The AML Problem
Cryptocurrencies have disrupted traditional anti-money laundering (AML) practices. Remember – part of the appeal of cryptos is their decentralised nature. But 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. But we now have a technological solution that is trusted by law enforcement agencies and financial institutions – CipherTrace. It’s an exciting innovation for crypto investors and fund managers that need to meet compliance requirements.
How It Works
We utilise CipherTrace technology
Whether you want to invest in cryptos, or run a crypto investment fund – you can now risk assess the transaction history of crypto coins.
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 asses risk.
CipherTrace then assigns risk levels to transactions based on activity related to suspicious addresses and wallets.
No Risk: Transactions with no apparent risk are flagged to proceed.
Low & Moderate Risk: These transactions trigger an automated deep search for compliance reporting.
High Risk: These transactions should be rejected.