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Crypto AML

Crypto AML
Today we are going to talk about anty money loundering in
crypto. No one wants to be robbed in the crypto world, so this article is about how crypto platforms protect your money. First of all you need to know the difference between aml and kyc.

What is KYC?

  • KYC stands for — know your customer.
    This is a measure adopted by many crypto firms, especially crypto exchanges. It stops thieves, hackers, and other bad guys. For this purpose the platform needs the personal information of all users. For example, when the exchange asks you to send your photo and passport it's all part of KYC. And if a chain of transactions is traced to a hacker's wallet the police will find it.
  • Also, crypto platforms use the KYCC process.
    This means Know Your Customer’s Customer. KYCC is a derivative of the standard KYC process. It further helps to find fraud if someone a criminal tries to hide his tracks.
  • KYC is now a standard for crypto firms.
    Clients have to provide a government-issued ID and pass facial verification in order to make deposits and trades.

What is AML?

Crypto currency anti-money laundering (AML) uses laws and regulations designed to stop criminals from converting illegally obtained crypto currencies into fiat currencies. The Financial Action Task Force (FATF) sets the standards for AML around the world. Today dozens of regulators use FATF recommendations to convert them into law within individual countries. To avoid the blocking your account, you should use AML check software. All reputable exchanges like Binance and companies operating in the blockchain industry have integrated programs that identify dirty coins. There are also autonomous projects that fulfil orders for AML verification of bitcoins and other crypto currencies.

Also, every big crypto firm has an AML officer. The AML Compliance Officer is responsible for financial regulations and personal data compliance requirements. Apart from this, he looks out for potentially risky transactions and operations.
In 2018 U.S. FinCen added new requirements for the financial industry including crypto companies. Now they have to identify and verify the identity of customers and beneficial owners, develop risk profiles by investigating customer relationships, and monitor suspicious accounts. It’s called the new Customer Due Diligence (CDD). Another KYC procedure is Enhanced Due Diligence (EDD). It is a more complicated process than CDD. It is conducted manually by the aml officer and is performed when new customers might be of high risk or high net worth.
Protecting our coins from financial criminals, thieves, and central banks isn’t a once-and-done task. AML compliance is a day-to-day responsibility.

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