11 AUGUST 2021 – NEW YORK/WASHINGTON, DC – K2 Integrity today announced its engagement with Diem Networks US to support, initially lead, and continue to build innovative solutions for the Diem Networks US Financial Intelligence Function (FIF). The FIF is designed to protect the Diem Payment Network (DPN) from illicit financial activity and works in close collaboration with DPN participants who also are required to maintain strong financial crime compliance controls.
Diem Networks US has built a blockchain-based payment system designed to make payments cheaper and faster, while protecting consumers and the integrity of the financial system. It is poised to reshape the payments landscape by bringing the benefits of blockchain technology to consumers, including those who are underserved by the current banking system, and businesses around the world. Diem’s FIF raises the bar for financial crime risk management, marrying K2 Integrity’s world-class talent with Diem’s steadfast dedication to preventing financial crime.
“Designing a framework that sets high financial crime compliance standards has been one of the Diem project’s top priorities, and this is an area where we are continuing to innovate,” said Stuart Levey, Chief Executive Officer of Diem Networks US. “We are excited by this opportunity to partner with K2 Integrity, a team that has a wealth of experience in this space and is respected internationally for their leadership on anti-money laundering and counter-terrorist financing (AML/CFT) issues.”
Mariano Federici, Managing Director at K2 Integrity, will act as the initial FIF Head, reporting to Sterling Daines, Chief Compliance Officer of Diem Networks US, and working alongside Diem’s experienced compliance team and dedicated K2 Integrity compliance professionals. Mariano is one of the world’s foremost experts in financial intelligence and a respected leader in the Egmont Group, the international body of Financial Intelligence Units (FIUs). Mariano has played a pivotal role in the development of the international AML/CFT framework and is the former Chair of the Egmont Group and Head of Argentina’s FIU.
“We are proud to be partnering with Diem Networks US to continue developing innovative FIF solutions and supporting Diem’s financial crime risk management program,” said Juan Zarate, Global Co-Managing Partner, K2 Integrity, and first-ever Assistant Secretary of the U.S. Treasury for terrorist financing and financial crimes. “Diem’s financial crime compliance framework, which is focused on protecting the integrity of the DPN and the financial system, is setting a high bar for the virtual asset industry. In close collaboration, we are bringing our world-class talent and experts in the field of financial intelligence, virtual assets, and compliance risk management to support Diem Networks US’s efforts to launch and expand its platform with a leading financial crime compliance framework.”
The Diem FIF will provide leadership in detecting and preventing financial crime on the DPN, working with both DPN participants and government authorities to deter misuse of the platform for illicit purposes. The engagement between Diem Networks US and K2 Integrity further enhances and demonstrates the Diem project’s commitment to the highest standards to fight financial crime.