Financial Crimes Blockchain Analytics Risk Associate, (Financial Services Specialist 4 (Financial Crimes Risk), SG-27)

About Us

The New York State Department of Financial Services seeks to build an equitable, transparent, and resilient financial system that benefits individuals and supports business. Through engagement, data-driven regulation and policy, and operational excellence, the Department and its employees are responsible for empowering consumers and protecting them from financial harm; ensuring the health of the entities we regulate; driving economic growth in New York through responsible innovation; and preserving the stability of the global financial system.

The Role

The Department of Financial Services is seeking a candidate for the position of Virtual Currency Financial Crimes Blockchain Analytics Risk Associate in the Virtual Currency Unit.

Responsibilities

• Evaluates illicit activity risk leveraging on-chain attribution and direct/indirect exposure associated with DFS-regulated virtual currency licensees through the use of blockchain analytics tools.
• Monitors and performs provenance tracing of on-chain transactions attributed to DFS applicant/licensee exposure to money laundering, terrorist financing, sanctioned jurisdictions/individuals/entities and other predicate crimes and high-risk services.
• Maintains a solid understanding of existing and emerging blockchains, tokens, and technologies impacting the industry and identifies areas for enhancing the Virtual Currency Unit's financial crimes monitoring processes related to the use of blockchain analytics.
• Actively monitors dashboards identifying data anomalies raising red flags for potential money laundering or sanctions violations, that require further investigation and/or escalation to management.
• Executes ad hoc investigations of identified suspicious activity to ensure licensees maintain compliance with state and federal regulations outside examination cycle and present findings to management.
• Proactively evaluates and monitors DFS regulated entities on-chain exposure to OFAC designations and FinCEN Section 9714 Orders and escalates findings to management.
• Conducts blockchain analytics transaction testing of DFS-regulated virtual currency businesses as a part of on-site examination and licensing.
• Performs reviews on applicants seeking a DFS license/charter, identifying transaction monitoring on-chain deficiencies and communicating said deficiencies clearly and concisely in written reports to management as well as verbally in meetings with internal and external stakeholders as needed.
• Identifies contradictory attribution of on-chain transactions from blockchain analytics vendors and works with the vendors to resolve discrepancies.
• Serves as a subject matter expert on crypto related financial crime matters for all functions of the Virtual Currency Unit, including applications, examinations, and ad-hoc supervision including the consideration of material-change-of-business requests.
• Maintains a good understanding of the BSA/AML and OFAC Sanctions laws, regulations, guidance, and best practices, relevant to transaction monitoring, suspicious activity reporting, money laundering typologies and investigative techniques required to detect illicit activity and identify sanctions evasion within the virtual currency space.
• Assists management in the development, review and revision of Financial Crime related policies and procedures.
• Presents analyses and findings to colleagues and leadership at DFS, often making reasoned recommendations for agency action.
• May supervise lower-level staff.
• Travel may be required for up to 25%.
• Other appropriate and occupationally related duties as assigned.

Requirements

Candidates must meet the minimum qualifications listed below in order to be eligible for appointment.

Non-Competitive Appointment: Nine (9) years of specialized experience in one (1) of the following, of which two (2) years of the experience must have been at a supervisory level:

• Evaluating financial institution financial crime risk (BSA/AML, CIP, OFAC/Sanctions, CTF) in a management, compliance or audit environment.
• Developing and implementing financial crime risk management or compliance policies, programs and procedures.

An associate degree may substitute for two years of specialized experience; bachelor's degree may substitute for four years of specialized experience; master's degree may substitute for five years of specialized experience; J.D. may substitute for six years of specialized experience; Ph.D. may substitute for seven years of specialized experience.

Preferred Qualifications

Subject matter expertise and/or experience in one or more of the following are not required, but are strongly preferred:

• 2+ years of direct experience working in the crypto industry utilizing blockchain analytics and OSINT tools
• Subject matter expertise in transaction monitoring including on-chain and off-chain alerts/investigations
• Solid knowledge of Bank Secrecy Act/Anti-Money Laundering (BSA/AML), Sanctions (OFAC), and related laws, regulations, guidance, and best practices
• General Knowledge of Cybersecurity laws, regulations, and issues
• Valid (non-expired) Certifications held:
  • Blockchain analytics certification(s)
  • Association of Certified Anti-Money Laundering Specialists: Certified Anti-Money Laundering Specialist, Advanced AML Audit Certification, Advanced Financial Crimes Investigations Certification
  • Association of Certified Financial Crime Specialists: Certified Financial Crime Specialist
  • Association of Certified Fraud Examiners: Certified Fraud Examiner
  • American Bankers Association: Certified AML and Fraud Professional; ABA Certificate in BSA and AML Compliance; ABA Certificate in Fraud Compliance; Certified Regulatory Compliance Manager
  • CSBS: Certified Anti-Money Laundering Specialist
• Demonstrated knowledge and experience with virtual currency

Compensation and Benefits

Salary: The starting salary for this position is $111,708 with periodic increases up to $137,590. Positions located within the New York City metropolitan area, as well as Suffolk, Nassau, Rockland, and Westchester Counties, are also eligible to receive an additional $4,150 annual downstate adjustment.

Appointment Status: Permanent

Additional Information: Appointment to this position is pending Governor Appointment's Office and Division of Budget approval. Please note that a change in negotiating unit may affect your salary, insurance and other benefits.