NameScan for Virtual Currencies

Determined to Prevent and Counter Money Laundering and Terrorism Financing

Why Cryptocurrency Exchanges Need AML/CTF?

Cryptocurrency exchanges engage in crypto-fiat exchanges or virtual currency custodian wallet services. This is deemed the most high-risk sector as it offers a less regulated channel where virtual currencies are digitally transferred, stored or traded.

As a Cryptocurrency or virtual exchange business, you are a “regulated entity”, if you;

  • use/own proprietary networks for crypto-fiat exchange, and/or
  • are a virtual currency exchange platform, and
  • are a custodian wallet provider.
Risk exposure

Cryptocurrency businesses involve transactions, both, between crypto and fiat currency as well as between various cryptocurrencies issued privately. The anonymity of virtual currency conceals the source of funds and the ownership, allowing the proceeds of crime to be laundered through cryptocurrencies and custodian wallets. The virtual currency remittance system is exposed to risks of terrorism financing (TF) or funding of illicit activities.

Compliance requirements

Compliance of crypto exchanges and wallet providers begins with registering your businesses with your national regulators. KYC and verifying beneficial ownership information is mandated at the onboarding stage, as well as screening for Sanctions and PEP checks. Ongoing scrutiny of high-value transactions, high-risk clients, high-risk countries, fiat to crypto transactions, transaction monitoring for unusual behaviour, monitoring high-value wallets, and reporting suspicious transactions are ways that crypto businesses can remain compliant.

Gaps in compliance

The ability to convert cash to virtual currencies and trade between multiple virtual currencies for profits, allows illicit funds to be integrated into the legitimate economy. Other factors like the ease of remitting money for illegal activities or to fund terrorism through the virtual exchanges, make crypto businesses vulnerable to AML/CTF compliance. The lack of transparency in transactions and ownership structures of the virtual currencies are other limiting factors. As virtual currency transactions remain outside of a formal monetary system, it is difficult for crypto businesses to be regulated.

Establish a Compliance Programme

Cryptocurrency exchanges and wallet providers are expected to establish the framework for a risk-based compliance program:

  • Conduct a risk-based assessment for exposure by its services and delivery channels, types of clients, a country in which it operates or transacts with, size or pattern of transactions, and business relationships.
  • Create risk reduction measures and controls to lessen risk.
  • Develop an AML/CTF program: client identification, beneficial ownership, Sanctions/ PEP screening.
  • Have policies and procedures in place for ongoing monitoring, as per the requirements from your regulator.
  • Implement a risk-based approach to ongoing monitoring of transactions, patterns and business relationships.
Establish a Compliance Programme
Maintain your Compliance Programme
Maintain your Compliance Programme

Once you have set up your compliance programme, you need to put the systems in place to ensure the programme is being followed. Non-compliance may result in criminal or administrative monetary penalties.

Ongoing compliance involves:

  • Training staff, and having an assigned compliance officer.
  • Conducting customer due diligence (CDD), update and validate customer information, ongoing CDD and enhanced due diligence (EDD) for suspicious transactions or individuals and high-risk countries.
  • Have threshold transaction reporting obligations where physical/fiat currency is accepted or paid out.
  • Submission of suspicious transactions and compliance reports, and other obligations, as required by your regulator.
  • Reviewing your compliance programme at regular intervals.

Our Solutions

Comply with Regulation Comply with Regulation

Our PEP and sanction screening service will help you reach your compliance requirements.

Comprehensive Screening Comprehensive Screening

Our details scan reports provide you with an overview of in-depth information on potential risks to your organisation.

Reliable Data Sources Reliable Data Sources

We provide access to multiple data sources to meet the varying requirements of users.

Database Updates Database Updates

We update the information for all of our data sources daily to provide you with up-to-date relevant data.

Batch Screening Batch Screening

Save the time manually checking names by using our batch scanning feature to scan bulk files of names simultaneously

Easy to Use Easy To use

Our service is straight-forward and easy yo use, making compliance easy by simplifying processes.

Due Diligence Due Diligence

Perform due dilligence by assigning risk, determining true matches and recording decisions in the NameScan dashboard.

Adverse Media Adverse Media

Conduct further research into potential matches and risks to your organisation through various sources.

Automate Your Screening Automate Your Screening

Use our API to integrate with your existing systems to automate the screening process.

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What Our Customers Say

NameScan has successfully assisted our company reach our AML compliance requirements with their accurate PEP and sanction screening solutions. Their API was easy to implement into our systems, we are very happy to have found this service.

Pawel Mandalian Moebius
 Moebius

NameScan delivers a wide range of products that suit our needs, with predicitable, reliable results. Critical to our business was Namecan's flexibilty and willingness to create a product package that was suitable to our needs. We are also very impressed by the responsiveness of the sales and support team.

Christopher Sale Identt
 Identt

NameScan has helped us to go beyond our KYC/KYB and due diligence requirements, as a result, minimising our fraud rates and giving our businesses and customers peace of mind. We are extremely pleased with the overall service and look forward to continuing working with them.

Tatiana Miller UPayCard
UPayCard

The integration of your service was very smooth and simple and it greatly meets requirements of our legislation in both AML/CFT and PEP checks.

Igor Gottwald OK Software
OK Software

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