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Press Release

Action Monkey Incorporates Shufti Pro’s KYC & AML Solutions to Enhance its Regulatory Compliance

Richard Marley
October 27, 2022
3 minutes read
1639

London, UK – Oct 27, 2022 – Action Monkey, an institutional grade Permissioned Decentralised Finance (DeFi) Platform announced today that it is collaborating with global KYC & AML provider, Shufti Pro, to provide safe, secure, and robust customer onboarding.

Action Monkey offers automation and regularisation of the alternative investment and financing industry, with access to investor syndication, liquidity, transparency, efficiency, transferability, and scalability. Action Monkey made the decision to partner with Shufti Pro to stay in line with regulations while providing access to liquidity for private capital and debt markets.

Shufti Pro provides Action Monkey with the best-in-class KYC verification and AML screening services to reduce the threat of onboarding money launderers in the DeFi industry. Shufti Pro’s robust, authentic and result-driven services will assist Action Monkey to prevent identity and financial fraud while ensuring compliance with regulatory requirements.

Action Monkey offers solutions that cover the entire life cycle of a digital asset with functionalities including tokenization, compliance, custody, exchange, purchase, and sale of tokens, and access to a liquidity protocol. Shufti Pro’s AML screening identifies high-risk profiles against criminal watch lists, global sanctions, and Politically Exposed Persons (PEP) lists. Shufti Pro’s identity verification services will not only encourage a faster customer onboarding rate but will also promote KYC & AML compliance in the DeFi market.

Commenting on the partnership, Ángela Álvarez, Founder and CEO of Action Monkey said, “We are a Permissioned DeFi Platform for cryptoassets, focused on security tokens, operating on a global basis where a review of the identity and the application of effective AML screening is fundamental. Shufti Pro’s powerful Enhanced AI Technology will allow us to achieve the highest level of accuracy in ID verification with devoted AI models for each type of document, giving our customers a quick and seamless onboarding experience. Shufti Pro solutions incorporated in the Platform are effective to support our compliance and control functions in order to comply with regulation, incorporating technologically advanced AI.”

“We are very glad for our partnership with Action Monkey to help secure the DeFi industry against identity theft and money laundering,” stated Victor Fredung, CEO of Shufti Pro. “Hopefully, this partnership will fortify trust, and transparency, and encourage AML & KYC compliance in the DeFi community.”

About Action Monkey

Action Monkey Capital DeFi Platform is a Permissioned Decentralised Finance (DeFi) Platform, a new generation of permissioned financial infrastructure with blockchain for the Investment and Alternative Financing industry. Action Monkey Capital DeFi Platform solves some of the challenges of the private capital market and crypto asset industry, such as scalability, automation, interoperability, and access to liquidity, using blockchain technology and decentralised smart contract protocols for Security Tokens.

About Shufti Pro

Shufti Pro is an automated identity verification service provider offering KYC, KYB, KYI, AML, and OCR solutions to help businesses securely onboard legitimate customers globally. The UK-based company has 5 international offices and has launched a suite of 17 different IDV products since its inception in 2017. With the ability to verify thousands of ID documents in 150 languages, Shufti Pro proudly serves customers in 230 countries and territories.

For more information, please contact:

Graeme Rowe
CMO | Shufti Pro
graeme.r@shuftipro.com
+44 7909 447255

Disclaimer: No warranty is herein provided that the information contained in this document is accurate, up-to-date, and/or complete. In no circumstance(s), does such information constitute legal or any other advice. Any person who intends to use, rely, pass-on, or re-publish the information contained herein in any way is solely responsible for the same. We suggest to verify the information and/or obtain expert advice independently if required.

Latest News

News
Japanese Govt. to Enshrine FATF Crypto AML Standards into National Law
About Shufti Pro
The Japanese government is getting ready to incorporate the Financial Action Task Force (FATF) crypto AML rules into national law after getting maximum votes from the country’s parliament in support of the initiative.

According to NHK, MPs supported the Revised Act on Prevention of Transfer of Criminal Proceeds in a voting that took place on Friday during a meeting of the House of Councilors. They favored the amendments to six other laws, including the Act on Freezing International Terrorist Assets, the Act on Punishing Organized Crimes, and the Act on Prevention of Transfer of Criminal Proceeds.

What Does AML Mean in Crypto?

Anti Money Laundering (AML) for cryptocurrencies means the rules and policies aimed at preventing criminals from turning unlawfully obtained cryptocurrencies into cash. Crypto exchanges that adhere to AML regulations boost customer trust and accountability, reduce the likelihood of financial fraud such as terrorist financing and money laundering, and contribute to market stability.

The measures would increase the legal consequences for offenses involving money laundering. Law enforcement will be able to freeze assets kept on domestic networks, including digital currencies such as bitcoin.

The media site stated that by requiring business owners who exchange crypto assets to reveal details about receivers, the legislative amendments would “make it easier” for law enforcement authorities and customs inspectors to trace cryptocurrency. As a result, cryptocurrency exchange transactions will no longer be anonymous.

Stablecoins, as well as their issuers, will be subject to the new restrictions imposed. The legal changes describe the types of warnings that should be sent to non-compliant parties as well as the heavy fines that courts should impose in judicial proceedings.

Suggested Read: Japan Revises Six Laws to Tackle Money Laundering in Cryptocurrency

Recent Posts

Blog
Surging Crimes in NFT Marketplaces - Setting New Security Standards Using Shufti Pro’s AML Solution
About Shufti Pro
The emergence of Non-Fungible Tokens (NFTs) has created new investment opportunities for business tycoons and wealthy politicians. It is an entirely new concept that has attracted the attention of all technology giants and is undoubtedly one of the most discussed topics. It all started when in March 2021, artist Mike Winklemann sold one of his art as a digital asset for $69 million. This landmark sale has given rise to a new trend of creating attractive NFTs and selling them into the market for millions of dollars. NFTs are blockchain cryptographic assets that have unique identification codes. Unlike cryptocurrencies, they cannot be traded at the same level, which is the prime reason behind the huge investments pouring into the sector.

The global NFT market in 2021 was valued at $11.3 billion and is expected to reach $231 billion by 2030. The statistics clearly show how fast the NFT marketplace is picking up, which has eventually encouraged criminals to take part in fraudulent activities, particularly money laundering and terrorist financing. It is not more than a decade since NFTs have come into the mainstream, and during this short time, the authorities have remained unable to regularise them properly. Implementing Anti-Money Laundering (AML) measures in the sector is crucial to counter criminals and make it a secure place for investors.

NFT Marketplaces and Money Laundering Concerns

Money laundering has always remained a sensitive issue for global financial watchdogs. Especially after 9/11, law enforcement authorities encountered myriad cases of terrorist involvement in financing their illicit activities through money laundering. Since then, regulatory agencies have tried to enforce AML laws in the financial industry. Banks, insurance companies, art & antiquities, and the real estate sector are the ones that have implemented stringent AML measures which have urged criminals to find alternative options. Although regulated, the NFT marketplace still has a lot of loopholes, making it an attractive option for money launderers. It is estimated that since 2017, over $8 million of illicit funds have been laundered through NFTs, with the numbers expected to rise exponentially in the coming years.

The criminals are using illicit funds to buy digital assets, and due to a lack of laws, companies never ask them about their sources which ultimately lets them convert their illegal money into legit cash. Moreover, the whole marketplace is highly volatile, further aiding the bad actors in manipulating the prices and disguising their original wealth under digital assets. The Financial Action Task Force (FATF) and European Union (EU) have also raised grave concerns about addressing prevailing money laundering, encouraging countries to legislate laws for this crucial sector.

Money Laundering and Role of Law Enforcement in Securing NFTs

Due to the involvement of global financial watchdogs, all the major jurisdictions have taken drastic steps to curb money laundering in NFTs marketplaces. Not only the wealthy business tycoons but several gangs on a smaller scale are found to be involved in this heinous crime, and law enforcement authorities are working tirelessly to bring them under the law.

Here are some of the recent high-profile NFT crime cases observed in the United States:

NFT Sellers Charged in $1 Million Money Laundering Scheme

US law enforcement authorities have arrested two NFT sellers who were involved in selling fake digital assets to users and further laundering illegal money to other countries. Police have revealed that criminals were running a marketing campaign encouraging users to buy NFTs, and after a large number of sales, they shut down their website along with users’ digital assets. They managed to collect $1.1 million dollars from their customers and were trying to launder this money through cryptocurrency. Both scammers have been charged in court and are yet to be penalised.

HMRC Seizes NFT in £1.4m Fraud Case

The UK tax authority HM Revenue and Customs (HMRC) has arrested three people for attempting to make a fraudulent transaction of £1.4 million through NFTs. The law enforcement authorities have seized an NFT, and it has been termed to be the first-ever seizure of non-fungible tokens by the UK Police. All the criminals have been charged in court, and investigations are still going on to trace more illicit transactions linked to the case.

Global Regulatory Authorities Monitoring NFT Marketplaces

While the crime percentage in the NFT market is increasing with every passing day, the global regulatory authorities have also started taking the right action against the culprits. The Financial Action Task Force (FATF) and European Union (EU) are the leading bodies which have made a clear stance against prevailing money laundering activities through the NFT marketplace.

FATF’s Stance on Money Laundering Threats Posed to NFTs

Since 9/11, FATF is the primary regulatory organisation which has taken drastic steps to curb money laundering and terrorist financing in the economic system. FATF has highlighted the vulnerabilities of NFTs to financial crimes and guided all the Virtual Assets Service Providers (VASPs) to implement s security system based on Enhanced Due Diligence (EDD) measures. Moreover, it has also been made mandatory for the VASPs to get a license from the belonging country and track the financial activities of all their users. The guidance by the FATF is binding for all the member states, and failing to comply with them can even lead to their name being placed on sanctions lists.

The Role of European Union

Members of the European Parliament has vowed to fight money laundering by regulating NFTs, metaverse and the DeFi sector. The finance experts of the EU have asked all the member countries to track the transactions through blockchain and report to law enforcement authorities in case of any suspicious activity.

How NFT Sector can Ensure AML Compliance

Non-Fungible Tokens (NFTs) are actually working through the blockchain, which has a decentralised system, ultimately leaving the authorities to end up losing the criminals. The ideal way to counter the bad actors is through stringent measures during the onboarding. FATF and EU have formed sanctions lists having the record of a large number of money launderers and terrorist finances. The NFT sector should have a system where they can screen customers’ data against these lists and identify the criminals while reporting them to law enforcement authorities. Many financial institutions like banks and insurance companies are following the same practice, which has successfully countered bad actors.

What Shufti Pro Offers?

Eradicating money laundering and terrorist financing from the NFT marketplaces is quite crucial, which must be done to secure the platform for sophisticated users. NFTs are here to stay, and steps in the right direction can help the service providers counter criminals.

Shufti Pro’s AML screening solution is an ideal option for NFT marketplaces which can help them to meet global anti-money laundering compliance. Powered by an AI algorithm that is getting smarter over time, Shufti Pro’s AML solution has access to 1700+ global sanctions lists, and while screening data against them, it generates results in seconds with a ~99% accuracy.

Would you like to explore more about AML solutions for NFT marketplaces?

Talk to an AML Expert

Action Monkey Incorporates Shufti Pro’s KYC & AML Solutions to Enhance its Regulatory Compliance

About Shufti Pro

NFT Marketplaces and Money Laundering Concerns

Money Laundering and Role of Law Enforcement in Securing NFTs

NFT Sellers Charged in $1 Million Money Laundering Scheme

HMRC Seizes NFT in £1.4m Fraud Case

Global Regulatory Authorities Monitoring NFT Marketplaces

FATF’s Stance on Money Laundering Threats Posed to NFTs

The Role of European Union

How NFT Sector can Ensure AML Compliance

What Shufti Pro Offers?

Let’s prove your

customer’s identity

with Shuftipro.

Let’s prove your customer’s

identity with Shuftipro.

Action Monkey Incorporates Shufti Pro’s KYC & AML Solutions to Enhance its Regulatory Compliance

About Shufti Pro

What Does AML Mean in Crypto?

NFT Marketplaces and Money Laundering Concerns

Money Laundering and Role of Law Enforcement in Securing NFTs

NFT Sellers Charged in $1 Million Money Laundering Scheme

HMRC Seizes NFT in £1.4m Fraud Case

Global Regulatory Authorities Monitoring NFT Marketplaces

FATF’s Stance on Money Laundering Threats Posed to NFTs

The Role of European Union

How NFT Sector can Ensure AML Compliance

What Shufti Pro Offers?

Let’s prove your

customer’s identity

with Shuftipro.

Let’s prove your customer’s

identity with Shuftipro.