AML and CFT

Crypto AML & CFT Compliance Tools

Robust AML (Anti-Money Laundering) and CFT (Counter-Financing of Terrorism) measures are essential to meet international compliance standards and tackle the distinct challenges posed by digital assets. Although cryptocurrencies bring transparency, speed, and security, effective compliance demands specialized tools and deep expertise. Comprehensive transaction monitoring, grounded in a thorough understanding of blockchain technology and its associated risks, is critical.

Within this framework, integrated AML solutions, such as KYT (Know Your Transaction) and the Travel Rule, provide vital support for maintaining consistent and effective compliance across all key stages of crypto transaction oversight.

KYT (Know Your Transaction)

The KYT service enables real-time monitoring of cryptocurrency transactions, helping to identify high-risk activity patterns. Using advanced algorithms, KYT cross-references transaction addresses with sanction lists, such as the OFAC (Office of Foreign Assets Control), and allows the immediate freezing of deposits from suspicious sources, such as hacks or ransomware. Additionally, the system allows custom alerts to be set to align with an organization’s AML compliance policies. KYT is also crucial for preventing terrorism financing (CTF), helping to block transactions linked to terrorist activities. This tool ensures continuous oversight of transactions, significantly reducing the risk of illicit activity.

Travel Rule

The Travel Rule ensures transparency in cross-border cryptocurrency transactions. In line with Financial Action Task Force (FATF) guidelines, financial institutions must collect and share detailed information about the participants in a transaction, including the names, addresses, and other identifiers of both the sender and recipient. This requirement helps trace the flow of funds and prevents cryptocurrencies from being used for illicit purposes. Compliance with the Travel Rule is essential to ensure that transactions are in line with international standards and can be clearly traced.