AMLBot’s сhecklist to help сrypto investors to follow regulations
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AMLBot’s сhecklist to help сrypto investors to follow regulations

John Williams
John Williams

Money Laundering through illicit activities is one major concern that plagues the ongoing adoption of cryptocurrencies by the mainstream financial markets. The opportunity for laundering money through cryptocurrencies despite the transparency of the blockchain technology is a major concern for governments and enterprises all around.

In the early days of the dark web marketplace Silk Road, criminals used Bitcoin to often hide illicit sources of funds and use it for criminal, illegal activities around the globe. As of 2019, $829 million worth of bitcoin has been transacted over the dark web. Even though, at the time, it was only 0.5% of the Bitcoin ever transacted, it is highly worrying for financial regulators across the globe.

AML Compliance Integral for Enterprises

With institutional investors flocking towards Bitcoin, it is highly essential for institutions to learn more about the origin of funds of their customers and investigate the wallets associated with them. This is required to maintain compliance with supervisory authorities and can protect the firms from fraudsters. As blockchain technology offers a public ledger transparent to all, this aspect helps to identify financial crime and related transactions.

AMLBot released an Anti Money Laundering (AML) Audit Checklist earlier this January, in this checklist “How to Follow All the Regulatory Rules” they have highlighted what institutions and investors can do to meet regulatory requirements through AML Compliance. AML Compliance is a set of standards, to prove that a particular financial company is a secure financial enterprise safe for other customers and investors to get involved with.

The AML compliance policy comprises all the steps a firm takes to reduce getting scammed and avoid personal data leaks. It includes functions like monitoring, reporting, regulations and user processing policies. The lack of an regulated AML compliance policy could make firms subject to significant fines from regulators which could cost the firm heavily in financial resources.

AMLBot Aids Enterprises with their AML Concerns

There are three main stages of money laundering in the cryptocurrency space:  Placement, Hiding and Integration. These stages are often aided by unregulated exchanges, peer to peer networks and such platforms where the Know Your Customer (KYC) policies are either absent or extremely weak so as to overlook the true identity of the parties transacting these funds.

AMLBot aims to help organizations to identify any money laundering concerns in their business. It’s AML program checks crypto wallets to identify the source of funds and categorize them into various categories. It facilitates the online scoring of crypto addresses created by a team of financial technology specialists in line with global anti money laundering (AML) requirements. Their algorithm analyzes more than 10,000 open sources and 2,500 plus scam addresses in real time to give results in just above 30 seconds.

They offer an API integration so help users save time on this activity. Any investors could log onto their website and get their wallet analysed without any installation or downloading processes. They have all the relevant certification they need to be in AML and KYC procedures.

Considering that money laundering is one of the main reasons that some major governments and central banks are aversive to the use of Bitcoin within the legacy systems. Recently, Christine Lagarde referred to these activities in Bitcoin as “funny business” and that any such existing loopholes must be closed, in a call to further regulate Bitcoin in the global markets. The AML initiatives by the cryptocurrency industry would help to reduce the risks of firms operating in the space and encourage governments to look at cryptocurrencies with more trust akin to fiat currencies.