On May 25-26, PayPal hosted the Financial Action Task Force (FATF) for a dialogue and forum on FinTech and RegTech. FATF is the international institution setting the global standards on anti-money laundering and counter-terrorism financing. The event featured eight different sessions that covered the latest innovations in FinTech and RegTech to current regulatory approaches to the industry and ways to address Money Laundering and Terrorist Financing. Aaron Karczmer, PayPal’s Chief Risk and Compliance Officer, delivered opening remarks to the audience that was made up of industry professionals, members of FATF, academics and other stakeholders. David Szuchman, PayPal’s Head of Global Financial Crimes, spoke on a panel discussing “National Regulatory Approaches”. PayPal GR also guided several of the government representatives through tours of the PayPal Showcase. Participants of the event focused on ways to promote and successfully achieve the following set of guiding principles:
- Fight terrorism financing and money laundering as a common goal
- Encourage public and private sector engagement
- Pursue positive and responsible innovation
- Set clear regulatory expectations and smart regulation which address risks as well as allow for innovation
- Fair and consistent regulation
Overall the event provided an excellent opportunity to explore how behavioral data, artificial intelligence or machine learning can not only enhance financial services users experience but also support governments and regulators work with the industry to combat money laundering and terrorist financing. The event was an excellent opportunity for PayPal to showcase its ongoing work with the anti-money laundering community.