In this episode of Integrity Insights, our host Filip Brokes engages in a deep dive with Lana Schwartzman, Head of Regulatory and Compliance at Notabene, into the evolving landscape of cryptocurrency regulation. With over two decades in compliance, including 13 years specializing in crypto, Lana shares her expertise on the implications of the EU's Transfer of Funds Regulation (TFR), the travel rule, and the challenges of compliance in the crypto space. Whether you're in financial services, compliance, or crypto, this episode is packed with insights you should not miss.

Show Notes

Introduction

• Lana Schwartzman’s background and journey into crypto compliance.
• Overview of Notabene and its role in crypto transaction compliance.

Crypto and Money Laundering

• Debunking myths: less than 1% of crypto transactions are illicit.
• Comparisons between crypto and fiat in laundering activities.

Techniques Used for Crypto Money Laundering

• Mixers, tumblers, and chain hopping.
• Privacy coins like Monero.
• Regulatory challenges and enforcement efforts.

The Travel Rule

• Origin and purpose of the Financial Action Task Force’s (FATF) travel rule.
• How the rule prevents illicit transactions before they occur.
• Key milestones: U.S. implementation since 1999 and EU's December 30 deadline.

EU’s Transfer of Funds Regulation (TFR)

• Comprehensive requirements for Crypto Asset Service Providers (CASPs).
• Verification of unhosted wallets and self-declaration methods.
• Role of the European Banking Authority (EBA) in shaping guidelines.

Global Landscape of Crypto Regulation

• FATF report: 89% of jurisdictions implementing travel rule compliance.
• Closing regulatory loopholes across regions.
• Industry-driven pressure for travel rule adoption.

Effectiveness and Future Trends

• Indicators of success: SAR filings and increased enforcement actions.
• Predictions for harmonization of global crypto standards.
• Anticipated regulatory scrutiny and cross-border collaboration.

Resources Mentioned

• Financial Action Task Force (FATF)
• European Commission AML Directives
• ALL AML Infobrief
• Notabene’s EU Deep Dive Course

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