Viktoria is spearheading a crucial conversation, highlighting how essential it is for businesses to fully understand the mechanics of banking operations and transaction flows to effectively conduct client due diligence. She argues that while blockchain and cryptocurrencies may appear to be innovative solutions, they don’t actually resolve underlying systemic issues. Instead, they can mask them, particularly when the same individuals are involved in exploiting the system. Viktoria champions the need for enhanced financial literacy, especially noting the knowledge deficit within higher education concerning payment systems and banking practices. She describes this knowledge as absolutely fundamental to grasping cash flow and essential banking requirements.
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The discussion shifts to improving fairness within the global payments landscape, specifically addressing the obstacle of equitable access to financial technology (fintech). Subsequently, Stanley Foodman, a respected accounting professional and fraud investigator, delves into his article titled “Crypto’s Compliance Crossover: Are You Ready for Multi-Framework Reporting?”. He points to the diminishing boundaries between digital assets and traditional financial systems, driven by evolving regulations like CARF and CRS 3.0, which integrate cryptocurrencies into established regulatory frameworks. He emphasizes that financial institutions operating in Latin America must be ready for this significant change.
Stanley identifies key compliance vulnerabilities, including incomplete data collection regarding digital wallet ownership and transaction details, inconsistencies in anti-money laundering (AML) processes, variations in know your customer (KYC) protocols, tax due diligence inadequacies, a lack of comprehensive policies for cross-border transactions, and limited integration between different compliance tools and departments. He argues that institutions must not only rectify these weaknesses but also proactively strengthen their overall compliance readiness. This involves a complete alignment across policies, data management strategies, staffing considerations, and governance structures to effectively meet the demands of cryptocurrency compliance.
To facilitate effective adaptation, Stanley proposes essential compliance strategies. These include: developing integrated policy frameworks that treat crypto assets similarly to traditional investments, establishing unified data architectures to enable seamless access to comprehensive client behavior across all transactions, updating client onboarding and monitoring processes to incorporate crypto-related information, improving staff training to ensure a thorough understanding of crypto regulations, and mapping regulatory obligations across different jurisdictions to ensure alignment with frameworks such as FATF, CARF, and CRS 3.0.
Stanley reflects on his career path, highlighting how his accounting background has significantly benefited his experience in law enforcement, underscoring his enduring commitment to the accounting profession. He stresses that the distinction between digital assets and conventional finance is becoming increasingly irrelevant and encourages institutions to integrate cryptocurrency considerations into the core of their compliance strategies and organizational infrastructure to succeed in this evolving environment.
Resources:
• Follow Viktoria Soltesz on LinkedIn: https://www.linkedin.com/in/viktoria-soltesz/
• Explore her book: Moving Money: How Banks Think: https://a.co/d/4hDzJJZ and the Soltesz Payment Framework: https://www.linkedin.com/pulse/soltesz-payment-framework-viktoria-soltesz-hgqxf/?trackingId=wizcY4%2FETWOC3tB%2BbU0dOg%3D%3D
• Visit the websites: PSP Angels: http://www.pspangels.com/ and Soltesz Institute: https://solteszinstitute.com/
• Follow Stanley Foodman on LinkedIn: https://www.linkedin.com/in/stanleyfoodman/
• Visit the website: Foodman CPAs & Advisors: http://www.foodmanpa.com/
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