EU Global Facility on AML/CFT’s Post

CryptoCompliance CryptoCompliance refers to the process of ensuring that cryptocurrency-related businesses and activities comply with relevant laws, regulations, and industry standards. Key Areas of CryptoCompliance: 1. Anti-Money Laundering (AML) 2. Know-Your-Customer (KYC) 3. Counter-Terrorist Financing (CTF) 4. Securities and Exchange Commission (SEC) regulations 5. Financial Industry Regulatory Authority (FINRA) guidelines 6. Tax compliance 7. Data protection and privacy 8. Licensing and registration Benefits of CryptoCompliance: 1. Reduced risk of regulatory penalties 2. Enhanced reputation and trust 3. Improved investor confidence 4. Better protection against financial crimes 5. Compliance with global standards CryptoCompliance Tools and Solutions: 1. Compliance software 2. Risk assessment platforms 3. AML/KYC verification tools 4. Regulatory tracking services 5. Consulting and advisory services Regulatory Bodies: 1. SEC (US) 2. FINCEN (US) 3. IRS (US) 4. FATF (International) 5. EU's European Securities and Markets Authority (ESMA) Best Practices: 1. Conduct regular risk assessments 2. Implement AML/KYC procedures 3. Maintain accurate records 4. Train staff on compliance 5. Continuously monitor regulatory updates Challenges: 1. Evolving regulatory landscape 2. Lack of clarity on regulations 3. High compliance costs 4. Balancing compliance with innovation 5. Ensuring global consistency Training and Resources: 1. Cryptocurrency Council for Innovation (CCI) 2. Blockchain Association 3. CryptoCompliance certification programs 4. Industry conferences and webinars 5. Regulatory body guidelines Stay updated on CryptoCompliance to ensure your business or investments remain compliant and secure. #CryptoCompliance #CryptocurrencyRegulations #BlockchainLaw #FinancialRegulation #ComplianceOffice

The expanded AML regulation in the EU, particularly impacting the #cryptocurrency industry, is of significant interest for several reasons: ➡ Financial Integrity: It addresses concerns related to #moneylaundering and #terroristfinancing, crucial for maintaining the integrity of the financial system. ➡Cryptocurrency Compliance: With the growing popularity of cryptocurrencies, ensuring #compliance with #AMLregulations is essential to mitigate risks associated with illicit activities in this sector. ➡Regulatory Landscape: The EU's regulatory stance sets a precedent for other jurisdictions and shapes the global regulatory landscape for #cryptocurrencies and #financialtransactions. ➡Impact on Businesses: Obliged entities, such as #banks and cryptocurrency #assetmanagers, need to adapt their operations to comply with the new #regulations, impacting their business practices and strategies. ➡Transparency and Accountability: Access to #beneficialownership information and enhanced #duediligence measures contribute to transparency and accountability within the #financialindustry. ➡Consumer Protection: Strengthened regulations aim to protect consumers by reducing the risk of financial #fraud and ensuring the safety of transactions. ➡Industry Evolution: Regulatory changes drive #innovation and evolution within the cryptocurrency industry, as businesses strive to comply with new requirements while maintaining competitiveness. https://lnkd.in/dBdC-ceX

Lithuania Strengthens Crypto Supervision 💪 💪The Bank of Lithuania and the Financial Crimes Investigation Service (FNTT) have signed a cooperation agreement to strengthen the supervision of cryptocurrency service providers. The two institutions will share expertise, jointly conduct inspections, and offer technical assistance to one another. 🛠️ The goal is to ensure that only well-prepared players enter the cryptocurrency market as MiCA (Markets in Crypto-Assets Regulation) comes into effect across the European Union next year. MiCA will require crypto-service providers to be licensed in order to operate.  Currently, over 300 crypto companies are registered in Lithuania, one of the highest numbers in the EU. The institutions aim to ensure these companies provide quality services and properly manage risks, particularly money laundering, terrorist financing, and fraud. Cryptocurrency sector supervision and is focused on AML/CFT challenges due to the sector's rapid growth. AML Audit Expertise: CAML assists businesses in establishing a local presence in the EU, including setting up physical offices and staffing them with senior-level AML specialists, such as Chief Compliance Officers (CCO), Chief Risk Officers (CRO), and Money Laundering Reporting Officers (MLRO). By aligning operations with EU-based compliance expectations and 🚀AML audit CAML ensures that CASPs meet regulatory standards. Under the MiCA Regulation, which enters into force in 2024, cryptocurrency service providers must be licensed by the Bank of Lithuania. Currently, they are not licensed but listed in the national Centre of Registers, with partial supervision from the FNTT. ✨The Bank of Lithuania is actively preparing for licensing and expects only well-prepared companies to apply for licenses. Applicants will need to provide clear business plans, evidence of meeting eligibility criteria, and transparency on ownership and sources of income. Those that fail to meet these standards or provide misleading information will not be granted licenses. AML Audit Expertise: CAML assists businesses to detailed oversight and guidance reflects a vision of a well-regulated, resilient crypto ecosystem that benefits both providers and users alike. #MiCA #CryptoRegulation #DigitalAssets #BlockchainEU #CryptoCompliance #Legalaes #CryptoEurope #FintechRevolution #CryptoNews

📈 Crypto firms continue to lead the surge in AML fines in 2024. 🇳🇱 De Nederlandsche Bank (DNB), the central bank of the Netherlands, announced this week that it slapped a €2.85 million penalty on DAX MT (the legal name of one of the world's largest cryptocurrency exchanges). ⚖️ The reason for the penalty? Non-compliance. Notably, there was a failure to register with the DNB. Consequently, DAX MT was unable to report suspicious transactions to the Financial Intelligence Unit (FIU) in the Netherlands. 📗 In our latest article on the blog, we delve into the case and uncover valuable lessons for all compliance professionals. Here's what we cover: 📍 Why the DNB deemed the case 'severe' 📍 The importance of understanding compliance obligations when expanding into new markets 📍 The criticality of submitting Suspicious Activity Reports (SARs) promptly 📍 The escalating regulatory scrutiny on cryptocurrency firms 🔗 Read now > https://lnkd.in/duwUMumt #AML #AMLScreening #CryptoCompliance #Compliance

🪙 Earlier this year, research revealed that stablecoins have enabled $40 billion in crypto crime since 2022. 📈 And just last month, Swiss regulator FINMA warned of a rise in stablecoins being used for money laundering. ⚖️ Stablecoins like Tether are cryptocurrencies pegged to a reserve asset, such as the US dollar, ensuring stable value. This makes them useful for transactions and storing value without the volatility of other cryptocurrencies. 💸 However, criminals increasingly use stablecoins for money laundering—and even sanctions evasion. 📗 To explore how to navigate AML and sanctions compliance risks in the stablecoin space, check out our latest article on the blog: https://lnkd.in/di3fD6zi 📩 Need assistance with AML screening? Contact us to discover how our solutions can enhance your compliance process. Test drive our brand-new portal with a 7-day free trial. #Stablecoins #Compliance #Crypto #AMLScreening

As Ireland races to implement MiCA by December 30, we're seeing some concerning contradictions in the EU's approach to blockchain technology. Let's break this down. 👇 🔷 Key Points The Markets in Crypto-Assets Regulation (MiCA) institutes uniform EU market rules for crypto-assets.  👉 The EU’s directive is seeking to mitigate money laundering risks. “The latest directive will aim to impose stricter controls and transparency requirements on crypto transactions. These have been identified as potential channels for money laundering and terrorist financing.” Ireland is rushing to implement MiCA regulations by December 30, 2024, as a part of the EU-wide crypto money laundering crackdown. This coordinated effort with other EU member states will require: • Crypto firm registration/licensing • Enhanced due diligence • Customer verification • Transaction monitoring In essence, Ireland is racing to meet the EU deadline for comprehensive crypto regulations focusing on AML measures. ✅ MEV Relays One of the ways to combat money laundering and terrorist financing is through the use of MEV relays that filter out sanctioned wallet addresses–something Figment uses to enhance compliance with regulatory requirements. ⚠️ The MEV Contradiction In the same breadth, ESMA (the EU Securities & Markets Authority) published its third consultation packet outlining its proposed technical standards detailing how to implement some of the high-level rules in MiCA. In it, ESMA suggests that the use of MEV - a necessary component of the Ethereum ecosystem - may be prohibited. These potentially conflicting positions by ESMA highlight the need to work with regulators to help them understand the importance of key aspects of blockchain technology and in particular, protocol staking services.  Link to full article here. 🔗 https://lnkd.in/egXxFmQ9 #MiCA #CryptoRegulation #MEV #BlockchainSecurity #ProtocolStaking

❗ Be prepared for when MICA drops 🤯 As of publishing this, there’s 144 days till MICA. The financial landscape is evolving — and the regulatory environment isn’t lagging behind, especially not with AML policies. Banks and CASPs need to adjust. But how? Here’s our advice: 1️⃣ Policy Revision: Conduct comprehensive audits of current AML policies. Refine internal processes by incorporating new protocols that specifically address the risks associated with crypto-assets. If you need an external expert to help — do that! 2️⃣ Regular Training Programs: Develop frequent training sessions to educate staff about the crypto-related AML risks, regulatory updates, and best practices. Offer specialised training for departments directly handling high-risk transactions in crypto-assets. Assess the effectiveness regularly. 3️⃣ Invest in New Technologies: Invest in blockchain analysis software that specialises in detecting illicit funds. Upgrade existing enhanced due diligence solutions to cover the fiat transfers coming from the new species of financial institutions: the CASPs (Crypto-Asset Service Providers). If you are a financial institution not actively interacting on blockchain, a solution like #Chaincomply can help you prepare for #Mica, hassle-free. Proactively adapting to these changes is essential to safeguard against financial crimes and maintain compliance. Don’t lag behind. #ChainKnowledge #MICA #AMLcompliance

Key highlights from The Digital Asset Regulation report by the World Economic Forum, 1. Diverse Approaches: Countries like the #EU and #US are taking different paths in regulating digital assets, making global coordination difficult. 2. Focus Areas: Key areas include AML/KYC compliance, #DeFi risk management, and the use of regulatory sandboxes for testing innovations. 3. Unintended Consequences: Divergent rules may cause regulatory arbitrage, with businesses relocating to favorable jurisdictions. 4. Global Trends: There's a push for #privacy/#security enhancements and #cross-border collaboration for harmonized frameworks. 5. Recommendations: Emphasize technology-driven AML solutions, flexible sandboxes, and stakeholder education to support innovation. Read the full report for deeper insights into the evolving global landscape of digital asset regulation. #DigitalAssets #BlockchainRegulation #CryptoCompliance #DeFi #FinancialSecurity #AML #KYC #GlobalFinance #Fintech George Petrovic, MSc 🍁 Dev Chetal Athika Fatima Akshat Srivastava Tushar Tiwari Nidhi Nakrani Nitu Choudhary Decentralized Minds - GBC Blockchain Club ai-web3-pdf

🦹♂️ Understanding Crypto Adoption by Illicit Actors Here’s 9️⃣ Points to Summarise 1️⃣ Recognition that illicit actors are increasingly turning to cryptocurrencies due to perceived anonymity and decentralized nature. Acknowledgment of the need to adapt strategies as cryptocurrencies become a favored tool for sanctions evasion, money laundering, and other illicit financial activities. 2️⃣ Advanced Analytical Tools: Investment in cutting-edge analytics tools that leverage #blockchain transactions and identify suspicious patterns. Continuous refinement of these tools to keep pace with the sophistication of tactics employed by illicit actors in the crypto space. 3️⃣ Blockchain Forensics: #AMLBot Implementation of specialized blockchain forensics techniques to trace the flow of funds, identify wallet addresses, and establish connections between transactions and illicit actors. 4️⃣ Real-time Monitoring Systems: Deployment of real-time monitoring systems that allow prompt detection of suspicious crypto transactions, enabling swift responses to potential violations. Integration of blockchain analytics with traditional financial monitoring systems for a comprehensive approach to identifying illicit financial flows. 5️⃣ Adaptive #regulatory Frameworks: Regular updates to regulatory frameworks to address emerging challenges and vulnerabilities associated with the use of cryptocurrencies by illicit actors. Dynamic adjustments to regulatory policies based on ongoing assessments of the #crypto landscape and feedback from industry stakeholders. International Coordination and Information Sharing: 6️⃣ Strengthening international collaboration through information-sharing platforms and coordinated actions against cross-border illicit activities. Building alliances to share intelligence on crypto-enabled sanctions evasion, ensuring a collective and global response to emerging threats. 7️⃣ Engagement with Cryptocurrency Exchanges: Establishing partnerships and dialogues with cryptocurrency exchanges to foster compliance with anti-money laundering #aml and know your customer #kyc regulations. Encouraging exchanges to implement robust security measures and reporting mechanisms for suspicious activities related to sanctioned entities. 8️⃣ Legislation and Enforcement Measures: Introduction of legislation specifically targeting illicit activities involving cryptocurrencies, providing legal mechanisms to address emerging challenges. Enforcement actions against individuals or entities found violating crypto-related sanctions, establishing precedents to deter future illicit activities. 9️⃣ Capacity Building and Training: Ongoing capacity building within regulatory bodies to ensure staff expertise in understanding and responding to the evolving landscape of crypto adoption by illicit actors. Training programs focused on enhancing the capabilities of law enforcement and regulatory personnel in dealing with crypto-related investigations.

EU expands AML regulation impacting cryptocurrency compliance The European Parliament is enhancing EU's AML and terrorist financing toolkit, affecting the cryptocurrency industry, by implementing enhanced due diligence measures and reporting suspicious activities to authorities. The laws will grant legitimate interest groups, including journalists, civil organizations, competent authorities, and supervisory bodies, immediate, unfiltered, and free access to beneficial ownership information. From 2029, top-tier football clubs must verify customer identities, monitor transactions, and report suspicious high-value transactions to Financial Intelligence Units (FIUs). This move takes a step closer to a secure and transparent crypto industry. Read more at 👇 https://okt.to/qidEIm #Banking #Fintech #AML #technology #Digital