Fighting money laundering in crypto, explained

With the number of transactions running at high speed on blockchains every day, automation is crucial.

Manual monitoring is impractical because of these staggering volumes. Analytics services like Crystal automate this monitoring process with updates around the clock so that crypto companies (as well as banks and financial institutions whose customers deal with crypto) can be notified immediately if something is assumed to be wrong.

The latest guidelines of the Financial Action Task Force (FATF) show that a combination of indicators with a red flag must be observed in relation to money laundering. The indicators to combat such illegal activities are constantly evolving, with information about the company in question being one of the highest priorities alongside monitoring the transactions and transaction patterns used and the connections made.

The combination of factors is key to potential risk, and the FATF has highlighted that these factors should not be viewed in isolation, but rather as part of a contextualized bigger picture.

With this in mind, Virtual Asset Service Providers (VASPs) must consider government anti-money laundering factors and decide with their compliance team which combination of factors must be considered for their individual compliance requirements. The customizable nature of software like Crystal Analytics enables VASP compliance teams to set up their own AML requirements.

Disclaimer of liability. Cointelegraph does not endorse any content or products on this site. We aim to provide you with all the important information we can get. However, readers should do their own research before taking any business-related action and assuming full responsibility for their decisions. Nor can this article be viewed as investment advice.

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