In episode 16 of Kinectify Conversations, we feature Derek Ramm, Global Head of Advisory Services at Kinectify Advisors, who alongside Sean Topchi, Director of Business Development at Kinectify, discusses his extensive experience in the gaming industry, particularly in anti-money laundering (AML) and compliance roles in Canada and internationally. Derek details his career trajectory, highlighting key roles and shifts in focus from trade compliance to AML and counterterrorism financing post-9/11, his tenure at FINTRAC, and his contributions to the Ontario Lottery and Gaming Corporation and the Alcohol and Gaming Commission of Ontario. He emphasizes the evolution of gaming, the complexities of compliance in a changing legal landscape, and the unique challenges faced by the industry in adapting to new AML legislation.

Derek also discusses his motivation for joining Kinectify, underscoring the company's innovative approach to addressing AML challenges in the gaming sector. He points out the industry's traditional banking-centric focus of AML efforts and the need for solutions tailored to the gaming industry's specific needs. The conversation further explores Ontario's iGaming market, regulatory challenges, and the potential for regulatory changes to improve AML compliance and efficiency. Derek provides insights into the gaming industry's regulatory environment and the critical role of specialized knowledge and experience in navigating its complexities.

Click here to listen on Apple Podcasts.

Transcript

[00:00:00] Sean Topchi: Welcome to Kinectify Conversations. My name is Sean Topchi and I'm the Director of Business Development at Kinectify. Our mission is to share the experience, expertise, and insights from gaming industry leaders that comes from years of navigating the complexities and impact of compliance. On this episode, I am joined by special guest,

[00:00:20] Derek Ramm: My name is Derek Ramm. I'm the Global Head of Advisory Services at Kinectify Advisors.

[00:00:26] Sean Topchi: Thanks for joining us today and remember to like and subscribe to the podcast. You can also learn more anytime at Kinectify.com. That's K I N E C T I F Y dot com.

It is my pleasure to introduce new coworker and friend, AML expert, Chieftain of CFT, crusader of compliance, house of the graying beard at this point, and Global Head of Advisory services at Kinectify, Derek Ramm. It's great to have you on the team and I'm really excited about having you on the podcast today.

[00:01:19] Derek Ramm: Thanks, Sean. I'm not sure what to do about that introduction, but appreciate it.

[00:01:24] Sean Topchi: Derek, for those people that don't know you quite yet, I would love if you gave us a background on yourself, as the many titles I just jokingly went through. You've done a lot in gaming and anti-money laundering internationally, at the public level, at the private level, so would really love for you to dive into your background for us.

[00:01:44] Derek Ramm: Sure. Hopefully I don't bore folks too much. I'll try and keep it interesting. I've had a very fortunate career. I've been very lucky in many of the roles that I've had over the last 30 years. I started my career in the private sector working for what at the time was one of Canada's largest independent investment management firms.

I was there when the horrific events of 911 happened. I was in compliance at the time, primarily focusing on trade compliance and what you'd consider SEC compliance and things like that. But after 911 my role changed considerably. Governments around the world passed all kinds of anti-terrorism legislation.

Canada coincidentally right around the same time passed anti-money laundering legislation actually about a year before 911. And so my role at the investment firm shifted very quickly to anti-money laundering and counterterrorism financing, which I found was fascinating work.

And a few years after that, FINTRAC, which is the Canadian Financial Intelligence Unit, similar to FinCEN in the United States, approached me looking for some expertise in capital markets. And I thought that would be the coolest thing. So I joined FINTRAC, spent the first couple of years there focusing primarily in the securities industry, the capital markets, et cetera.

And then my boss at the time who was a retired police officer really didn't see much of a difference between the stock market and gambling. [He] called me into his office one day - true story - and basically said, there's not really much difference [between] the stock market and gambling so I'm going to also put you in charge of the casino desk.

So that's how I fell into the world of gaming because I had a boss who didn't think there was any difference between the stock market and gaming. And so I've spent probably the last almost 20 years of my career in the gaming industry and in various capacities. A lot of it [has been] in Canada. When I was with FINTRAC I was privileged to to do a lot of my training down at at Homeland Security's facility in Georgia so FINTRAC sent me down there.

I got my certificate in international banking and money laundering which is effectively the same course that most U. S. federal law enforcement agents get, so IRS criminal investigations, even the U. S. Postal service in terms of mail fraud investigations.

My first real schooling in AML other than in the private sector was Homeland Security and that was a real eye opener. In terms of gaming I spent probably about eight years at FINTRAC, the latter half of those years, really working on the casino file. I moved to Ontario Lottery and Gaming, which was a large government owned crown agency in Ontario that managed at the time over 25 land based casinos.

Online gaming hadn't really hit the market yet, so I built the AML compliance program pretty much from the ground up at OLG, and then from there moved into more of a regulatory role. Joined the Alcohol and Gaming Commission of Ontario and there I worked actually in our police bureau.

The AGCO has 150 police officers assigned to it that do all kinds of enforcement gaming. Cannabis now, horse racing, liquor. I ran the intelligence branch there for just under two years and then the private sector came calling again. And actually during that time, cause I think we may get into this in terms of some lessons learned, while all that was going on I was approached by the government of Bermuda.

And they were setting up a gaming industry on the island there. And I was asked to sit on their commission as a commissioner. So did that for just over two years. Made a lot of great contacts there again, given Bermuda's proximity to the Eastern seaboard in the U S made tons of contacts in New Jersey, New York. Worked with a lot of us gaming folks. It was a great time.

Unfortunately, it came crashing down. Maybe we can talk about that a bit later. And yeah, spent some time in the private sector doing advisory services with one of Canada's largest law firms. It was a great experience. And then to round up this long and storied tale, in 2021 when the Government of Ontario launched iGaming, I went back to the Gaming Commission to help set up the regulatory framework for internet gaming in Ontario and spent the last three years there here I am now at Kinectify...

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ABOUT DEREK RAMM

Derek is the Global Head of Advisory Services at Kinectify, an AML risk management technology and advisory company that focuses on the gaming industry. He has extensive experience in the compliance and financial intelligence fields, and has brought his expertise to both the public and private sectors, providing him with a unique and well-rounded perspective to business challenges. Prior to joining Kinectify, Derek served as the Director of Anti-Money Laundering at the Alcohol and Gaming Commission of Ontario, where he led the agency's AML regulatory oversight initiatives in the gaming, horse racing, liquor and cannabis industries. Derek was previously the Managing Principal at MT>Play, an advisory venture of McCarthy Tetrault that provided strategic advice to gaming organizations and governments around the world. He has also held senior roles at Canada's federal financial intelligence unit (FINTRAC), the Ontario Lottery and Gaming Corporation, and was the chief anti-money laundering officer at one of North America's largest independent investment management firms. He was also appointed by the Government of Bermuda to serve as a Commissioner on the Bermuda Casino Gaming Commission.

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ABOUT KINECTIFY

Kinectify is an AML risk management technology company serving gaming operators both in the US and Canada. Our modern AML platform seamlessly integrates all of the organization's data into a single view and workflow empowering gaming companies to efficiently manage risk across their enterprise. In addition, Kinectify's advisory services enhance gaming operators' capacity with industry experts who can design and test programs, meet compliance deadlines, and even provide outsource services for the day-to-day administration of compliance programs.

To learn more about Kinectify and book a demo, click here.