A Guide to Anti-Money Laundering for Crypto Firms
Whether evaluating a counterparty or detecting suspicious behavior across fiat and cryptocurrencies, ComplyAdvantage has it all covered in one platform.
By enabling firms to effectively scrutinize their customers’ transactional behavior, transaction monitoring is the foundation of an effective anti-money laundering (AML) strategy.
This task has become more challenging with the introduction of virtual assets. In response to the growing popularity of cryptocurrencies over the last decade, new standards and regulations have been published by the Financial Action Task Force (FATF) and the European Commission. These are designed to provide clarity on the status and legitimacy of crypto assets that are not covered by existing financial services legislation.
The compliance team of a virtual asset service provider (VASP) faces several challenges, all of which will require more time and effort to be spent on compliance measures. This will help avoid the fines and reputational damage that come with non-compliance:
- Multiple solutions are needed to review different types of risks for crypto or fiat transactions.
- Data is spread across multiple systems, making it hard for analysts to construct an accurate picture and report any suspicious or illicit activity.
- Different providers need to be integrated, which is a strain on time and resources.
- Teams must be educated on the different software programs and processes.
This is where ComplyAdvantage comes in. Partnering with blockchain analytics provider Elliptic, we are combining the two worlds of fiat and crypto risk assessment in one product to increase the speed of investigation.
Utilizing Elliptic’s rich dataset to raise blockchain-specific alerts within the ComplyAdvantage platform, users will be able to consolidate their risk management process, deep dive into blockchain analysis, and reduce the amount of time and money spent on integration.
By adopting this approach, firms will be able to:
- Evaluate counterparties and detect suspicious behavior across fiat and cryptocurrencies in one platform.
- Avoid multiple integrations by sending both fiat and crypto transactions to one provider. Automatically link to Elliptic Navigator for further investigation when risk rules are triggered.
- Integrate data feeds, case management systems, and customer relationship management (CRM) platforms for enhanced monitoring in one consolidated system.
This is just the first step toward our vision of a single crypto and fiat risk management solution. If you would like to find out more about how ComplyAdvantage can drive efficiencies in your transaction risk management program, speak to a member of our team.
Originally published October 21, 2021, updated March 2, 2022
Disclaimer: This is for general information only. The information presented does not constitute legal advice. ComplyAdvantage accepts no responsibility for any information contained herein and disclaims and excludes any liability in respect of the contents or for action taken based on this information.
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