update 18 August 2021

CipherTrace’s Crypto Risk Intelligence To Help Track Illicit Crypto Transactions

On 16 December, CipherTrace noted that major banks could be processing a maximum of 2 billion dollars in crypto-related transfers in its press release. However, these yearly earnings are never detected.

CipherTrace is a blockchain intelligence company, and according to it, about ten major commercial banks in the US have unregistered crypto businesses; that use their payment networks in processing funds. The press release also pointed out that these unregistered crypto money service businesses (MSBs) are entities like cryptocurrency exchanges.

There are some rules in the US requiring bank’s identification of the MSBs by law. Nevertheless, a few of these rules do not have what it takes to identify crypto exchanges, together with other virtual asset service providers (VASPs) as MSBs, the firm says. This blockchain intelligence company upholds that the revision of BSA and FATF guidance will make identification and compliance more serious.

CipherTrace Introduces Crypto Risk Intelligence

CipherTrace introduced Crypto Risk Intelligence, following the Anti-Money Laundering compliance for financial institutions. Crypto Risk Intelligence will reduce the risks associated with cryptocurrency on their payment rails.

More than 500 crypto businesses will get monitored using Crypto Risk Intelligence. This CipherTrace’s product will also help generate AML filtering data usable by banks and other entities. It will also compile the risk and compliance scores for financial institutions.

Crypto Risk Intelligence To Assist Banks by Using A Four Aspect Focus

As per CipherTrace’s report, Crypto Risk Intelligence will help banks meet AML compliance by focusing on four aspects. First, it will detect unknown risks between VASPs and bank payment networks such as SWIFT and ACH.

Secondly, Crypto Risk Intelligence will allow businesses related to crypto to access the risk scores of CipherTrace. Thirdly, CipherTrace’s product will enable the identification of unregistered MSBs and peer-to-peer systems, relying on bank services. Finally, Crypto Risk Intelligence will be able to deal with dark web risks and detect illegal financial products or laundered funds made possible through crypto transactions.

price change

CipherTrace believes that the new FATF regulations will re-haul the requirement for the operations of cryptocurrency businesses. It will happen by telling crypto businesses to track their customers’ transactions and where they are sending their funds.