When the sixth European Union anti-money laundering directive comes into effect on June 3, every company that provides financial services to clients and businesses that use cryptocurrency will have to comply with stricter rules regarding when and how customers are identified.
Strictly speaking, 6AMLD has gone into effect from December 2020, but for crypto service providers outside the European Union another two months to ensure full compliance.
This means that all providers of e-wallet and digital real estate exchanges, among others with European clients, must register with the European Union authorities and comply with the rules of Know Your Transaction or the most stringent KYT to track illegal fraudulent activities. Cybercrime and money laundering. And terrorist financing.
It is worth noting that 6AMLD is the first anti-money laundering directive that specifically targets cybercrime. In addition, it calls on the European Union countries to work together to investigate violations and prosecute the perpetrators, and fill in a large number of loopholes.
From a company’s perspective, the potential consequences are broader and more serious: unlike the Fifth Money Laundering Directive, 6AMLD places direct liability for violations on corporations and other legal entities, not just individuals. In practical terms, this means that companies can no longer blame unnecessary employees only. Fines are tougher, including heavy fines and even complete shutdowns of companies.
This means that it is more important than ever for cryptocurrency providers, banks, and financial institutions to ensure that they have compliance strategies and trained personnel to identify potential criminal activities such as money laundering, terrorist financing, and nuclear proliferation. …
Developed by the Bitfury Group, Crystal Blockchain offers three major services to banks and financial institutions, cryptocurrency exchanges and companies, government agencies and virtual asset service providers: KYT monitoring software, compliance training, and expert analysis.
Crystal Blockchain KYT Monitoring Software provides compliance tools that analyze and visualize cryptocurrency transactions, identify the entities behind the transactions, and provide risk assessments based on blockchain interactions that can be used to combat money laundering and know your customers’ actions …
MORE INFORMATION FROM CRYSTAL BLOCKCHAIN HERE
In addition to software tools, Crystal Blockchain offers one-on-one training to compliance teams on compliance workflow best practices, including hosting, monitoring, case management, and reporting. Additionally, it can help clients integrate the software into existing AML / KYC monitoring systems.
The company also performs regular analysis with analytical reports and interactive maps drawn from its own data from Explorer tools. A recent report focused on stolen cryptocurrencies and transfer plans, with the team noting that criminals move stolen cryptocurrencies faster and use fewer hops to conceal their final destination. Crystal Blockchain also offers interactive maps, updated quarterly, with a focus on things like a comprehensive 10-year analysis of security breaches and cryptocurrency fraud.
Crystal Blockchain offers extensive coverage: Over 150 clients, thousands of addresses are verified daily, 70 countries are covered and over 900 exchanges are studied. It currently supports Bitcoin, Bitcoin Cash (and Bitcoin SV and Ethereum) including ERC-20, ERC-721, Ethereum Classic, Tether, Litecoin and XRP tokens.
The company focuses its services on three types of clients: banks and financial institutions that need tools to comply with AML / CFT requirements; Blockchain payment services that require due diligence tools; And government agencies looking for blockchain analysis tools.
In addition to the AMLD 5 and 6 AMLD Regulations, Crystal Blockchain supports other regional regulatory systems in addition to international requirements such as the Financial Action Task Force (AMLD) rules. This promises quick response times to organizational changes.