ComplyAdvantage is an international global data tech company that’s revolutionizing how authorities detect financial crimes. Meanwhile, Elliptic is a leading firm in offering solutions that help with crypto asset risk management. Recently, they announced a collaboration that would involve creating a tool for transaction monitoring and blockchain analysis. The aim is to help crypto-based companies to detect financial crime and effectively avoid it.
This upcoming innovation is the first to arise in the industry and is run by the Elliptic Navigator. This monitoring platform complies with crypto anti-money laundering policies. It is a way for crypto firms gaining momentum to practice consistent anti-money laundering efforts. It’s also a way for them to implement sanctions and fraud strategies. These mechanisms will help the industry in avoiding clients and users who pose a risk of being involved in financing criminal acts and other financial crimes.
The collaboration has good timing, considering that monitoring crypto-based transactions has become even more difficult recently. The crypto domain has seen the advent of new crypto services like decentralized finance networks and privacy wallets. Not to mention, the proliferation of nonfungible tokens, known as NFTs make it critical that crypto firms have a method to see the rate of financial crime in the sector.
In response to these new technologies, the Financial Action Task Force has released new regulations. The European Commission has done so as well to offer better certainty for digital assets that don’t fall under current legislation of financial services.
Integrating blockchain analytics by Elliptic into the platform by ComplyAdvantage combines the two domains of risk assessment: fiat currency and cryptocurrency. This will help users combine efforts of their risk management operations. They can also go deeper into the blockchain’s history of transactions to give risk scores. This can reduce the money and time spent to incorporate a compliance operation between crypto and fiat currency.
Thus, the ComplyAdvantage platform will feature new capabilities like detecting crypto transactions with higher potential for risk. This allows it to speed up the process of checking for compliance. The platform will also be able to better pick out high-risk users by monitoring their crypto activity on various transactions. This allows firms to check for suspicious early on so prevent financial crime.
A crucial feature is that it can track down the source of the funds and where they’re going. This allows crypto firms to see where the transaction is coming from and where the crypto tokens are going. Thanks to the platform, they can complete accurate Suspicious Activity Reports effortlessly. This will involve maintaining a complete audit trail of crypto transactions so as to keep records of repeat offenders.
