This week we saw Bitcoin break the $50,000 USD price level. Unsurprisingly, we’ve seen an increase in enquiries for our Crypto Fund Platform from current and prospective fund managers.

But our offering doesn’t stop at our dedicated Crypto Fund Platform. We also offer our clients an anti-money laundering (AML) solution for Bitcoin.

AML is a key function of fund administrators. Specifically, administrators have AML and compliance responsibilities for investment funds.

In short – 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 like Bitcoin 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. That’s why our team invested time into finding a technological solution.

That solution is called CipherTrace. It lets us risk assess the transaction history of Bitcoin for AML purposes.

The way it works is simple:

Step One: Whether you want to invest in cryptos, or run a crypto investment fund – you can now risk assess the transaction history of crypto coins.

Step Two: CipherTrace algorithms calculate risk levels based on suspicious addresses and wallets. CipherTrace also profiles hundreds of global exchanges, ATMs, mixers, money laundering systems, gambling services and known criminal addresses to score transactions and assess risk.

Step Three: CipherTrace then assigns risk levels to transactions based on activity related to suspicious addresses and wallets.

Transactions with no apparent risk are flagged to proceed. Transactions with a moderate risk trigger an automated deep search for compliance reporting. Finally, transactions that are high risk should be rejected.

Start Your Crypto Fund Platform

Do you want to create your own dedicated cryptocurrency fund? Start your journey with IFINA. Drop me an email and we can arrange a Skype call to discuss your needs.

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