Compliance That Makes Sense

In this Compliance That Makes Sense episode, I want to continue the conversation with you about where people get stuck with compliance, and I have a couple of case studies for you to illustrate how this happens. I also want to show you what to do if this happens and, more specifically, what you can do if your bank application or partnership requisition application, or RFP application gets rejected. The obvious question would be, can I reverse it? Can I go back to them in a few months? And what can I do to make it better next time? Before we discuss this, I want to look at the bigger picture and why these things happened in the first place so that you can better understand the context before we go into details and specific examples.

If you enjoy this episode, please share it with friends, leave comments and reviews, and join the conversation. 

Today's episode:

• [00:34] Hey guys, I'm back!
• [01:49] Compliance people and everyone who works with laws and regulations sometimes think their jobs depend on how much they know.
• [02:42] The craziest idea ever is to depend on your technical skills in career progress.
• [04:12] In one case, I wanted to share a bank account application and discuss why they didn't get approved.
• [06:59] This company operates in some of the emerging markets, so they are potentially risky.
• [09:30] It's a question of a compelling story.
• [10:37] If you have found yourself in this situation, go back to whoever rejected your application and let them know you are updating your proposal.
• [13:14] Hope this helps, and goodbye for now!

Show links:

• Interested in FinTech compliance - consider investing into the FinTech Compliance Self-Starter Package!

• I would love to invite you to sign up for my newsletter, if you are interested please click here.

In this Compliance That Makes Sense episode, I want to discuss the main differences between an amateur and a compliance pro. I can't keep this silent and polite and be politically correct because I feel the need to rant about all kinds of mistakes, behaviors, and wrong attitudes that amateurs display. I want you to recognize these actions, and if you catch yourself doing some of the ones that I am going to mention, just think about it more and stop doing them. Because I have worked with junior and experienced compliance officers, I feel like I have seen it all. Listen and see if you recognize any of these behaviors, attitudes, or mistakes in yourself or the people around you. 

If you enjoy this episode, please share it with friends, leave comments and reviews, and join the conversation. 

Today's episode:

• [00:34] Hello, my friends!
• [02:00] Today, Yana focuses on the lies and misconceptions that she wants people to stop doing.
• [04:29] Stop doing the exercise that lists all the rules, regulations, and laws that apply to you or your case.
• [06:47] Another mistake armature's make is saying they don't know enough and don't want to get something wrong.
• [09:11] This is a terrible mistake because you are delaying everybody else and spending the company's money for no good reason at all.
• [11:50] Never assume that technology is smarter than you, so, therefore, you can't challenge it.
• [13:30] The biggest objection people have around this attitude is that if they act on the information they have now, they could jeopardize their company.
• [15:43] How do we break the bad habit of procrastination in compliance?
• [17:43] Thank you for listening, and don't take anything too seriously!

Show links:

• Interested in FinTech compliance - consider investing into the FinTech Compliance Self-Starter Package!

• I would love to invite you to sign up for my newsletter, if you are interested please click here.

In this Compliance That Makes Sense episode, we discuss internal auditors and why you shouldn't hate them. People sometimes perceive internal auditors as useless, time-wasting, police playing, and always inflating problems while not being an expert in any particular field but still telling everyone else what to do. When I worked at Amazon, they loved their internal auditors; they wanted them to come and give the team an outside perspective with the best interest of the team and Amazon in mind. So listen as I give both sides of the argument about internal auditors and why you shouldn't hate them.

If you enjoy this episode, please share it with friends, leave comments and reviews, and join the conversation. 

Today's episode:

• [00:34] Hello, my friends!
• [02:53] At Amazon, the internal auditors would come and give the team an outside perspective.
• [04:07] When you audit a function, and you don't have experts on your team, you have someone from a different function join the audit.
• [06:40] Internal audits always start with risk assessment.
• [07:31] The idea of internal audits is to help the organization fix urgent things that need to be fixed for them to go forward.
• [09:46] Listen, as Yana shares how she would like internal auditors to understand the risks involved by asking people.
• [12:09] After you really understand the issues, you try to prioritize and develop an audit plan.
• [15:15] Yana recommends that a startup have three to five dates per year.
• [17:42] Yana prefers when the outcome of an internal audit is very specific and says something.
• [20:15] If your internal auditor is only interested in you following your policy, then she would suggest you fire them.
• [21:36] Thank you for listening!

Show links:

• Interested in FinTech compliance - consider investing into the FinTech Compliance Self-Starter Package!

• I would love to invite you to sign up for my newsletter, if you are interested please click here.

In this Compliance That Makes Sense episode, we are going to talk about FATCA and CRS for FinTech dummies. Yana decided to record this episode not because she thinks FinTechs or her listeners are dummies, but to make sure that you feel the content is easy to digest and not too overwhelming. Yana talks about how you might face decisions around FATCA and CRS and the categories that a FinTech might fall in, and which ones require them to do the FATCA and CRS paperwork.

If you enjoy this episode, please share it with friends, leave comments and reviews, and join the conversation. 

Today's episode:

• [00:34] Hello, my friends!
• [01:36] Yana discusses two instances when you might have to make decisions around FATCA and CRS.
• [04:02] Yana says it's not about whether you have US customers, it's about whether you take deposits and need to report US taxpayers.
• [06:54] Many FinTechs that Yana knows limit the deposit size or withdraw the money by the end of the year, so they don't have to do the paperwork.
• [07:42] Yana talks about being a customer and the most relevant categories of FATCA for FinTech startups.
• [09:51] Yana discusses an accepted non-financial startup company.
• [11:48] You could also be compliant for a financial entity if you qualify for some of the exemptions.
• [12:48] The main idea for this categorization is to never end up as a non-participating financial entity.
• [14:48] Does CRS apply to FinTech companies?
• [16:57] Yana talks about exemptions and how that applies to FinTechs.
• [18:33] Balances under 50,000 Euros are normally not reportable for CRS purposes.
• [19:14] Thank you for listening!

Show links:

• Interested in FinTech compliance - consider investing into the FinTech Compliance Self-Starter Package!

• I would love to invite you to sign up for my newsletter, if you are interested please click here.

In this Compliance That Makes Sense episode, Yana wants to discuss a topic that she feels everyone should know the answer for, but apparently, they don't. Yana is talking about a situation where your customer reaches out and wants you to erase their data because they don't want to do business with you anymore. Yana shares some background and framework on the right to be forgotten and how it came about. Yana discusses the contexts where the right to be forgotten can be used and when it's not appropriate.

If you enjoy this episode, please share it with friends, leave comments and reviews, and join the conversation. 

Today's episode:

• [00:34] Hello, my friends!
• [01:22] Should you erase someone's data?
• [02:28] Yana shares a story around the right to be forgotten.
• [04:29] Yana talks about how Google made information available but wasn't the source.
• [06:42] Yana discusses the financial data banks have to collect.
• [08:30] Yana shares what is important to understand about data protection and privacy laws.
• [11:08] People have a right to know the data you keep on them and that it is kept up-to-date.
• [13:14] You may have information on the customer that could be considered in suspicious activities.
• [14:47] Thank you for listening!

Show links:

• Interested in FinTech compliance - consider investing into the FinTech Compliance Self-Starter Package!
• I would love to invite you to sign up for my newsletter, if you are interested please click here.

In this Compliance That Makes Sense episode, Yana talks about where to find FinTech board members and how to pay them. FinTech startups often struggle to try to find the right board members. There seems to be some confusion about who they should be, how much you can expect from them, and what their fees should be. Listen as Yana breaks it all down for you, from who needs a board of directors to the difference between the executive board and the supervisory or independent board and so much more.

If you enjoy this episode, please share it with friends, leave comments and reviews, and join the conversation. 

Today's episode:

• [00:34] Hello, my friends!
• [02:49] Yana shares who is on the executive board.
• [04:04] The commercial law of your country will determine who and what should be on the board.
• [04:33] Yana speaks about the supervisory or independent board.
• [06:14] The supervisory board does not need to consist of all independent directors.
• [08:40] Yana shares some examples of whom to ask to be on your board.
• [11:13] In an emergency, you need people who will be available to you.
• [13:12] How much should you pay board members, and how should you structure the compensation?
• [15:22] Typically, you don't need to pay independent directors that work for your parent company.
• [16:33] Thank you for listening!

Show links:

• Interested in FinTech compliance - consider investing into the FinTech Compliance Self-Starter Package!

• I would love to invite you to sign up for my newsletter, if you are interested please click here.

• Download the free template of the Directorship Service Agreement here.

On this Compliance That Makes Sense episode, Yana is talking today about FinTech and Value Added Tax. Many Fintech companies in Europe and other places where there is an equivalent of the VAT ask her to confirm that Crypto and FinTech businesses are exempt. If you need a quick answer, it would be almost, but there is one big exemption. Often, a FinTech company has a hybrid model or company; the fees they charge are exempt, but some fees, payments, and revenue-generating activities could be subject to VAT. Listen as Yana shares how to know what is and what isn't exempt.

If you enjoy this episode, please share it with friends, leave comments and reviews, and join the conversation. 

Today's episode:

• [00:34] Hello, my friends!
• [02:13] It is normal for many FinTech companies to have hybrid models where they charge exempt fees.
• [04:12] There are a lot of mixed hybrid events that might happen.
• [05:19] It isn't uncommon to see regulatory requests for cryptocurrency-focused businesses to be split and have two legal entities.
• [07:24] Yana offers some thoughts and ideas about how to go about thinking about these issues.
• [10:18] You also need to think about both entities and which will have direct contact with the customers.
• [11:25] There are no particular right or wrong answers to these questions.
• [11:46] Thank you for listening!

Show links:

• Interested in FinTech compliance - consider investing into the FinTech Compliance Self-Starter Package!
• I would love to invite you to sign up for my newsletter, if you are interested please click here.

Yana shares her take on what is happening with the GameStop saga during January 2021 and why she believes that Robinhood actually did the right thing, even though their communication was hard to understand. Yana speaks about what she thinks happened based on the news and reports she had read along with her educated guess, plus so much more on this Compliance That Makes Sense episode. 

If you enjoy this episode, please share it with friends, leave comments and reviews, and join the conversation. 

Today's episode:

• [00:34] Hello, my friends!
• [01:39] GameStop is a video game store that struggled through 2020.
• [02:31] Shares have been shorted by hedge funds.
• [03:53] Buyers used the Robinhood app to drive the price up, called a short squeeze.
• [05:30] Listen as Yana speaks about what has been happening and the restrictions imposed.
• [08:02] At the end of the day, GameStop's shares peaked around $400 a share then fell back to almost pre-hype levels.
• [09:57] Yana discusses where she wanted to go with this story and offers her perspective on whether this was market manipulation or insider trading.
• [12:45] Is Reddit to blame for anything?
• [15:00] Yana wants to argue that Robinhood did the right thing.
• [17:55] Yana believes there will be a broader demand for bitcoin payment options, different partnerships, and emerging non-banking solutions.
• [19:37] Thank you for listening!

Show links:

• Interested in FinTech compliance - consider investing into the FinTech Compliance Self-Starter Package!

• I would love to invite you to sign up for my newsletter, if you are interested please click here.

Today Yana is going to share the pros and cons and different approaches to buying an already established FinTech company versus starting a new one and applying for your own license. Yana is in the middle of a project that actually involved both, so she feels she has a unique view on comparing the results and efforts. Listen as Yana describes the main advantage and disadvantage of buying a licensed company, plus so much more on this Compliance That Makes Sense episode. 

If you enjoy this episode, please share it with friends, leave comments and reviews, and join the conversation. 

Today's episode:

• [00:34] Hello, everybody!
• [01:50] The first advantage of buying a licensed company is that you can continue operating the business.
• [02:46] Yana shares the major disadvantage of buying a licensed company.
• [04:01] Can you explain what happens when you buy a business/company?
• [05:48] Yana speaks about an acquisition scenario.
• [08:00] You may not always know what they include in the scope when you buy in a different country.
• [09:51] Another important change you need to discuss the purchase with your bank.
• [11:50] Yana speaks about how the change in control is getting approved by the regulators.
• [13:01] There is almost always a need to submit a new regulatory plan with one important exemption.
• [16:14] Yana shares some examples of what she has been discussing around purchasing financial institutions.
• [20:01] Yana discusses the last argument or idea she would like to share.
• [22:48] Thank you for listening!

Show links:

• Interested in FinTech compliance - consider investing into the FinTech Compliance Self-Starter Package!

Why should global FinTechs have a licensed European entity? Listen as Yana discusses why she believes FinTechs should consider having a European license and a European-based entity. Europe is a very large market and has a relatively high GDP per capita, which translates into higher disposable income and higher spending power. The European regulatory approach is one of the most FinTech friendly regimes globally. Yana talks about why this is beneficial, plus so much more on this Compliance That Makes Sense episode. 

If you enjoy this episode, please share it with friends, leave comments and reviews, and join the conversation. 

Today's episode:

• [00:34] Hello, everybody!
• [00:48] I am recording this on my terrace in Costa Rica, so if you hear animal sounds, you will know why.
• [02:08] Yana shares why having a European license is a good idea.
• [02:38] European regulatory approach is one of the most Crypto friendly and FinTech friendly regimes globally.
• [05:17] The biggest friction point for FinTechs is how to ramp on or ramp off services.
• [07:43] If local payment solutions are important for you, you need to solve this by being licensed in Europe.
• [08:13] Yana believes that if your service relies on payment with credit cards, you need to be licensed in Europe.
• [11:02] Thank you for listening!

Show links:

• Want to know what it would take to get your FinTech license? - Join my FinTech Licensing workshop and find out!