AML, KYT and Source of Funds Audit
Cryptocurrency businesses, service providers and exchanges are under increasing pressure to implement strict Anti-Money Laundering (AML) and Counter-Terrorist Financing measures by regulators and agencies worldwide. Organizations like the FATF have offered regulatory frameworks which have been adopted by many countries.
Just as importantly, regulators and agencies such as the SEC have taken enforcement action in cases of non-compliance against ICOs, IEOs, STOs and cases involving various types of investment fraud (e.g. Ponzi Schemes) or securities violations. This often results very hefty fines and penalties, and in some cases non-compliance has led to criminal charges.
Cryptocurrency businesses need to be cognizant of who they do business with and their exposure to money laundering and criminal activity, taking preventative action accordingly.
Some frameworks, like FATF Recommendation 15, are particularly detailed and pertinent to cryptocurrency exchanges. It’s in force as of January 10 2020 in many jurisdictions, and implements a “travel rule” among many other requirements.
CipherBlade is available to assist businesses that need to take measures in order to ensure they meet AML and regulatory guidelines. We help businesses ensure they remain compliant, monitoring exposure and suspicious transactions, and conduct audits when appropriate.
We also provide “source of funds” audits for any digital assets, as well as KYT (“know your transactions”) audits and reports.