The True Cost of Financial Crime (16) | Pole Star - YouTube

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World trade is estimated at around $17 trillion
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annually with over 90% of all traded goods
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transported by sea. For trading companies,
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the banks that finance them, and the shipping industry,
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the regulatory landscape has never been more complex.
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Our reporter went to find out how Pole Star
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and their alliance partner Dow Jones
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are helping companies manage these risks.
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[Music.]
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Rhiannon: 90% of world trade travels by sea.
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Maritime regulatory technologies have become essential.
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As a tech company rooted in the maritime industry,
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Pole Star's vision is to create a world
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where all maritime trade is safe and compliant.
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Michael: You have this huge, this vast amount of transactions
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that need to be verified. Transactions that
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people are buying or selling goods
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and they need to have this, this ability
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to know where they are, what they're doing.
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Are they doing what they're supposed to be doing?
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What we are now is essentially a leading innovator
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of technology for maritime,
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mainly a linked to all the trade activity that exists globally.
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We put together billions of pieces of information,
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aggregate them in such a form
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that enables proper decision-making to take place,
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while having the compliance, regulatory,
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anti money laundering compliance,
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have those in place and they're being fulfilled.
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Essentially what we're doing is making the whole process safer,
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more transparent, and more verifiable.
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Rhiannon: World trade, the banks that finances it
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and the shipping industry that supports it
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are being increasingly targeted by regulators globally.
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It's never been more vital for business to ensure that
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they can keep pace with the ever changing
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sanctions and regulatory landscape, and comply.
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Simon: One of the important things about
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regulatory technologies I think in today's age
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is that when you look at what banks,
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trading companies, and others face in these sectors,
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it's – it's becoming mission critical now
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to automate process where you can.
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Good technology should make things faster,
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and simpler, easier, and recordable and that's
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primarily what PurpleTRAC does.
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It automates, streamlines a very complex
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compliance process in terms of the vital link between goods,
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imports and exports which total around $17 trillion a year.
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Rhiannon: Pole Star's innovative RegTech system
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collects valuable compliance data for vessels screening and tracking.
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This data's now used to more proactively address financial crime.
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Financial crime is now a global issue which
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brings us here, to the city.
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The financial industry and tech companies
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are now joining forces and the partnership between
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Pole Star and Dow Jones is the perfect example of this.
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Alex: Dow Jones' core strength is high quality, trusted data
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to help solve our customers' compliance needs,
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and Pole Star is one of the standout technology companies
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that's leveraging that data.
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So this gives us confidence that the
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collaboration we're working on is going to set a new standard
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for safeguarding against criminality in maritime trade.
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Rhiannon: The finance industry recognises the importance
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of safeguarding against crime in maritime trade.
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Alex: The reasons for this are three-fold
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there's the massive human and societal impact
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of this problem. Money laundering, terrorist financing,
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human trafficking and other sorts of crime.
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Secondly, there's the financial cost of being, you know
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fined, if you transgress and thirdly,
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there's the reputational damage which is, you know
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typically around 9 times the cost of any financial sanction imposed.
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Rhiannon: The partnership between Pole Star and Dow Jones
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isn't the only important one being forged.
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International defence thinktank RUSI
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also relies on the help of its innovative tracking systems
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for its new initiative project: Sandstone.
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James: North Korea's network, map them
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and track the ships behind those networks
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so North Korea has a lot of illicit shipping
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and we're trying to design mechanisms to track those ships
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and map the networks behind them.
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Rhiannon: So what next for Pole Star?
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Michael: I think the vision for the company
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is to be an integral part of maritime activities
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and in particular, trade. It's almost like being
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a small part of the gear box of trade.
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But an integral part, because if one part goes
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nothing moves.
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[Music.]