Our partners at RiskScreen recently invited us to join an episode of their podcast, AML Talk Show, to chat about the unique challenges of getting Know Your Business right, company ownership verification and what businesses can do about growing AML due diligence requirements.
In this particular episode, host Stephen Platt chats with kompany's Chief Technology Officer and Co-Founder Peter Bainbridge Clayton. Listen now by clicking the button below and enjoy a short preview of the full conversation.
Stephen Platt: ...clearly that cultural shift is being made, and this push for much greater transparency is relentless. It’s clearly, I don’t think, going to reverse anytime soon. But there are some jurisdictions that continue to cling to secrecy. How long do you think they can actually hold out?
Peter Bainbridge-Clayton: I don’t think long. And what we have to remind us, drive to openness has come through a lot of European legislation and US legislation. There’s open data pushes, there’s the increasing compliance laws where customers have to have access to this data. And then of course, there’s been a whole bunch of technical improvements.
I think, in a connected global economy, there’s simply no room for secrecy at this level. But there are conflicts with data protection, and those two things have to be balanced. Now, what’s interesting and what not many people actually know, is that when we talk of limited companies and limited liability, there’s actually a trade off built into that limited liability which is that your personal information, to some degree, has to be made public. And by that trade off, what you get in return is limited liability.
And people have forgotten that this is actually the basis of limited companies. And I think what’s going to happen is any jurisdiction which insists on providing this layer of secrecy, a) they’re not actually doing what they should be doing in terms of providing the trade off for limited liability. But also they’re running the risk of, okay, having a lot of companies which are registered there, because it’s easy, you don’t have to do filing or whatever the requirements are.
But more and more of those companies are going to find it more and more difficult to actually get service, because they won’t be able to pass the KYB checks and the AML checks. So, I think it cannot work going forward, because by insisting on registered secrecy, you are insisting on making your register useless to the local and global economy.
More about AML Talk Show:
Host Stephen Platt, CEO and Founder at RiskScreen, chats with key figures in the world of financial crime prevention, examining the successes and failures in the global fight against money laundering and its related crimes including drug trafficking, bribery, corruption, human trafficking, tax evasion and more.