The deputy director of the Financial Crimes Enforcement Network (FinCEN), Jamal El-Hindi recently delivered prepared remarks on corruption in transactions, narco-trafficking and money laundering in the 20th Anti-Money Laundering and Financial Crimes Conference facilitated by SIFMA on 6 February 2020.
The Inherent Problems
The focus of El-Hindi’s remarks and that of the conference as well were the various serious issues like criminal exploitations and illicit transactions occurring within the financial establishments that are clear impediments to the sector. Moreover, his speech sheds light on some frequent issues of terrorist transactions, corruption, and cases of fraud during transactions. He also shared his own bitter experiences and observations in financial institutions that cause their decline.
Why Encompassing AML Laws are the Need of the Hour?
Before the commencement of his speech, Jamal El-Hindi mentioned that the speech is restricted to non-banking-financial institutions. Highlighting how FinCEN exercises its AML principles, he talked about the organization’s focus on maintaining transparency.
Interestingly, Jamal El-Hindi’s speech on money laundering cases in non-banking financial sectors also shed considerable light on social media networks that are trying to establish cryptocurrency-powered payment systems. According to him, these run the risk of transaction fraud more than any other platform. He emphasized that social media networks cannot be reluctant towards such issues and must be held accountable under the same AML laws that govern traditional financial institutions.
Common Issues and Possible Solutions
Apart from these El-Hindi also talked about issues in financial institutions in general which lead them down the hill. Financial institutions that try to safeguard customer information and as a result compromise with transparency, eventually end up losing its clients and customers.
As a solution to this, Jamal El-Hindi suggested a bilateral sharing of information or following the guidelines that come under the 314(b) program. The deputy director strongly discouraged compromise of innovation in pursuit of deploying measures against corruption.
Extolling FinCEN, he surmised that it sincerely employs all such measures that are necessary to tackle the common impediments to financial transactions and have gained many numbers of clients over the years.