SPONSOR BANKS: ADD A COMPLIANCE OFFICER WITH FRONTLINE FINTECH EXPERIENCE TO YOUR STAFF

As sponsor banks strive to improve the effectiveness of the compliance departments of their fintech partners, it may be beneficial to take a page from my unique background as a former money launderer-turned compliance officer. My skillset, acquired during a decade on the other side of the law, gives me a valuable perspective that is useful to compliance officers seeking to close loopholes in their programs.

Let's apply the same principle to the issues sponsor banks face, regarding their fintech partnerships. If they actually had someone on their compliance staff who had spent years inside a fintech compliance department, would it not serve to better improve their understanding of the special challenges that those people face when trying to adapt traditional AML and CIP policies to the unique fintech corporate culture? Fintechs at times are known to discourage effective compliance procedures, due to concerns over cost and delay of customer service issues, which sponsor banks need to fully understand, to provide workarounds and practical solutions.

Therefore, it is suggested that sponsor banks onboard an experienced compliance officer who has prior hands-on experience at a fintech; that individual would have more sensitivity to fintech concerns, which could improve the relationships, while at the same time have the ability to suggest solutions to the knotty compliance effectiveness problems that sponsor banks face daily with their fintech partners. Bring in someone who has that frontline experience, to add value to your compliance capability.