WikiEXPO Global Expert Interview: Simone Martin—— Exploring Financial Regulation Change

Simone Martin

Director of Special Projects - BVI Financial Services Commission

Founder & CEO - IGNUS SOLUTIONS LIMITED

Ms. Simone Martin stands as a trailblazer in the realm of financial regulation, boasting an impressive career spanning over 20 years since her inception in 2000 with the BVI Financial Services Commission. Her journey has been nothing short of extraordinary, encompassing a wide array of sectors including fiduciary services, insurance, banking, and investment business, both within the British Virgin Islands (BVI) and Anguilla.

1. Right-Touch Regulation: You've been instrumental in promoting legislative reform towards 'right-touch' regulation. Can you explain what right-touch regulation entails and how it contributes to enhancing global financial stability？

Right-touch regulation is my vision of a balance between all aspects of regulation – which can broadly be grouped under the regulatory activities of authorization, supervision and enforcement action – and the conduct of business. That balance means that regulators are efficient and are effective in carrying out their work promptly, while not overstepping into the activities of financial services providers.

Businesses hate uncertainty. And in the past 23 years, firms seem to be facing more uncertainty in the face of developing regulation. That also negatively impacts global financial stability to some extent. I‘ve looked around at what leading Regulatory Authorities are doing. Over the years, regulatory regimes have become too onerous. Some will refer to the ’pendulum swing where systems will balance themselves, but it seems that the heightened risks have pushed that pendulum a bit too far. Over the years, right-touch regulation translates to many things to my mind. The top 3 that come to mind include:

- Right-touch regulation means that threats and risks are quickly; this means money launderers, terrorist financiers, as well as firms that are not operating in a lawful manner are swiftly removed from the system.

- Right-touch regulation means that innovative firms from the FinTech space and traditional financial services firms are assessed and licensed through clear laws and timely responses.

- Right-touch regulation means more nuanced engagements – whether through onsite inspections or other supervisory measures – that reflect the unique risks different institutions present.

2. AML/CFT Compliance: What are the biggest challenges financial institutions face in meeting these requirement？

My experience aside, one only has to canvas recent news articles to see common threads of noncompliance. In a broad assortment of firms – from banks to cryptocurrency exchanges – you will find breaches in core AML compliance requirements. Regulatory authorities around the world have taken actions for poor KYC, breaching sanctions, failure to file suspicious transaction reports and more.

Bringing in my experience in this context, I see the biggest challenges being faces in meeting AML/CFT compliance requirements boil down to two central issues.

- Effective due diligence (KYC).

- Resilient risk assessment frameworks.

3. You have experience engaging with GFIN. How do you view collaboration with other regulatory authorities to advance financial innovation while ensuring regulatory consistency and effectiveness？

I had the pleasure of being a part of the team at the Anguilla Financial Services Commission that engaged with GFIN. GFIN allows members to collaborate on a broader set of topics than any one Authority could hope to tackle in a short period of time. As a result, it helps to develop all of the member Authorities capacity and knowledge of the developing FinTech space at a faster pace with better outcomes. Those outcomes may not appear to be consistent, but they are more so consistent if persons are familiar with regulatory modalities. The variances are more as a result of nuanced differences in law, financial services ecosystem and types of innovative firms. But this is the same with many firms in the FinTech space – one facet may leverage one type of technology. However, the use cases, markets and vision of the Development Teams lead to variances that challenge truly consistent approaches on the regulatory side of the equation.

4. Market Transparency and Fairness: Given your extensive experience in financial services regulation, what are the most critical steps that can be taken to enhance market transparency and fairness in the global financial system？

In looking at the factors that will shape global financial services regulation in 2025 and beyond, particularly as it relates to achieving enhanced market transparency and fairness requires focus on element – Governance, Risk and Compliance (GRC). A focus on good governance helps ensure that a firm, be it TradFi or FinTech, operates with sound principles.

This, coupled with the FATF commencing its 5th Round of Mutual Evaluations in 2025 will lead to regulators will carry out more inspections into the operations of the entities they regulate. AML/CFT compliance gets a lot of attention, and while eliminating bad actors and eradicating financial crime definitely aids in buttressing fair markets, it is not the only point of focus.

For firms and regulators to truly build resiliency and enhance market transparency and fairness in the global financial system global financial flows, the focus has to be on strengthening GRC. The future promises to bring incredible transformation of our global financial system. To ensure that the foundation of that system remains flexible enough for growth while being resilient requires a robust GRC framework to support both market transparency and fairness for our increasingly digital world.

5.Financial security is a critical concern for all financial institutions. How do you see the role of compliance officers evolving to address these challenges in the future？

In an era marked by escalating enforcement actions and penalties for non-compliance, compliance has become crucial for business survival. Compliance officers navigate a constantly evolving regulatory landscape, making their responsibilities both challenging and demanding.

Based on my two decades of experience as a regulator and compliance educator, I have observed the complexities and obstacles that compliance officers encounter daily. My book, “Ten Tips to Help Compliance Officers SOAR!,” integrates these insights and perspectives, offering practical advice on how to navigate common missteps and seize untapped opportunities for professional advancement. Through platforms like YouTube and LinkedIn, I continue to share my expertise and support the professional growth of compliance officers.

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In this exclusive interview, we explored Simone's passion and her professional accomplishments. She has also facilitated diploma and certificate courses in Compliance, AML, and GRC (Governance, Risk, and Compliance) for over a decade, mentoring students seeking AML/CFT-focused financial services qualifications. Simone Martin is a true testament to the power of innovation and dedication in the financial regulatory space.

As the organizer of WikiEXPO, WikiGlobal is committed to strengthening international exchanges and cooperation through offline exhibitions, actively participating in current issues and projects of international financial regulation, deepening the integration and application of financial technology and regulatory technology, improving regulatory efficiency and accuracy, actively promoting industry self-discipline, encouraging financial institutions to adopt best practices, building a more stable and transparent financial ecosystem, and enhancing trading environment security.