Ep #52 with Oonagh van den Berg (RAW Compliance)

Oonagh van den Berg, a seasoned international compliance professional, is the founder of RAW Compliance, a consultancy and training firm. With a legal background and two decades of experience in London, Hong Kong, and Singapore, Oonagh has become a respected figure in the compliance industry. Her upbringing in Northern Ireland during the violent era of "The Troubles" in the 1980s shaped her resilience and determination, leading her to a career as a lawyer, compliance officer, recruiter, consultant, and educator. 

In this episode of Regulatory Ramblings, Oonagh discusses with Ajay Shamdasani the critical role of artificial intelligence (AI) in combating financial scams, deepfakes, and sextortion. These issues have become increasingly prevalent, especially in the dark corners of Web3. Oonagh's perspective is deeply personal, as her 13-year-old daughter and friends recently fell victim to blackmail after sharing innocent photos on Snapchat. This experience has driven her to raise awareness and produce educational videos through RAW Compliance, targeting pre-teens, teenagers, and young adults to prevent similar incidents. 

A Europol poll highlights the growing use of AI by cybercriminals to commit complex and dangerous crimes. Malicious large language models (LLMs) are being utilized to craft scripts, phishing emails, and fraud advertisements, as well as to groom victims across language barriers. The rise of AI-altered and fully artificial child sexual abuse materials, which are increasingly realistic, has led to devastating consequences, including blackmail and suicides. 

Oonagh also touches on her firm’s groundbreaking collaboration with Nick Leeson, the infamous former Barrings trader, to support victims of financial scams and assist in asset recovery. Together, they aim to provide the necessary help and guidance for victims to reclaim their financial futures.  

She also criticizes banks for their insufficient efforts in helping scam victims, citing outdated technology and inadequate fraud detection systems. The scale of financial crime is alarming, with over 3.5 million people in the UK affected annually, leading to losses exceeding £1.2 billion. The problem is similarly severe across Europe and the US, with losses reaching billions of euros and dollars, respectively. 

The conversation explores how financial institutions can navigate evolving regulations, monitor for child sexual abuse materials (CSAM), and investigate human trafficking within both traditional and decentralized financial systems. Oonagh emphasizes the challenges of global technology use in combating these crimes and provides estimates on the total value of suspected CSAM transactions using fiat versus cryptocurrency. 

Oonagh concludes by highlighting the financial sector’s failure to take responsibility for anti-money laundering, human trafficking, and financial scams. She stresses the importance of understanding suspicious red flags and typologies that can aid in investigations, a crucial takeaway for both traditional financial crime compliance professionals and blockchain investigators. 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Ep #51 with Michael Borrelli (AI & Partners) and Anandaday Misshra (AMLEGALS)

In this episode, host Ajay Shamdasani discusses the EU AI Act with Michael Borrelli and Anandaday Misshra. The EU AI Act, the world's first comprehensive AI law, went into effect on August 1, 2024. The guests explore its global impact, particularly on compliance officers, in-house counsel, and businesses both within and beyond the EU.

Michael Borrelli is a Director at AI & Partners, leveraging over a decade of experience in financial services, compliance, and technology. He is passionate about responsible AI and serves in various advisory roles, contributing to AI and FinTech knowledge and best practices.

Anandaday Misshra is the founder and managing partner of AMLEGALS, a multidisciplinary law firm in India. With over 27 years of legal experience, he specializes in arbitration, data protection, taxation, and commercial litigation. Anand also discusses the implications of AI for India's information technology sector, highlighting the challenges and opportunities that AI regulations like the EU AI Act might present for Indian businesses and legal practitioners.

The episode also touches on concerns about the EU AI Act's potential extraterritorial reach, similar to the US Foreign Account Tax Compliance Act (FATCA). The conversation concludes with thoughts on whether the US might introduce its own AI regulations and the broader impact on India's growing tech industry.

For more details, please visit: www.hkufintech.com/regulatoryramblings

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Episode 42 - Jonathan Crompton, Reynolds, Porter & Chamberlain

Jonathan Crompton is a Hong Kong-based partner at the law firm of Reynolds, Porter & Chamberlain (RPC) where he helps companies and individuals navigate complex cross-border disputes and investigations involving their Asian operations, specialising in commercial matters (in particular for the retail industry), financial services and technology related disputes and cyber incidents.

And as the lead for RPC’s 'ReSecure' cyber incident response service in Asia, he advises local and multinational clients on cyber-attacks, data privacy and law enforcement investigations, as well as helping clients across the globe to recover money transferred to Hong Kong bank accounts as a result of cyber and other frauds.

Jonathan advises on all forms of disputes including litigation before national courts and arbitral tribunals operating under various rules (in particular, the HKIAC, ICC and UNCITRAL), and on investigations by regulators (notably financial services regulators such as the Securities and Futures Commission). His clients include senior individuals, asset managers, and leading multi-national corporations and brands. As a result of RPC's predominantly 'conflict-free' model for financial services disputes, Jonathan represents senior individuals and companies in claims brought by or against leading banks where other firms are often unable to act.

He is also a founding member of the Hong Kong chapter of the Crypto Fraud and Asset Recovery (CFAAR) network, the first global association for such professionals. The London chapter was launched in London in 2021, with the Hong Kong chapter formed in August 2022.

In this episode of Regulatory Ramblings, Jonathan chats with host Ajay Shamdasani about his background, upbringing and how he ended up in the legal profession. The bulk of the conversation, however, is devoted to data protection and digital assets, specifically the February raid of the offices of WorldCoin by the Hong Kong Office of the Privacy Commissioner (PCPD). They discuss the PCPD’s expression of concern about WorldCoin's collection and storage of iris scans in exchange for its WorldCoin token (WLD).

As Jonathan points out, the case was a clear example of the increasing intersection of personal data protection principles and digital assets. The conversation also covers his recent LinkedIn post in which he stated that the Privacy Commissioner Ada Chung’s action was further proof that she was flexing her existing powers – even before the amendments to the territory’s Personal Data (Privacy) Ordinance are expected to be enacted within the next year.

They also discuss what shape Jonathan envisages those amendments taking, as well as what cases he has seen in his practice in recent times involving virtual assets, digital contracts and cybersecurity, as well as related emerging methodologies, trends and themes.

USEFUL LINKS

Jonathan Crompton on RPC page and on LinkedIn
CFAAR – About Us
PCPD warning on World Coin Project

New book - FinTech: Finance, Technology & Regulation
HKU-SCF Fintech Academy
Asia Global Institute
Professional Certificate in FinTech

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Madhurima Mukherjee Saha
Partner, J Sagar Associates 

Madhurima Mukherjee is the New Delhi-based head of the J Sagar Associates law firm’s capital markets division. She has over two decades of experience in securities offerings in both the domestic and international markets – including initial public offerings (IPOs), further offers, rights offers, qualified institutional placements and block trades. 

Sometimes referred as India’s “queen of capital markets,” Madhurima has been part of some of the country’s highest profile capital raising efforts, including the 2010 Coal India IPO, which eventually raised over US$ 2.5 billion and remains one of India’s largest IPOs. 

Prior to joining JSA, she was a Senior Partner at AZB & Partners until April 2020. She has also worked with Luthra & Luthra as a national head and partner until 2013 and before that, she was a partner at the firm of Amarchand & Mangaldas & Suresh A. Shroff & Co, as a partner until 2006. 

Madhurima had taken credit courses and some seminars in Capital Markets at The West Bengal National University of Juridical Sciences and National Law School, New Delhi. 

Given that India is currently in strong growth mode compared to much of the rest of the world, it’s no surprise that such an environment has birthed a budding start-up scene. Indeed, in the three-plus decades since the Indian economy liberalized, even more young entrepreneurs have arrived on the scene – many with dreams of becoming publicly listed companies via the IPO route. Yet, being a developing nation, myriad challenges remain for start-ups seeking public listings in India, which Madhurima delineates in her chat this episode with Regulatory Ramblings host Ajay Shamdasani. 

She discusses how she found her way in the legal profession, her passion for working with startups and the challenges that they face in India beyond those of legal, regulatory, financial/liquidity and managerial issues. Madhurima stresses the challenges of getting and retaining talent, as well as the degree of governmental support – or the lack thereof – in the form of red tape, tax and support programs that Indian startups face. 

The conversation concludes with her views on how the Securities Exchange Board of India (SEBI) – the country’s capital markets watchdog – can improve securities and listing rules to make it easier for the country’s startups to go public. 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Ep 40 - Neha Mehta, Founder & CEO, FemTech Partners

Neha Mehta is a member of the department of mathematics at Nanyang Technological University in Singapore. She also teaches in that institution’s Master of Science program in FinTech.

Among her interests are financial inclusion using FinTech as a vehicle to achieve it, as well as climate sustainability, innovating for a blue economy and greener future, and encouraging more women to enter the tech space – evidenced by her work with the group SG Women In Tech.

Neha is also a FinTech lawyer, former diplomat, and social entrepreneur, in addition to being the author of a new book called “One Stop” on the topic of Super Apps. 

As she points out new software applications are churned out every day to respond to meet people’s needs. “Super Apps,” she says, are apps that allow users to access several services from one single application. Super Apps like Grab and WeChat are gaining popularity and tech giants and FinTechs looking to stake their claim in this digital revolution. In “One Stop,” Neha traces the history of Super Apps and analyses the cultural differences in their adoption and popularity – and in some cases, the lack thereof – in the East versus the West. Through stories of well-known Super Apps and in-depth interviews with central banks, entrepreneurs, and FinTech industry experts, Neha’s book illustrates how the Super App revolution disrupts, innovates and creates opportunities. 

With the COVID-19 pandemic as a background highlighting the need to move to digital platforms, “One Stop” also examines how Super Apps can potentially create an inclusive and sustainable world for all, in a future that looks increasingly digital. 

With that as a launching pad, Neha shares with Regulatory Ramblings host Ajay Shamdasani about her upbringing in Bangalore, as well as how she first got interested in matters of financial inclusion, climate sustainability, the green economy and women in tech, and what she sees as the interconnections between them – namely, economic growth and good stewardship of the planet. 

The discussion also delves into creating talent pools in the tech entrepreneur and/corporate realms with an eye towards seeing more women at the decision-making table in boardrooms. A key part of the equation, Neha says, is getting more females enrolled in STEM subjects earlier in life. In that vein, she stresses the need for policy frameworks incentivizing parents of young girls to send them to schools which are focused on how they can be software engineers, or enter the emergent fields of artificial intelligence or data management. 

She goes on to share her views about the tech ecosystem and entrepreneurial environment in Singapore, drawing on her experiences. In 2019, Neha set up a company called FemTech Partners with the aim of representing women in tech – especially the fintech space. The focus was on how to make them financially resilient and receive the pro bono mentorship they need. 

The conversation includes Neha’s thoughts on being a member of the math faculty at NTU, as well as summarizing the key conclusions, observations and policy recommendations of her book. 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Yesha Yadav is the Milton R. Underwood Chair at Vanderbilt Law School, the Robert Belton Director of Diversity, Equity and Community and , and Associate Dean in addition to being a Professor of Law and Faculty Co-Director of the school’s LLM program at Vanderbilt University Law School. 

Her research interests are in financial market and securities regulation, and corporate bankruptcy law – focusing on market structure, exchange design, payments, digital asset regulation, distressed debt and restructuring.  

Before joining Vanderbilt's law faculty in 2011, Yesha worked as a legal counsel with the World Bank in its finance, private-sector development and infrastructure unit, where she specialized in financial regulation and insolvency, and debtor-creditor rights. Before joining the World Bank in 2009, she practiced from 2004-08 in the London and Paris offices of Clifford Chance in the firm's financial regulation and derivatives group. As part of her work in the area of payments regulation, she advised the European Payments Council on the establishment of the Single Euro Payments Area. 

Since joining Vanderbilt, Yesha has served as an honorary advisor to India’s Financial Services Law Reform Commission and on the Atlantic Council’s Task Force on Divergence, Transatlantic Financial Reform and G-20 Agenda. She has served as a member of the Commodity Futures Trading Commission’s Technology Advisory Committee, where she sat on the Distributed Ledger Technology and Algorithmic Trading Subcommittees. 

She earned an MA in Law and Modern Languages at the University of Cambridge, after which she earned an LLM at Harvard Law School. She was a Vanderbilt University Chancellor Faculty Fellow for 2019-21 

In this episode of Regulatory Ramblings, she chats with host Ajay Shamdasani on the future of money and the shape currency and payment mechanisms will take in the coming decade. Money and payments have experienced a significant redesign over the last decade with money becoming increasingly digital cash use declining rapidly – especially since the pandemic, in countries like Sweden and urban China where cashlessness is the norm. 

Yesha shares her views on technologies combining digital banking and smartphones spurring a rapid restructuring of the payments architecture for everyday consumers and businesses. The conversation looks at the design of payment systems, the inefficiencies that exist even as such systems have been scaled – including financial exclusion for lower income communities and communities of color – as well as the efficacy of emerging digital asset solutions such as stablecoins, where tokenized representations of currencies like US dollar or the Euro move on rapidly computer networks (blockchains), transferring money in minutes and cheaply. 

The discussion moves on to exploring the risks emerging with a highly bank centric payments system (as is the case in the US less so in EU). As shown in the U.S. in March 2023, bank collapses mean that payment systems can also be disrupted (e.g., the collapse of Signature Bank caused a big disruption to the Signet payment system). Further, money kept by non-bank payment providers at US banks was also in peril where accounts exceeded the federal insurance limit (e.g., Circle had over US$3 billion in cash reserves held at SVB). 

The chat concludes with Yesha’s thoughts some of the tensions arising from the current trend toward digitization and the potential for blockchain-based decentralized finance to take off and gain more mainstream acceptance. 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Lisa Nestor is a Los Angeles-based fintech expert and pioneer in the field of electronic payments. She currently serves as the chief strategy officer at AirTM. Under her watch, AirTM has successfully facilitated over 26 million transactions, and expanded access to commerce to international businesses both large and small, creating a user-friendly tool benefiting millions of people worldwide.  

After just a year in the FinTech field, Lisa introduced by a UCLA professor from her MBA days, to Jed Michaela, then CEO of the Stellar Development Foundation - a non-profit foundation supporting the Stellar ledger: an open, decentralized blockchain ledger focused on payments and providing open financial infrastructure. Before transitioning to AirTM, Lisa spent five and half years at Stellar, where she focused on partnerships and later, ecosystem development. As she puts it, the beauty of AirTM is that it leverages Stellar ledger.  

With a passion for innovation, implementation and strategy within the shifting fintech landscape, Lisa’s knowledge is much sought after by entrepreneurs, developers and C-Suite executives. 

In this episode of Regulatory Ramblings, she talks to our host Ajay Shamdasani about her time in the Peace Corps, how she got into FinTech and payment systems as a ‘non-techie’ as well as AirTM’s long term goals and achievements thus far. Their conversation also delves into how firms operating in the FinTech and crypto realms should they adjust their business strategies to factor in digital money and cross-border payments and the attendant regulations that go along with them.   

Lisa also shares her views on financial inclusion, making money easily accessible and immediately available, and utility of decentralized ledgers. She also talks about the challenges of operating across 190 countries with 400 unique payment methods globally. The discussion underscores the need for proper cross-border payment infrastructure to support the digital economy, which begs the question – who will set the rules of such new financial architecture – the industry or governments? 

The conversation concludes with Lisa’s thoughts on stablecoin digital currencies outside national currencies (especially amongst those concerned about digital financial sovereignty), whether self-custody wallets the solution to digital financial sovereignty and what parts of the world beyond Dubai are worth watching for developments in FinTech and payment systems. 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

In our latest Regulatory Ramblings episode, Anandaday Misshra meticulously unpacked India's groundbreaking Digital Personal Data Protection Act 2023 (DPDPA). The legislation, signifying a significant stride for India in the digital era, emphasizes individual empowerment over personal data while imposing stringent guidelines for responsible data handling. Anand sheds light on the comparison between the DPDPA and the EU's GDPR, examining their similarities and potential conflicts. The discussion with host Ajay Shamdasani extends to the potential impact on legal and compliance staff in banking, financial institutions, and multinational corporations operating in India.

Anand, founder and managing director of AMLEGALS, provides depth to the conversation with his 27 years of expertise, specializing in arbitration, data protection, contracts, employment law, taxation, and white-collar crime.

Regulatory Ramblings podcasts is brought to you by The University of Hong Kong - Reg/Tech Lab, HKU-SCF Fintech Academy, Asia Global Institute, and HKU-edX Professional Certificate in Fintech, with support from the HKU Faculty of Law (celebrating 55 years of excellence).

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Marc I. Steinberg is the Rupert and Lillian Radford Chair in Law and Professor of Law at Southern Methodist University’s (SMU) Dedman School of Law in Dallas, Texas.  He has served as a professor, fellow or has lectured at several other prominent universities – including the University of Cambridge, Oxford University, King’s College-University of London, Heidelberg University, Stockholm University, University of Tel Aviv, Moscow State University, University of Sydney, Auckland University, University of Hong Kong, University of Tokyo, UCLA and the University of Pennsylvania.

Professor Steinberg was an attorney for the U.S. Securities and Exchange Commission (SEC) in the SEC’s Division of Enforcement and its Office of General Counsel.  He also has been retained as an expert witness in several high-profile cases, including Enron, Martha Stewart, Mark Cuban, and the National Prescription Opioid Litigation.

Marc is the most prolific author of securities law scholarship in the United States, having authored approximately 150 law review articles as well as approximately 45 books. One of his recent books, Rethinking Securities Law (Oxford University Press 2021), was awarded Winner for the best law book in the United States for 2021 by American Book Fest. He is editor-in-chief of The International Lawyer and The Securities Regulation Law Journal. Professor Steinberg is a member of The American Law Institute.

In this episode of Regulatory Ramblings, he talks with host Ajay Shamdasani about his background, growing up in Detroit, Michigan, being hired by the SEC as a staff attorney during the federal hiring freeze imposed during the Carter administration and what he learned during his time as an enforcement lawyer there.

Marc also shares his views on why he believes the United States’ regulatory structure is a key component in the success of its capital markets, as well as his thoughts on the Private Securities Litigation Reform Act (1995), the Sarbanes Oxley Act (2002) and the Dodd-Frank Act (2010), and whether overlaying rules upon rules makes the U.S. regulatory system complex and unwieldy.

The conversation concludes on the topic of legal pedagogy, such as how best to teach core, doctrinal, foundational financial law courses such as securities regulation, as well as the topic of legal ethics and what can be done to inculcate such values into future law school graduates. Also discussed is the four-tier structure of U.S. law schools and the contemporary pervasiveness of grade inflation in academia more generally.

Find out more about this episode at: hkufintech.com/regulatoryramblings

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Martin James Wallis has a deep understanding and vocation for thwarting financial crime. Currently, he serves as COO at financial crime consultancy FINTRAIL in Singapore. In that capacity, he supports FINTRAIL's efforts to provide practical and inclusive solutions in the global fight against financial crime.

Before joining FINTRAIL, Martin enjoyed a 22-year career in the British Army's Intelligence Corps, holding various specialised intelligence and security roles in support of military operations worldwide – including being based in Northern Ireland and at the British Embassy in Beijing. He holds a degree in Global Business Management from Bournemouth University and an Executive MBA from Quantic School of Business and Technology.

In this episode of Regulatory Ramblings, Martin shares more about his background, how he got into consulting and his family history of military service. He talks to host Ajay Shamdasani the types of personalities that do well in AML/KYC and financial crime compliance, how to manage and lead them to serve their greatest purpose, and how to handle the ego issues that often arise when overseeing capable, high achieving performers. Their conversation concludes on how ESG connects to financial crime and how solving such problems goes a long way toward fighting such transgressions. Martin stresses that such offenses are not a victimless matter.

Regulatory Ramblings podcasts is brought to you by The University of Hong Kong - Reg/Tech Lab, HKU-SCF Fintech Academy, Asia Global Institute, and HKU-edX Professional Certificate in Fintech, with support from the HKU Faculty of Law.

Find out more about us at: hkufintech.com/regulatoryramblings

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

At the heart of Dr. Bryane Michael’s conversation with Regulatory Ramblings host Ajay Shamdasani is whether FinTech can help solve the social, financial, and economic problems previous generations like the Baby Boomers contributed to. They discuss whether Gen-Z's potentially decentralized world of finance will look radically different from ours. 

Gen-Zers and now Gen Alpha will grow up in a world designed and run almost exclusively by baby boomers. The DBS power outage was supposedly partly caused by a 'missing generation' unable to take charge during the crisis. Why have huge, octogenarian, organizational men-created lumbering bureaucracies that FinTech has been having problems shaping? 

Economists have struggled to understand why organizations exist for almost a century. Massive central banks, financial supervisors, regulators and now new stability boards pile on to gigantic financial services firms like Blackrock, Visa, and Allianz. Most of us distrust them. Scale has financial benefits even outside the financial sector – as Google and YouTube show. And there are no signs to show this trend abating. Pay apps on our mobile phones must still go through the same old architectures – using the same old rules. 

When you turn on MetaMask and use Ethereum, you get a whole different feeling of the Internet. Thousands of decentralized autonomous organizations, or DAOs, are creating tokens that can be almost anything you want them to be. 

Bryane shares an alternative view of finance and the economy in a decentralized finance (DeFi) world. All too often, we only hear the conservative viewpoints about FinTech. Yet, the law and economics of DeFi could look very different from what’s currently envisaged. The discussion centers around the, broadly speaking, two schools of thought on FinTech regulation – namely, the conservative (IMF/BIS) perspective versus the Web3/evangelistic viewpoints. 

This conversation also covers whether DeFi can solve the “public goods” (missing regulators) problem and create trustless local financial markets, as well as what will FinTech and RegTech mean for traditional property rights and the implications of computer code as law. The two also discuss who the winners of the brave new world of FinTech in the mid-21st century will be and what it might mean for Generation Z/the Zoomers. 

Bryane stresses that there is a better way to implement FinTech than to just computerize legacy financial institutions. However, he also shares his concerns about young people’s lack of say in shaping the financial architecture that will govern their generation “because the current approach simply shoves existing law onto digital markets instead of creating digitally native finance.” 

The chat concludes with a discussion about what four decades of debate have meant for cross-border payments as the issue remains a challenge in much of the world. 

About the Guest: Dr. Bryane Michael is a senior research fellow at HKU’s Faculty of Law. He also taught at Oxford University’s Said Business School. An economist and jurist by training, Bryane has been in finance most of his life. In recent times, his focus has been on trying to understand how Web3-based FinTech can help push sustainable development. 

Please read more at: www.hkufintech.com/regulatoryramblings 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Strengthening financial services with multi-modal biometrics
Ep 33 with Bala Kumar, Chief Product Officer at Jumio

Against a backdrop of rising AI-fuelled phishing attacks in the Asia-Pacific, in this episode of Regulatory Ramblings, Bala Kumar chats with host Ajay Shamdasani how such developments will affect the landscape of online identity fraud, and how such threats will evolve and, if possible, be anticipated moving forward. They discuss how can businesses effectively counteract the threat of identity fraud and safeguard their customers while maintaining regulatory compliance, as well as the increased efforts by certain Southeast Asian governments to facilitate cross-border payments, and how to ensure such transactions are secure and adhere to cross-jurisdictional rules and regulations.

Bala also stresses how organisations can successfully strike a balance between strong security and seamless customer experiences. He notes that beyond cybersecurity, there are other multiple other risks and concerns that global banking and financial institutions and multinational corporations should be cognisant of.

The conversation concludes with Bala sharing some key strategies for ensuring compliance with digital payment systems.

About Bala Kumar: He is responsible for Jumio’s product vision and strategy, and is leading the execution of Jumio’s digital identity platform. A former TransUnion executive, he brings more than two decades of product innovation and leadership experience to Jumio

Related links can be found at: hkufintech.com/regulatoryramblings

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Ep #50 with Syed Musheer Ahmed, Finstep Asia 

Syed Musheer Ahmed has two decades of extensive experience in the realms of capital markets, fintech and virtual assets – including a decade as a global markets’ trader, prior to coming to Hong Kong to attain his MBA from the University of Hong Kong and London Business School’s joint program. 

Since 2016, Musheer has contributed extensively to building the region’s fintech and virtual asset ecosystem, particularly as the co-founder and the inaugural general manager of the Fintech Association of Hong Kong. 

For the last five years, he has been the managing director of FinStep Asia – a firm which he founded to provide Venture building and empower cross-border bridges across Asia . In the interim, from October 2022 to January 2024, he served as a financial markets risk assurance lead as part of the foundational team of the Virtual Assets Regulatory Authority (VARA) in Dubai. 

In this episode of Regulatory Ramblings, Musheer chats with host Ajay Shamdasani about his background, growing up in India’s information technology hub, Bangalore, his initial training as an engineer and his stint as a regulator in the Mideast’s Manhattan. 

As the discussion progresses, Musheer reaffirms his faith in Hong Kong as a place for FinTech and crypto entrepreneurs, discussing what it is as about the city and the field that continues to attract and marvel him. 

He also stresses that in the evolution of FinTech, the field has long since passed the nascent stage and is no longer all that new and glamorous since the advent of iPhone in 2007 and Satoshi Nakamoto’s paper on Blockchain first released in in 2009. Yet, he acknowledges that technological innovation continues, as he shares his thoughts on the regulatory approaches taken across Asia by mainland China, India, Singapore and Hong Kong – and the similarities and differences between some of the major jurisdictions. 

While virtual assets which have evolved in some parts of the world, in others, they are still somewhat of a grey-zone. Musheer also comments on the prospects for cross-border crypto regulation in the Asia-Pacific or even internationally evolving to the level of harmonized rules, or even mutual recognition or common passporting – as was discussed a decade ago for the investment funds sector. 

He also shares his views on how the choice between stablecoins and central bank digital currencies (CBDCs) is not binary. Musheer emphasizes it is not an either-or choice because both fulfil different purposes. 

The conversation concludes with his assessment on the potential for Hong Kong and mainland China to collaborate with the FinTech and virtual asset hubs of the Middle East such as Dubai. 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Michael Heller, VP, Head of Financial Crime Proposition at Dow Jones Risk & Research

Based in Los Angeles and having been with Dow Jones for a decade, Michael Heller is currently responsible for corporate strategy and go-to-market, globally, for the Financial Crime Compliance (FCC) business. He draws from a background as an entrepreneur, attorney, sales executive, and advisor to ensure clients building efficient compliance and risk management programs leverage the right data and technology.

Michael's career has been focused on bringing transparency to global business. After law school, he worked as a consultant with the Business Intelligence Group and later, the Anti-Money Laundering (AML) Group at Goldman Sachs in New York. Admitted to practice law in California, he has also served as chief compliance officer and counsel at Abacus Wealth Partners in Los Angeles.

Financial institutions and multinationals rely on data and technology to prevent and detect financial crime. Recent geopolitical developments have made it even more critical for those participating in the globalised economy to embrace innovation for managing downside risks related to money-laundering, corruption, and sanctions evasion. Navigating the risk landscape in APAC, for example, presents formidable challenges as organisations must be well-prepared to address myriad regulatory requirements in jurisdictions with vastly different levels of development and financial and legal sophistication.

Financial crime in the region also exhibits a high degree of complexity due to factors such as rapid economic growth, the embrace of digital payments and crypto to move stored value across borders, and diverse cultural and governmental approaches to corruption and AML.

It is in that spirit that Michael chats with Regulatory Ramblings host Ajay Shamdasani about the challenges of addressing money-laundering in Asia with an emphasis on the importance of adverse media screening to ensure FCC programs are keeping pace with regulatory expectations. 

They also discuss the potential positives and negatives of Artificial Intelligence for financial crime and third-party risk management. Michael stresses the ultimate aim of embracing new technology is to bring greater transparency to risk management workflows, enabling institutions and corporates alike to screen customers and third parties at speed and scale.

Indeed, as their discussion highlights, AI is poised to emerge as a game changing solution for compliance professionals; from reducing false matches to identifying patterns that could indicate suspicious activity. They also talk about noteworthy trends Michael has observed across the region concerning the development of disruptive technologies and the associated risks they pose.

He also shares his views on the efficacy of initiatives by the Hong Kong Monetary Authority to encourage and support the local financial sector’s adoption of AML and CFT RegTech, of which natural language processing for news monitoring is a key part (Linked at: www.hkufintech.com/regulatoryramblings ).

The conversation ends with Michael providing tangible examples of how such capabilities can be effectively utilised to fill gaps in the current regulatory compliance landscape. He concludes with his predictions of the most pressing financial crime and technology-related challenges that institutions are likely to face in the next 12 months.

More info at: www.hkufintech.com

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Episode 31 - Professor Dirk A. Zetzsche, University of Luxembourg (Topic/Chapter Guide is availabe)

Professor Dr. Dirk A. Zetzsche, holder of the ADA Chair in Financial Law (inclusive finance) at the University of Luxembourg, is also a co-author of the recently released book, FinTech: Finance, Technology and Regulation (LINK), published by Cambridge University Press, which he collaborated on with Professor Ross P. Buckley of the University of New South Wales - Sydney and Professor Douglas W. Arner of the University of Hong Kong. 

In a market seemingly saturated with books on FinTech and cryptocurrencies, the authors of the above work offer a comprehensive, accessible reference for those seeking to understand the technological transformation of finance and the role of regulation: the world of FinTech. They consider FinTech technologies including artificial intelligence, blockchain, BigData, cloud computing, cryptocurrencies, central bank digital currencies, and distributed ledger technology, and provide a unique perspective on FinTech as an interactive system involving finance, technology, law, and regulation.

Starting with an evolutionary perspective, the authors then consider the major technologies transforming finance, arguing for approaches to balance the risks and challenges of innovation. They address the central role of infrastructure in digital financial transformation, highlighting lessons from China, India, and the EU, as well as the impact of pandemics and other sustainability crises, while considering the risks generated by FinTech. They conclude by offering forward-looking regulatory strategies to address the challenges facing our world today. 

In this episode of Regulatory Ramblings (Topic Guide is available), Dr. Zetzsche talks to host Ajay Shamdasani about what compelled him and his co-authors to write the book, as well as the technological transformation of finance and the role of regulation. They conclude their discussion by fleshing out some of the book’s key conclusions in terms of suggested policy goals and forward-looking regulatory strategies to address the challenges facing today’s world. Simply put: banking and finance, technological innovation, and regulatory policy must move in tandem, the authors argue. 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

As HK FinTech Week 2023 approaches (October 30-November 5), Karena Belin and Karen Contet join Regulatory Ramblings' host, Ajay Shamdasani, to preview the event. They explore the synergy between diverse backgrounds in the tech space, emphasizing the value of different perspectives and continuous learning. Karena and Karen also share insights on AngelHub's role in democratizing tech investment, the changing landscape of crowdfunding, and Hong Kong's potential as a FinTech hub.

About Karena Belin:  

Karena is the co-founder and CEO of WHub – a start-up ecosystem builder and the largest start-up platform in the city. Her group helps startups grow and enables stakeholders to connect with the innovative power of the local tech ecosystem. WHub is also an organizer of global conferences.

She is also the co-founder and COO/CFO/RO of AngelHub, Hong Kong’s first and only start-up investment platform licensed by the SAR’s capital markets watchdog, the Securities and Futures Commission, for professional investors and growth tech companies scaling in Asia. Most notably, earlier this year, she was appointed the organizer of Hong Kong FinTech Week – which resumes its physical format on October 30, 2023 – by the Hong Kong Government.

With a double diploma from the University of Mannheim and the MBA business school ESSEC in Paris, Karena worked for Procter & Gamble for 15 years in finance, sales, strategy, and M&A across Europe, North-East Asia, and Greater China.

She has been deeply immersed in the Hong Kong start-up scene for the past decade as a member of the Start-up Committee of the Commerce and Economic Development Bureau of the HKSAR, as well as being on the Organizing Committee of the Innopreneur Awards of the Federation of Hong Kong Industries and the HKTDC Belt and Road & Greater Bay Area Committee. She is also an ambassador of StartupAsiaBerlin, an initiative of the German Senate in Berlin, and serves as vice president of TiE HK and a member of the Hyderabad FinTech Forum core team. 

Karena is also a "10 Best Female Entrepreneurs of the World by True Global Ventures and Women of Hope" awardee. She has also volunteered at Hong Kong International School in several capacities.

About Karen Contet:  

Karen Contet is a tech enthusiast and entrepreneur, serving as the Co-founder & CEO of AngelHub.io, ClubDeal.vc, and WHub.io.

She is also, with WHub, the official organizer of Hong Kong FinTech Week.

Karen's mission is to transform and democratize the private markets, empowering everyone to shape the future of tech.

Under her leadership, AngelHub has evaluated 2,500+ tech firms, invested in 25 companies, including WeLab and Animoca Brands. The platform has deployed over USD 17M and generated USD 9M in returns through successful exits.

AngelHub is the sole SFC-regulated tech investment platform, allowing investors to co-invest alongside fund & institutional investors.

With a rigorous due diligence process and a thriving WHub startup ecosystem, AngelHub equips tech entrepreneurs for success. 

WHub has become a leading tech power connector, organizing global conferences gathering over 120,000 participants, hackathons, job fairs, and over 2,000 events.

Karen is an international speaker, French Foreign Trade Advisor, FrenchTech ambassador, and mentor. With 20+ years of experience, her background ranges from JP Morgan trader to IoT startup engineer and web development instructor.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Walter Jennings, Founder of Asia Insight Circle 

Walter is a branding and communications veteran – and someone who has increasingly become a voice of influence in Hong Kong’s FinTech and Web3 scene over the past decade. He currently owns and manages Asia Insight Circle, a private members group of C-suite executives. The group meets monthly for frank discussions on critical local business issues and its membership roster represents a diverse swath of the city’s commercial players. 

Prior to that he was head of branding and communications at Finnoverse, which until 2022 was the organiser of Hong Kong FinTech Week. While there he was responsible for leading the company’s communications strategy and its branded events worldwide. Walter has extensive expertise in emerging financial services technologies – including regulated digital assets, blockchain and 5G. 

He also hosts a podcast called Waves in the Finnoverse and earlier, Crypto Savvy, which explored and decoded all things relating to cryptocurrencies, digital assets and FinTech. 

With his experience in communicating why new technologies matter and helping companies grow globally, as well as in marketing across Web3, virtual assets and traditional finance, Walter is well situated to speak on a great many of the topics that the territory is grappling with as it charts a course for itself in the digital economy of the 21st century. He’s also a savvy operator in institutional and regulated environments, and has advised decentralized finance (DeFi) start-ups.  

Additionally, he did a stint in Riyadh, Saudi Arabia, offering his counsel to the Kingdom on its experimental city of the future – NEOM. Before that, he was Huawei’s vice president for global corporate communications in Shenzhen where he looked after the phone giant’s worldwide reputation. 

He chats with Regulatory Ramblings host Ajay Shamdasani about how he transitioned from the world of public relations to learning more about the role of digital technology in our daily lives, to being one of its most enthusiastic advocates – not least in its application to financial services and the way we transact. 

Walter stresses the importance of Web3 and why everyone should engage with the technology rather than fear it. He also shares some of the challenges he’s faced as an entrepreneur and his thoughts on doing business in the East versus the West. Most poignantly, despite all the tumult and uncertainty Hong Kong has faced in recent years, he explains why he is one of this city’s most stalwart defenders and promoters; ever the eternal optimist, Walter believes the Special Administrative Region’s best days are ahead of it.   

A key point he emphasizes, however, is that Hong Kong must have the right kind of regulatory policy for FinTech, virtual assets and Web 3 to thrive and create opportunities for society at large. 

On a more personal level, Walter also shares a little bit about his roots, growing up in small town New Jersey, being captivated by the big city life of New York, how he got into public relations and his penchant for the theatre – being a faithful Broadway afficionado: to say nothing of being an ardent Francophile who calls Rouen, Normandy his second home after the SAR. 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Ep 28 with Sinyee Koh, Director of Compliance & Regulatory Consulting at Integrity Consulting in Singapore 

A Singaporean to her core, Sinyee also called Hong Kong home for a time. As an admitted solicitor and advocate in the Lion City, she is also a licensed solicitor in Hong Kong and a solicitor-advocate in England and Wales. She is also admitted to practice in the US state of New York. Beyond having practiced law, Sinyee has also worked at multiple consulting firms such as Kroll and Duff & Phelps, and for a time was a regulator – having served as a deputy director at the Monetary Authority of Singapore (MAS). 

She chats with Regulatory Ramblings’ host Ajay Shamdasani about her background and upbringing, why she chose law as a career path, how she transitioned into a career in compliance and consulting, as well as her time as a regulator at the MAS. 

However, the meat of their discussion centres on the fact that with digital finance growing, so too has the use of digital identity verification, with some governments moving in the direction of rolling out national digital identity. Retail customer scams in digital finance, including those compromising national digital identities, are also increasing in both Hong Kong, Singapore and elsewhere. There have been a few policy responses in the Lion City, including changing money laundering laws to make it easier to prosecute those who sell their national digital identity credentials. A key policy challenge being deliberated on, however, is in deciding who should bear the loss in digital finance scams – financial institutions, customers or other parties: especially if none of them were at fault.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Vivien Khoo is the Chairman and co-founder of the Asia Crypto Alliance, an industry association that promotes the growth and development, as well as safeguarding the reputation, of virtual assets providers in Asia. She is also a Senior Advisor of StashAway, a digital wealth management platform with more than USD 1bn of assets under management and the APAC Advisor of Delphi Digital, an independent research boutique providing institutional-grade analysis on the digital asset market. 

After a long career in senior compliance and regulatory roles, Vivien moved into the digital industry in 2019 where she was the Global Chief Operating Officer and Interim CEO at a leading crypto derivatives exchange. Prior to that, Vivien spent close to two decades at Goldman Sachs where she was the managing director of Goldman Sachs’ Asia Pacific Ex-Japan Compliance division. Vivien had also spent time as a regulator with the HK Securities & Futures Commission. 

Vivien’s move across from traditional finance into digital assets was motivated by a realisation that society is currently in the midst of a great transformation in how financial services are created, accessed and delivered. She was keen to be involved in shaping that future - particularly as blockchain technology extends beyond financial services 

An ardent advocate for diversity and inclusion, Vivien is the founder of W3W and co-founder of SatoshiWomen, both of which provide education, inspiration and connections to women interested in the digital assets space. She is also an advisory board member for Inspiring Girls and is actively working with universities and schools to pilot programs to raise awareness and provide access and education of Web3 to girls at a young age. 

Having been described by Tatler Asia as “a prime mover in cryptocurrency in Asia…on a mission to provide leadership and education,” she talks to Regulatory Ramblings’ host Ajay Shamdasani about her passion for diversity and inclusion in the fintech and Web3 space, and how education to help us get there – especially through the medium of e-games to reinforce the skills needed to function in the digital economy of the future where cryptocurrencies and e-tokens will be an important part of daily interactions and transactions. 

They discuss her transition from being a compliance professional to the tech world, her motivations for establishing W3W, the challenges she faced as an entrepreneur, the progress women have made in banking and finance in APAC, and how more can be done to draw women to tech careers at an early age. Their conversation concludes with Vivien sharing her thoughts more broadly on the extent to which Hong Kong’s legal and regulatory system is conducive to the needs of fintech, virtual asset and Web3 entrepreneurs.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Episode 26 With Abhishek Bali, CEO and Co-Founder of ZIGRAM

As the CEO and Co-founder of ZIGRAM, Abhishek Bali has over 15 years of expertise in Anti Money Laundering (AML), Financial Crime Compliance (FCC), data assets and third-party risk. Abhishek has worked on engagements and initiatives across the world, collaborating with organizations like KPMG, BMR Advisors, Dun & Bradstreet, and Axis Bank. He leads various business initiatives and data solutions that leverage machine learning, artificial intelligence, data assets and deep technology applications to solve real-world problems in the field of risk. Products and technologies developed by him are in the space of AML, politically exposed persons (PEPs), know-your-customer (KYC)/due diligence, adverse media alerts, country watchlists, sanctions, cannabis businesses, high-risk individuals and entity monitoring. Abhishek is ACAMS certified and a co-chair of the India chapter of the Association of Certified Financial Crime Specialists (ACFCS).

He talks to Regulatory Ramblings’ host Ajay Shamdasani about the state of AML and FCC in India, as well as the extent to which AI and machine learning can aid such endeavors, how India now has the largest concentration of AML and financial crime professionals in the world after the US, and what the drivers are of the country’s explosion of FinTech use and development, and regulatory oversight over the past decade. A point Abhishek emphasizes is that India has come a long way and it is now easier to do wholesale monitoring of people and transactions nationwide than ever before.

They also discuss how, of the approximately 175,000 banking and financial institutions across the world, most large AML solutions and data providers only focus on servicing the top 100-500 firms, leaving a long tail of unserved or underserved institutions that urgently need integrated FinTech and RegTech services.

Notwithstanding the perennial topics of AI and machine learning, Abhishek does not believe compliance professionals will be out of a job in the foreseeable future. While AML/FCC departments will increasingly require data science specialists for operational purposes, he emphasizes that such teams will continue to be led by those with on-the-ground financial crime experience and knowledge.

The conversation concludes with a point about why many customers are increasingly put off by FinTech and RegTech vendors offering AI as part of their solutions.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

As the founder of CFOAF, a financial services and business consulting firm specializing in industries ranging from construction to crypto, Byron Wolfe's greatest gift is in translating the complexities of business financial principles – with a focus on small businesses – into easily understood communication. It is a quality that has made him one of the most highly sought financial and business consultants. Byron is also the chief financial officer of an INC 5000 company, and the fractional CFO of various companies with annual revenues ranging from US$3-25 million.

His certification in the crypto, NFT (Non-Fungible Tokens) and Metaverse space has led to many projects with DAOs (Decentralized Autonomous Organizations) and crypto companies, and he is regarded as an expert in crypto tax strategy.

Yet, recalling his own challenges as an entrepreneur, Byron’s truest passion lies in helping small business owners expand their financial reach and success through various tools such as research and development tax credits, proactive tax plans, creative funding and high contact financial management.

He talks to Regulatory Ramblings’ host Ajay Shamdasani about what originally put him on the entrepreneurial path, and how the Metaverse and virtual assets such as cryptocurrencies and NFTs are fundamentally altering the face and structure of business. They also discuss the impact of DAOs and the benefits of crypto tax strategies.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

After twelve years of a rewarding career in the corporate world, Karena Belin became an entrepreneur. As she put it, 'out of passion and inspiration to foster the growth of the tech and innovation ecosystem,' especially right here in Hong Kong, which she and her family now call home after two decades in the territory.  

She is also a dear friend of HKU – The University of Hong Kong, where she has been a guest lecturer on the topic of 'Equity Crowdfunding' in Asia’s first MOOC, "Introduction to Fintech" - the largest online fintech course on edX, attracting over 114,000 learners. 

Karena is the co-founder and CEO of WHub – a start-up ecosystem builder and the largest start-up platform in the city. Her group helps startups grow and enables stakeholders to connect with the innovative power of the local tech ecosystem. WHub is also an organizer of global conferences. 

Most notably, earlier this year, WHub was appointed as the organizer of Hong Kong FinTech Week – which resumes its physical format on October 30, 2023 – by the Hong Kong Government. 

She is also the co-founder, CFO, and RO of AngelHub, Hong Kong’s first and only investment platform for tech companies licensed by the SAR’s capital markets watchdog, the Securities and Futures Commission, for professional investors and growth tech companies scaling in Asia. 

She is a founding board member of the newly established Web3 association called Web3 Harbour. 

With a double diploma from the University of Mannheim and the MBA business school ESSEC in Paris, Karena worked for Procter & Gamble for 15 years in finance, sales, strategy, and M&A across Europe, North-East Asia, and Greater China. 

She has been deeply immersed in the Hong Kong start-up scene for the past decade as a member of the Start-up Committee of the Commerce and Economic Development Bureau (CEDB) of the HKSAR, as well as being on the Organizing Committee of the Innopreneur Awards of the Federation of Hong Kong Industries (FHKI), and the HKTDC Belt and Road & Greater Bay Area Committee. She is also an ambassador of StartupAsiaBerlin, an initiative of the German Senate in Berlin, and serves as vice president of TiE HK and a member of the Hyderabad FinTech Forum core team. 

Karena is also a '10 Best Female Entrepreneurs of the World by True Global Ventures and Women of Hope' Awardee. She has also volunteered at Hong Kong International School (HKIS) in several capacities. 

She talks to Regulatory Ramblings’ host Ajay Shamdasani about the early part of her life, growing up, and being educated in Germany and later in France for her MBA. They also discuss how she transitioned from a finance and management background into life as a technology entrepreneur and her motivations for founding WHub and AngelHub as incubators to serve Hong Kong, guide, and develop budding innovators. The conversation also delves into the logistical challenges of putting together a key global event such as Hong Kong FinTech Week, the obstacles she has faced as a businessperson and particularly as a woman in tech and the corporate world, as well as her view that few places in the world come close to Hong Kong in enabling entrepreneurs to realize their dreams. Their chat concludes with Karena’s views on why she resolutely believes Hong Kong’s rule of law and robust regulatory system make it more than well-suited to cope with the emerging fields of FinTech and virtual assets.

Navigate using the chapter markers in your favorite podcast apps. 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Christian Hunt is the founder of Human Risk and has nearly three decades of experience in financial services, spanning investment banking, asset management, and time spent at a family office. He is also the author of the new book 'Humanizing Rules: Bringing Behavioral Science to Ethics and Compliance.' His unique perspective comes from having held senior roles as both a risk and compliance officer, as well as a regulator.

While working for the Swiss banking giant UBS in London, he was a managing director & head of behavioral science. He was the global head of Compliance & Operational Risk at UBS Asset Management. On the other side of the fence, he was the chief operating officer at the UK's Prudential Regulation Authority.

His current mission is to help organizations swiftly improve their ethics and compliance programs to achieve better business outcomes by putting people at the center of their internal rule-making processes. You can learn more about him at his website: www.human-risk.com.

He talks to Regulatory Ramblings' host Ajay Shamdasani about how employees aren't necessarily interested in endless rounds of training to test for recognition of rules and regulations, though that was somehow a proxy for fostering a sound compliance culture – be it in the financial sector or the corporate world more broadly. They also discuss how weeding out bad actors won't fix environmental factors when 'systemic rot' has set into an organization and how one of the worst ways to make employees turn against their employers is to send the message that the former are not trusted.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Ep #49 with Dr. Andrew Mazen Dahdal, College of Law, Qatar University

Dr. Andrew Mazen Dahdal is an associate professor at the College of Law at Qatar University in Doha. He received his Ph.D. from the University of New South Wales, where he received an outstanding achievement award in 2014 for his dissertation on the necessity of historical analysis in constitutional interpretation.
 
Andrew has also taught constitutional and commercial law within Australia and Europe in both fulltime and adjunct roles. Writing on law, technology and global legal frameworks, Andrew is now focused on exploring the intersections between private and public law specifically by exploring the technocratic connections between constitutional and commercial legal frameworks.
 
This episode of Regulatory Ramblings features a discussion on his upcoming book entitled Digital Currencies and Public Law: History, Constitutionalism and the Revolutionary Nature of Money. In it he advocates for deeper engagement by public lawyers in digital currency developments which threaten dramatic changes in the relationship between individuals and government authorities.
 
As Andrew shares with our host, Ajay Shamdasani, no modern issue is more widely acknowledged and less understood than that of digital currencies. The voice of constitutional scholars, however, is crucially missing from prevailing digital money conversation. For example, private law scholars are grappling with the legal questions raised by digital currency models in property and contract. Alternatively, public law scholars have yet to appreciate the significance of the moment.

Andrew argues that the challenge of understanding the technical dimensions of digital money innovations has obscured the potential constitutional revolution that digital currencies represent. His book starts with the premise that ‘money’ is best thought of as a constitutional phenomenon. When seen in that light, it becomes clear that changes in the nature of money represent changes in political and constitutional arrangements.

The discussion elaborates on how and why that is so by examining episodes in history where the nature of money was linked to renewed constitutional settlements. The book distills a core set of principles linking aspects of monetary innovation such as technical control of the money supply to constitutional positions such as executive fiscal accountability. From such principles, a conceptual framework is proposed that translates the specific attributes of digital currency proposals into the language of constitutional dynamics.

Andrew also recounts what it was about digital currencies that initially piqued his curiosity as a constitutional scholar and ultimately, what compelled him to write the book. He also shares his thoughts on what he feels the book adds to an already crowded market place on the subject matter.

He concludes by saying that cryptocurrencies and virtual assets herald an opportunity for wholesale constitutional reform the world has yet to see. Andrew notes that certainly when it arrived on the scene and its most ardent advocates were anti-statist, anarcho-libertarians – and even to some extent today – the rise of Bitcoin and digital assets writ large can be scene as a political movement in search of an ideology.
 
Looking back on the development of money, Andrew said, every fiat currency has been a form of money, albeit stripped of its intrinsic value. Moving forward, he said, there was no way to have a robust conversation about money and digital change without interrogating competing monetary forms.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Hong Kong's new virtual asset regulatory regime went into effect on June 1. Much of the fanfare surrounding it stems from the notion that retail investors in the territory will soon be able to purchase cryptocurrencies and digital assets, writ large, from licensed exchanges. Clearly, the SAR is positioning itself to become a virtual asset hub, with the start of applications for licenses to run trading platforms and exchanges already underway.
 
Trading of cryptocurrencies in the city has been restricted to institutional investors and other professionals since 2018, but Hong Kong's local regulations will allow retail trading as soon as the second half of 2023.
 
Local officials have stated that the initiative to welcome crypto is backed by safeguards for investors. The move comes amidst a background of tough global regulatory headwinds for the sector.

Our guests this episode are Hong Kong-based Vince Turcotte and his London-based colleague, Jonathan Dixon, from Eventus – a global provider of trade surveillance and market risk solutions for multiple asset classes such as equities, options, futures, foreign exchange, fixed income, and digital assets.

They chat with Regulatory Ramblings host Ajay Shamdasani on why the territory's new virtual asset trading platform (VATP) rules are such an important milestone for retail access to digital assets in Asia - as evidenced by the Licensing Handbook for Virtual Asset Trading Platform Operators from the SAR's capital markets watchdog, the Securities and Futures Commission.

In particular, the guests note that through its actions, the SFC is staking out a global leadership position on regulating virtual assets: because the SFC is the first and only regulator to require market surveillance. Also discussed are whether other international regulators follow the SFC’s lead, alongside the potential pitfalls that service providers, investors and others may face in complying with the city's VATP rules, and whether digital exchanges and other platform providers are starting from a position of strength and preparedness generally.

Additionally, Turcotte and Dixon share their views on the most common VATP queries from their clients, as well as if more regulation might be needed as retail investors continue flocking to virtual assets. The conversation concludes with an outline of key steps local trading platform providers need to take – especially regarding licensing requirements.

Related readings and bios: www.hkufintech.com/regulatoryramblings

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

A veteran entrepreneur and technology lawyer with over 15 years of experience specializing in cross-border transactions, data compliance, and regulatory matters more broadly, Jamilia Grier is the founder and chief executive officer of the firm training and consulting firm ByteBao. She also hosts the Barely Legal in Web3 podcast.

She chats with Regulatory Ramblings host Ajay Shamdasani on how to best conceptualize the ever-growing topic of Web3 and what it means to be a lawyer in an age of swift and profound technological innovation. They also discuss the pervasiveness of technophobia in the legal profession – particularly amongst practitioners of earlier generations – as well as the implications of generative artificial intelligence (AI) platforms such as ChatGPT for the profession. They conclude with their conversation with the metaverse and what it means for contract terms, IP issues, transfers of digital property, and NFTs – as Jamilia tells us: it is all connected because the law truly is a seamless web.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

EXTENDED PLAY WITH GUEST: DONALD DAY
 
As Hong Kong implements the VATP (Virtual Asset Trading Platforms) licensing regime in June 1, 2023, find out what former SFC-Hongkong's digital assets expert and creator of the rulebook for Virtual Asset Fund Managers and Trading Platforms, Donal Day, has to say.  He also co-authored the regulatory framework, terms and conditions and guidelines for virtualassets. 

Donald, chief operating officer of fintech start-up firm VDX, and the former in-house cryptocurrency/digital asset expert at Hong Kong’s capital markets regulator, the Securities and Futures Commission (HKSFC), sits down to chat with Regulatory Ramblings host Ajay Shamdasani. They discuss Donald’s time as a regulator, the importance of broadening the policy discussion beyond just being about cryptocurrencies to envisaging a future where virtual assets are a key part of daily commerce, as well as the importance of digitization, and Hong Kong’s ideal position as a global fintech and digital asset hub, the HKSFC’s new virtual asset service provider regulatory regime and its implications for legal and compliance staff, and some of the aims of The Crypto Fraud and Asset Recovery Network (CFAAR)’s local chapter almost a year after its formation.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Donald Day, chief operating officer of fintech start-up firm VDX, and the former in-house cryptocurrency/digital asset expert at Hong Kong’s capital markets regulator, the Securities and Futures Commission, sits down to chat with Regulatory Ramblings host Ajay Shamdasani. 

They discuss Donald’s time as a regulator, the importance of broadening the policy discussion beyond just being about cryptocurrencies to envisaging a future where virtual assets are a key part of daily commerce, as well as the importance of digitization, and Hong Kong’s ideal position as a global fintech and digital asset hub, the HKSFC’s new virtual asset service provider regulatory regime and its implications for legal and compliance staff, and some of the aims of CFAAR’s local chapter almost a year after its formation.

Topic Takeaways

| Chapter 1
- Bitcoin was created to establish a payment system independent of central entities, but intermediaries are still needed for fiat-to-crypto exchanges.
- Regulation is necessary for the involvement of institutional investors and professionals from traditional finance in the crypto industry.

|  Chapter 2
- Insurance companies and risk management tools are crucial for the growth and stability of the crypto industry.
- Proper regulation is needed to facilitate institutional adoption and provide risk mitigation measures.

 |  Chapter 3
- Blockchain technology has the potential to reduce mistakes in the medical field.
- Regulations should be implemented to ensure responsible access and modification of medical records on the blockchain.

|  Chapter 4
- Singapore is seen as a frontrunner in marketing itself as a fintech and digital asset hub.
- Hong Kong's stability and accountability make it attractive despite past regulatory criticisms.
- Strong regulation is essential for sustainable growth in the digital asset market.

|  Chapter 5
- Digital assets have broader applications beyond cryptocurrencies.
- Tokenizing real-world assets and providing liquidity can create a more accessible market.

|  Chapter 6
- Fintech encompasses more than just crypto and digital assets.
- The focus should be on solving real problems and improving people's lives.

 | Chapter 7
- The new regulatory requirements aim to enhance compliance and prevent money laundering in the crypto industry.
- Existing platforms have a grace period to comply with the new licensing regime.

 |  Chapter 8
- Experience in compliance, especially in areas like market surveillance, is invaluable in the digital asset industry.
- Building a compliance team with experienced individuals helps engage with regulators and clients effectively.

| Chapter 9
- CFAAR aims to engage, enhance, and educate the industry and legal system on compliance for digital assets.
- Legal professionals need to understand tools available for fraud prevention and detection in the digital asset space.

|  Chapter 10
- Blockchain and ledger records are helpful but require additional investigation for asset tracing and recovery.
- Tracing digital assets involves understanding technical complications, but tools are available for legal and law enforcement agencies.

 | Chapter 11
- Hong Kong's stable regulatory framework for digital assets is commendable and encourages growth in the industry. 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

The “Finansialization of Everything” is a term few have heard of. Yet, personalised financial technology – like cryptocurrencies and blockchain – has the power to alter how people regularly interact. Our guest, Emmanuel Daniel, highlights in his book how emerging FinTech and never-before-seen transactions are fundamentally changing the roles of institutions, markets, and the commanding heights of the world economy. His insights provide fintech players with an out-of-box perspective of how they will bring about disruption and innovation.

He talks to Regulatory Ramblings host Ajay Shamdasani about: the weaponisation of money; the next financial crisis and the ensuing global economic order; the nature of decentralised finance (DeFi), the lie of financial inclusion, and why he believes central bank digital currencies (CBDCs) are doomed to fail.

Emmanuel is the founder of The Asian Banker (TAB) and his next book is tentatively titled "The Winning Civilization". It follows the theme of financially driven changes covered in his previous work, "The Great Transition", which was released last year. 

Much of his writing is based on his three decades of experience founding and running TAB Global as a media, research, and consulting house. Emmanuel has extensive contact with leaders in banking and finance around the world. He won the Citibank Excellence in Business Journalism for Asia in 1999 for his work on the Internet in banking.

Useful links in this episode:

• Emmanuel Daniel's website with book and other links - https://www.emmanueldaniel.com/
• Multi-CBDC mBridge by BIS Innovation Hub's Bénédicte Nolens - podcast.hkufintech.com 
• Stablecoins: Risks, Potential and Regulation - SSRN Link 
• The Financialization of Crypto: Lessons from FTX and the Crypto Winter of 2022-2023 - SSRN Link 
• Financial Data Governance: The Datafication of Finance, the Rise of Open Banking and the End of the Data Centralization Paradigm - SSRN Link 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Central to the United Nations' definition of money laundering is the idea that wherever crime exists, there’s always dirty money. Money laundering is, therefore, the process of handling that dirty money whether from crime or egregious breaches of regulations. It's a definition that Nicholas Gilmour and Tristram Hicks, authors of the new book “The War on Dirty Money, wholeheartedly agree with. They argue that money laundering is not a victimless crime because such funds are often used to finance myriad criminal enterprises.

They chat with “Regulatory Ramblings” host Ajay Shamdasani about how financial investigations must take centre-stage before any meaningful criminal justice reform can occur. The authors stress that money laundering is not a series of stages and modalities, because at the most basic level – it is merely the transmission of value. While such transfers are commonly concealed with multiple layers of obfuscation, fundamentally, either a purchase is being made or some other transaction is taking place.

Nicholas Gilmour is a consultant to governments and international organizations in the fight against financial crime.

Tristram Hicks is a former New Scotland Yard detective superintendent and international criminal justice adviser on the operational effectiveness of anti-money laundering (AML) regimes.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Regulatory Ramblings episode 17 with Aaron Kamath and Purushotham Kittane of the law firm Nishith Desai Associates.

Aaron, Bangalore-based leader of the FinTech Law & Policy Practice at firm Nishith Desai Associates, and his colleague Purushotham, speak to Regulatory Ramblings host Ajay Shamdasani about the following:

• The evolving landscape of fintech models in India: Contributing factors and investments
• The traditional role of payment service providers viz card networks and banks: Recent fundamental shift in the licensing regime
• Digital lending: Evolving models, buy-now-pay-later, and recent guidelines on lending apps
• E-wallets: Co-branding and white-labeling issues, and cross-border fund flow issues
• UPI and mobile-based banking: Arteries of India’s digital payments ecosystem
• The regulatory conundrum around cryptocurrencies
• Taxation and virtual digital assets
• CBDCs and the move towards ‘E-Rupees’

Click on chapters to navigate the topics discussed in this podcast.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Kelly Ann McHugh is the Singapore-based director for MyCompliance Office for the Asia-Pacific, a provider of solutions to manage conflicts of interest. Having grown up in New Zealand, she ventured beyond its tranquil confines to explore what the rest of the region had to offer. It took her to a career at Thomson Reuters as its APAC director for APAC regulatory intelligence and compliance training – and beyond!
 
As someone with a strong passion for continued education – especially in the corporate world – and for providing staff with tailored, relevant and practical training, she talks to Regulatory Ramblings host Ajay Shamdasani about the value of compliance, perceptions of the function, being a woman in a field that is still heavily male-dominated, the challenges of being an entrepreneur and what advances in technology mean for the compliance profession more generally.

This podcast is co-hosted by Reg/Tech Lab - HKU FinTech, HKU-SCF Fintech Academy, and the HKU-edX Professional Certificate in FinTech.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

In this Regulatory Ramblings Briefs episode: “New Technologies, New Crises", The University of Hong Kong’s Douglas Arner (Kerry Holdings Professor in Law) sheds light on the cyclical nature of financial crises and emphasizes the importance of understanding the interdependencies within the crypto ecosystem to gain insights into the health of companies such as Credit Suisse, Silvergate, SVB, and Signature Bank. The podcast highlights the significance of regulatory compliance, but it also highlights the importance of gaining a comprehensive understanding of the financial industry to mitigate future crises. Professor Arner begins his discussion outlining the “timeless relevance” of HKU-edX Introduction to Fintech course, as it helps prepare both professionals and Fintech newcomers with the necessary knowledge and skills to navigate the evolving financial landscape.

Relevant paper to download: The Financialization of Crypto: Lessons from FTX and the Crypto Winter of 2022-2023

Relevant site to visit: HKU-edX Introduction to Fintech (Arabic)

This broadcast is hosted by The University of Hong Kong's Reg/Tech Lab, The HKU-SCF Fintech Academy, and Asia Global Institute

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Oonagh Van Den Berg is founder of the compliance consultancy firm VRS (Virtual Risk Solutions) and RAW Compliance, a global compliance social enterprise providing free training and networking for compliance officers.

​In this episode, she joins Ajay Shamdasani  to discuss what it takes to be a compliance officer – in terms of skills, knowledge, and temperament – as well as the challenges of being a woman in male-dominated fields such as financial services, law and compliance.

They also discuss the role of technology in the legal and compliance professions moving forward, the tendency towards using credentials as a proxy for experience, and the importance of regular upskilling and lifelong learning to stay relevant in an age of perpetual change.

In a separate discussion on Regulatory Ramblings - Briefs, Oonagh discusses her background growing up in Northern Ireland during the tumultuous 1980s, how she found her way into the legal profession. You can listen to this discussion through the Regulatory Ramblings page at: www.hkufintech.com/regulatoryramblings

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Ep 48 with Dr. Mariola Marzouk (Vortex Risk Ltd.)

In this episode of Regulatory Ramblings,  Dr. Mariola Marzouk, an AML expert who has co-founded Vortex Risk Ltd., shares her insights on trade-based money laundering (TBML), and her philosophy on financial crime prevention. She talks about her approach to leveraging RegTech, the importance of human judgment in AML, and her critique of the global financial regulatory landscape. She also discusses regulatory compliance technologies for their failure to effectively combat money laundering and argues that despite claims of innovation and disruption, these technologies focus more on regulatory adherence than understanding the complexities of financial crime. Marzouk contends that while these tools may expedite compliance processes, they do little to reduce criminal activities or address broader social injustices like poverty and sanctions evasion. She suggests a disconnect between industry claims and their actual impact on financial crime prevention.

Read more about this podcast and Dr. Mariola Marzouk at www.hkufintech.com/regulatoryramblings

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Ajay Shamdasani speaks to Ken Rijock, a former banking lawyer turned-career money launderer, turned-compliance officer specialising in enhanced due diligence and financial crime consulting.

In this episode, they discuss the anti-money laundering (AML), know-your-customer (KYC) and politically exposed person (PEP) risks associated with citizenship and residency by investment schemes in places such as Malta, Cyprus, Nevis and St. Kitts – with strong interest emanating from places such as mainland China, India, Russia and the Middle East.

In an age where citizenship is seen as a commodity, those of means accumulate multiple passports and residency permits – permanent or otherwise – as contingency plans for themselves, their families, and dependents. To keep their options open, the ideal, most sought-after jurisdictions are those in the developed world with stable societies, rule of law and in general, places that are safe for one’s health, wealth, and personal safety, with passports that are respected in the international community that afford one the greatest degree of visa-free travel.

Yet, citizenship-by-investment schemes could be used as portals for illicit financial flows. National governments are, therefore, finally starting to look into both those that facilitate and partake in such programmes - and the source of their funds.

Ken regularly posts to his financial crime blog (https://rijock.blogspot.com). His exploits are recounted in the book The Laundry Man, which he authored.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Invest In Yourself – Study Compliance & Regulation at HKU Law. Syren Johnstone, executive director of The University of Hong Kong’s LLM programme in Compliance & Regulation, talks to Ajay Shamdasani about the degree and its benefits.

-       How students can take what they’ve learned to improve their career prospects

-       The programme as a response to continued definition of what and who compliance in the industry involves, from the CEO to front office staff

-       Fellowship funding available for students that qualify

-       A student body largely comprised of industry professionals from multiple fields related to financial services

-       A programme that keeps abreast of the tectonic shifts in the way regulators and policymakers approach compliance

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Ajay Shamdasani speaks to Hue Dang, Global Head of New Ventures, and Senior Asia-Pacific Leader, of the Association of Certified Anti Money Laundering Specialists (ACAMS) on AML, and latest developments on financial crime compliance, touching briefly on how the current state of sanctions affect businesses in Asia. 

In this episode, Hue Dang talks about ACAM's growth and influence in AML and financial crime compliance. Hue also shares her background and how she was drawn to a career in AML and compliance and discussed the increasing automation of financial crime and its impact on the industry. 

Show notes and quotes: 

(01:35) Hue Dang’s journey at ACAMS 

(09:23) ACAMS in China and the region 

(17:09) Future of AML/Compliance profession in terms of employment prospects 

Hue: "Employability factor is evolving from the blending of knowledge and technology. AML-specialist is not enough, you've got to be an AML-technologist."  

Hue: "Everyone is saying ...data, data, data.... (But) when you're looking at a holistic effectiveness question about your compliance programme, it's all about governance, it's all about controls." 

(27:22) ACAMS Training Ecosystem 

Slide is accessible through www.hkufintech.com/slides  

(29:10) About Hue Dang’s career 

Hue: "I was basically on a mission to try to change the way the world thinks about money. Money is not just money. How you earned it does make a difference." 

(32:57) Top issues and challenges on AML/financial crime in the region 

(35:28) Customer Due Diligence vs Know-Your-Customer (CDD vs KYC) 

Hue: "Which comes first? Actually CDD  is what you do in the beginning. It's not KYC (because) you actually don't know your customer." 

(41:34) Fundamental changes in AML themes 

(44:05) Sanctions and compliance 

Hue: "I'm not an operator in the sanctions space but I do ask this question - What is the driver behind a sanctions policy? In the particular case with Russia has to do with the Ukrainian war, the human element is what we need to think about when we think about sanctions compliance.... This isn't just an economic policy and there are people behind the reasons why they would be asked to look at sanctions." 

(49:03) Crypto and Risks 

Hue: "The question of a Cryptocurrency is - where is the value coming from and what does it tie to?  

(55:12) Women in the industry 

Hue: "Senior leadership in the AFC (Anti-Financial Crime) community is somewhat imbalance, but certainly in the compliance world, I've seen more women than men actually... and similar case I saw in China... but that's my anecdotal observation." 

(58:08) Path towards AML/compliance profession 

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Ajay Shamdasani speaks to Bruno Larvol, co-founder of RXXO.io, a new Web3 startup that operates exclusively in the Metaverse with the aim of bringing the next generation of virtual assets to a wider audience.
 
RXXO diamonds are a digital clone of actual diamonds in the physical world – in essence, the first 'cryptangible' asset tailored to an increasingly digital life.
 
Bruno is a serial entrepreneur who is also the CEO and founder of San Francisco-based LARVOL – a technology firm specializing in providing Software as a Service (SaaS) solutions to major US pharmaceutical, and Fortune 500 healthcare and biotechnology companies.
 
Originally from France and a naturalized US citizen, he is a living embodiment of the truly international nature of Silicon Valley and the American Dream writ large.
 
Bruno and Ajay talked about the commercial opportunities and legal challenges of operating an enterprise purely in the Metaverse; how 'cryptangible' assets can mimic, in some ways, the attributes of underlying physical assets; and the ever pervasive nature of NFTs, crypto and how they regulated.

Discussion guide (check the chapters):

Ajay and Bruno's conversation started with an extensive discussion about the Metaverse - why Bruno remains bullish about it and the potential implications to the way people live in real life. (03:02)

Their discussion also focused on the concept of diamonds in the metaverse space, in the context of digital assets, pricing, and crypto-diamond market dynamics. (33:50)

They also discussed career paths students should take and how people should not be intimidated by technology, while also looking for avenues - including social media - to learn new things. (1:01:49)

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Regulatory Ramblings podcast host Ajay Shamdasani continues the conversation with Dorothy Siron (Partner, Zhong Lun Law Firm) on crypto-related compliance and legislation needed after the FTX fallout, public's standard of information to make the right investments, Dubai's success story and more!

Dorothy Siron, is the Co-Managing partner of Zhong Lun Law Firm’s Hong Kong office. She heads the Litigation and Dispute Resolution practice. Being born and raised in the territory, where she trained as a solicitor, before recertifying in Canada. Dorothy is also a veteran litigator.

Her expertise encompasses white collar and financial crime in HK and overseas, crime, cyber fraud, enforcement of foreign judgments as well as trust and probate disputes, and family law matters. In her worldwide pursuit of wrongfully obtained assets 

As crypto-related frauds, such as those involving cryptocurrency theft, initial coin offerings (ICOs) and ransomware attacks, become more pervasive and sophisticated, lawyers, Internet security experts, regulators and law enforcement are under greater pressure to respond swiftly and effectively to a relatively new field they are still struggling to understand. Ultimately, it will require a multidisciplinary and multi-party approach to provide the victims of fraud with appropriate redress and make them whole.

(Episode 11 - Part 2 of 2)

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Dorothy Siron, is the Co-Managing partner of Zhong Lun Law Firm’s Hong Kong office. She heads the Litigation and Dispute Resolution practice. Being born and raised in the territory, where she trained as a solicitor, before recertifying in Canada. Dorothy is also a veteran litigator.

Her expertise encompasses white collar and financial crime in HK and overseas, crime, cyber fraud, enforcement of foreign judgments as well as trust and probate disputes, and family law matters. In her worldwide pursuit of wrongfully obtained assets 

As crypto-related frauds, such as those involving cryptocurrency theft, initial coin offerings (ICOs) and ransomware attacks, become more pervasive and sophisticated, lawyers, Internet security experts, regulators and law enforcement are under greater pressure to respond swiftly and effectively to a relatively new field they are still struggling to understand. Ultimately, it will require a multidisciplinary and multi-party approach to provide the victims of fraud with appropriate redress and make them whole.

Topics discussed include:

•          Crypto Fraud and Asset Recovery
•          Types of crypto fraud and victims
•          Growing prevalence of hacks
•          The roles of lawyers and law enforcement officers in crypto fraud, and how to improve collaboration and results
•          Development of the legal framework in connection with digital assets – court cases, asset classification, etc - in different jurisdictions in Asia and globally
•          Observations on the latest issues with FTX - from a legal perspective only 
•          Advice to law students about how to specialise in crypto as a lawyer, and how to acquire the right technical skills and knowledge

(Episode 11 - Part 1 of 2)

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Join us for a discussion on the prospects for central bank digital currencies (CBDCs) and decentralised finance (DeFi) on the latest episode of Regulatory Ramblings with Dr. Oriol Caudevilla.

A highly regarded voice on all things crypto and fintech, Oriol is a Fellow at the Singapore University of Social Sciences (SUSS), as well as an  Honorary Fellow at the University of Hong Kong’s Asian Institute of International Financial Law (AIIFL). He also works as a board director, Secretary General and co-leader of the Financial Inclusion and CBDCs Working Groups at the Global Impact FinTech (GIFT) Forum, and as chairman of the Private Digital Euro Working Group at the Digital Euro Association (D€A).

Furthermore, he has published articles and been cited by international media outlets such as Reuters, Forbes Middle East, the South China Morning Post (SCMP), Outlook India, China Daily, Asian Investor, Forkast News, and Cointelegraph. In addition, for the past year, he has hosted “The Digital Tomorrow” podcast.

Oriol is also a well-known international speaker: he was named Asian FinTech Speaker of the Year (2021) by FASTER Community and has participated in over 150 international conferences since 2020, talking about CBDCs, DeFi, the Metaverse, AI and the use of Blockchain in several industries, such as banking in general and also Islamic banking and finance.

More information about Oriol and his works are available at his website: www.oriolcaudevilla.com.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Around the world, few professions outside of banking and financial services offer those of average intelligence and ability the opportunity to enjoy, at the very least, a middle-class existence.
 
And that’s certainly the case here in Hong Kong and the Asia-Pacific more generally, not just in New York City or London.
 
Yet, it’s also a field where people often go along to get along.
 
Sadly, that also extends to those in compliance – not just to bankers and traders – who don’t want to rock the boat as they too receive bonuses when their institutions do well.
 
An exception to that is Everett Stern. In 2010, as an AML compliance officer at HSBC in the U.S. state of Delaware, he displayed the kind of moral resolve and backbone which is rarely evident in financial and corporate circles these days.
 
Specifically, he exposed illegal money laundering transactions at the Bank involving Hamas and Hezbollah.
 
Despite numerous alerts to his supervisor, Everett's warnings went unheeded, at which point he contacted the FBI which began its investigation of HSBC.
 
He then reached a resignation agreement with HSBC in October 2011, at which point he was blacklisted by the financial community.
 
Everett later founded the private intelligence firm, Tactical Rabbit, and was most recently an Independent conservative candidate for the United States Senate.

His new book "Dark Money and Private Spies: The Everett Stern Story" is available on Amazon.  Find out more at  www.hkufintech.com/regulatoryramblings.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Authors Channing Mavrellis and John Cassara recently authored the report "China's Role in Transnational Crime and Illicit Financial Flows", delving into mainland China’s role in four different transnational crimes—drug trafficking, counterfeiting and IP theft, human trafficking and wildlife trafficking—as well as the illicit financial flows (IFFs) associated with such crimes, as well as what the international community can do to better understand, and combat, these activities – including policy prescriptions.

It was published by Global Financial Integrity (GFI), a Washington, DC-based think tank focused on corruption, illicit trade and money laundering and abuses of the world’s banking and financial system.  

Mavrellis is GFI’s Illicit Trade Director, and Cassara is a GFI board member and was previously a special agent with the US Treasury Department.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

We are joined by Bénédicte Nolens, head of the Bank for International Settlements’ (BIS) Innovation Hub (Hong Kong Centre), in a full-length conversation on central bank digital currencies (CBDCs) and the concerns around their legal and compliance issues. 

In its published report on the mBridge pilot scheme – a multi-CBDC initiative for cross border payments involving the central banks of China, Hong Kong, Thailand and United Arab Emirates – Bénédicte explains Project mBridge’s potential for using a common platform based on distributed ledger technology (DLT), and whereby multiple central banks can issue and exchange their respective CBDCs. As cloud computing raises concerns about governing data and privacy, Bénédicte also emphasized the need for legal talent to pursue computer science qualifications in order to take on the evolving language of coding within new technologies.

Topics discussed also included women-led management in the finance and legal sectors, work-life balance during the COVID-19 pandemic and more.

 Prior to becoming head of the BIS Innovation Hub, Hong Kong Centre. Prior to this appointment, Bénédicte was a managing director at SC Ventures – the innovation arm of Standard Chartered Bank, which leads new ventures across digital banking, banking as a service, SME finance and blockchain. From 2018-2019, she was the vice president of international governmental relations at Circle, involved in the evolution of blockchain and digital assets. From 2012-2018, she was the head of risk & strategy of the Hong Kong Securities and Futures Commission (SFC) and in that capacity, also acted as vice chair of the Committee on Emerging Risks and the Fintech research lead for the International Organization of Securities Commissions (IOSCO). From 2007-2012, she was a managing director at Credit Suisse and before that, from 1997-2007, she was an associate and executive director at Goldman Sachs. Originally from Belgium, she holds LL.M. and M.B.A. degrees from the University of Leuven and University of Chicago, respectively. Since 1999, she has been a member of the New York Bar. In 2016, she was a recipient of the China Daily Asian Women Leadership Awards for her efforts related to entrepreneurship, innovation and charity. She remains closely engaged in these topics, most recently through her involvement in the Fintech Association of Hong Kong (FTAHK) and Women in Finance Asia (WiFA.)

This episode is part of HKU FinTech Day 2022 special.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Ep 47 with Linda Jeng

Linda Jeng is a digital economy leader and strategist with over two decades of experience in FinTech, policy, and regulation. She is the founder & CEO of Digital Self Labs, a Washington D.C.-based Web3 advisory firm. Digital Self Labs is a cross-disciplinary advisory firm combining blockchain software expertise with policy and regulatory strategy. Linda helps clients design and implement innovative solutions that empower individuals and enable interoperability, transparency, and efficiency in the financial and digital sector. 
 
She is also a renowned scholar and educator, with affiliations at Georgetown University Law Center, Duke University Law School, and the Bank for International Settlements. She conducts cutting-edge research and teaches courses on open banking, digital identity, and decentralized finance (DeFi). and has authored several publications and contributed to influential books on these topics. She is a frequent speaker and commentator in the media, and a Forbes contributor. Linda holds a J.D. from Columbia Law School and a master's degree in EU and International Law from Université Toulouse Capitole. She speaks Mandarin Chinese, French and basic German. 

In this episode of Regulatory Ramblings, she talks to host Ajay Shamdasani about an op-ed piece she wrote which was published by Coindesk entitled “The Biggest Bank Heist in History Is Coming.” 

The premise and the focus of the discussion is that regulators are permitting banks to tokenize financial assets such as bank deposits, U.S. Treasuries and corporate debt. Yet, they want institutions to use permissioned networks rather than the decentralized blockchains that keep assets safe from hackers. 

As Linda stated in her article: “In February, the Office of the Comptroller of the Currency’s acting head Michael Hsu announced plans for new rules on operational resilience for large banks with critical operations, including third-party service providers. Critically, that wasn’t discussed, however, was that the rules would “treat the use of permissioned networks by the big banks to tokenize real world assets and liabilities, an omission that neglects critical new vulnerabilities for the global financial system.” 

A key theme of the conversation is that encouraging the use of permissioned networks over permissionless blockchains will inevitably lead to cybersecurity attacks “on a scale previously unknown as the financial system moves to tokenize trillions of dollars’ worth of real world assets and liabilities. The biggest bank heist in history is in the making.” 

“By contrast, most successful crypto hacks usually involve centralized protocols where hackers only need to hack the admin keys of only one or a few actors to gain control and steal digital assets. Similarly, permissioned networks are controlled by only a few parties, so they can be more easily hacked than blockchains maintained by thousands of validators. The concentration of attack vectors in the big banks that control these permissioned networks (or the central banks that control non-blockchain ledgers) is like sticking targets on their backs,” she said. 

Linda goes on to discuss how she ended up in the legal profession, what drew her to digital assets as a scholar and why she believes the worst attacks against banks have yet to come.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

As Hong Kong officials prepare to unveil new policies aiming to make the city a virtual asset hub, what steps should prospective investors take?
   
Regulatory veteran Angelina A. Kwan (CPA, CA [Aus/NZ]), Chief Executive Officer of Stratford Finance, joins Regulatory Ramblings host Ajay Shamdasani in discussions on the opportunities, procedures and risks involved as Hong Kong seeks to become Asia’s preeminent city for virtual and digital assets, Web3.0 and Fintech.

Angelina also shares her thoughts on why Hong Kong citizens, especially the younger generation, must invest in learning technologies which will be vital to future finance and business operability.

www.hkufintech.com/regulatoryramblings

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Ajay Shamdasani continues the conversation with Nigel Morris-Cotterill, Financial Crime Risk and Compliance Strategist, on topics including #data replacing #money, #FinTech as a bank, #OnlineCourses as a means for qualification, #FinancialCrimes history and more!

www.hkufintech.com/regulatoryramblings

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Why are money laundering criminals constantly ahead of authorities? 

In this episode of Regulatory Ramblings, Ajay Shamdasani is joined by Nigel Morris-Cotterill, counter-money laundering strategist and financial crime author, in a discussion on the underlying causes of money laundering offences happening around the globe.

As criminals aim to conceal data and information behind unlawful activities, how can authorities and governing bodies get to the root of the problem? Could journalists play a stronger role in chasing the right leads to cases?

Nigel Morris-Cotterill has been a counter-money laundering strategist since 1994, working in a wide range of financial crime risk management. Previously, Nigel was a solicitor for companies in the financial and technology sector.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Part 2 of "Hong Kong's Digital Asset Compliance Challenges" continues with Urszula McCormack in a range of topics, from CBDCs to the degree of privacy of digital asset functions, cross border payments to Southeast Asian and Middle Eastern countries adopting more robust systems, RegTech and more!

Questions addressed in this interview include:

What are thoughts on cryptocurrencies and digital assets, and what should legal and compliance professionals understand about them?
 
Older compliance and legal people talk about how compliance, governance, and risk management, while related, are not the same thing. 

Specifically, they claim that compliance is all too often used to do risk management because compliance investigations are an after-the-fact, backward-looking proposition in that malfeasance has taken place and legal and/or compliance teams are trying to figure out what went wrong and who’s to blame. 

Risk management on the other hand is very much a forward-looking proposition. 

Is it fair to view the compliance profession through such a paradigm or are such views too antiquated? 

What would a more holistic approach to compliance look like?

Visit www.hkufintech.com for the latest news, research and developments on digital finance's transformation in the financial industry!

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.