FATF Update May 2017

NGJ PayPal (1).jpg

By Neil jeans

On the 25th and 26thMay, as a co-founder of AML Accelerate www.amlaccelerate.com and through the international recognition the RegTech Association has received since launching, I attended the FATF FinTech/RegTech Forum at PayPal’s Head Quarters in San Jose, California. 

The Forum brought together the public and private sector to collaboratively discuss the AML/CFT reality and challenges within the FinTech and RegTech sectors.  Outreach to the FinTech and RegTech community is one of the FATF’s priorities for 2016-2017. 

The FATF’s aim is to provide a platform for a constructive dialogue and thereby support innovation in financial services while addressing the regulatory and supervisory challenges posed by emerging technologies.

There are many takeaways from the two days, but the willingness between all parties to engage and explore how FinTech and RegTech can play an important role in the fight against money laundering and terrorist financing was a clear standout.

The forum identified that FinTech solutions do not necessarily present any more ML/TF risk than traditional financial service providers. It was accepted that the ML/TF risks are similar, but may present themselves in different ways. 

There was an appreciation that lack of knowledge or understanding of FinTech solutions is contributing to a higher risk perception, with a general acceptance that even the ML/FT risk of Bitcoin, which has been around for a number of years, aren’t fully understood or able to be articulated.

The forum discussed how authorities and the private sector were navigating a world where transactions and relationships were increasingly digitised, and shared their experiences in adapting their practices to continue to identify and mitigate the different ML/TF risks brought about by these developments.

The use of technology to support customer due diligence was discussed in detail, including on the various different models and what that meant for the roles and responsibilities of the user(s) and provider(s).

The Forum was also provided with a number of examples of how FinTech and RegTech solutions are providing new and innovative way of detecting ML/TF, strengthening AML/CFT environments, and supporting supervisory efforts.

The Forum developed a set of high level Principles for FinTech and RegTech, and agreed to formalise FinTech and RegTech on the FATF agenda.  

Guiding Principles (The San Jose Principles):

Fight terrorism financing and money laundering as a common goal. Combatting ML deals a significant blow to the many profit-driven criminal activities, while countering terrorism financing limits the capabilities of terrorist groups to prepare or carry out attacks. As stakeholders, we have a shared interest to prevent the misuse of the financial system from the threats of ML and TF, thereby strengthening financial sector integrity and contributing to safety and security. Only by working together may governments and the private sector effectively achieve these goals.

Encourage public and private sector engagement. Close engagement between governments, the private sector and academia on financial innovations helps to foster a shared understanding of these developments, identify pertinent issues, and facilitates collaboration to address any concerns as they arise.

Pursue positive and responsible innovation. Be on the lookout for innovations that present opportunities to mitigate risks, increase the effectiveness of anti-money laundering and countering the financing of terrorism (AML/CFT) measures, and benefit society in general.

Set clear regulatory expectations and smart regulation which address risks as well as allow for innovation. Better understanding of how existing AML/CFT obligations apply to new technologies, products, services, and new paradigms for the provision of financial services is best achieved by governments and the private sector working together to increase awareness and establish clear guidelines as needed.

Fair and consistent regulation. Aim for a regulatory environment that is commercially neutral, respects the level playing-field and minimises regulatory inconsistency both domestically and internationally.

Through the discussions on FinTech and RegTech, the FATF further underscored its desire to increase its focus on the effectiveness of AML/CFT regimes as part of the Mutual Evaluation Process, in particular understanding and assessing an AML/CFT regime’s success on stopping and detecting predicate-crimes, as well as, money laundering and terrorist financing. 

The focus on effectiveness and how RegTech can play a role was also re-enforced by the establishment of a new concept – SupTech.  SupTech is the use of new technology to support AML/CFT regulatory and supervisory objectives.  



Media Coverage

Here are some of the articles that are being published about the RegTech Association.

For all media enquiries please contact media@regtech.org.au



Regulatory technology startups band together to launch Regtech Association

James Ward
Start-Up Daily
03 Apr 2017

Thirteen companies working in the regulatory technology space have banded together to launch the Regtech Association, a group focused on facilitating collaboration and growth in the regtech sector.




RegTech Association launches in Australia with spotlight on growing eco-system

31 March 2017

The RegTech Association will officially launch tomorrow with a high-profile event in Sydney, where the first-of-its-kind group will be hosting an exclusive speaker panel, including some of the industry’s key influencers, movers and shakers; who will discuss the state of play and future opportunities for growing the RegTech eco-system in Australia and beyond.


Regtech body to spruik collaboration


Daniel Paperny
Financial Observer
03 Apr 2017

Australia’s first regulatory technology (regtech) association has launched with the aim of fostering innovation, collaboration and engagement between entrepreneurs and the compliance and risk communities in Australia’s $141 billion financial services sector. 




Alison Banney
31 March 2017

The Regtech Association will facilitate collaboration between regtech startups and Australia's biggest financial institutions. The RegTech Association, which aims to shine a light on regulation technology, officially launched last night with an industry-first event in Sydney for key industry influencers including stakeholders from major banks, start-ups and industry regulators.


Regtech businesses form industry group

Bernice Han
27 March 2017

A group of 13 regulatory technology, or regtech, companies including Kaplan-owned Red Marker have formed an association aimed at developing the fast-growing industry.

Regtech generally refers to technology-driven solutions to meeting regulatory and compliance requirements.


Technology, take to the stand

Hope William-Smith
Money Management
24 March 2017

Advisers might be keeping pace with technology, but are they on top of the regulation that goes with it? Hope William-Smith finds out.

Consider closely the cross-section of legislative developments and reforms for financial planners and you would be forgiven if the compliance concerns around technology had slipped off your radar. 


Start-ups form regtech industry association

James Eyers
2 Apr 2017

A new industry group to represent the emerging regulatory technology, or regtech, industry has been formed in order to encourage collaboration between start-ups and regulated companies as the rise of artificial intelligence technology points to a new age of proactive compliance monitoring.



Complii FinTech Solutions targets 2017 IPO

Sarah Thompson, Anthony Macdonald, Joyce Moullakis
31 March 2017

Complii FinTech Solutions, a supplier of compliance and corporate system for stockbrokers, is seeking to join the local bourse in the latter months of 2017. 

Street Talk understands the company wants to list on the ASX in the third or fourth quarter. 


Sol Dolor
Australasian Lawyer
30 March 2017

In an event in Sydney today, the RegTech Association officially launches with 13 founding members that hope to advance the regulatory technology industry in Australia and in the Asia Pacific.



Press Release


Our Press Release

29th March 2017, Sydney, Australia. The RegTech Association will officially launch tomorrow with a high-profile event in Sydney, where the first-of-its-kind group will be hosting an exclusive speaker panel, including some of the industry’s key influencers, movers and shakers; who will discuss the state of play and future opportunities for growing the RegTech eco-system in Australia and beyond.


Chair Address Speech Notes


RegTech Association Welcome Speech

Introduction & Thank You

Thank you, Simun. It has been great to have such enthusiastic support from Allens Linklaters, both as our host partner for this event and one of our founding corporate sponsors for The Association. We look forward to having a long relationship with your firm.

RegTech – The Hype, The Buzzword

The term RegTech seems to have emerged out of nowhere in the last eighteen months. Many of us have been addressing regulatory & compliance issues for years with our software solutions, well before the term RegTech was created. That said, the term has helped focus attention on the area.