Alma Angotti is a recognized expert in financial crime compliance and economic sanctions with more than 30 years of experience in both regulatory enforcement and global consulting. Alma has held senior enforcement roles at the U.S. Securities and Exchange Commission (“SEC”), the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) and the Financial Industry Regulatory Authority (“FINRA”). She brings deep subject-matter expertise in regulatory compliance, including Bank Secrecy Act/Anti-money Laundering (“BSA/AML”), sanctions and counter-terrorist financing (“CFT”).
Recently, in an exclusive interview with CIO Magazine, Alma shared insights on the most pressing challenges facing the financial industry in terms of compliance and regulatory oversight, personal hobbies and interests, her favorite quote, future plans, words of wisdom, and much more. The following excerpts are taken from the interview.
Hi Alma. What drives your passion for compliance and regulation, and how do you stay current with evolving regulatory landscapes?
I am lucky that I practice in an area that is easy to be passionate about. Financial crime, fraud, sanctions, corruption – regulation and compliance in my area helps keep people, the country and the world just a bit safer. It sounds corny but most of us in this area feel a sense of mission about what we do. I try to keep current by reading and by generating thought leadership which helps me really understand a new reg, or new guidance. A passing familiarity with these things isn’t sufficient.
What do you love the most about your current role?
I like helping clients solve important problems and working with and mentoring younger consultants. The travel to some very cool places is also a plus.
What do you believe are the most pressing challenges facing the financial industry in terms of compliance and regulatory oversight?
I think both the industry and the regulators struggle with how to keep the financial system and people safe in the face of a rapidly changing technology environment. How to embrace technology and enable innovation safely is always a balance. In addition, while technology can really supercharge compliance, it also can enable criminals and terrorists.
Can you share more about your thoughts on the future of financial crime prevention and what trends you see emerging in the industry?
It is no brilliant insight to say that artificial intelligence and machine learning are helping the industry home in on the real risk in the customer base and transaction flow. The industry is awash in data and information, and it is getting easier to find the needle in the haystack. When implementing AI solutions, it will be important to remember the basic blocking and tackling of compliance. Governance, oversight and testing will be key to implementing technology tools safely.
Is there a particular person you are grateful for who helped get you to where you are?
There are many. John Nields, a partner in the firm I was with as a very young associate, who let me second chair a criminal tax trial. Bill McLucas, who was Director of the Division of Enforcement, who was the best role model for a young enforcement attorney. Steve Kroll, the chief counsel of FinCEN who convinced me to come to the agency to rebuild the enforcement program, and Ellen Zimiles who taught me how to be a consultant and a leader.
And of course, my family. My parents and my grandfather really supported me, encouraging me to do anything I thought I could do.
What does the term “authentic leadership” mean to you?
To me, authentic leadership means using the gifts and skills you have, rather than trying to be someone else. It means finding a way to be direct, with instruction, criticism and praise, with your team, with your leaders and with your clients. It also means being comfortable with dissenting opinions, and in fact encouraging them. Your team must be comfortable raising issues with you. Problems are harder to solve the older they get.
What are some of your passions outside of work? What do you like to do in your time off?
I am an avid reader, love the outdoors, and love to travel. I grew up in West Virginia, hiking and backpacking, so being in nature is my happy place. My husband and I are National Park freaks. I have a big family, mostly in DC, and we have a lot of family parties, often for no particular reason.
What is your favorite quote?
My dad always said, “we should get joy out of little things because the big ones don’t happen very often.” I think about that often and try to appreciate a pretty day, a good book, a good conversation or a good glass of wine.
What is your biggest goal? Where do you see yourself in 5 years from now?
My biggest goal is to read the huge stacks of books that are all over my room. I try not to plan too much because I think then sometimes you miss opportunities. I play life a little by ear.
What advice would you give to leaders looking to strengthen their compliance programs and mitigate financial crime risks?
Make sure that your compliance department has the technology and human resources they need. It is OK to require a solid business case, but one of the biggest issues I see is the failure to keep up with technology and understaffed compliance departments.