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More Fintech Firms Start Costly Trek Towards Compliance

By Daniel Bethencourt

Dozens of technology-based financial services firms, or fintechs, are establishing robust anti-money laundering programs to boost their credibility with banks and avoid regulatory penalties, even as regulatory expectations for the industry remain uncertain, say sources. The upward trend towards compliance has become so prevalent that several fintech firms now deploy AML programs that would receive top marks from federal supervisors and traditional bankers, whose anxiety over the perceived regulatory risks posed by the industry often outweighs their desire to secure a new, potentially lucrative base of clients. "Pretty much everyone I've spoken to has hired compliance staff and legal staff...

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