AML in Crypto | The Perfect Merchant

Cryptocurrency Anti-Money Laundering (AML) compliance has become an increasing concern among international regulators. Financial Action Task Force (FATF) Crypto Travel Rule is a key component of maintaining international regulatory standards for the cryptocurrency space.

The FATF Financial Intelligence Units (FIUs) of member nations hold the right to authenticate KYC documents provided by crypto exchanges and wallet companies to ensure AML compliancy is being upheld.

International DeFi Currency Identity Compliance

The FATF Recommendation 16 on DeFi cryptocurrencies requires VASPs to preserve high standards in verifying customer identity.

DeFi (Decentralized Finance) is driven by blockchain and distributed ledger technology and embraces applications for lending platforms, loan services, saving options, art and collectibles, gaming, and more.

The FATF Recommendation 16 on DeFi requires Virtual Asset Service Providers (VASPs), i.e., exchanges or wallets;

Identity verification measures and the FATF Crypto Travel Rule

Maintaining a database of customer Personally Identifiable Information (PII)

Maintaining detailed records of all customer information

Information including personal information such as name, address, date of birth, email address, and phone number

And financial details such as transaction history and source of funds

Furthermore, VASPs are obligated to adhere to Suspicious Activity Report (SAR) filing guidelines as well as ensure that payments made from/to sanctioned countries and/or individuals are blocked.

In addition, the 5th European Directive on Money Laundering 2015 calls for video-based identification, biometric authentication, and KYC verification processes for all crypto users.

A Cutting-edge Crypto AML Screening and Investigation Platform

An effective Crypto AML platform enables organizations to accurately identify and assess crypto wallets' risk.

A Crypto AML Platform is a suite of technological tools to address Anti-Money Laundering (AML), and Counter-Terrorist Financing (CFT) risks related to cryptocurrencies. It enables –

Institutions to identify suspicious activity

Assess the risk of crypto wallets

Automate their AML/CFT and sanctions checks

Evaluate VASPs or virtual asset service providers such as exchanges

Provide clear visualizations of wallet networks and transactions for fraud mitigation

A crypto AML engine depicts wallet network visualizations of trading activity which can be used to investigate suspicious transactions and other fraudulent activities. VASP screening is also available to evaluate potential counterparties or customers securely.

The engine helps ensure entities meet evolving local and global regulations. Solutions that seamlessly integrate into compliance workflows to help manage risks confidently while developing strategies, offerings, and partnerships grounded in crypto.

Anti-Money Laundering and Blockchain Intelligence

Blockchain analytics uses data analysis and visualization to uncover patterns using cryptocurrencies or other digital asset transactions. Companies that operate with cryptocurrency use blockchain analytics tools to track and analyze transactions, detect anomalies, and understand risks for regulatory compliance. As digital assets move around the network, these tools identify, cluster, and map out data stored on blockchains.

Blockchain intelligence

is the use of analytics:

To trace and examine blockchain activity
Uncover illicit activity on the blockchain in real-time
Mapping addresses to services and aiding investigators in building cases

Government agencies and private institutions worldwide rely on these analytics to stay alert as cryptocurrency crime has become a growing threat.

Risk and Regulations

are important considerations when it comes to the use of digital assets.

To ensure that workflows are updated to meet current and future local and global regulations
To manage risks while exploring new strategies, offerings, and partnerships related to cryptocurrencies

Non-Fungible Tokens (NFTs)

are digital assets, typically art, music, or collectibles. The NFT market is rapidly growing and presents many exciting new opportunities for revenue streams.

As this market grows, it is important to know the potential risks associated with NFTs and their transfer process. Risk management tools based on blockchain technology can help entities stay ahead of these risks and confirm secure long-term use of their NFTs.

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AML Crypto Compliance with Travel Rule & Blockchain Analytics