Know Your Customer. Know Your Employees.

In the fintech world we spend a lot of time thinking about Know-Your-Customer (KYC) and anti-money laundering (AML) regulations because of the colossal expense of implementing them and the massive penalties for getting them wrong. It has been clear for years that the system is broken in many ways, but it is not only broken when it comes to dealing with customers, it is also broken when it comes to dealing with employees. Are those new employees really who they say they are?

KYC

If you are involved in moving money in any way at all, you will be aware of the Financial Crimes Enforcement Network (FINCEN). It is a bureau of the U.S. Treasury that was created in 1990 to combat money laundering, terrorist financing and other financial crimes through the collection, analysis and dissemination of financial intelligence. It works to achieve this mission by administering and enforcing the Bank Secrecy Act (BSA) and other anti-money laundering (AML) laws and regulations. When it comes to moving money, frankly, the cost of shifting the electrons around is nothing compared to the cost of compliance and many new businesses have set sail only to founder on the reef of due diligence.