IdentityMind Global has joined hands with CipherTrace to offer a risk assessment solution for virtual currency exchanges. As per the terms of the accord, IdentityMind combines its risk management, compliance, and fraud prevention platform with CipherTrace’s currency risk management technology.
Who can benefit from a new integrated risk management solution?
The anti-money laundering tool (AML) included in the agreement is useful for financial institutions, hedge funds, ICOs, virtual currency exchanges, and companies that accept transactions in cryptocurrency. AML helps companies engaged in transactions that involve cryptocurrency by assessing the legal risk involved in transactions. It provides a risk score and generates alerts when the set dollar limit is reached. AML identifies addresses and wallets involved in each transaction and provides a risk assessment.
The IdentityMind Platform is useful to detect suspicious activity and alerts companies by generating a SAR (Suspicious Activity Report). AML also allows the clients of IdentityMind to identify the fund source for the Virtual Currencies. It generates a report indicating the source of funds and withdrawal locations. The report offered by the AML includes money funded from good exchanges. The integrated risk assessment provides negative information if the funds are associated with criminals, ransomware, gambling, and dark markets.
Ensures Regulatory Compliance, Enforces Safety of Virtual Currencies
Chief Executive Officer of CipherTrace, David Jevans, said he is excited to enter into a pact with IdentityMind. According to Jevans, the new integrated solution combines virtual currency anti-money laundering and know your customer parameters. Joining forces between IndentityMind and CipherTrace should help to ensure the safety and legitimacy of investable and transactable virtual currencies and help ensure regulatory compliance.
CPMO of IdentityMind, Jose Caldera said the growth of virtual currencies is irrefutable in the digital economy worldwide. This is why it is necessary to know the individuals behind each digital transaction to promote the growth and scale of cryptocurrencies so they are not associated with criminal activity.
IdentityMind helps firms to deal with legitimate players and avoid bad actors. By working together, both firms hope to be able to bring an integrated, compliance and transparency approach to virtual currencies. IdentityMind Global is currently working with more than 50 virtual currencies in this capacity. It is also a go-to partner for payment processors, retailers, money transmitters, payment service providers, and businesses engaged in security token offerings or ICOs.