ACAMS Eurasia Chapter: June 2024 Event Recap

ACAMS Eurasia Chapter: AFC & Sanctions Forum attendees posing for a picture at the Biltmore Tbilisi Hotel in Tbilisi, Georgia, on June 27.

The ACAMS Eurasia Chapter, in collaboration with LexisNexis Risk Solutions Financial Services and Businesses and Eddwise LLC, hosted a successful second annual Eurasian Forum on Cryptocurrency and International Sanctions Risk Management in Tbilisi, Georgia, on June 27, 2024. This pivotal event brought together a diverse group of 140 attendees from across Eurasia, underscoring its growing influence as a regional platform to address critical issues at the intersection of cryptocurrency regulations and international sanctions. The event attracted significant international participation, including experts and stakeholders from Kazakhstan, Armenia, Moldova and Azerbaijan, alongside a strong contingent of Georgian experts.

The forum was structured around two main themes: international sanctions risk management and regulations and challenges in cryptocurrency. The following are some of the key insights from panel discussions:

Panels and presentations delved into the strategies and challenges for banks operating in the Eurasian region amid the evolving sanctions landscape.
Georgian banks showcased their proactive approaches to sanctions evasion and trade control, emphasizing structural changes and successful prevention strategies.
Discussions explored regulatory trends, technological advancements, and the role of blockchain in AML and sanctions compliance.
Specific insights were shared on regulating cryptocurrencies in Kazakhstan and combating financial crimes associated with digital assets.
Regulators across Eurasia discussed regulatory frameworks and collaborative efforts to enhance compliance with virtual assets service provider (VASP) anti-money laundering (AML) regulations.

The panels were moderated by Ani Gordeziani, CAMS, board member of the ACAMS Eurasia Chapter, and Iulia Timofeeva, CAMS, CGSS, co-chair of the ACAMS Eurasia Chapter. These panels provided deep insights into critical issues affecting the financial sector in Eurasia.

Navigating Sanctions: Strategies and Challenges for Banks in the Eurasian Region

During this panel, the speakers discussed strategies and challenges faced by banks operating in the Eurasian region. Topics included the impact of complex sanctions, particularly those involving Russia, and the proactive measures taken by banks. Panelists shared practical cases as examples to illustrate the successful prevention of sanctions evasion through strategic adjustments and structural changes.

The speakers during this panel were:

Liliya Khamzina, CAMS, chief compliance officer at Brillink Bank Corporation Limited, ACAMS Eurasia Chapter Board member (Kazakhstan)
Kanan Alisoy, CAMS, CGSS, director of the Financial Monitoring and Compliance Department at Azer Turk Bank, ACAMS Eurasia Chapter co-secretary (Azerbaijan)
Anna Mikayelyan, CAMS, head of the Financial Monitoring Service at Ameriabank CJSC, ACAMS Eurasia Chapter co-secretary (Armenia)
Artur Golban, CAMS, CGSS, deputy director of Compliance Division BC “Victoriabank” SA, ACAMS Eurasia Chapter co-chair (Moldova)

From Risk to Resilience: Georgian Banks Addressing Sanctions Evasion and Trade Control

Representatives from leading Georgian banks outlined their practices in navigating the continuously evolving sanctions landscape, emphasizing measures taken and structural changes implemented. Discussions focused on handling sanctions evasion challenges effectively, with practical case studies demonstrating successful outcomes.

Speaking during this section of the event were:

Alina Kvanchiani, CAMS, CGSS, head of the AML Department at JSC TBC Bank
Medea Torchinava, CAMS, CGSS, head of the AML/Sanctions Compliance Department at JSC Basis Bank
Tornike Mosiashvili, head of Transactions Direction at JSC Bank of Georgia
Daviti Varsimashvili, head of the Compliance and AML Department at JSC Procredit Bank

Safeguarding the Financial System: Regulators of Eurasia Addressing VASP AML Regulation

Regulators from Georgia, Kazakhstan, Armenia and Azerbaijan discussed the current state of regulations governing VASPs. Topics included regulatory frameworks, main challenges in regulating the VASP sector and plans to enhance AML measures. The panel highlighted collaborative efforts and shared insights into regulatory approaches aimed at safeguarding the financial system from illicit activities associated with digital assets.

The speakers during this panel were:

Eka Goglidze, head of the Division for International Sanctions’ Implementation and Supervision of VASPs at the National Bank of Georgia
Yagub Zamanov, director of the Fintech Division at Astana Financial Services Authority
Timur Berdykhojin, CAMS, director of the AML Division at Astana Financial Services Authority
Mahammad Muradov, head of the Regulation and Cooperation Division at the Central Bank of Azerbaijan
Emil Abrahamyan, CAMS, CGSS, AML and Compliance professional

In addition, the event featured insightful presentations delivered by experts from diverse backgrounds.

In her presentation, Katarina Pranjic, CAMS, head of Regulation and Policy at LexisNexis Risk Solutions, explored how organizations can proactively enhance sanctions readiness. This involves leveraging current regulatory insights, technological advancements such as algorithms and automation for screening, as well as effective data practices for monitoring and risk assessment.

Malkhaz Narindoshvili, CEO and founder of Skyward Solutions, discussed how blockchain technology would transform AML and sanctions compliance in financial services industries by providing transparency, traceability and data accuracy as well as the ability to automate manual processes and employ artificial intelligence.

Experts from Kazakhstan, Yagub Zamanov and Timur Berdykhojin, discussed Kazakhstan's evolving crypto regulation, emphasizing strategies to combat financial crimes. They also covered the law on AML/counterterrorist financing (CTF) and risk-based supervision alongside key requirements for participants in the Astana International Financial Centre (AIFC). These insights underscore Kazakhstan’s proactive stance in shaping a secure and innovative financial landscape.

Pictured from the top left to bottom right are chapter board members: Kanan Alisoy, Liliya Khamzina, Dr. Artur Golban, Meri Badanyan, Iulia Timofeeva, Almaz Musayeva, Ani Gordeziani, Ainur Zhakenova and Anna Mikayelyan.

Martial N. Smets of Argos Advisory and Audit analyzed trade patterns between Europe and the Eurasian region, focusing on the risks associated with sanctions evasion in financial transactions. He also highlighted the potential impact of secondary sanctions imposed by the U.S., emphasizing key factors that financial institutions (FIs) should consider in the Eurasian region when monitoring transactions.

During this event, anti-financial crime (AFC) and sanctions specialists discussed the effective management of cryptocurrency and international sanctions, emphasizing the need for proactive actions from both FIs and regulators. Enhancing readiness for sanctions through updated regulations and innovative technologies is crucial, as is navigating the complex sanctions landscape in the Eurasia region. Collaboration and adaptive strategies are essential for banks and regulators in the Eurasia region to maintain resilience and compliance in our interconnected global environment.

The ACAMS Eurasia Chapter remains committed to fostering continuous development and networking opportunities for AFC and sanctions professionals. We invite you to participate in our upcoming events, available both in person and online, to advance these important conversations further.

Iulia Timofeeva, CAMS, CGSS, co-chair of Eurasia Chapter (Georgia), AML and Sanctions consultant, JSC Bank of Georgia, Georgia, itimofeeva@bog.ge

Ani Gordeziani, CAMS, board member of Eurasia Chapter (Georgia), senior partner, head of Risk Advisory, Eddwise LLC, Georgia, agordeziani@eddwise.com