Travis Jarae

How Blockchain is Transforming FIU Investigations & Enhanced Due Diligence! Imagine turning paper chaos into real-time truth. Blockchain brings instant clarity to financial investigations—helping track suspicious funds and streamline Enhanced Due Diligence with HD-level precision. Think upgrading from grainy CCTV to crystal-clear livestreams. 🔍⚡ 🎧 Full Podcast on the Intersection of FIU-IND & EDD in Blockchain dropping soon! Join Nadcab Labs as we explore the future of financial crime investigations and compliance. #fiuind #enhancedduediligence #financialintelligence #compliancetech #financialcrime #cryptocompliance #fintechindia #blockchain #blockchaintechnology #linkedin #linkedinpost #linkedinreels #reels #reelitfeelit #reelsvideo #explore #explorepage #trending #trendingreels #trend #trendingnow #viral #viralreels #viralvideo #foryou #foryoupage #relatable #nadcablabs

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Digital Assurance for VASPs: Building Trust Through Transparency As the virtual asset ecosystem evolves, Digital Assurance Frameworks (DAFs) are emerging as essential tools for ensuring accountability, operational resilience, and regulatory compliance. At the Virtual Assets Regulatory Authority [VARA] we encourage VASPs to adopt tech-enabled assurance models that go beyond static compliance—enabling dynamic, real-time monitoring, control, and reporting capabilities. Why Digital Assurance Matters: • Supports proactive risk management in a borderless, real-time digital asset environment • Enables on-chain transaction monitoring using blockchain intelligence tools • Provides verifiable, tamper-proof audit trails to uphold transparency • Enhances public trust and institutional confidence Core Components of a Robust Digital Assurance Framework: 1. Blockchain-Based Transaction Surveillance Use blockchain intelligence to monitor wallet behavior, flag suspicious activity, and detect patterns of illicit finance. 2. Automated Risk Detection and Reporting Integrate RegTech tools to automate compliance processes, generate alerts, and streamline regulatory submissions. 3. Data Integrity and Auditability Maintain immutable logs that ensure the integrity and traceability of all critical operational and transaction data. 4. Independent Validation and Technology Governance Vet smart contracts, codebases, and infrastructure through independent assurance mechanisms. 5. Ongoing Risk-Based Controls Align controls with the VASPs’ business model and risk tier, continuously updating them as threat landscapes evolve. Rulebook Alignment: VARA’s Key Requirements Digital assurance directly supports several key articles in VARA’s Compliance and Risk Management Rulebook, including: • Article 6: Internal Governance – Establish robust systems of control and escalation procedures. • Article 7: Risk Management – Implement a framework to identify, assess, monitor, and mitigate key risks. • Article 8: Compliance Monitoring – Employ mechanisms to ensure continuous alignment with applicable laws. • Article 9: Technology and Cybersecurity – Safeguard information systems and digital assets against compromise. • Article 10: Incident Management and Reporting – Enable timely detection, response, and regulatory disclosure of breaches or disruptions. • Article 12: Outsourcing and Third-Party Risk – Conduct due diligence and oversight of outsourced service providers #VARA #DigitalAssurance #blockchain #crypto #cryptocompliance #compliance #aml #bitcoin #BlockchainIntelligence #VASPs #ComplianceByDesign #RegTech #RiskManagement #OnChainMonitoring #VirtualAssets #Dubai2033

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Financial Crimes Enforcement Network, US Treasury is on a roll publishing another Notice for FIs. This one is re: sextortion. Alison Jimenez has done a lot of research on this topic over the years. So check her posts out. Below I dive into some takeaways for every FI - tradFI or not. As a side note - the AI-enabled aspect (pg. 7) of sextortion is alarming and should serve as notice to every parent and caregiver. While most of this should be caught by involved and watchful parents, there are some aspects of financial extortion that can and should be caught by an FI. ⚠️ There are a few glaring issues that make this very difficult for tradFIs to fully operationalize - the lack of regulation/enforcement on the biggest P2P rails from a travel rule perspective (Zelle??)... no/little info on senders/receivers. As well as unregulated (AML) payment processors that are responsible for the facilitation of CSAM purchases. Add to that the prepaid card issues (regulated only at a $/use threshold) and again, this burden to detect and report is completely on banks/credit unions. 1) As noted in every other Notice/Advisory post from the last few years - if your FI does not have an AML system that provides you with the tools to operationalize the red flags found on pgs. 8-9, you'll need to remedy that. There are very clear starter rules with some conditions... having a rapid transfer in/out rule that you cannot add conditions to will not get you where you need to go. Reach out if you need some suggestions on what AML systems are top of the line. Starter data to implement, some need multi-conditions, some don't: a) ages of customers (joint and primary); b) jurisdictions of concern (in order: Cote d’Ivoire, the United States, the Philippines, Monaco, Burkina Faso, the Dominican Republic, Kenya, Benin, and Nigeria); c) description keywords in ACH fields and in wire fields ("delete the pic", "please stop", "for orphans", "for family"); d) description searches for prepaid card purchases, transfers to CVC; e) signs of a pass-through account (i.e. - no reason to send funds to your FI, only used to obfuscate trail) 2) For every FI - bank or credit union. Pgs. 3-4 and 8 have a copy/paste section that should be on your customer facing website. Should also be easily seen from the online banking platform as well, especially if your platform allows minor accounts to log-in and send wires or P2Ps (yes, even Zelle). Heck, if there is a minor on an account (primary or joint), it would be better to have a pop-up box warning against sending money under duress. 3) Prepaid card MSBs - I know most are not in the business of monitoring beyond cash. If anything, this type of crime should be immediately operationalized and use 314(b) to contact the FI that funded the prepaid card if you have questions. 4) MSBs that allow P2P and also sell prepaid cards... you should be looking across your data silos. No excuses. #ifollowdirtymoney

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🏛️ zerohash launches Trust Company with North Carolina charter for crypto custody services ZeroHash unveiled Zero Hash Trust Company, LLC, a newly chartered trust company regulated by the North Carolina Commissioner of Banks. After receiving its trust charter on March 26, 2025, the company received 𝗳𝗼𝗿𝗺𝗮𝗹 𝗮𝗽𝗽𝗿𝗼𝘃𝗮𝗹 𝘁𝗼 𝗹𝗮𝘂𝗻𝗰𝗵 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀 as of September 1, 2025. ZeroHash’s trust status lets it serve as a qualified custodian for RIAs and support 401(k) and IRA accounts, while ensuring it meets regulatory and custody requirements under the GENIUS Act and upcoming federal legislation. The firm also appointed David Hannigan, CISO of NuBank, and Mary Ruppert, a trust regulatory professional with experience at DOJ, Wells Fargo, and PayPal, to the Trust Company's Board of Directors. 💬 Stephen Gardner, zerohash Trust Company CEO said: "We're excited to leverage our Trust charter to further enhance our regulated stack, including the ability to act as a qualified custodian for RIAs, the issuance and custody of stablecoins as well as enabling additional account types including retirement accounts." Source: https://lnkd.in/erkVS3He This and more in my newsletter— sign up here: https://lnkd.in/gNimrjeR Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story. Next! [ 𝗹𝗶𝗸𝗲 ]

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Some thoughts on why FiServ launched FiUSD and how stablecoins fit with "core banking" ICYMI: Fiserv said in a press release it will launch its own stablecoin, “FIUSD will be powered by the infrastructure of Paxos and Circle, and targets interoperability with other stablecoins,” and will launch on the Solana network. Fiserv also plans to work with banks on deposit tokens The partnership with PayPal is to make their two stablecoins interoperable… which is fascinating 🧠 Everyone needs a stablecoin story. Analysts are asking about it, its moving stocks, and so “announcing” something is smart PR. 🧠What do I need a “core” ledger for if I have stablecoins? There’s the small matter fo all of the assets in all of the world existing on existing core ledgers. If stablecoins are going to get liquidity that’s going to need to work well with the banking sector. Banks are becoming the ISPs of onchain finance. 🧠 Every bank would need new tech to work with their existing tech. Banks don’t replace their core in the same way you don’t replace your heart and brain in a single surgery. The existential risk is too high. 🧠Deposit tokens will find their place in the market. Onchain finance will need many funding models. Just as sponsor banks did very well in BaaS, the banks (and shadow banks) that lean into stablecoins will reap a massive opportunity. 🧠Paxos and Circle are strange bedfellows. Paxos is a major competitor to Circle, behind the USDG consortium (which Robinhood and Mastercard are a part of). It’s custodied in Singapore meaning it offers 4.1% yield. 🧠Compatibility with PYUSD is a sign of the thinking here. There’s an interoperability problem in stablecoins. Do this fix it? 🧠We’re at peak stablecoin PR surely. SoFi launched global remittances, the Visa CEO was on CNBC talking about them, Kraken launched “Krak” their stablecoin-only wallet to compete with PayPal / Wise etc

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Geolocation-triggered payments, using tokenized U.S. dollar deposits by Custodia and Vantage Bank, let businesses pay automatically when someone or something reaches a specific location. Here’s how this tech works in everyday life: 1 Delivery Services: A pizza shop pays its driver $20 instantly when they arrive at your house, confirmed by GPS. No waiting for weekly paychecks! 2 Construction Jobs: A builder gets $5,000 the moment they finish a house’s foundation, verified by their phone’s location. No chasing invoices. 3 Online Shopping: You order clothes online and pick them up in-store. When you arrive, the store auto-charges $50 or gives you a $5 discount. Super convenient! 4 Ride-Sharing: An Uber driver is paid $15 right when they drop you off, making their earnings faster and hassle-free. 5 Home Repairs: A plumber gets $200 automatically when they arrive at your home, so they focus on fixing pipes, not paperwork. Why It’s Cool: Payments happen instantly, only when the job’s done at the right place, saving time and reducing arguments. Plus, it’s secure, backed by U.S. banks, and uses blockchain for trust.

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One pattern I keep seeing, with both crypto native teams and TradFi firms moving into digital assets, is licensing being treated as a box ticking or accumulation exercise. Different jurisdictions, different local counsel, siloed teams and a fast growing pile of licensing applications which are often driven by momentum rather than a clear view of what the business is trying to do. When there isn't a team or person owning the big picture, this approach tends to result in overlap, duplication, inefficiency, inconsistent messaging to regulators, and licenses that dont support the product or market that the firm is trying to build. Licensing decisions come with consequences. Early choices tend to bake in assumptions that show up later as friction, when the business tries to scale, pivot or do something more ambitious.

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