Read More about fast-id page

Shufti globally launches webinr-icon - a new kind of identity solution!

Shufti globally launches - a new kind of identity solution!

Read more

From Crypto to Fiat Currency – Secure Exchanges with Transaction Monitoring Solutions

b-img-crypto

Transaction processes today are launching innovative possibilities for users across the economic topography. Financial institutions can monitor the trail and timing of millions of transaction processes simultaneously. Transaction monitoring permits businesses to identify the origin and terminal of funds and the connection of those funds to financial crimes. 

Transaction monitoring is indispensable in the occurring fight against financial crime by recognizing and halting the flow of unlawful transactions. Some key reasons for FIs to have transaction monitoring webbing are to remain compliant and keep away from regulatory violations, to detect financial crime before they cause harm, and to better acknowledge customer services.

An Overview of Currencies – From Fiat to Crypto

Both fiat and cryptocurrency are effective forms of money that can be interchanged and have significant financial value. Fiat and cryptocurrency are dissimilar in ways that fiduciary currency is issued by the government such as the U.S. dollar, whereas cryptocurrency is a digital asset based on the decentralized blockchain. Fiat currency issuance requires a mediator while cryptocurrency depends on localization to authorize doubtful transactions. 

Today government-issued fiat money has lost its constitutional value and is replaced by cryptocurrency. The broadcasting of blockchain automation now serves as a modernized update to the meaning of money worldwide. Assembled on digital financial currencies like BTC (bitcoin), and ETH (Ethereum), cryptocurrencies are not supervised by the government and provide valuable chances for finances globally. To attain a noticeable value, all forms of money either fiat or crypto must have the following requirements:

Medium of Exchange: All currencies have acceptable payment values. Both sides in a business deal must agree on the perception of that value. Since the beginning of 2009 when cryptocurrency was first introduced, many businesses were uncertain regarding its form of payment. However, its rapid growth and popularity made its acceptance possible both on an individual as well as an institutional value. 

Store of Value: All forms of money tend to proceed as a store of utility. For example, when a $100 invoice is issued to a customer, the company must be assured enough that the $100 has the same worth thirty days out. If there is no value to money, there is no use for money as the possibility of inflation is too high.

Unit of Account: Money must act as a unit of account to charge financial transactions by persuading the value of multiple products and services in association with each other. For instance, a $20 hat is less valuable than a $500 mattress. 

Cryptocurrency Transaction Monitoring Regulations 

As for all transaction monitoring systems, it is necessary to detect and alarm suspicious agreements and inform compliance regulators about these threats. Cryptocurrency being a practicable transaction mode for people, crypto businesses should evolve and invest in innovative transaction monitoring systems to figure out these new categories of transactions.

The FinCen (Financial Crimes Enforcement Network), at first renovated its guidance for fiat currency only but with the increased use of cryptocurrency in 2013, FinCen issued guidance for those who exchange virtual currencies. Cryptocurrency businesses are in need to mitigate the possible risks of trading by employing the finest AML software tools that are mainly focused on virtual currency.  For instance, BitMEX in late 2020 failed to regulate transaction monitoring and maintain a genuine AML compliance scheme according to CFTF orders. As a result of which BitMEX received lawbreaker charges  from the US department of justice. 

Cryptocurrency transaction monitoring can be regulated by constant upgradation of  transaction monitoring tools, by conducting employee training workshops to educate them properly to configure illegal activities in crypto transactions, and by following the dynamic policies and methods that cryptocurrency institutions are dealing with. 

b-info-crypto

Challenges faced by Financial Institutions 

Being an important constituent of any AML program, all financial institutions have transaction monitoring systems under the bank secrecy act to fight money laundering. From 2020 to 201, cryptocurrency transaction volume grew to 567%. Companies with poor or ineffective transaction monitoring ideas face some challenges and can be subjected to penalties for inflation in monetary regulations.

Anonymity: When left unmonitored, cryptocurrency transactions can permit customers to dodge quality monitoring measures for the sake of illegal funds.

False-Positive: In the majority of cases, conventional monitoring systems get it wrong. This inaccuracy comes with a high cost to the organizations and a total waste of time. To avoid false positives there is a dire need of incorporating the latest transaction monitoring programs with high rate accuracy. 

Non-Flexible Rules: Unbending rules in action to monitor transaction errors is another leading hurdle to financial institutions. Easy-to-use rules must be adapted to digital transaction systems to reduce financial organizations’ risks.

Fraud System Thresholds: It is not impossible to cheat inflexible rule-based transaction monitoring systems as they serve as a  risk factor where traditional, outmoded, AML systems are troublesome. As a result of which a lot of high-grade suspicious activities go unnoticed. 

Data Hinders AI Deployment: Artificial intelligence is supposed to be an integral part of AML programs, so the data must be checked for all the infirmities carefully and any signs of deception must be encountered immediately. 

Cryptocurrency Transaction Monitoring Adapting AML

With digital currencies becoming more mainstream, there is now a greater need of incorporating anti-money laundering policies. A sound AML/CFT system for crypto organizations should comprehend dubious acts by observing cases and related risk management. In November 2021, a total of 103 dominions were pinpointed to apply AML/CFT constitutions to cryptocurrencies. FinCEN is the central financial guard that has applied KYC (Know Your Customer) and AML checks on crypto money help providers. This tendency will continue to rise as the FATF (Financial Action Task Force), carry on the petition of its standards to upgrading technologies. 

In order to avoid all the possible ways that a criminal can use to launder money, virtual asset services should verify the identity of their customers. By adopting AML screening users’ personal information can be protected against criminal attacks. Other key regulations for crypto transaction monitoring include customer due diligence, screening accuracy, and the use of updated technology. 

Final Thoughts

As cryptocurrency acquisition today is not coming slow, it brings with it high risks of money laundering. Financial firms and banks must invest in equitable AML solutions to detect fraud in financial operations before it does any damage. Shufti’s AML screening solution is all set to make digital currency transactions crime-free with access to 1700+ global watchlists. 

Want to learn more about transaction monitoring optimization of cryptocurrency with AML practices?

Want to learn more about transaction monitoring services for financial institutions?

Connect with an AML expert

Related Posts

Blog, Online Marketplace

KYC for Banks: Reducing financial risk with a perfect digital solution

The banking sector has to tread a very balanced path between compliance regulations and customer ...

KYC for Banks: Reducing financial risk with a perfect digital solution Explore More

Blog

Top 5 Non-banking Industries in the Crosshairs of Financial Criminals

The first half of 2021 saw significant disruption in the financial world as traditional criminal ...

Top 5 Non-banking Industries in the Crosshairs of Financial Criminals Explore More

Blog

Top 7 Trends Shaping the Future of Gambling Industry in 2023

Amidst technological advancement and the changing regulatory landscape, the gaming sector demonst...

Top 7 Trends Shaping the Future of Gambling Industry in 2023 Explore More

Blog

Initial Art Offering – Everything you need to know about it

Initial Art offering is an innovative way to support artists and their brilliant art without worr...

Initial Art Offering – Everything you need to know about it Explore More

Blog

Japan’s Act on Personal Information Protection – What Businesses Must Do

New and emerging ways to bypass verification checks have allowed fraudulent entities to breach th...

Japan’s Act on Personal Information Protection – What Businesses Must Do Explore More

Blog

Significance of Facial Recognition Technology in FinTech Fraud Detection

Compliance with Anti-Money Laundering (AML) requirements is challenging for financial organisatio...

Significance of Facial Recognition Technology in FinTech Fraud Detection Explore More

Blog

The Role of Digital Identity in Business-Customer Relationship

Dealing with any business online have you ever wondered where this relationship would go? We all ...

The Role of Digital Identity in Business-Customer Relationship Explore More

Blog

5 RegTech Applications That Will Govern the Financial Regime in 2021

RegTech, short for Regulatory Technology, is the subset of FinTech which bridges the gap between ...

5 RegTech Applications That Will Govern the Financial Regime in 2021 Explore More

Blog

Impact of California Consumer Privacy Act on Online Businesses

California consumer privacy act has been revolutionizing consumer data regulations. The act was p...

Impact of California Consumer Privacy Act on Online Businesses Explore More

Blog

Top 10 Real-World Scenarios Where Shufti’s IDV Can Help

Whether you’re an e-commerce store that needs to verify delivery addresses or a bank that has to ...

Top 10 Real-World Scenarios Where Shufti’s IDV Can Help Explore More

Blog

How ID Verification can Help you Boost your Revenue in 2019?

For years now banks have been using laid back and inconvenient methods for ID verification of cus...

How ID Verification can Help you Boost your Revenue in 2019? Explore More

Blog

The Definitive Guide to Anti-Money Laundering & Countering of Terrorist Financing

In this modern globalized era, money launderers, terrorist financiers and other criminal elements...

The Definitive Guide to Anti-Money Laundering & Countering of Terrorist Financing Explore More

Blog

Impact of California Consumer Privacy Act on Online Businesses

California consumer privacy act has been revolutionizing consumer data regulations. The act was p...

Impact of California Consumer Privacy Act on Online Businesses Explore More

Blog

KYC alternatives disrupting traditional KYC methods

Technology is building bridges between businesses and consumers across the barriers of distance a...

KYC alternatives disrupting traditional KYC methods Explore More

Blog

Affiliate Fraud Detection | How to Prevent it in 2024

Affiliate marketing is growing at an exceptional rate, worth $17 billion by the end of 2023, and ...

Affiliate Fraud Detection | How to Prevent it in 2024 Explore More

Blog

Secure Your Digital Presence | Combat Transaction Fraud and Cyberthreats with IDV

Financial crimes, especially payment and transaction fraud, have seen a massive surge in recent y...

Secure Your Digital Presence | Combat Transaction Fraud and Cyberthreats with IDV Explore More

Blog

The FATF Travel Rule: What Business Owners Must Know

The rapidly evolving landscape of technology and cryptocurrency has made the regulation of digita...

The FATF Travel Rule: What Business Owners Must Know Explore More

Blog

FATF’s Stance on Digitizing FIUs and Adopting A Risk-Based Approach for VAs

The Financial Action Task Force (FATF) is tirelessly working to guide Financial Intelligence Unit...

FATF’s Stance on Digitizing FIUs and Adopting A Risk-Based Approach for VAs Explore More

Blog

Ensuring Compliance and Preventing Losses Due to Fraud in the Banking Sector

Banks are thought to be the most important part of the financial system, playing a vital role in ...

Ensuring Compliance and Preventing Losses Due to Fraud in the Banking Sector Explore More

Blog, Financial Crime / AML

Shufti integrates AML Compliance into its end-to-end Verification Services

Shufti has now launched AML compliance in its set of identity verification services to provid...

Shufti integrates AML Compliance into its end-to-end Verification Services Explore More

Blog, Business Technology, Online Marketplace

Asian Banks push for greater Fintech to cut down AML Compliance cost

Asian Banks are now asking their regional and national regulators to allow more fintech in order ...

Asian Banks push for greater Fintech to cut down AML Compliance cost Explore More

Blog

Understanding False Positives in AML Transaction Monitoring

Financial institutions such as banks, neo-banks, insurance companies, investment companies, finte...

Understanding False Positives in AML Transaction Monitoring Explore More

Blog

Facial Recognition: A Technology for Online Businesses to Prevent Fraud

Today, biometric technology has traditionally established itself and has become an integral part ...

Facial Recognition: A Technology for Online Businesses to Prevent Fraud Explore More

Anti Money Laundering, Blog, Financial Crime / AML

Why PEPs are High Risk and a Threat To Your Business?

In the Financial and Trade industry, you may have often heard the term PEPs and the importance of...

Why PEPs are High Risk and a Threat To Your Business? Explore More

Blog

A Brief Insight into Netherlands’ Cryptocurrency Regulations

Just like other European countries, the Netherlands is also a notable financial center making it ...

A Brief Insight into Netherlands’ Cryptocurrency Regulations Explore More

Blog

Prevailing Financial Crimes and AML Regulation in Argentina – How Shufti Can Help

Argentina has faced many significant challenges due to its geographical location, including the f...

Prevailing Financial Crimes and AML Regulation in Argentina – How Shufti Can Help Explore More

Blog

May 2023 Recap: Major Security Breaches and Penalties

May 2023 witnessed several security breaches wreaking havoc on the digital landscape. High-profil...

May 2023 Recap: Major Security Breaches and Penalties Explore More

Blog

Top 10 Health Industry Trends to Watch for in 2022

What are your expectations from the healthcare industry? Technological advancements have proven c...

Top 10 Health Industry Trends to Watch for in 2022 Explore More

Blog

How to protect your online gaming platform from ID frauds?

Gone are the days when online gaming was only restricted to LAN parties. With the development of ...

How to protect your online gaming platform from ID frauds? Explore More

Blog

Video KYC (VKYC) | Identity Verification and Fraud Prevention

In the last few years, the verification industry has experienced remarkable expansion. As our tec...

Video KYC (VKYC) | Identity Verification and Fraud Prevention Explore More

Blog

AML Screening – Identifying and Eliminating the Risks of Money Laundering in Businesses

Eliminating the risks of financial crime in businesses has never been easy and has been identifie...

AML Screening – Identifying and Eliminating the Risks of Money Laundering in Businesses Explore More

Blog

DSAR Under GDPR and CCPA – Understanding the Key Differences

Data protection is one of the key concerns of organisations these days. For the same reason, data...

DSAR Under GDPR and CCPA – Understanding the Key Differences Explore More

Blog

Gaming Industry Crimes and KYC/AML Solutions – What Shufti Can Offer

From the world’s glitziest gaming development to betting shops on the high streets, the global ga...

Gaming Industry Crimes and KYC/AML Solutions – What Shufti Can Offer Explore More

Blog

ID Verification for High-Potential Digital Fraud Cases

Instances of digital frauds and payment scams are highly damaging for banks and financial institu...

ID Verification for High-Potential Digital Fraud Cases Explore More

Blog

Protecting Crypto Ecosystem with Effective Compliance Measures and Robust AML Screening

In November 2021, the market capacity of the cryptocurrency went over $3 trillion. With the incre...

Protecting Crypto Ecosystem with Effective Compliance Measures and Robust AML Screening Explore More

Blog

UAE’s Crypto Landscape – Eliminating Financial Crime to Ensure Regulatory Compliance

The UAE is the Middle East’s rapidly growing cryptocurrency hub that is experiencing a heated-up ...

UAE’s Crypto Landscape – Eliminating Financial Crime to Ensure Regulatory Compliance Explore More

Blog

Customer Identification Programme (CIP) vs Know Your Customer (KYC) | What’s the Difference?

 Often, people confuse CIP and KYC and think both are the same. Customer Identification ...

Customer Identification Programme (CIP) vs Know Your Customer (KYC) | What’s the Difference? Explore More

Blog

Cyber Monday Scams on the Rise Due to COVID-19

Thanksgiving – a day that reminds us of all the bounties of Mother Nature that we should be...

Cyber Monday Scams on the Rise Due to COVID-19 Explore More

Blog

4 Reasons why KYB is Inevitable for your Business

When it comes to corporate collaborations, Know Your Business (KYB) is the ultimate source of sec...

4 Reasons why KYB is Inevitable for your Business Explore More

Blog, Online Marketplace

Age Verification – Must Have For Age Restricted Retailers

Mobile e-commerce makes up for nearly 29% of the entire e-commerce sales in the US. A majority of...

Age Verification –  Must Have For Age Restricted Retailers Explore More

Blog

6 Upcoming Trends In Blockchain And Cryptocurrency For 2021

2020 was unlike any other year. It was chaotic, happening, and has finally come to an end. In the...

6 Upcoming Trends In Blockchain And Cryptocurrency For 2021 Explore More

Blog, Business Technology

Fraud Prevention in Fintech Industry

The FinTech industry has really made its mark in the last couple of years. FinTechs have been pro...

Fraud Prevention in Fintech Industry Explore More

Blog, Business Technology

The demand for OCR Technology increasing for ID Verification

ID verification is core to overall identity verification services that help business around the g...

The demand for OCR Technology increasing for ID Verification Explore More

Blog

OCR in Banking | Automating Data Extraction, Customer Onboarding, and ID Verification

The global Banking and Financial Services Industry (BFSI) is one of the most heavily regulated an...

OCR in Banking | Automating Data Extraction, Customer Onboarding, and ID Verification Explore More

Blog

Build Trust and Secure Online Dating Platforms with Identity Verification Solutions

Online dating scams, such as the one filmed in the recent Netflix Original documentary “ The Tind...

Build Trust and Secure Online Dating Platforms with Identity Verification Solutions Explore More

Blog

KYC Verification – Defeating Anonymity on Social Media Platforms

In the introductory phase, social media platforms were merely a small part of the internet where ...

KYC Verification – Defeating Anonymity on Social Media Platforms Explore More

Blog

Open Banking Trends & the Vitality of Identity Verification

With rapid digitisation, open banking is becoming the new normal in the banking sector. Open bank...

Open Banking Trends & the Vitality of Identity Verification Explore More

Blog

Hazards of Ransomware are real for Cryptocurrency Miners

Cryptocurrency may well be the future of economic landscape and it has the potential of taking th...

Hazards of Ransomware are real for Cryptocurrency Miners Explore More

Blog, Financial Crime / AML, Identity & KYC, Reg Tech

Significance of AML Compliance in Money Services Business

The financial sector landscape is evolving with the advent of the FinTech industry. Many revoluti...

Significance of AML Compliance in Money Services Business Explore More

Blog

Forex | The Use of Identity Verification

In addition to safeguarding clients, forex brokers have legal and regulatory obligations to uphol...

Forex | The Use of Identity Verification Explore More

Blog

Top 4 Reasons that will Increase Money Laundering Risks in 2022

Unlike other frauds, like like tax evasion, drug trafficking, extortion, and misappropriation of ...

Top 4 Reasons that will Increase Money Laundering Risks in 2022 Explore More

Anti Money Laundering, Blog, Financial Crime / AML, Identity & KYC

Winter is Coming: With a Storm of KYC and AML Regulations

The ever-evolving regulations are creating challenges and complexities for the financial institut...

Winter is Coming: With a Storm of KYC and AML Regulations Explore More

Blog

The Latest KYC Regulation Bill for Bitcoin ATMs and DeFi Platforms

As the digital revolution takes hold worldwide, there has been an unparalleled surge in the adopt...

The Latest KYC Regulation Bill for Bitcoin ATMs and DeFi Platforms Explore More

Blog

Curbing Financial Crimes and Securing Art Market With Shufti’s AML Screening Services

The global art industry is embracing digitization. However, the technological advancements and a ...

Curbing Financial Crimes and Securing Art Market With Shufti’s AML Screening Services Explore More

Blog

OCR Vs. ICR: The Key Differences that Businesses Need to Know

Financial institutions need to have reliable and efficient data management. With such a system, t...

OCR Vs. ICR: The Key Differences that Businesses Need to Know Explore More

Blog

Keeping AI Bias Out of the IDV Game with Shufti

Consider this: 85% of financial institutions today use some form of AI in their products. The tec...

Keeping AI Bias Out of the IDV Game with Shufti Explore More

Blog

CCPA: A Real Roller Coaster for Business Entities

One huge change in 2020 is the new data privacy law called the California Consumer Privacy Act or...

CCPA: A Real Roller Coaster for Business Entities Explore More

Blog

CDD in Real Estate Sector – How to Comply With Updated Regulations

When it comes to investing funds, real estate is considered the safest sector to invest in becaus...

CDD in Real Estate Sector – How to Comply With Updated Regulations Explore More

Blog

Major Fines in the Gaming and Gambling Industry and the Role of e-IDV

The outbreak of Covid-19 has changed how we do business. Many firms that used to operate physical...

Major Fines in the Gaming and Gambling Industry and the Role of e-IDV Explore More

Blog

The Role of Biometrics in Combating Money Laundering and Identity Fraud

The fast-paced growth of biometric technology and its widespread adoption in the financial and he...

The Role of Biometrics in Combating Money Laundering and Identity Fraud Explore More

Blog

Know Your Patient (KYP) | Significance in Fighting Patient Identity Theft & Scams

The global medicare industry is a common target for fraudsters looking to gain access to patients...

Know Your Patient (KYP) |  Significance in Fighting Patient Identity Theft & Scams Explore More

Blog, Reg Tech

EU’s 4th AML Directive Aims to make the Payment Ecosystem Crime Free

On June 26, 2018, the European Union landed the fourth AML directive that is targeted at combatin...

EU’s 4th AML Directive Aims to make the Payment Ecosystem Crime Free Explore More

Blog

Transforming the KYC Experience Using Automated Document Verification Checks

In 2021, reported fraud losses were $5.8 billion, a more than 70% rise in a single year. As ident...

Transforming the KYC Experience Using Automated Document Verification Checks Explore More

Blog

Customer Risk Assessment – A Landmark Approach to Fight Identity Fraud

Identity theft is the most prominent cybercrime which has raised alarms for global law enforcemen...

Customer Risk Assessment – A Landmark Approach to Fight Identity Fraud Explore More

Blog

Record-Breaking Fines on Banks for KYC/AML Non-Compliance

Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance have been structured to make ...

Record-Breaking Fines on Banks for KYC/AML Non-Compliance Explore More

Blog

Impact of California Consumer Privacy Act on Online Businesses

California consumer privacy act has been revolutionizing consumer data regulations. The act was p...

Impact of California Consumer Privacy Act on Online Businesses Explore More

Blog

Multi-Tier Security – Another Line of Defense Against Bank Account Scammers

The banking sector has been witnessing a significant rise in criminal activities is a major conce...

Multi-Tier Security – Another Line of Defense Against Bank Account Scammers Explore More

Blog

Biometric Identification revolutionizing the world in 2020

Every day we come face to face with new technology innovations that leave us awestruck. From the ...

Biometric Identification revolutionizing the world in 2020 Explore More

Blog

Biometrics Bucking the Trend of KYP in Healthcare

Over the last few years, biometric technology is deeply entrenched in various commercial marketpl...

Biometrics Bucking the Trend of KYP in Healthcare Explore More

Blog

Harnessing the power of AML Screenings to Uncover Politically Exposed Persons [PEPs]

Since the last decade, governments and financial institutions have been trying to limit corruptio...

Harnessing the power of AML Screenings to Uncover Politically Exposed Persons [PEPs] Explore More

Blog

A Brief Insight into Netherlands’ Cryptocurrency Regulations

Just like other European countries, the Netherlands is also a notable financial center making it ...

A Brief Insight into Netherlands’ Cryptocurrency Regulations Explore More

Blog

How Does Digital Identity Verification Work For Income Verification

With the help of income verification documents, organisations can restrict the onboarding of high...

How Does Digital Identity Verification Work For Income Verification Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started