Innovation in National Digital Identity, Transaction Monitoring & Financial Crime Implications

get uh karen to start and i will welcome karen she's gonna maybe speaking a little bit about herself and what's gonna happen is she has some slides that she'll go through and the floor is yours i'm going to get your slice up thanks karen thank you and hello everyone depending where you are in the globe good morning good afternoon and good evening uh it is always my honor and privilege to speak not only with my uh excellent um co-speakers co-workers

today but also to welcome all of you uh thank you out in the audience for being here and thank you of course to jenna for the invitation to speak so what i'd like to do today is just to begin our time together with putting a human face on what we're doing and i know within the compliance and regulatory scheme many times you are working diligently with numbers and getting a chance to see what's happening on the banking side and what

i'd like to do as my background which i'll tell you a little bit more about is pull back the curtain a little bit and just to share with you why what you do is so so very important because many times you may take an action in your private i should say in your professional life you don't really know where that leads so what i'd like to do today based upon my experience as a federal prosecutor with the u.s department of justice is to show you what your actions can result in and how very very important they are so with that being said thank you jenna

for that first slide i'm going to give you a view from the front line ladies and gentlemen so let us begin next slide please jenna okay today i have for 10 minutes i'm going to quickly give you a background of who i am and what my experience is i'm going to share with you two case scenarios which i hope will bring back will bring to you the real life importance of the work that you all do and then finally a conclusion next slide please

wonderful all right so i am very honored and privileged to hold the position as a federal prosecutor with the united states department of justice uh for those of you who are perhaps not as familiar it's a cabinet level agency that was established soon after the united states fought and won its independence from great britain we are responsible for enforcing the laws of the united states federal government our statutes and we have over 110 000 employees and

head is the attorney general of the united states department of justice is the fbi uh federal agencies and then my own which are u.s attorneys assistant u.s attorneys and essentially we are uh prosecutors and lawyers enforcing the laws of the federal government i myself have a background i'm an attorney a background i had the privilege of serving as a state level prosecutor in the manhattan da's office in new york city prosecuting

violent crimes before i then became a assistant united states attorney today's financial fraud cases thank you jenna next slide uh he's no one famous he's not going to be in the news but he is he is the face as i said he is the real life face of what you do in your professions how it impacts people and in a positive way as well uh i won't

identify him uh specifically but he is a federal agent uh with the u.s department of justice's fbi uh his first name is chris and i have uh utmost respect for chris and the work he does and those such as uh and other agents that help to enforce our laws so keep an eye on chris ladies and gentlemen we're going to come back to him later and the photo you see there was him speaking at at the time i was the resident legal advisor on behalf of the us embassy and bangladesh

and he was talking with bangladeshis and americans about the importance of anti-money laundering and countering terrorist financing all right so we'll say goodbye to chris for now and we'll go to the next slide okay so here's pulling back the curtain and i want you to take a moment to look at this uh young man uh his name is uh mr amin at the time this was taken he's about 17 and i gather he probably looks like a lot of people you see every day he looks like a good kid right um he looks like he's just on the

cusp of adulthood at the time he was an honors student in the state of virginia he had immigrated to the united states with his mother as a child from sudan and as i said he was doing very academically he was doing very well and unfortunately he came under the shadow of isis recruitment so next slide please so mr amin started twitter account uh he had over 4 000 followers over seven

thousand tweets and he provided instructions to his followers on how to use bitcoin to mask the provision of funds to isil he aided his friend ariza who was also in high school with him to leave the country at that time circled 2015 2016 to join isis for those of you not familiar uh that during that time period isis had uh had self proclaimed caliphate and we're asking um like-minded

individuals to come and join them and uh mr amin assist his friend riza to actually travel uh to the caliphate so ali is a very interesting portrait because again he became he knew nothing about bitcoin and nothing about anti-money laundering he wanted to just learn more about his religion and unfortunately as this happens to many he was led astray all so he goes from a 17 year old honor kid to let's go to the next slide please jenna

why she's been very good at helping me i'm very very thankful let me tell you a little bit more about mr amin so mr amin at that time began radicalizing in very distinct stages when we look back and saw what happened to him um i think that jumped too much yeah thank you you can jump all the way back yeah that's fantastic yeah right there thank you jenna so as he began to first inquire more about his religion which is normal for anyone who's exploring their faith regardless of what it is he unfortunately became connected with a

group of radical isis supporters and eventually the 17 year old honors student became someone who would post things such as this on his account i can't imagine the reward it brings the jihad to latin america and it's this type of public uh affirmations that caught the attention obviously of not just the american but other law enforcement uh officials next slide please jenna okay

so eventually what happens is uh he is uh indicted he's arrested he's indicted he goes to trial and his defense is the dopamine defense and i'm sure you're all aware of dopamine is that uh chemical in our brain that is released when we're doing something enjoyable and his the defense on that was that isis targets the impulsiveness of teenagers that may be true i'm sure it is and they also target others very specifically

but the defense was dopamine reinforces powerful stimuli satisfaction gratification and in this case identity uh mr amin was eventually sentenced to 11 years in jail by a federal court a judge in the united states his friend rizza that we spoke about who had actually gone to um the theater of war uh was uh actually reported to have died he was 17 as well but what's interesting here is that last word in that slide identity

uh people who had spoken with mr amin who again again was very young 17 18 at the time we call it at times the loser to lion syndrome a loser in the sense that he was just an average 17 year old kid uh there were reports his mother was very protective he had medical issues and all of a sudden when he entered into this terrorist organization he felt that he was now somebody people would listen to him and he felt empowered so was that loser to lion identity

and mr amin is now sitting in a federal jail in the united states but again i mentioned this for the conversation today because of bitcoin this is someone who uh obviously was not a financier he was not familiar with it but he was using bitcoin and when this case came to trial the government the federal prosecutors the assistant u.s attorneys work closely with your community the aml uh compliance community in order to get records and get other information thank you jenna the second case now i

want to talk to you about it's a little bit closer and it's actually deals with asia and it's the movida bombing this is kuala lumpur malaysia a magnificent city that i had the pleasure of living in for a number of years as part of their push at the time uh the isis uh had had announced publicly announced that they were going to establish an asian caliphate in asia and um as those as those of you who are

histories of who are students of history you know that whatever the empire that wishes to take control will always attack the power structure in any country whether that's attacking the elite attacking law enforcement or taking away someone's language here they were going to attack the power structure the rule of law if you will in malaysia and that was the leaders of the police and the leaders of the judiciary and others and they were viewed as an obstacle they had to be getting rid of because of

course they stood for the rule of law now if you could go back one slide please jenna now what happened here was that uh at the time uh there was a tweet that went out during ramadan which those of you are familiar ramadan is the holy month and at that time during the holy month the tweet went out and and advised all observant muslims do not go to any sporting centers or anything else you should be observing your holiday and it was a warning it was a threat that if you did

do so that there would be actions taken so here in movida it was a bar you know a bar restaurant in kuala lumpur and um there was a euro football game happening at the time and in the midst of the euro football game a uh two men on a motorcycle drove past and they lobbed in a bomb and now if you can go to the next slide jenna this is what happened to people who simply wanted to watch football for the evening um thankfully these are quite graphic

these are public photos i share them not for any shop value because they're hard to look at but just to show you the impact of hate and also how it's going to tie into the money laundering and terrorist financing thankfully thankfully no one was killed there was injuries severe injuries to these unfortunate individuals but no one was killed so now that's the attack and as we all know ladies and gentlemen nothing moves what is the blood of any organization it is the money it

is the currency so i want to take you now to the money that actually led to funding of these horrific acts so jenna thank you so when the police came in they did an um excellent job the royal malaysian police uh they learned that this was uh the photo on the right hand side that you're looking at is a representation but it was a hand grenade that was lobbed into uh the uh restaurant bar of lover so moving on

now you have to you're gonna have hand grenades who's gonna pay for this let's talk about russell salek for a moment now if you take a look at this gentleman he looks at first blush i would i would join you in saying very happy fellow right he looks very normal he looks very kind he looks happy he's a doctor he's in fact an orthopedic surgeon this is a highly educated sophisticated man um and he has been described by his friends as easygoing and kind and again no more than mr i mean

do not be fooled by looks uh it's not the terrorists have to have to have to look evil this is the face of evil as well ladies and gentlemen so let's pull back the curtain on dr russell salek who was operating at the time in marawi the philippines and was respected member of the community next slide please jenna he as well as amin and others had been drawn into the web of terrorist financing and using

to re using to reach his political goals of money laundering that happy man that you saw on that further that uh other slide he's communicating with an individual uh in new york in the united states and he thinks he's talking to a fellow adherent of the uh terror campaign but thankfully he's talking to an undercover agent but salad doesn't know that so as he's going back and forth into these communications which he thinks are

anonymous which which which we're not in the end he says it's not strict here when he says here's ladies and gentlemen he's talking about the philippines and again this is about four years ago this is not to say that philippines what he's saying is correct i'm not saying that this is just his words it's not strict here unlike in australia or united kingdom or even liking facebook status will put you in jail but no worries here in the philippines they don't care about isis lol only in the west it would be a great

pleasure if we can slaughter people let me stop there to just say that do you see in his words he knows that australia and uk you know facebook that were the compliance the regulatory scheme is is very robust but he's saying we don't have to worry about that in the philippines well he did have to worry about that in the philippines he was wrong but this also ladies and gentlemen shows you that when we do have robust anti-money laundering counterterrorism financing regimes how very important it

is because that message does filter down to these people who want to commit murder thank you jenna next slide please so what happens to mr salek well mr salic had been in touch with the undercover officer he not only was going to fund an attack in new york city but mr salek through wires which were traced and entered into evidence had given approximately 426 u.s dollars at 30 cents to a uh to the undercover officer

and that undercover officer then sent it on to an individual in malaysia and ladies and gentlemen that that 426 dollar wire that small amount of money that money was then tied to the bombing for purchasing the weapons that blew up and caused all that carnage in malaysia at the at the movida um bombing so again when we're talking about terrorist financing and money laundering is a small movement of money which i

agree with you it's hard to trace but i just want you to see how important it is if a sar is filed on that or if something triggers on it how important that is because that is a thread in the tapestry that we can pull and then identify the salads right now he's been obviously tried in the philippines he's awaiting a tradition to the united states for his crimes here as well next slide jenna so my conclusion next slide i want to take you back now to the face

remember chris we talked about my colleague with the fbi who have great respect for here he is teaching in asia speaking to there were compliance officers there agents prosecutors judges trying to share with them the message of how important what they do matters to people like chris or on the street so this picture was taken in 2014 and jenna next slide i'm going to take you to june 13 2015. this is a slide of a home in staten

island one of the five boroughs in new york city and that picture in the left-hand side of that very happy-looking uh young man his name is mumuni and he like i mean and countless others had been caught up in the web of the isis recruitment and at the time chris the fbi agent along with others were going to his house that you see there in the photo he was being uh they were executing a search warrant which was authorized by a court of law looking for you know uh documents and other evidence

that was tying mr mumuni to radicalism uh terrorist organizations now i just want to know he looks very tiny in that picture but in real life mr muni is six foot and about 250 pounds i don't know what that is in kilos forgive me but he was a big boy chris the fbi agent comes in with his other agents they come into the house the mother greets them and they said you know we're here to do a search warrant there's your son at home and the sun upon the sun from now on the

sun comes down these stairs dressed in a robe loose robe and he goes to walk towards chris and the other agents and chris asks him to please sit down on the couch he's going to explain to him what's happening and what's going to happen well instead of sitting on the couch mr mamuni pulls out and the next slide please jenna pulls out from underneath his robe a nine inch knife and proceeds to stab chris repeatedly with the knife um at that time chris was

he's a former uh us military officer so when he went in to do the search one he was wearing tactical swat gear so thank thank gosh uh thank god he had a protection so the knife did not pierce into his body but it did cut cut up his protective vest and as they were fighting over the knives and the chaos that ensued there was also an m4 long gun that the agents had with him and the defendant after he dropped the knife because he wasn't you know after he had stabbed a few times

he then tried to get his hands on the m4 long gun to shoot to death everyone who was in the house thankfully he was not successful and he was placed under arrest he too was tried for material support of a terrorist organization and this is my second and last slide for time wise and what was very telling i think is here at the very end this was testimony in the united states victims of crimes and an agent can be a victim as can anyone else

you're allowed to give a victim witness impact statement to the judge to tell them this impact it had on you and again remember that this individual this chris is a former uh military officer so he is he's he's quite familiar with the battlefield and what he directly addressed the defendant and said i never met you i've never wronged you you tried to kill me this was not a battlefield this was the city of new york and you tried to kill me so with that i'll end my presentation but i do hope with a few moments i've

had with you today i was able to share with you how very very important the work that you do is it means a lot it means more than you know and even if you take an action or file a tsar and you never hear about it again and you don't know where it's gone into the world do know that you have done some good and what you do literally literally can and does save lives thank you so very much for the opportunity to talk with you i appreciate it thank you karen i think that was really insightful from a really real life

perspective um and and now we're going to move on to robin thank you robin thank thank you jenna let me just share my screen here let's go here okay there we go okay so thank you for having me jenna thank you for ninja thank you to my esteemed fellow panelists and um and

thank you to everyone on the line for attending it really is a pleasure to be here uh my name is robin lee i'm the vp of ae pack for napier technologies and what i thought i would do was an introduction to napier number two we're going to define what transaction monitoring is and number three we're going to talk about a.i in transaction monitoring okay so before i jump into napier just to give you a little bit of

background if anyone does have any questions that you know i can i can you can see what what the kind of questions i can relate due to to my background and what i've done but um i was born in this country here uh i spent 10 years in this country here i've been in singapore now for about 10 years and um my but my parents are from this country here so for those of you wondering why i i look like jet li and sound like harry potter this is the reason why okay um

i started my career in silicon valley i was there for six years i then transitioned to wall street where for four years i was an analyst covering technology companies globally then got involved in the compliance based uh launched a a startup uh so i can relate to many of the entrepreneurs on the line here uh which subsequently uh was acquired by one of the law firms in singapore um i then helped launch the regtech space um here in asia with a with with a company called data rama um

and then i was um i was actually um picked up by refinitive after where i was a cold ego and dantes who'd be presenting later um where i was involved in the running the strategy for the risk risk and compliance business out here in southeast asia okay um in terms of what i do now um author so i've got a couple of publications including the reg tech book uh for which i was a contributor uh i also teach a course called technologies psychology which is how to think like a tech company

at these organizations here um including in in kl as well by the way uh well obviously not now with covid but but prior to that um also involved in the ensure tech space um work with um with karen on the um the fintech partnership which we'll talk about later uh as well as my current role at napier okay so let's tell you a little bit about napier the first question i always get asked is why napier uh well john napier for those of you who

weren't aware was a 1500 scottish mathematician and this gentleman was famous for two things number one he invented the logarithm and number two he didn't invent the decimal point but um he certainly um we certainly wouldn't be utilizing it the way we do today if it wasn't for the the work that this gentleman did so um for those of you who hate math classes you can you can blame this guy here um companies about five years old uh we're headquartered out of the uk

although we also have a presence in europe and asia um we're actually profitable as well so i'd actually consider us more of a scale up than a startup we haven't had to go to the market and and and raise money uh we have just over 80 employees and about 200 customers globally okay in terms of what we do we offer a platform so you can almost think of us like ios web or android where we have this platform and on that platform we have

different apps okay and here is here here are the apps that are on offer so um transaction monitoring which we'll be discussing later we also do risk-based score cards client activity review we do transaction or payment screening so you need to block a payment before it goes out um we can we can do that as well as well as client screening uh above that we also have an ai app and what happened the situation here this platform is not only a software

plan platform it's a data platform as well all these other apps to make them smarter faster and better overall okay um just in terms of us being an end-to-end solution here um we give you the ability to create rules and i'll talk about that later down the line but change them within the platform as well um we also permit unlimited users it's deployable

on cloud or on-premise so we we we work with both either way and we have that customer success focus so for those of you who aren't aware i've got a definition of customer success here i've got a little spiel on what a customer success manager is but what's important here that i want to communicate i don't think that enough vendors in the region do is this concept of a net promoter score and so what i mean by that is we for we actually let our customers rate us okay and should should we get two

downticks in this rating that you that customers give us for two quarters in a row we all get dinged on it not just from a performance perspective but financially as well so we get paid on guys's happiness basically on customers happiness okay uh so let's talk about transaction monitoring okay i've got a definition here uh what i've highlighted in bolt here i think is the important parts right the reviewing analyzing and administrating of transactions pro

uh process on a business application information system okay it's an i.t and security process and the other term is known as is business transaction monitoring as well and you can see all this on on this some techopedia page here okay a bit of background in transaction monitoring well it really came into prominence post 911 um the process has moved from humans to excel to software okay often case transaction monitoring was

originally backward-facing however this new concept of real-time transaction monitoring has come into play now which is what we do at apr um they were traditionally rules-based as well that means so when i say a rule you might have a rule in your system to say that i don't know transactions over ten thousand dollars need to get flagged and um and so the transaction monitoring will flag all those transactions over ten thousand dollars simplistics are harmful okay um expanding scope and requirements and

it wasn't really a a ui ux focus it was more just a process rather than a a solution or a product okay typical challenges with this space include false positives so these are these are transactions that get flagged um as as having some sort of risk associated with them and there really isn't okay an example is that over ten thousand dollar transactions but not all of them are risky right so so often so that that will be in ex

those um transactions would be an example of a false positive false negative i think the best example um is is one like what karen um gave earlier where let's say that um i'm a terrorist um and um i don't know fred is a bomb maker um the cost of a bomb is relatively low these days is like 500 bucks right so for me to get that 500 bucks pass the transaction monitoring into the financial system at an onto thread it's it's not very difficult and that that's a transaction

that should have gotten flagged but didn't and so that's what we call a false negative extensibility so this example so most solutions out there are not flexible and that example i gave earlier about transact transactions over ten thousand dollars let's say that we change that to eight thousand dollars um often case what you have to do with these traditional systems is you have to go back to the vendor the vendor has to make the change of that that rule itself um the it takes

like about a week two weeks for that that that rule to get changed because there's hard coding involved um and um it could cost you as much as ten thousand dollars so can you imagine you spend ten thousand dollars make this rule change sometimes you get even more false positives you have to spend another ten thousand dollars to change it back then another ten thousand dollars to make that change again this can get very expensive right um multiple solutions so often case the the vendor that makes the transaction monitoring versus the vendor

that makes the the case management system versus the vendor that makes the risk-based score cards are all different and so you have to pay for like systems integrators and data integrators to get get all these things aligned and so as a result it can all get very expensive but most importantly to us here at napier you're not there through the whole customer journey so how you expect to understand the customer if you're not making products for them through that whole journey okay um how we address those challenges we have sandbox capability for you to

test out those rule changes those rule changes are done within the ui and are so user friendly it's literally drag and drop i haven't seen any other vendor in the market that offers this we do ai which we'll talk about in a second everything in our system is configuration not coding we have a single platform that you saw earlier everything is self managed by you the customer so we empower compliance and financial crime teams and aml teams and you're there through the whole customer journey okay so let's talk about ai and

transaction monitoring so i've seen two approaches in the market okay and they both involve sticking a machine learning algorithm on something okay the first instance you stick it on the analyst you learn how the analyst behaves what they do what they're tr what they're allowing to what what transactions they're permitting to go by which ones they're they're discounting and so the long-term goal here is to is to attempt to minimize the

amount of time required uh by the analyst to do this stuff or there are firms that are brave enough to to try and even get rid of the analyst altogether okay the second approach that we see for a i in transaction monitoring is where the algorithm is sitting with the customer and this is almost from a fraud perspective where we take jenna we build a profile around her by seeing how she tr how often she transacts who she

transacts with when she transacts and so that way by by learning jenna's behavior and her transactional behavior and how she operates anything out of the ordinary that that that that um that will get flagged and again will be brought to the attention of the um of the um analysts um actually to the analyst okay so these are the two methodologies everyone in the market i've seen either does one or the other at napier we have a chief ai officer we also have ties to the university of

milan and i believe that this will be the next stage of ai and transaction monitoring that the market will be will soon be starting to look at and that is we have another layer of ai that sits on top called activity based learning and basically we take both these methodologies we do both okay and then we we we stick another ai algorithm on top of that i call it ai squared because it's a i learning on ai

and so it makes it as i mentioned in my earlier slide it just super charges our platform to make our our transaction monitoring system even more um efficient and and eliminate more false positives and identify even more false so negatives i think is the next frontier and again i have not seen anyone else in the market doing it but i can expect people to to start um seeing what you know stuff like this and trying to do stuff like this as well however here's the kicker ladies

and gentlemen um ai in our industry has been marketed to death okay and it's predominantly from two sets of of groups of um of individuals or or organizations the first um are from these the ai algorithm guys where you have a stanford computer science d um phd in computer science sorry who will come up with an amazing ai algorithm and um you know but transaction

online retail it could be applied to um supply chain and and so you're not really thinking about the customer if you go in from that approach steve jobs always said right start with the customer first and work backwards like i said before so you know we don't really relate to that the second approach are from the traditional um rules based guys where you have to you know type the code in sorry hard code the the rule change because these guys you know have such a

a limited rules-based system um what we see them end up doing is building the ai module on top and then upselling ai as you know as a way of staying relevant okay so but what we found is if you have that flexible rules-based solution and you don't have the data you know ai might not be the choice for you yet and so what we say to our customers is when it comes to ai it really is crawl walk run get your rules house in order first and then we can always talk about ai later down the line

okay so that's it from me thank you very much for your time i will now hand the floor back to jenna thank you again thank you uh robin so i think we have noor lim next yeah thank you jenna maybe you can share my slides good evening ladies and gentlemen all right thank you jenna my name is lim binti mohammed kunju

i host a certified compliance officer certification from camco asian banking school and i'm also a certified training professional from financial accreditation agency under bangladesh malaysia as for now i'm heading the head of compliance for asiata digital eco-syndra famously known as boost i've been in these financial industries for the last 12 years specifically previously from remittance service providers and also money services business industries even it to

be under categorized and the banknote regulations is under sector 3. so boost is categorized under sector 4. so my my instrumental core competency was actually to overturn non-compliance issues in the organizations and in the past of 12 years of experience in this financial institution that i've been doing i've been seeing lots of cases that i've identified and we have been escalating the cases as

well to the financial intelligence enforcement departments of bangladesh malaysia on all the cases that been captured as considered as suspicious okay so let us go to the first slide okay why transaction monitoring is actually vital for a financial institution okay so basically there will be three main areas that we will need to do in transaction monitoring number one is actually to have the detection mechanism and number two to have this post analysis to be conducted and

whilst having these two processes we will be able to prevent the crime and the crime uh that we will be able to prevent financial crime into the institutions okay so one of the main important criteria to do the transaction monitoring is actually to detect suspicious activities by the customers and number two is to have the agility in risk-based approach mechanism on the customers because basically transaction monitoring also allows financial institution

to take a risk-based approach so this means that we will be able to determine and manage the potential risk of the customers and the number of factors goes into the determining the risk level of a customer such as the type of the employment country of residence and etc so once a financial institution has determined that the risk level of the customers then we can adjust accordingly they are monitoring to monitor the customer itself for example if the customer is categorized as low-risk customer

then we will not need to have much a lot more of transaction monitoring as compared to the level of monitoring that we have to import on a high-risk based customers so depending on where they are based and which market segments and products they offer some of the organization will need to apply a higher risk based approach to all these clients number three is actually to be able to uh previously now okay so number three is actually to be able to stop the transactions that posing high risk through the institution

by virtue of real-time monitoring so basically in this mechanism uh if let's say for the process of when we are on boarding new customers to the institution we will be conducting sanctions screening program so this is also part of the real time processes that we will be conducting in the event we if we captured the customers is actually a true match under the sanction screening program then we will be able to stop them from being entering into the organization and onboarding this type of customers

number four we'll be able to will be able to monitor the transaction that post hazardous risk towards the institution by virtue of post-transaction monitoring and and according to the am lcft policy guideline issued by bangladesh malaysia effective on 31st december 2019 so uh transaction monitoring is important and we have to abide to this regulation and according to the clause 9.1 and also clause 10.5 you can go to the next slide mr della

okay so under the clause of 9.1 enforcement action can be taken against the reporting institution including its directors officers and employees of any non-compliance with any prohibition marked as as in part b of this policy document so if you refer to clause 10.15.1 reporting institution shall provide a timely reporting of the risk assessment money laundering terrorist financing risk required effectiveness of the risk

control and mitigation measures to the board and the senior management and the report referred to the under paragraph 1051 may include the following which is the results of aml cfd monitoring activities carried out by the reporting institution such as the level of the reporting institution exposure towards the mltf race breakdown of the mlt average exposure based on the key activities all the customer segments trend of the suspicious transaction reports and also cash transfer reports

trends of orders received from law enforcement agencies then you go to the next slide with jenna so basically in in order to prevent financial crime okay what we will do i know can you go to the previous yes correct thank you jenna so basically when we are conducting transaction monitoring how does it go through is that we will able we will be able to do real-time monitoring we will be able to do a daily monitoring of the transaction

monthly monitoring quarterly monitoring and half yearly monitoring and also yearly monitoring because basically based on the suspicious activity monitoring rules that you have set forth into your system that you are made available in your organizations you will be able to put up all these same rules in accordance to the timeline that you have been inputted into the system because basically some of the transactions you won't be able to capture the suspicious activity within the stipulated timeline

i'll walk you through in my case study that i've discovered before so after we have done all this monitoring we'll do the analyzation and okay from the analyzation stage we'll be able to analyze the customer based on their risk level okay either the high medium or low risk customer then we will be able to adjust to the the monitoring of this customer transaction based on the risk level and from the analyzation that we have been conducting we will be able to predict the customer's future activities as well

so by having the pattern of their transaction within stipulated timeline we will be able to see what are the possible of future transaction activities and in the event if there's any suspicious activity that we will be able uh to further inquire to the customer we will be able to do the alerts the customer we will be able to send the inquiries and also we'll be able to call the customers okay and from the tran analyzation stage as well we will be able to support

any financial crime activities and subsequently the responsibility of the compliance officer will be will be lodging the suspicious transaction reporting to the financial intelligence enforcement department of bangladesh and subsequently of all this analyzation and processes that we have in place we will be able to prevent financial crime and at the same time we'll be able to increase the regulator's confidence level towards the financial institution next slide is diana

okay i'm gonna walk you through the cases some of the cases that i have uh been seen within my 12 years of experience and being a compliance officer in various financial institutions the first case study will be under the remittance service provider which is on the terrorism financing case and also human trafficking case and the second case study will be a day under the e-money provider which is the money laundering keys next slide please okay so the case study number one okay

this so this detection uh on the on the transaction of an individual customer who's been working as a foreign worker in malaysia so we didn't manage to capture the transaction uh based on our monitoring of uh daily monthly or even quarterly or half yearly monitoring because the threshold limit that that he had been sending the money is very little is amount between 1000 ringgit to 5000 ringgit per transfer so the detection of the system are

unable to detect uh this suspicious activity in the stipulated timeline but when we have set forth the rules for the yearly monitoring to take place in the system we managed to capture this this pattern of transfer so it relates to this terrorism financing typology where we discovered this single customer transferring money in a small threshold limit to 56 receivers in 15 countries throughout the world

and no reasonable judgment to establish the relationship between the sender and the 56 receivers and within a year this customer transferred a total amount of 392 000 ringgit malaysia and as you know as a foreign worker which will be earning around 4 000 for 500 a month this is very it is a very uh triggering alarm to us so action taken was that the customer's account was terminated and the sr had been launched to fid bank nagara

okay second case is much more interesting which we have discovered before which i've just which i've discovered before in my in my previous uh employment okay uh we captured this transaction uh that detects on the human trafficking activities specifically being held in bukit bin tank yeah so when we did our monitoring on monthly transaction monitoring program and also quarterly transaction monitoring program

so this case related to human trafficking so from the transaction monitoring made on monthly and quarterly basis we discovered a man who who we label him as an agent okay he had been frequently transferring money to specifically to these three countries which is vietnam indonesia and also thailand so he had also brought passport copies of various girls to substantiate the supporting documents to enable the transfer to be made to the receivers

okay so within the three months of the quarterly transaction monitoring program that we conducted so this single agent transferred money close to three million ringgit to many receivers in three countries so the case investigated and discovered that the agent had brought in 20 girls from these three countries to work under him as a gro guest relations officers prostitutes and also some of them are becoming actress in protography videos specifically in bukit bintang

so the action taken that we have prepared we i prepared a detailed report on this discovery and i had conducted an internal meeting for the business unit to suspend the agent's account from transferring money and externally this report had been launched to fid we had we had a specific conversation and discussion with nypd with this case and subsequently they have taken this case to afford the action and deal with uh police director malaysia so this is quite an interesting journey

that i had before in my previous appointment under the money services business sector so next slide please jenna okay this is the case study under the e-money provider so what happened is that actually that the customer structuring transactions by receiving fund from multiple person person to person transfer within a month he had been receiving 808 transactions uh receiving deposit money

to his account okay so mr e two flags under same rules captured by the system so what do we actually monitor from the same rules captured by the system ladies and gentlemen uh next flight president so what the capture was actually under the first same rules was that a multiple reload by the third party followed by the the customer itself immediately transferring the money to another wallet and the and the capturing on the second rule the the second rule was that uh the count of

the personal to personal transaction to the same receiver from various senders can you go to the next step listener so so basically this particular customer he has been receiving uh 808 deposits money within a month period to his to his e-wallet that amounts come to a figure of 11 000. so we are unable to determine the relationship between the personal to personal transfer so

possibly it's a gibberish account being used to move the fund and also structuring the transaction money laundering activities okay uh second slides vision so in terms of his uh cash out these are the the suspicious activity that we have been captured so eventually after he had been receiving uh the money from uh within a month period from 808 transaction counts he immediately transferred out the fund

uh to a figure of nine hundred nine thousand nine hundred and eighty so all together he had been transferring up the money to 20 different people so there's no specific reason and there's no reasonable judgment for for for us to identify why actually this transaction takes place so possible action that we had been taken on this case is actually the next slide prisoner okay various actions will be taken to elevate the risk level and we will continue we will need to

continue continuously monitor this transaction to launch str as multiple alert triggers for monitor for monthly quarterly or yearly transaction monitoring program to suspend the account and also to de-risk the account to terminate the account okay the key takeaways uh from transaction monitoring program and also financial crime prevention the last slide will be yes please okay compliance program is actually everybody's responsibility in the financial institution it is not only the

compliance department responsibility and transaction monitoring is one of the vital measures to prevent financial crime number three awareness to all the employees is need to be given to create compliance culture in the financial institution and money laundering and terrorism financing cases and also fraud cases are increasing day by day so the technological shift in financial instruction infrastructures and the rise of online payment has increased the risk of multiple full prosperous exploits every loophole

in the eml compliance of banks and businesses and number five last but not least non-compliance results in losses such as penalties and monetary losses due to the serving uh minor rings money launderers and the fines of non-compliance is high including but not limited to a monetary fine loss of credit rating temporary or permanent closure of the business or even revoking the business licensing by bangladeshi okay i think that's all from my end i would like to hand over the presentation

back to jaina thank you so much thank you and last but not least we have frederick so so if um if everyone sees the sequence uh we we have the the compliance side financial crime and all that and how do we pair that to natural digital identity so frederick the floor is yours thank you jenna hi good evening everyone to all the attendees and my fellow panelists i'm frederick hole the vice president for jumeo in the apec region

i just want to take a quick moment to link up the conversation today uh and then uh move on more forward you know to the discussion uh sessions right so uh jumio we we are a ekyc service organization we have been in business for 10 years and we have been enabling businesses to bring their business online and when you have to verify the identity of an individual we perform this this service

around the world so in in volume terms we have exceeded over 250 million of online identities very fine our service is a global service where we support verification of identity documents from over 200 countries comprising of 3500 different identity document types uh we we have a a service offering combining ai and human expertise delivering a very high accuracy rate of 99.95 and using this

model no we have won awards today we have already seen a lot of uh regulators across the region uh defining uh ekyc digital identities in in other sense uh in support of moving businesses online and of course in malaysia bank negara's ekyc guideline has already stirred a lot of interest you know within win community we we bring a service of identity verification uh into a uh existing customer application

whether is it a web application or a mobile application you should have to change minimal to your existing infrastructure where the incorporation of a kyc capability shouldn't be that you have to do a whole big implementation but that it will be tightly uh you know embedded into your apps into your web application and where uh identity verification of your users can be performed

you may not be uh unfamiliar with how uh ekyc uh uh approach is uh is actually being delivered today where primarily we uh we use a government issued id uh combine this with facial biometrics and liveness detection technologies to ensure that the person behind the device whether is it a mobile phone a pc web camera when they submit all this information to you that this information can be

trusted we know that it was a live person behind it we looked at the identity document that was captured on a camera phone or webcam we checked it for manipulation to ensure that the person submitting this uh you can trust that they are who they declare themselves to be uh in in the rollout of uh digital business businesses uh across the region from hong kong to singapore to malaysia we have learned a lot of uh uh best

practices uh in in course of dealing with uh regulators expectations um they set very stringent requirements that uh minimize the risk right of you know eti money laundering threats you know um but at the same time you know to provide all this in a way that uh you have the best user experience uh so that in this very highly competitive market space of uh financial services provided on apps you want to come up

tops so uh a whole big discussion currently is ongoing in terms of achieving the balance the nirvana how do you meet regulator expectations without bearing exceedingly high burdens of uh of course and operations right but yet have the kind of a user experience that will put you into the best of breed uh within your industry itself so uh this is where your meal have encompassed

uh the entire flow right and delivered the accuracy rates the user experience that define a lot of today's news about fintechs and virtual banks successfully launching their projects in the market today so hopefully in the discussion session i could share a little bit more information on that so ultimately uh we are going and taking our business online because we want measurable success and that measurable success of course could mean different things uh

achieving the customer acquisitions that you targeted uh or or reaching out or achieving certain objectives for example financial inclusion like in in your country so so these are a real areas that will have a positive uh uh impact uh in terms of your business delivery so thank you uh and i look forward to uh speak with you more on the uh questions that we may have on on this discussion thank you fredrik and let's

pass the ball to andanta andanta is from refinitive and she will actually be the moderator thanks andanta thank you okay so i'm obviously conscious of time but i just want to thank everyone here for joining us today on our talk as you already know we have a very interesting mix of speakers today so as i go through the panel questions for the panelists don't forget to submit any of your questions yes i already see some of them let's just go

through the panel very quickly and then we'll hopefully be able to answer all of it okay um my name is indanta i am your moderator for the day i'm also business specialist risk specialist horoscope covering asean and we're going to start the panel with friendship all right so frederick you know with the recent development of digital banks across apac there is a race for digital digital identity for all businesses in 2021. what are the key challenges you see

across all industries and how do you plan to support that uh hi i'm dante uh interesting question um i think that maybe i'll take a step back to first look at this exciting times that a lot of businesses are taking going to the digital channel to expand uh their customer acquisitions and when you do that you want to be sure that the user that you're signing on that you will never see face to face

will truly be who they say they are right and and so here sets the difference between a common norm that we talk about ekyc and then of course there is the option about a digital identity so if i take a step back to look at um what what is digital identity right ekyc we are quite familiar you know we have seen like bank negara's guidelines spelling out know what has got to be complied with if you wish to onboard the customer on a non-face-to-face basis a digital identity uh is the alternative

uh form where it is just a identification that can be used to obtain digital services or carry out the online transactions in a secured manner basically proving who you say you are and and for the benefits um uh really about expanding customer acquisition uh moving from branch into digital channels the convenience for the users to enroll into a service and and very real for us today of course uh in the covet environment

when citizen movement restrictions are in place how would businesses continue to perform you know uh uh and go on a customer acquisition right so um we look at how the concept of digital identity are very actively pursued by by governments you know in asia across the world and there are good reasons in terms of having a a government structured digital identity system uh in improving the end-to-end delivery of

public services right where you can imagine logging on to a government website and uh it's just like logging into your bank account like where you with a unique digital identity it would have simplified a lot of the processes behind us not to mention that of course this is a big ambition given that in developing countries more than a billion people around the world today have no formal way of proving their identity so if we are talking about having digital identity for citizens we could

look at dramatic leaps in terms of the service quality and the massive efficiency gains for government in terms of financial inclusion providing citizens even to things like healthcare right so um digital identity is not a easy concept right and of course it has got many components that needs to work together to really make it effective um and in malaysia for example malaysian communication and multimedia commission

mcmc uh even just this year began engagements uh to collect feedback right from from the industry from users on the national digital identity ndi uh initiative in malaysia itself very similar to regulators and governments across you know the asia and around the world so where the challenges could be like in a digital identity f environment i mean the number one

would be trust right would you trust your government to build an identity management system that connects all the dots on your personal data including your text filing your driver's license your health records and your bank account all right so this is going to be a difficult question about data ownership data privacy as well as data sharing right so that there's a consensus to be built like such that this if this platform can can be effective so we talk about citizen buy-in right uh

for for this to be effective there are different projects of course you know and histories that we have learned across the world uh where for example in uh in france uh there is a france connect service uh and there are of course complaints that uh until today only one in five french persons actually have subscribed to that service and similarly in the uk uh there are projects uh which is golf dot uk verify uh has got a little bit less of statistics about one in ten

that actually have subscribed to that service itself so digital identity as a platform really backs the need to have uh support right that the the community the public itself will use it so just circling back into uh the conversation today that the challenges are discussed then for businesses today in terms of choosing between uh ekyc and digital identity which come first and what do i do in for now if i really are planning for uh

current business and future strategies around uh customer onboarding i i i would like to cite a very recent gartner finding and and they mentioned that in their uh report that by 2022 80 of organizations will be using a document-centric identity proofing in this case would be my card my tantera right as part of their onboarding workflows which is uh increase of from approximately just 30 today right and by 2022

more than 95 95 of the rfps for document-centric uh identity proofing will contain clear requirements for minimizing demographic buyers and as well as increase uh from the fewer fewer than 15 today right many companies that wants to take their business online uh will have got to think about providing the entire skill sets capability knowledge infrastructure technology you know uh thinking about like online identity

fraud expertise uh workflow and design people who knows about id manipulation technical knowledge about ai and configuration and and this is where i think the last part of gartner's recommendation reports sykes that by 2023 75 percent of the organization will be using a single vendor with a strong identity orchestration capabilities because it's just going to get so complex right and that if you want to take a business online you don't want to be burdened with uh

such capable such effects so uh i i i'd like to share this point uh as a pathing thought that uh to the question uh ekyc digital identities are really different uh platforms today for for many businesses to structure strategize how they will take their businesses in the digital space online safely securely and of course meeting user experience requirements

thanks friends okay wait um is it is audio okay can you hear me yes all good okay all right so i fixed it i'm so sorry guys i don't know what happened before but frederick thanks for complaining that i guess maybe um for this next question i'd like to have you and karen discuss a little bit about from your point i guess support from government as you've already discussed and what i assume is again extremely crucial in getting quality data and processing things correctly

you know what would be your main ask in terms of dealing with supporting uh government and regulators and karen maybe from your side or from a government or regulatory body what is the best use case you've seen around data integrity and innovation that you think can be replicated or implemented yes thank you in terms of uh i would have to say what's happening right now that i think is is not only uh transformative but

incredibly helpful is the whole issue of fintech encompassing that world that is now obviously innovating and disrupting the financial sector to traditional legacy banks as we know it but also has great potential for the government in terms of assisting us in our fight against money laundering and terrorism when we look at the fintech ecosystem obviously there's many players you have cryptocurrency you have ai you have different tools but for us right now what i've been concentrating on specifically i would very much uh

welcome uh your the attendees as well to join us on this is i have launched with the assistant robin lee who's obviously one of our co-panelists as our private sector liaison uh the department of justice opdat which is a section within the department of justice the u.s department of justice opdats fintech public-private partnership dialogue and what we are trying to do is is very simple we are putting at the table the u.s u.s government other government

officials with federal you know central bankers and more importantly the startups and the fintech startups and the ceos and what we're trying to do is learn from each other so we're not there looking at cases we are not there in a law enforcement capacity we are there to break down the silos to learn to create to work with each other so that it doesn't become a case you know five ten years down the road where there is some aml violation or sanctions we want to talk before them so i think in terms of instead of

speaking directly about a a product or a tool i would look at more something such as platforms such as that that uh i was long i launched on behalf of department of justice in january and every quarter we have a different speaker come and they sit down they tell us what they're doing who they are what questions they have and we when i say we us government officials we're learning about the struggles and the challenges that they're facing and then what they learned from us is what the expectations are

so that has been something that's been incredibly helpful incredibly uh useful and uh i thank you and all of you for the opportunity to tell you a little bit about that program and also uh to robin lee who is our as everyone knows an incredible connector uh between a public private and across the globe so thank you um before i move on to karen

maybe an app for you know in terms of collaboration with government regulators uh i think that uh on on the on topic of a digital identities uh this this would be a a good time of course to provide that feedback uh in terms of what your and your expectations or uh your views about uh where this can be uh can bring greater efficiencies productivities to the whole digital economy as a whole i i think that um some areas that we

could uh contribute some ideas would be around the concept about different levels of identity profiles i i think that as a as a entity that has the a a a repository of a citizen identity that can be now served uh on online services uh as an end user i i could have uh different profiles which would be different if i'm applying for example for a scholarship uh versus if i am you know applying for

an online competition like where how much did i choose to review like uh i think that maybe i should have a a say right in that to determine that uh and i think that's also important to maintain the level of choice right to the consumer you have ekyc and and that's pretty much flexible right because there's an id document and you you're using a facial biometrics and then there's digital identity which is a government uh system uh i think that where we have

learned lessons is when organizations offer that choice it actually made a big difference to their user conversion right now uh yeah so so that that really is about design as well the final point of course is that um digital identity systems are coming up of course in malaysia in in hong kong and singapore at some point like we are also talking about a regional business uh that we can enter into these markets so

an inter interoperable system like uh would be very very effective right because at this current stage uh where digital identity systems are set right it would be uh laborious for businesses to connect in every country to the local system so that they can actually you know provide that identity verification uh service i think that the one is a bit far down the road and and that's where the ekyc approach uh to to regional

business global business right good current is currently a far more efficient uh you know uh approach to uh uh having an online business really reach out to the markets all right thank you for sharing that frederick and i think karen i guess from both of your ends you do realize or both of you have kind of has the same conclusion where there is a lot of potential for public private partnerships to happen and especially for learning possibilities in terms of the private sector and also

the government and i think there's a lot of potential and especially with new this new experience in terms of digital thinking being new for everyone um you know it's kind of new in terms of the experience itself how to regulate maybe tackle any situations that might arise um so karen sorry we hear that in some parts of the world there are certain litigations going on would you be able to share some of those use cases and then maybe in takeaways from those cases that can be implemented or you know kept an eye out here um as well maybe towards the end

you can just give a little bit more of an explanation to everyone in terms of the partnership you and robin made in terms of the public-private partnership with fintech yes thank you in terms of some of the litigation um again looking at the the the fintech world as it were there's so many new products the technology is a tsunami right now which is wonderful right but with change you know there becomes some turmoil intention how are we going to handle

this and looking at it from the government side and the private sector side these new tools and products are transforming all of our lives and just as it helps people such as you and everyone else on the panel today makes our lives easier we also have bad actors out there that are looking to exploit they're always looking to display to exploit something that is good for a kind of criminal purpose and aside from that which we always have to keep a a dialogue open between the public and the private because the private sector moves quicker you know it just moves quicker any

government is is is is not as rapid turning than that right so that's why we need that bridge between the two but in terms of litigation right now what we're dealing with specifically in the united states is that we're looking at a number of issues but let me zero it down to one is the issue of bank charters bank charters in terms of neo banks and i'm sure that your audience is well educated on the terms but obviously neo bank is a purely digital platform bank how are we going to

charter that and not only that but who is going to charter that and the united states has a multi-layer approach to regulatory issues so is it federal charters is it state charters et cetera and right now a case that is being litigated right now in the southern district of new york which is new york city uh is a case involving the new york state department of financial services and our occ which stands for the office of the comptroller of the currency the occ is federal new york state

department of financial services services obviously is state and right now it's ongoing in court as we speak regarding special purposes national bank charters so for a fintech bank who is going to issue that charter so we're actually seeing it right now and that decision is incredibly complex it's going to shape our entire future and really what's interesting is that we are so far into the future and yet these issues that i'm speaking about we're harking back to older legislation

for example it's a national bank act of 1864 in the united states that plays a part in this litigation as well so it's just very interesting the kind of you know intermingling of the two so that's something we can all watch and see how that plays out uh and it's a new frontier in terms of the second question you had asked uh in terms of the public-private partnership uh literally it came about uh with the support of opt-out in a section with the department of justice a fantastic uh section that reaches out to our

partners overseas but it really came about that if there's no information between the public and the private sector on something as as uh innovative as fintech then everyone loses and what i wanted to do with the assistance of robin and others uh with the department of justice of course is to just create a platform where it was a safe space it's just to communicate just to talk to each other um and we meet as i said every quarter

literally last time we had a uh a ceo from singapore a fantastic young man who literally was sat there and he said you know what i just wanted to start my company i didn't know anything about aml ctf so because it wasn't my focus and we understand that but this gave us an opportunity to talk to him and then say we understand it's not a money-making part of the business but it can be a money loss part of the business if it's not intended to properly so again it's uh thank you for the opportunity to share that and i know if

robin has anything he wants to add from the private sector but this is what we're looking at and then just very finally some of the other really interesting cases i think that are happening right now there's actually a wonderful bbc produced podcast it's called the missing crypto queen and it deals with uh yeah it's fantastic i i highly recommend listening to it and it deals with a scam involving cryptocurrency uh and what's interesting is that two individuals already been indicted uh in the southern district of

new york again new york city obviously at the center because there's so much money that goes through new york city in our banking sector not only was one of the main players indicted but also what we call a gatekeeper the attorney for the scam was indicted and pled guilty and reason i bring it up is that uh there's still one different one named conspirator who hasn't been apprehended but what's interesting about it was it dealt with cryptocurrency dealt with a cryptocurrency called onecoin and what was very interesting about it

was that most of the people that was a multi-level marketing type of scheme and most of the people who invested i mean at one point there was over 3 billion euro invested by people around the world in this and what really hurt was that they didn't understand how blockchain worked most of the investors were good decent people who didn't understand that if the transactions were not being recorded on the block ledger then it didn't exist and in this case the core of it all was that one coin was not

on the blockchain so that means whoever was controlling their account could change the value easily and uh it was also very interesting because anybody who attacked one coin was called a hater and then people went after them so it's a fascinating uh podcast for your readers it's not a as i said they're uh pled guilty in the southern district of new york and new york city federally but again it's just a fascinating example between fintech cryptocurrency aml compliance everything that's

happening right now i will end by saying all the tools all the products i do hope will help us all in the sense of keeping us financially safe physically safe and allow our economies to continue to be you know uh uninterrupted by bad actors so overall i'm very optimistic thank you thanks karen i appreciate that i am going to listen to the podcast by the way i do need some new podcast

uh suggestions so i'm going to definitely uh listen on that so uh okay um from your end i know you've already given sort of an explanation in terms of transaction monitoring but a lot of the people that are probably dilate xylene don't really know maybe like terms of transactions in terms of businesses right not quite sure how this works um so what kind of data is processed you know what kind of technology is behind it um will you just give us a little bit of an intro very quickly and then i'm gonna shoot to the next question with you and

your presley sure yeah yeah yeah yeah yeah i just took myself off sorry thanks and thank you for the question and answer so so look i i think when it comes to like data sets in any financial institution um arguably transactions are the largest data set in and so being able to

to sift through all of that and and figure out you know find that that needle in the haystack that that one transaction or that those few transactions that that could hold some of some sort of a risk is is really really challenging and as i said in my slide post 911 when we're looking at terrorist financing this is even more difficult right and that's like that and again that that example i cited with the the bomb maker um um i think really

highlights that um so i i think you know i i gave a definition of of what transaction monitoring is where i think you know the the puck is is heading i can expand on that a little bit more it's such that what i was saying earlier about transactions being the the biggest data step well that's where ai comes in right so eight for those of you who who aren't aware you know ai's been around for like 50 years it's been a a variations of different

technologies that have emerged um over time and we've had two what are called ai winters where where the technologies have peaked funding is run out everything's everything's not working and then that that that respective technology will crash um so we had one in like i think the early early to mid 70s and another one in the early 80s so so ai isn't new but the the latest technique that has emerged is what's called machine learning and a subset of that called deep learning so machine learning is

where humans are training training the algorithm to get smarter deep learning is is you leave the algorithm to do it by itself so ai 101 here guys but for those of you who are unaware okay well machine learning and deep learning are based off data and the bigger a data set that you have the smarter the algorithm becomes and who's got the biggest data set in the financial institution transactions right so i think so if i don't know if this makes sense to everyone and please do ask me questions

if it doesn't but but to me this this this speaks highly to the the potential of ai specifically in transaction monitoring with those examples that i i cited earlier the other thing that i think is important is is we now talk about the software or the platform itself that you're using for transaction monitoring okay now one thing that we've made sure that we do here at napier is is to architect our software for the cloud

because the way the world is heading and if you look at what regulators are doing around the world they're becoming more and more cloud friendly the cloud providers themselves your amazon web services your googles your whoever are now becoming smarter where they'll have like for example there's a rule in in in there could be a rule in jurisdiction a where the data can't leave jurisdiction a and the cloud server service providers account for that where they have your data and your software will only sit on servers within

jurisdiction a so so up being architected for cloud is the real real advantage because then you can scale out quicker you you know we have big data architecture as well whereas what we see in the market is several like old-school solutions saying they're cloud-ready but they're just taking that old deployed software that's not architected for cloud and sticking it in the cloud and it's like using dial up right everything there's a lot of latency your your connections aren't going to be that great you're going to have problems with that so i think right you you know

being architected for cloud is it it's really important your platform and then the last part that i want to stress on this is is the ability for the platform to integrate with other other um applications within your organization so if you're a bank if you you've got to be able to integrate with with um like your your core banking system or your crm if you're uh or um you know like a crm for your customer list or a

a a supply chain you know partner venders system you know and so what we what we've done at napier is we utilize what's called um apache nifi a technique which can integrate every any existing methodology today so whether it's a flat file whether it's an api it doesn't matter to us we're able to integrate with with with all the systems that are that are out there exactly flexibility so i could have spent all that in one word so my apologies i

went on a bit there it's okay that's why i'm here okay so uh a couple of um there's actually someone that came in and said it's not just a block blockchain space you know hsbc was just implicated this week in facilitating the transfers of money in a ponzi scheme so i guess if we can take it now in a perspective of a client or a business um so norfazley you know how important is the quality of data and technology in combating day-to-day financial crime i know you've shared a bit of use cases um previously on your slides

anything that maybe you can keep in mind or tell or maybe a new case that you can share with everyone else that you know people can keep in mind well basically the data the quality of the data is very important so that we will be able to identify the cases and also raise the suspicion accordingly so in order in order to to address your question and under ananta we would we would need to have the data to be of a quality level then only we will be

able to identify these cases if the quality of the data is uh is doubtful then how are we going to take the next step moving forward in order to address all these species the quality will come from the perspective of that the data need to be need to be verified the data need to be uh to be crystal clear that is actually

coming from a true true source and also we you need to have a independent source also to do the verification methodology to ensure the data is actually of a quality piece then after all these processes that been been captured and accordingly then we will be able to keep the data and also to do the annual analyzations of the transaction and subsequently take the necessary actions

um so you know possibly as i still have you here you know this is the arab digital banking coming out in terms of next year across asean i know maybe you've shared it already but are there any plans for boost uh to go to digital banking and if you are have you internally processed anything for this digital bank in terms of you know like applying for it or you know implementing the digital bank are you internally facing any challenges um and if i can have robin sort of share

his experience after no fuzzy in terms of helping other digital banks as well you know what can you share with norfolk or anyone else here on how to tackle those challenges thank you for the question

uh how the meccan on weird yet

thank you for sharing that in your leslie robinette chad in terms of you know maybe give some ideas to her presley when she is you know moving forward with the digital thing thank you i i've i've i've come across multiple like obviously none of these are digital banks yet especially in well in singapore and malaysia specifically um but i've come across like a a number of of digital banks who

who um how should i put it end up buying the regular stuff that regular banks have because they're branded if that makes sense and it's you know why why would you buy a a a a 40 year old core banking system technology piece or or a um you know a 30 a 30 year old you know i don't know like um screening tool or and stuff like that right or even on the transaction monitoring side right i've seen some guys like look at

like the the 35 40 year old guys who've been in the market it's like what what's what's your edge man like like why would you why would you do that and this is the silicon valley geek and me coming out here right like like you know it it makes very little sense to me just because they're a brand and they have a name right um so that's that's number one and i i guess the other approach that i find really really interesting is is i've seen guys in the market

who who think they can build it all themselves okay and they'll they'll be they'll be situated in in a part of the world where where you know there isn't that much coding talent um so that that that really leads me to question are they are they doing the the frankenstein thing right are they getting just free bits of open source code and offering that as a product right i mean you know it and and and

and and even on even on refinitive side right they'll be they'll be sending um um what's it called like web crawlers to pull the information from and think that they can you know do the job as repetitive right and i know just from my time there that world check has 700 people around the world analysts around the world who are there updating the software they're doing a diligent job they're all trained blah blah blah and do you think you can come in and become a bank by just doing a using a web crawler you know i

some of these these approaches that that guys are taking um you know my two cents that's that and again this is just me coming from the you know i i used to work in silicon valley i was coder i was building products you know i mean like like yeah but i think also like especially when you go to digital banking i think i think from our conversation as well in terms of all the panelists i think you guys know that compliance if anything has to be

even more diligent and needs to be looked at even more um and so you can't just be getting data left and right you know you have to make sure that the data and the technology are getting equality um just to make sure that you're actually complying with regulations correctly um we just don't want this situation to continue right um okay so i'm aware of time i have one last question i know i'm gonna wrap it up but i think there are a couple of questions that i'd like to ask now if you guys don't mind just two questions before um i end it so i'll give one to frederick and one to robin fredrick

um this is i think an interesting question so how accurate um is the biometric facial recognition on identical twins or triplets yeah i i i think um there's always a lot of technical comparisons to twins i think that in general uh biometrics based technologies uh only have a moderate level of success uh in terms of really separating a twin but i think that maybe to look back into

the business context like when you actually launch a digital service how many incidents of twins are applying for your applications are you planning to see right i think that where ekyc really delivers online business gains uh we we look at the benefits and risks right and and you have to manage your risk and that's why you use technology to use ai not that you can actually stamp out every single thing like uh but where uh what you believe that is being managed right that you you then have the

option then really to uh uh deal with the good guys right that you they really uh need your service and you can deliver that value uh but from a response i think the official comparisons of twins uh these are common issues there are there are a lot of documents in the internet that talks about them but uh but as an ekyc business i'll say that um most of these systems in production today they acknowledge that this is a problem but then again of course there's always

the business gains of delivering to the broader community right yeah and i think i would like a little bit additional points on your question on the digital bank so basically the objective of of the regulators in malaysia to uh to introduce digital bank in malaysia is basically to to help to serve the underserved so basically uh if we go to that context uh and comparing to the conventional bank

in malaysia the the conventional bank is actually the conventional bank is actually focusing on the on the customers who who really have the leverage of funds and activities and who are who will be able basically those who have money then well the conventional bank will definitely serve them but the whole idea of digital bank uh uh approach uh being being guided by the regulators in malaysia actually

to help and serve the underserved so far if you have small merchants if you have individuals who if you is staying in whereby it's very difficult for them to get access to conventional banks so these are the areas and avenues whereby we will need to have a digital bank to be serving obvious underserved so hopefully the eye

and the intention of having the dignity i will be learning all the time can the ai be too clever and it could miss out a potential suspicious transaction um again referring with the mobida bombing it only took 426 dollars

so this is where i i think um look uh ultimately at the end of the day you know we are up against humans right and and and and the human mind is going to be you know as as humans we're our own worst enemies right so we're always going to find a way around things that there will always be you know evil in the world if you want to call it that you know i so people will always figure out a way around whatever the process or the technology

is that being said i i do think that that what i mentioned earlier about that that element of building a a customer profile kind of like facebook right where where you know i have a dancer i have her her her transactional behavior and so anything that's out of the ordinary that that happens with her behavior then can can then get flagged and walk to to the attention right so instead of selling digital marketing it's just

making sure that you know those those um outliers get identified and brought to the attention analyst absolutely i hope that answered your question i can't add that there are there are like newer regtech solutions data sets or all that stuff coming out all the time so it it it's and some of this stuff has been pretty interesting um to say the least so right i could go on about that but more than happy to take that conversation

offline and we can we can um explore that further thank you sounds good all right so my last question for the panel uh frederick robin what new technologies do you have planned and what should we keep a lookout for um i think that the way jamil plays a role is really to prevent the bad actor from even gaining access to the system so that is the first time that the user comes on presents himself and then this is where we have got to be very good at uh ensuring that we catch the bad people

and then not give them an account because once they're in there then they will do wonderful stuff that will keep robin busy right now the uh where we really got to look at data uh using ai machine learning is to identify where the next trend vectors are we need to know what the syndicates are doing what are the common practices that we see around the world because uh where jumio's service works is that we are a global parameter for our clients so for any new trends and patterns that we have seen we have to build this into our own algorithm

and to be able to then filter these out so we've got to move as fast as where the next uh trend and next practice gonna be so i say uh ai like uh machine learning to identify the the next threads that will come to the system itself sure um um and dancer i mean one thing i can share is that we are are seriously um exploring link analysis okay uh how however

the the the the challenge that that i see i mean i tried building this in the previous company and then and then i've seen the current products that are out today uh so for those of you want to win link analysis is basically like that spider web you can see one person is related to the other person that's related to the other person and called hot right as you move along the different the different you know parts of that chain and um the challenge the challenge that i've seen with current products

is that you just certainly get this map of relationships and then you're expected to figure it out yourself as to you know which areas are risky areas are not risky and i think unless you have like a a law enforcement background because you know people who work in law enforcement are very used to using a similar product are called ite where can they figure out this relationship is hot three is the one that's that's that you've got to look at or you know or person x over there um so so what we're trying so what i've

said to the team at napier is if we're gonna do this we have to make it so that my mom can use it okay that that's someone who who has zero intuitive yeah exactly that that that they get prompts or or or something like that so we've deliberately held off from releasing anything while we just discussed the user experience side of that and then when we're ready we'll we'll roll that out so yeah exciting times okay so panelists i do appreciate all your time you're fascinating good luck on the

digital identity portion at digital banking portion if you do proceed forward frederick and robin were looking out for you guys especially for new technologies and of course we wish um i'm just going to give four words and i just hope our the panels

you know in a in a an appropriate manner and that it's it's accurate in an appropriate manner as well i agree okay public private partnership and collaboration how do you feel about it and what would you like to see change karen thank you obviously i think it's an excellent uh way to move forward uh we're human

beings we need to talk to each other and instead of having this siloed at times adversarial interconnection i think we need to have something as i said in the safe space to have that so what do i think about it i personally find it to be educational informative exciting and interesting and i'm also just very thankful to have the public uh the private sector i should say also want a place at the table so i think it's a positive thing thank you okay good um third one is

i think frederick would i don't know if frederick would like to answer but technology platform how do you feel about it and what would you like to see change uh two words ai at cloud so i think that the direct to to deliver efficiencies right and to deal with uh identity fraud you've got to have consolidation or fee of feeds which is data right uh cloud would be the best approach and apply you know technical capabilities to understand uh and then then of course uh implement

these into your uh uh customer onboarding practices those are key to me i think also more and more companies are moving in that direction as well and so it's quite interesting to see where it would lead us actually so absolutely um i guess the best for last the future what do you feel about it and what would you like to see change i think i would aspire the government intention to go towards cashless society so that uh

moving forward we will be able indirectly to have all the audit trails of the unknown transaction we will have less cash to handle and when we have an audit trail towards other transactions through the financial institutions we will be able to minimize the money laundering terrorism and any unlawful activity so i i will really look forward for the world to move forward accordingly to the cashless society me too

um i do want to thank all of your time for you know talking with me and answering all these questions um for every participant here and for all the attendees thank you for sitting with us i hope you found the talk valuable i had i sure had a great time um of course some podcast recommendations were dropped and of course some of the partnerships and things to look out for um if you have any further questions or slides i think jenna will be able to follow up on that but i do want to thank everyone for their time and for spending it with me i'm talking about

transaction monitoring digital transformation and digital identity thank you thank you thank you thank you panelists so um so to wrap up uh thank you um frederick from gmail no fuzzing from asiata digital and boost robin from napier karen from us department of justice and lastly andanta from so thank you everyone for staying um so we're gonna have a group picture uh for all the panelists and we will also email you some of the slides

and also the recording of today's session can we have all the panelists up and i'm gonna stop the recording