Navigating the Compliance Maze: AML and KYC Strategies in the Web3 World // Futurist Conference 2024

Keep AML/KYC compliance simple but comprehensive - implement a layered approach while following global standards like FATF recommendations

Documentation and auditability are crucial - ensure all compliance processes, test results, and KYC checks are properly recorded and verifiable

Technology solutions should be:

• Effective and efficient
• Regularly tested and updated
• Integrated with business continuity planning
• Properly auditable
• Able to handle multi-jurisdictional requirements

Training and education are essential:

• Stay current with regulatory changes
• Invest in team certification
• Build expertise (estimated 10,000 hours to master compliance)
• Participate in industry groups and regulatory discussions

Compliance responsibilities remain with the organization:

• Even when using third-party vendors
• Cannot fully outsource obligations
• Need proper systems, controls, and oversight
• Must maintain three levels of defense

Build “compliance by design” into products early:

• More cost-effective than retrofitting
• Helps mitigate enforcement risks
• Enables readiness for future regulations
• Protects business reputation

Web3 compliance considerations:

• Technology deployment is instant and global
• Regulations are local and slow to change
• Growing regulatory attention to DeFi/Web3
• Need to adapt traditional compliance frameworks

Engage multiple stakeholders:

• Legal teams
• Technology teams
• Compliance experts
• Third-party vendors
• Regulators