How can blockchain companies become AML compliant?

• Regulation bites crypto industry
• Financial intermediaries are obliged to comply crypto regulations, but there is a lack of automated AML solutions
• FinchGuard offers cutting-edge technology for blockchain enterprises that intelligently addresses compliance procedures

ZUG, Switzerland, 15 December 2022 /PRNewswire/ — The decentralized nature of digital assets requires increased compliance, which is why policymakers have developed and implemented regulations to prevent cryptocurrencies from being used for illicit financing activities. Our story is straightforward – as a Swiss financial intermediary, FinchTrade AG has not been able to find a solution to comply with the AML and KYC framework. Thus, we have developed it in-house and are happy to launch FinchGuard – AML & KYC solution for blockchain companies.

Groundbreaking system to automate complex compliance procedures

Given rapidly changing crypto regulations, the best option for financial institutions is to rely on a plug-and-play AML/KYC system like FinchGuard that provides the following functionality:

• collect necessary personal, company and shareholder verification data
• automated enhanced due diligence mechanism and continuous monitoring
• in-depth transaction monitoring and real-time risk assessment
• regulatory reports

Onboarding. Customer onboarding is crucial for businesses. Onboarding must be quick and seamless, but thorough enough to identify potential risks. Also, automation is essential for scalability, therefore the risk scoring methodology needs to be digitized into an automated identity verification system.

Ongoing monitoring. Financial institutions are obliged to monitor AML compliance of their customers. Implemented system must perform real-time monitoring of shareholders, UBOs and key personnel in relation to sanctions or PEP lists and notify when status changes.

Know your transaction (“KYT“) solution performs real-time on-chain transaction analysis to identify suspicious behavior or fraudulent transactions (FinchGuard monitor Bitcoin, Ethereum, Litecoin, Tron, XRP, Binance Smart Chain, Tezos etc. blockchains). There are certain parameters to consider:

• Payment country risk for fiat/crypto
• Recognition of suspicious patterns
• Blockchain Transaction Scoring/Implied Risk Factors
• Company-related adjusted risks

Regulatory reports. The result of the automated verification and ongoing monitoring is reliable evidence that helps control risks and protect your business against fraud and regulatory fines.

IT security and technology

When it comes to security and user-friendliness, the technological solution must be:

• Secure: 2FA, data encryption, multi-role accounts
• Reliable: regular backups, geographical distribution
• Manageable: web based GUI, transaction analysis
• Easy to integrate: AWS cloud-based solution that is ready

Having the above in place, FinchGuard has integrated leading service providers to automate almost your entire daily routine:

1. AML/KYC/KYB: SumSub
2. Cloud infrastructure: AWS
3. Blockchain Analytics (KYT): Crystal*, Scorechain
4. Crypto custody: copper, fire blocks*
5. API integration with payment institutions: BCB Group, ClearJunction, Intergiro*, NexPay
6. API integration with trading venues: Binance, Bitfinex, Coinbase, Finery Markets, Kraken
7. Reporting: Slack, e-mail

* coming soon

FinchTrade AG COO, Lesya Margris says:
Proper AML monitoring is a major challenge for any financial institution. Matters become more complicated when you have to do both: comply with Swiss regulation and manage high-risk digital assets. To get rid of daily routines and to be able to identify the risks accurately, we have created an elegant solution that provides a transparent and user-friendly suite for crypto compliance – FinchGuard.

FinchGuard.ch – focus on growing your business and allocate less resources to AML compliance.

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Media contacts:
Gennady Pleshakov
+905076065882
[email protected]

SOURCE FinchGuard