Information is power to help organizations mitigate risks for indirect exposure to crypto.
When it comes to preventing money laundering in traditional fiat, banks need a certain amount of information to ensure they can manage any potential risks involved in facilitating these transactions. The same applies with cryptocurrencies.
A bank can face challenges if it faces direct exposure to crypto — but they can also be exposed indirectly if one of their customers is transacting using digital assets.
There are a series of checks that can help manage AML risk: Know Your Customer, Know Your Payments, Know Customer Behavior, and Know Your Partner.
Given the volume of transactions that banks can process on a daily basis, ensuring the monitoring process is fully automated is essential to reduce the likelihood that suspicious activity falls through the net.