Dan Soto : Leading the charge against financial crime
Dan Soto was appointed chief compliance officer of Ally Financial in October 2010 . In this role , he is responsible for leading the company ’ s compliance efforts in line with applicable laws , rules and company regulatory policies . Soto joined the company as an executive compliance director in September 2009 .
Before joining Ally , Soto held several compliance leadership roles within the financial services industry , including positions at Wachovia Bank , Royal Bank of Canada and Bank of America . Soto also served for over 15 years as a bank examiner with the Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve System .
Soto has a bachelor ’ s degree in accounting from the University of Nebraska and attended the American Bankers Association ’ s ( ABA ) Stonier Graduate School of Banking at the University of Delaware . Soto serves on the board of the North Carolina Council on Economic Education , an organization that aims to enhance and advance economic and financial education for K-12 educators and students in North Carolina . Soto also serves on the advisory boards of the ABA ’ s Annual Risk and Compliance Conference , ACAMS and the BSA ( Bank Secrecy Act ) Coalition , and he serves on the faculty for the ABA ’ s National Compliance School .
ACAMS Today ( AT ): With decades of experience in the anti-financial crime ( AFC ) industry , what do you consider your biggest professional accomplishment ?
Dan Soto ( DS ): First , I thank ACAMS and all the opportunities that everyone associated with ACAMS has provided me . On a global basis , ACAMS is the premier leader in providing education and other tools to anti-money laundering ( AML ) and AFC professionals .
My biggest accomplishment cannot be measured in a single event . What I am most proud of is that I have had a platform to help influence the careers of many compliance and regulatory professionals , and I believe I have done so in a positive manner .
AT : You serve on a board to enhance financial education for K-12 educators and students , what motivated you to focus your expertise in this area ?
DS : The board that I serve on allows teachers and students ― together with public and private sectors ― to pursue knowledge in financial literacy , including through the simulation of investments in stock markets . By starting at such a young age , including in underserved or predominately minority geographies , individuals can overcome poverty and learn to build wealth for themselves and their families .
AT : As a bank examiner , what was the most common mistake or challenge you saw banks facing ?
DS : First , I thoroughly enjoyed my time as a bank examiner , both in the field and in the Washington , D . C . headquarters . I ’ m not sure that there was one common mistake , but the challenges always included ― and still do today ― balancing the demands of customers , employees and other stakeholders ( e . g ., investors , regulators ). From an AML / financial crimes standpoint , I believe there is no better control than establishing relationships between the public and private sectors to detect and prosecute those who choose to do wrong . Banks that fail to establish routine discussions with regulators and law enforcement ( LE ) will no doubt miss out on useful information that will help protect their institutions . ACAMS provides these opportunities !
AT : In your opinion , what regulatory action would be most beneficial for the AFC industry ?
DS : This is a difficult response because the regulators follow a lengthy and transparent process when promulgating new rules and regulations . However , when it comes to the enforcement of these rules , there are areas of the AFC process that I believe demand more than the citation of violations or supervisory actions . For example , bank AFC professionals spend an inordinate amount of time documenting the reasons they decided against filing a suspicious activity report when an alert has been generated by a technology-driven model . Rather , the focus should be placed on the reports that were filed to determine the usefulness to LE .
AT : Having achieved a successful career , what would you like to accomplish in the next five years ?
DS : I still enjoy what I do and have no plans to stop ― at least not in the next few years . Once I make that decision , I would still like to be in a position to either serve on a financial institution ’ s board or perhaps instruct at a college or financial literacy nonprofit .
AT : What is the most important lesson you learned while working in the AFC industry ?
DS : The most important lesson that I have learned is that what each of us does every single day in the AFC industry is critical in the fight against money laundering , financial crimes and terrorism . I ’ ve also learned that each of us cannot do this on our own or even in our own country . AFC is a global issue and has to be fought on a global stage . And this is why ACAMS is so valuable to all of us . I am proud to have been a part of ACAMS from its beginning and just as proud to be given a Lifetime Achievement Award alongside two great friends , Rick Small and John J . Byrne .
Interviewed by : Karla Monterrosa- Yancey , CAMS , editor-in-chief , ACAMS , editor @ acams . org , ACAMS Today | December 2023 – February 2024 55