Are you ready to Lean? — Medium

Regardless of industry, today’s consumer-centric world requires organizations to challenge the status quo and move into a new way of looking at how to better deliver products and services

A business can only go so far in its race to bottom-line pricing; the key is to find differentiators that deliver increased customer value. There’s no better way to achieve this than through reengineering and optimizing your organization’s business practices.

Continuous process improvement, sometimes referred to as Lean Six Sigma and Design for Six Sigma, offers an ongoing improvement program that can define how an organization embraces change. The principles of Lean were first applied to automotive manufacturing in the U.S., but refined by the Japanese after World War II. Toyota Motor Company recognized that workers had much more to offer than just muscle, and initially experimented with Quality Circles. Eventually, this was distilled into principles that improved process and quality control to increase productivity.

Today, continuous improvement principles are at the heart of organizations across the economic strata. In the financial services industry, we successfully introduced Kaizen principles. . . Click here to read the rest of this story: Are you ready to Lean? — Medium

Why Satoshi Nakamoto doesn’t matter — Medium

All eyes should be on the emerging technology’s disruption of the banking technology instead of finding the Bitcoin founder

The financial industry is increasingly shadowed by the image of Satoshi Nakamoto; the supposedly reclusive Bitcoin digital currency inventor who has been publicly outed by the press on numerous occasions, only to find once the headlines have ceased that the person in question was not Satoshi Nakamoto. The latest Nakamoto? Australian Craig Wright claimed to be the Bitcoin founder last year, but his claims were largely rebuffed by the Bitcoin community and by the press. Now he is back and begging the world to believe he created Bitcoin, claiming he has ‘extraordinary proof’ to back up his claims.

I say, who cares? The founder of Bitcoin doesn’t matter in the greater scheme of the financial world. What really matters is Bitcoin’s disruption of a technology resistant financial industry, which is taking place on a scale that goes beyond just digital currency.

In fact, 60 Minutes ran a groundbreaking story about fintech’s disruption of the financial arena recently and it pointed out something key to the fintech debate — the banks, by and large, are not mapping to the trends and changes happening in just about every industry that are being caused, not by technology, but by banking customers’ adoption of technology into their everyday lives. One of the fintech startups featured in the story, Stripe, was founded by a couple of millennials from Ireland. Their view of the world is focused on the internet-driven society they were raised in, but is also surprisingly customer focused. . . Click here to read the rest of this story: Why Satoshi Nakamoto doesn’t matter — Medium

Mexico’s Know Your Country Problem – Medium

Mexico develops a U.S. dollar transfer business to thwart money laundering and encourage international commerce

Bloomberg Business broke the news last week that Mexico will soon enter the dollar transfer business in an effort to catch money laundering before it causes harm and to promote the continued exchange of U.S. currency by legitimate Mexican businesses. Mexico’s money laundering woes, followed by subsequent de-risking and this proposed dollar transfer solution, are prime examples of the impact ‘Know Your Country’ can have on a nation’s economy.

Money laundering leads to punishment and de-risking

When it comes to criminal activities, money laundering is a necessary evil. Criminal enterprises in Mexico were finding it a little too easy to launder illicit pesos through U.S. banks. For example, banks were failing to flag transfers linked to Mexican drug cartels, with Wachovia’s gaffe of failing to alert authorities to billions of dollars in wire transfers, travelers checks and cash shipments through Mexico being one of the most egregious. This led to a crackdown by U.S. regulators and law enforcers, causing many banking institutions to back out of working with Mexican businesses entirely as a way to avoid the risk of money laundering and the millions of dollars in penalties associated with it. This process of de-risking, while understandable, does not foster economic growth.

What happens now? Click here to find out on Medium.com. . .

AML Scandals that Flew Under the Radar in ’15 – American Banker’s BankThink Blog

Screen Shot 2016-06-20 at 3.03.02 PMIn addition to anti-money-laundering scandals involving global banks and worldwide organizations such as FIFA that grabbed headlines last year, there were plenty of damaging laundering convictions and accusations in 2015 that went unnoticed but still took a heavy toll on midlevel banks.

Money laundering is a crime that occurs more often than the general public realizes, and in most sectors of our economy. In the past year alone, charity officials, a mortuary owner, a church director and a doctor providing chemo treatments were at the center of appalling cases you probably never heard about.

1. Tayfun Karauzum, of Newport Beach, Calif., was sentenced to five years in prison for distributing $1 million to $2.5 million of Potion 9, which contained a solvent that metabolizes in the body to become gamma-Hydroxybutyrate, or GHB, a known date-rape drug. He then laundered the proceeds.

2. Charles and Diana Muir were sentenced to 48 and six months in prison, respectively, and forced to return the $1.1 million they stole from a 140-year-old college scholarship charity in Louisville, Ky. — the Woodcock Foundation — that was run by Charles Muir. The couple then laundered the proceeds through Diana Muir’s dental business.

To view the rest of the top 10 most unheralded, yet just as disturbing money laundering stories from 2015 please click here.

American banks: all aboard Bitcoin Express? – Medium

U.S. applying anti-money laundering rules to digital currencies

Digitally encrypted cryptocurrencies are hot, particularly as consumer confidence in the current global money infrastructure wanes. So what exactly is a cryptocurrency? The most visible example, Bitcoin bypasses traditional banking systems and operates as an alternative to cash. It’s decentralized, virtual and somewhat anonymous, and was originally developed to handle transactions over the Internet. The currency units consist of a series of numbers that can be traded between accounts, or “wallets,” for services or goods; when it launched in 2009, Bitcoin transactions happened without any government interference (or oversight).

Today, Bitcoin’s not just popular with the average consumer; organized crime and the criminal element have figured out how to use it to efficiently launder money, just as they did with the original cryptocurrency, eGold. In fact, I recently wrote about a money laundering case involving Bitcoin and two secret servicemen who attempted to launder a considerable amount of Bitcoin stolen from Silk Road. For this reason, the U.S. is now applying the anti-money laundering (AML) rules initially written to govern traditional financial organizations to all digital cash companies.

Perhaps even more interesting is that. . . Click here to read the rest of this article on Medium.com.

Money laundering uptick in 2016? Magic 8 Ball says, ‘signs point to yes.’ – Medium

When I was a kid, the Magic 8 Ball was a quirky toy used to tell fortunes or predict the future. The answers to yes-no questions were often vague enough to be accurate, such as “Ask Again Later” and “Don’t Count on It.” As we kick-off 2016, it might be fun to ask the Magic 8 Ball what we can expect to see as far as financial institutions and risk strategies go for coping with money laundering in the coming months.

Most Likely. We all know that we can expect to see an uptick in attempts to launder money, despite the tightened scrutiny by banks. In fact, as 2015 drew to a close, a man in Minnesota was being charged with conspiring to launder more than $2 million in a penny stock fraud scheme. It’s probably just human nature: where there are laws, there will always be people who try to figure out how to avoid them for personal gain.

Signs Point to Yes. . . Click here to read the rest of this prediction article. 

Big Data Redefines KYC? – Medium

Thanks to technology, KYC is evolving to Know Your Country

To the average American, the acronym KYC probably sounds like a misspelling of the infamous KFC, but those of us in the financial services industry immediately recognize the acronym as referring to Know Your Customer, one of the cornerstones of today’s efforts to reduce risk and fraud in banking. The definition of KYC is about to change, however, as the acronym evolves to the risk management tool, “Know Your Country.”

It used to be understood that a successful banker would need to know his or her customers. One hundred years ago, chances are good that the home town banker would be intimately acquainted with his or her neighbors investing money, or seeking loans. Fast forward to today, and life is just not that simple anymore, particularly with national and global banks having hundreds of branch offices in multiple countries.

After 9/11, the U.S. Patriot Act in 2001 formalized the requirement for financial institutions to “know” their customers. . . Click here to read the rest of the article.