Given how many transactions are being performed on blockchains at high speeds every day, automation is key.
Manual monitoring is impractical because of these dizzying volumes. Analytics services like Crystal are working to automate this monitoring process with 24/7 updates so that crypto companies (as well as banks and financial institutions whose customers trade in cryptocurrencies) can be notified immediately if something is assumed to be wrong.
Recent guidelines from the Financial Action Task Force (FATF) indicate that there is a combination of warning signals to watch out for in connection with money laundering. The set of indicators to combat such illegal activity is constantly evolving, with information about the company in question and monitoring of the transactions and transaction patterns used and the connections established being a top priority.
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.
Given this big picture, Virtual Asset Service Providers (VASPs) need to consider government-defined anti-money laundering factors and decide with their compliance team which combination of factors to consider for their individual compliance needs. The customizable nature of software like Crystal Analytics allows VASP compliance teams to set their own AML requirements.
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