Global fintech companies face significant challenges combating financial crime and fraud. While digitised data enhances monitoring capabilities, the intricate fintech ecosystem poses unique hurdles. Fintech companies leverage vast data resources for tracing fraud instances. However, transaction complexities result in incomplete knowledge of the entire ecosystem, emphasising the need for advanced technologies like cluster monitoring and anomaly detection. The global nature of fintech operations adds complexity, requiring a delicate balance in navigating diverse legal and regulatory frameworks across multiple countries.
Upholding compliance with international standards and local laws while ensuring consistency in fraud prevention measures is crucial. The rapid evolution of financial technology introduces further complexities, with fraudsters continually adapting as well. It is why we must be committed to fostering a secure and compliant environment that evolves faster than the capabilities of these fraudsters. In your role as Global Chief Regulation and Compliance, how do you ensure that your organisation remains proactive and effective in identifying and mitigating financial crime risks, including those related to terrorism financing?
Ensuring the proactive mitigation of financial crime risks, including terrorism financing, is a top priority for me. Leveraging my extensive experience in financial investigations and typologies, I bring a unique perspective to risk assessment that others may lack. My approach involves meticulously mapping and understanding risks, delving into the intricacies of various industries and transactions.
Drawing on my background, including serving as the Director-General of Israel Money Laundering and Terrorism Financing Prohibition Authority (IMPA) and leadership at FATF, strengthens Rapyd's compliance framework. The company commits to global compliance and highlights its dedication to expanding its global footprint, while maintaining the highest standards of integrity and compliance. In this role, compliance is non-negotiable. Through collaborative efforts with regulators and a steadfast emphasis on integrity, transparency, and consumer protection, we can uphold and even elevate our high compliance standards at Rapyd.
Cryptocurrencies are an innovative technology that can be used for legitimate and illegitimate purposes. The international community designed a framework to mitigate some of those risks, via the international organisation that sets the global standards in the field – the Financial Action Task Force (FATF).
The framework requires all countries to impose the full set of anti-money laundering and terror financing rules on virtual assets – providing monitoring capabilities on the flow of funds. This framework has already proven to be effective, as demonstrated, for example, in the confiscation of millions of dollars’ worth of the terror organisation Hamas’ crypto by Israel. Unfortunately, to date, 75% of the countries have not fully implemented this framework, creating vulnerabilities and regulatory arbitrages.
In my recent testimony* before the US Senate Banking Committee on Combating the Networks of Illicit Finance and Terrorism, I argued that the FATF should urge all countries to promptly adopt all needed measures, promote the implementation of the Travel Rule, and conduct the appropriate supervision on relevant platforms to ensure compliance. The FATF should also publish a ‘grey list’ of jurisdictions that haven't fully adopted and implemented the global framework or conducted appropriate supervision.
Furthermore, countries like the US should also consider taking specific actions and designations against non-compliant crypto exchange platforms which are often situated in non-compliant countries, who might have broader interests in disrupting the global economy.
The combination of organic growth and strategic acquisitions, such as Neat in Hong Kong, Valitor and Korta in Iceland, showcases Rapyd's commitment to expanding its global footprint.
In August 2023 we announced our intention to acquire PayU GPO, marking a significant milestone that positions Rapyd strongly in the emerging markets, and accelerates our trajectory towards an eventual IPO. While the exact timing of the IPO will be influenced by various factors, it underlines our dedication to sustained growth and expansion.
Looking ahead, the future for Rapyd is exceptionally promising, solidifying our position as an industry leader. Our focus extends beyond the immediate future, with a commitment to funding initiatives for global expansion. Rapyd will continue to innovate, expand our offerings, and fortify our standing as a frontrunner in the dynamic landscape of fintech.
*Note: I recently provided written testimony to the US Senate Committee on Banking, Housing and Urban Affairs.
Rapyd lets you build bold. Liberate global commerce with all the tools your business needs to create payment, payout, and fintech experiences everywhere. From Fortune 500s to ambitious business and technology upstarts, our payments network and powerful fintech platform make it easy to pay suppliers and get paid by customers — locally or internationally. With offices worldwide, we know what it takes to make cross-border commerce as easy as being next door. Rapyd simplifies payments so you can focus on building your business.
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