CipherTrace releases new tool to help with cryptocurrency compliance

CipherTrace has released its new Armada solution which will help banks and financial institutions to meet AML compliance with cryptocurrency.

The new tool helps to boost visibility into cryptocurrency, by enabling know your customer (KYC) processes to detect and perform due diligence on virtual asst service providers (VASP). It works with a bank’s existing monitoring tool to identify transactions with VASPs.

A top US bank typically processes around $2bn in crypto-related transactions annually which are not detected, CipherTrace claims. Furthermore, 55% of the top 500 cryptocurrency lack good KYC.

This lack of visibility and preparedness leaves them vulnerable to fraud and compliance exposures.

CipherTrace analyses KYC and transaction risk on more than 500 VASPs. The new tool will reduce AML and counter-terrorist financing risk by identifying customers falsifying their crypto intentions, flagging transactions to and from high-risk crypto counterparties and collecting evidence of the counterparty risk.

CipherTrace CEO Dave Jevans said, “If Kunal Kalra’s banks had been using Armada to monitor their accounts, we could have identified Kalra much earlier.

“Similarly, if M.Y. Safra Bank had deployed Armada to detect illegal cryptocurrency transactions, they would not be scrambling to meet the OCC’s requests. Though the OCC did not levy a fine, M.Y Safra Bank must implement an independent BSA audit, monitor and report suspicious activity, institute an independent party to review past activities, and hire a BSA officer and sufficient supporting staff— all within 180 days.”

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