This week, I want to share my thoughts on an emerging area within crypto: AML.
If you’re not familiar, AML stands for anti-money laundering – and it’s a key function of fund administrators. Specifically, administrators have AML and compliance responsibilities for investment funds.
It’s pretty simple. We need to ensure that an investor’s capital or assets are above board. Until recently, these checks were carried out on traditional assets.
But cryptocurrencies have disrupted traditional AML practices.
Remember – part of the appeal of cryptos is their decentralised nature. The truth is that traditional AML regulation isn’t designed to deal with the anonymity associated with cryptos.
For these reasons, cryptos can present a heightened AML risk. In combination with the technological challenges cryptos present, there also isn’t an established regulatory framework for cryptos.
But it isn’t all bad news.
In the coming weeks, I’ll be sharing a new Crypto AML Solution that the IFINA team has been working on. It uses technology trusted by governments and financial institutions to risk score cryptocurrency transactions.
I’m excited to share more details with you in the near future.
Do you need a crypto AML solution? We should have a Skype call. Just email me and we can book a time that’s convenient to you.