Shining a Light on the Dark Side of Blockchain
Cryptocurrency Anti-Money Laundering and Financial Investigations
October 25, 2018 12:00 pm - October 25, 2018 1:00 pm
For financial institutions, cryptocurrencies present significant operational and regulatory challenges. KYC and AML rules go against the fundamental anonymity of blockchain technology. Cryptocurrency transactions are supposed to be anonymous and untraceable raising the risks of their use in money laundering, terrorist financing, and other illicit activities.
In fact, cryptocurrencies are estimated to account for nearly 10% of the USD 2 trillion laundered each year, and this total is expected to grow as these currencies become more accepted as low-cost, secure payment solutions.
Despite the perception, cyrptocurrency transactions are not entirely anonymous – the details of these numbered transactions are a matter of permanent public record in the blockchain, however, identifying the entities and locations of blockchain participants requires sophisticated analytics and changes in customer onboarding and transaction-monitoring approaches.
This webinar will bring together a panel of experts to explore this topic from multiple perspectives and will explore the regulatory challenges of blockchain, the implications for AML investigation and compliance around the globe, and the methods for detecting transactions and identifying risky customers.
Partner at StoneTurn
A.J. Bosco, a Partner with StoneTurn, has 20 years of diverse regulatory, legal and compliance experience as a prosecutor, regulator and in internal roles at large financial services institutions. He has experience across many sectors of the financial services industry, including corporate and investment banking, retail brokerage, ratings agencies and consumer banking.
Throughout his career, which has included senior roles at various global financial institutions, A.J. has conducted and managed numerous probes involving matters such as insider trading, anti-money laundering (“AML”), know your customer (“KYC”), customer identification program (“CIP”), third-party misconduct, churning, suitability, direct market access, high frequency trading, market making, program trading, mark-ups, structured products, credit and market risk, and mortgage operations. Additionally, A.J. has extensive experience investigating allegations from whistleblowers.
A.J. is the author of the article Blockchain and the Uniform Electronic Transactions Act, which will publish in December in the Winter 2018-2019 edition of The Business Lawyer.
Shareholder at Murphy & McGonigle PC, Former NY DFS
Daniel S. Alter is a pioneer in the legal FinTech sector, having come to the field as an accomplished financial regulator, complex civil litigator (with a specialty in appellate litigation), and a director of a business/trading group at a global investment bank.
Before serving as general counsel and chief compliance officer for the first New York State-chartered trust company providing blockchain systems for post-trade settlement and custody services, as well as a virtual currency exchange to its clients, Mr. Alter was the first general counsel for the New York State Department of Financial Services (DFS). He was the agency’s chief legal officer, responsible for department-wide oversight of regulatory and licensing matters, criminal and civil enforcement operations, proposed legislation, and internal administrative functions.
After leaving DFS, Mr. Alter has served as an adjunct professor and senior fellow at New York University Law School, teaching corporate compliance and enforcement. He is a widely published author and speaker in matters of Fintech Regulation and financial services compliance, and is an Advisor to the American Law Institute’s Principles of the Law, Compliance, Enforcement, and Risk Management for Corporations, Nonprofits, and Other Organizations.
Founder and CEO of CipherTrace
Mr. Jevans is the founder and CEO of CipherTrace. He has 20 years of experience in the security and payments markets. Mr. Jevans is the inventor of 17 US patents in cyber security and has founded and sold three cyber security startups. In 2015 Mr. Jevans sold mobile security pioneer Marble security to Proofpoint (NASDAQ: PFPT). Before Marble, Jevans founded IronKey, acquired by iMation NASDAQ: IMN. Previously he founded Receipt.com (acquired by Valicert NASDAQ: VLCT). He has held senior management positions at security companies Tumbleweed Communications (NASDAQ: TMWD) and Teros (acquired by Citrix, NASDAQ: CTXS).
Mr. Jevans also serves as the chairman of the Anti-Phishing Working Group (www.APWG.org), a consortium of more than 1,500 government agencies, financial services companies, ISPs, law enforcement agencies and technology vendors dedicated to fighting electronic crime.
Founder and Chief Collaborative Officer, RANE
David Lawrence is the Founder and Chief Collaborative Officer of RANE. He previously served for approximately 20 years as Associate General Counsel and Managing Director at Goldman Sachs. During his tenure, David formed and was the global head of the Business Intelligence Group. His role covered a wide range of legal, regulatory, diligence and transactional responsibilities for the firm, as well as advising Goldman’s clients directly. David served on a number of the firm’s global risk-management and investment committees, including its Commitments and Capital Committees. In 2014, David received the FBI Director’s Award for his efforts in combating international terrorism.
Over the years, David and Goldman Sachs were jointly awarded over 20 risk management patents. While at Goldman Sachs, he helped create and lead the firm’s formation of Regulatory Data Corp (RDC), in which 20 of the leading global banks invested. Prior to working at Goldman Sachs, David served for 10 years as an Assistant US Attorney, in the Southern District of New York. During this tenure, he served as the Deputy Chief of the Criminal Division and Chief of the Public Corruption and General Crimes Units. David serves as a member of the Board of Trustees for the John Jay College of Criminal Justice Foundation (City University of New York). David received a B.A. from Brandeis University in Urban Studies, Magna Cum Laude with Highest Honors. He attended the University of Texas School of Law and received his J.D. from New York University School of Law.