Armada focuses on off-chain data instead of on-chain data while working in alongside with banks’ existing monitoring tools:
“To identify transactions with virtual asset service providers (VASPs), including those with weak KYC or operating as unregistered money service businesses (MSBs).”
CipherTrace Unveils Compliance Tool for #Banks Involved in #Crypto https://t.co/FFBiBacbaN Ciphertrace’s recent research revealed that US banks unknowingly process $2 billion in crypto transactions that go undetected #moneylaundering — CipherTrace (@ciphertrace) April 28, 2020
The press release further stated:
“Critical visibility into risky cryptocurrency blind spots so know your customer (KYC) processes can detect and perform due diligence on virtual asset service providers (VASPs).”
John Jefferies, chief financial analyst for CipherTrace, added:
“CipherTrace has the most accurate data attribution coverage tying real-world entities to crypto addresses, enabling Armada to link banking data and billing descriptors to entities, which is a big differentiator from competitors because it is critical for transaction matching.”
Jefferies elaborated on how CipherTrace defines “high-risk virtual payments”:
“Risky entities include sanctioned entities, known criminal activities and thefts, dark markets, higher-risk exchanges, HYIP scams, malware, ransomware, and mixers.”
Armada can conduct KYC to determine VASPs and unregistered MSBs that enables “enhanced due diligence of high-risk virtual asset payments,” and discover counterparty risk associated with hundreds of such businesses.
Currently, CipherTrace’s database contains over 500 businesses involved in virtual asset transactions.
Recently, Andreas Antonopoulos accused companies like CipherTrace of helping: “The world’s worst dictators and regimes, either directly or indirectly, with information that violates the civil rights of millions of people.”
Responding to Antonopoulos’ accusations, Jefferies stated:
“CipherTrace helps banks and other financial institutions comply with international sanctions, anti-terrorist financing regulations, and AML standards. This type of work is what prevents dictators and oppressive regimes from continuing to fund weapons programs and other destructive enterprises.”