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Importance of Anti-Money Laundering (AML) Compliance for Cryptocurrency Firms

Key Points to Consider

• Governments are mapping out their regulatory frameworks for cryptocurrencies, and it’s crucial that firms stay ahead of upcoming regulations.
• Conduct horizon scanning to ensure the right staff is in place to cope with new requirements.
• Building an AML program is essential, including understanding new requirements and their impact, investing time to dialogue with local regulators, and contributing to regulatory consultations.

The Risks of Non-Compliance

• Non-compliance with AML regulations presents significant risks for crypto firms, including:
  • Facilitating sanctions evasion
  • Enabling terrorist financing
  • Layering
• Consequences of non-compliance could include:
  • Being denied a license to operate
  • Relocation or closure
  • Manual remediation work
  • Rescreening customers
  • Recalibrating transaction monitoring tools
  • Accepting higher volumes of false positives

Guide Overview

The following guide explores the importance of a proactive regulatory approach in more detail, covering:

• The crypto AML regulatory landscape, including global regulations, key regulations in major markets, and likely developments through 2022.
• Building an AML program for crypto firms, including practical guides to building and scaling programs, risks, and opportunities.
• Emerging use cases and threats, such as darknet markets, fraud, and sanctions evasion, and how firms can stay ahead.
• Success stories of crypto firms working with ComplyAdvantage to scale and optimize their AML programs.

Disclaimer

The provided text is for general information only and does not constitute legal advice. ComplyAdvantage accepts no responsibility for any information contained herein and disclaims and excludes any liability in respect of the contents or for action taken based on this information.