020.
• Banking Professionals.
• AML/CFT Professionals. • Compliance Analysts. • Compliance Officers. • Compliance Professionals. • Financial Services Professionals. • F inancial Technology (FinTech) Professionals.
KEY TAKEAWAYS
• Front Office Professionals. • Heads of Compliance. • Heads of Risk • Money Laundering Reporting Officers.
• Highly Comprehensive +200 Page Training Course Manual, Training Course Materials, and Eight PowerPoint Presentations. • S7C Rewards (£250 Reward Certificate) (Discount on any purchase of Storm-7 Consulting training courses or training course materials).
• Regulatory Analysts. • R egulatory Technology (RegTech) Professionals. • Senior Directors.
• ACAMS Accredited Certification (4 ACAMS Credits). • Continuing Professional Development (CPD) Certification and Certificate (6 Hours) and Storm7 Consulting Virtual Currency, AML, and CFT Compliance Certificate of Attendance.
6
7
TRAINING COURSE
STORM-7
EXPERT TRAINER
CONSULTING
Rodrigo Zepeda is Co-Founder and Managing Director of Storm-7 Consulting. He is an expert consultant who specialises in derivatives and banking and financial services law, regulation, and compliance. He is an expert in a very broad range of regulatory compliance frameworks such as FATCA, the OECD CRS, MiFID II, MAD 2 MAR, PSD2, CRD IV, Solvency II, OTC Derivatives, CCP Clearing, PRIIPs, BRRD, AML4, and the GDPR. He holds a LLB degree, a LLM Masters degree in International and Comparative Business Law, and has passed the New York Bar Examination. He was an Associate (ACSI) of the Chartered Institute for Securities & Investment from 2004 to 2014 and is now a Chartered Member (MCSI). He has created and delivered numerous conferences and training courses around the world such as ‘FATCA for Latin American Firms’ (Santo Domingo, Dominican Republic, Panama City, Panama), ‘MiFID II: Regulatory, Risk, and Compliance (London), and ‘Market Abuse: Operational Compliance’ (London), ‘AEOI (FATCA & CRS)’ (London, Lebanon, Dubai, Malta, Manama, Bahrain). He has also delivered numerous In-House Training Courses around the world to major international financial institutions such as The Abu Dhabi Investment Authority (MiFID II: Operational Compliance, Abu Dhabi, the United Arab Emirates); the United Nations Principles of Responsible Investment (MiFID II: Final Review, London); CAF, the Development Bank of Latin America (Swaps and Over-the-counter Derivatives, Lima, Peru); Rothschild Investment Management (UK) Limited (AEOI (FATCA & CRS), London); Resolution Life (AEOI (FATCA & CRS, London); CCP Clearing, Risk Management, Recovery and Resolution (Eurex Clearing, Eschborn, Germany); Bethmann Bank AG (MAD 2 MAR, Frankfurt); Saxo Capital Markets (MAD 2 MAR, London); and Invesco Management, S.A. (AML/ CFT, Henley); Validus Risk Management (OTC Derivatives, Eton). He is a Reviewer for the Journal of Financial Regulation and Compliance and has also published widely in leading industry journals such as the Capco Institute’s Journal of Financial Transformation, the Journal of International Banking Law and Regulation, as well as e-books on derivatives law. Noted publications include “Optimizing Risk Allocation for CCPs under the European Market Infrastructure Regulation”; “The ISDA Master Agreement 2012: A Missed Opportunity”; “The ISDA Master Agreement: The Derivatives Risk Management Tool of the 21st Century?”; “To EU, or not to EU: that is the AIFMD question”; and “The Industrialization Blueprint: Re-Engineering the Future of Banking and Financial Services?”.
8
Storm-7 Consulting is an international consulting company that provides premier intelligence, insight and support to global financial institutions. We provide cutting-edge conferences, events, public training courses, and in-house training courses to leading firms globally. We provide expert regulatory compliance training covering areas such as GDPR, MiFID II, AEOI (FATCA & CRS), MAD 2 MAR (Market Abuse), CRD IV, PRIIPs, Solvency II, PSD 2, CCP Clearing, AML/CFT, Stress Testing, and the Senior Managers and Certification Regime. We also provide unique and highly innovative marketing services to firms operating in the banking, financial services, Regulatory Technology (RegTech), and Financial Technology (FinTech) sectors. We have received enquiries and bookings from leading firms around the world, such as the Abu Dhabi Investment Authority; Rothschild Investment Management (UK) Limited; Dubai Financial Market; CAF the Development Bank of Latin America; the Central Bank of Ireland; Hong Kong Monetary Authority; Hong Kong Exchanges and Clearing; European Commodity Clearing AG; APG Asset Management; Royal London Asset Management; Brandes Investment Partners; Eversheds; Erste Group; Millenium Information Technologies; Deutsche Bank; FMS-WM Service Company; Bethmann Bank AG; National Bank of Virgin Islands; Caystone; Bessemer Trust; ICBC Standard Bank; Gulf International Bank; Raiffeisen Bank International AG; BGC Partners; Saxo Capital Markets; InterTrader (GVC Group); Eurex Clearing; National Bank of Kuwait; Edgo; GFH Financial Group; Ahli United Bank; and King Abdullah University of Science and Technology. We have collaborated with firms around the world, such as the United Kingdom Financial Conduct Authority; Thomson Reuters; Sopra Steria; Sungard; Capco; OTC Partners, New York; OTC Space; IHS Markit; Deriv Asia Sybenetix; Heriot Watt University; JP Morgan Asset Management; Custom House Global Fund Services; Cass Business School Rixtrema; Solum Financial; Eurekahedge Financial IT; HedgeConnection Alpha Journal; ATMonitor; Hedge Fund Alert; CrowdReviews; Wall Street Luxury Collection; Luxurise New York LLC; Wall Street Oasis; ICOholder; Network Finance; Cointelegraph; CryptoNewsZ; Bitcoin Market Journal; AMB Crypto; Legalico; Neironix; Top Market Group; and Wallet Investor.
9
FOR BOOKINGS AND ENQUIRIES CLIENT.SERVICES@STORM-7.COM UK +44 (0) 20 7846 0076 WWW.STORM-7.COM