ABOUT

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, attendees will be guided through all relevant issues relating to VC, Money Laundering (ML), and Terrorist Financing (TF).

Attendees will be 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. They 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.

The Training Programme will also guide attendees through global developments relevant to VC, ML, and TF, the development of Financial Action Task Force (FATF) VC standards and recommendations, and what new AML/CFT technologies are available to implement effective AML and CFT operational compliance frameworks in this new high technology VC era. 

TRAINING PROGRAMME

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.

·       How 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).

·       Advantages of Cryptocurrencies; Cryptocurrencies and Potential Risks; Cryptocurrencies and Money Laundering (ML) and Terrorist Financing (TF).

SESSION 2: 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).

·       Global Legal Status of VC (Countries with an Absolute Ban; Countries with an Implicit Ban); Regulatory Framework for VC (Application of Tax Laws; Application of AML and CFT Laws); Countries Issuing National or Regional VC.

·       Regulation 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).

·       Historical Case Studies (Liberty Reserve; Silk Road; AlphaBay; Western Express International).

SESSION 3: 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 Role-Playing Games (MMORPGs)).

·       FATF Public Statement – Mitigating Risks from Virtual Assets; Draft Interpretive Note to FATF Recommendation 15; Draft Paragraph 7(b).

·       FATF New Payment Products and Services (NPPS) Risk Factors (Non-face-to-face relationships and anonymity; Geographical Reach; Methods of Funding; Access to Cash; Segmentation of Services); Payment Methods Risk Factors Matrix.

·       FATF NPPS Risk Mitigation Measures (Customer Due Diligence (CDD); Loading Value and Geographical Limits; Source of Funding; Record Keeping, Transaction Monitoring and Reporting);  

SESSION 4: VC Operational Compliance

·       Crypto Assets and Placement, Layering, and Integration.

·       Enhanced Due Diligence (EDD) Measures and Questions for VC Exchanges and Clients (Client Risk; Service Risk; Geographic Risk; Sector Risk; Channel Risk).

·       Operational Case Studies (ShapeShift; Manhattan District Attorney v. CRAIN and SANCHEZ).

·       Example 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).

EXPERT TRAINER

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); AML/CFT: Operational Compliance (Dubai, London); MLRO: Operational Compliance (London).

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); Eurex Exchange (CCP Clearing, Risk Management, Recovery and Resolution, Eschborn, Germany); European Energy Exchange AG (CCP Clearing, Risk Management, Recovery and Resolution, Leipzig, Germany); Rothschild Investment Management (UK) Limited (AEOI (FATCA & CRS), London); Resolution Life (AEOI (FATCA & CRS, London); CCP Clearing, Risk Management, Recovery and Resolution; 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).

For 2019 he has created some of the most cutting edge training courses available on the market today, including Artificial Intelligence in Banking and Financial Services; Supervisory Technologies (SupTech); The European Margin Rules; The 2018-2020 Collateral Paradigm; AML & CFT Advanced Practitioner; Virtual Currencies, AML, CFT: Operational Compliance; and Behavioural Persuasion Masterclass. 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?”.

Disclaimer

ISDA® is a registered trademark of the International Swaps and Derivatives Association, Inc., and Storm-7 Consulting Limited is neither sponsored by nor affiliated with the International Swaps and Derivatives Association, Inc. (ISDA), and the public is hereby informed that Storm-7 Consulting Limited holds no commercial, private, or other relationship with ISDA.