Decentralized nature of digital assets requires increased compliance, thus, policymakers have developed and implemented regulations to prevent cryptocurrencies from being used for illicit financing activities. Our story is straightforward – as a Swiss financial intermediary, FinchTrade AG hasn’t managed to find a solution to comply with the AML & KYC frameworks. Thus, we have developed it in-house and are pleased to launch FinchGuard – AML & KYC solution for blockchain businesses.
Pioneering system to automate complex compliance procedures
Given rapidly-changing crypto regulations, the best option for financial institutions is to rely on a plug-and-play AML/KYC system such as FinchGuard that provides the following functionality:
- collect necessary individual, company and shareholders verification data
- automated enhanced due diligence mechanism and on-going monitoring
- real-time in-depth transaction monitoring and risk assessment
- regulatory reports
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Onboarding. Customer onboarding is essential for businesses. Onboarding must be quick and seamless, but thorough enough to identify potential risks. Besides, automation is crucial for scalability, thus, the risk scoring methodology must be digitalized to an automated identity verification system.
Ongoing monitoring. Financial institutions are obliged to monitor AML compliance of their clients. Implemented system must perform real-time monitoring of shareholders, UBOs and key personnel in relation to sanctions or PEP lists and alert when status changes.
Know your transaction (“KYT“) solution performs real-time on-chain transaction analysis to identify suspicious behavior or fraudulent transactions (FinchGuard monitors Bitcoin, Ethereum, Litecoin, Tron, XRP, Binance Smart Chain, Tezos etc. blockchains). There are certain parameters to consider:
- Payment country risk for fiat/crypto
- Suspicious patterns recognition
- Blockchain transaction scoring/implied risk-factors
- Company-related custom risks
Regulatory reports. The result of the automated verification and ongoing monitoring is reliable proof that helps to control risks and protect your business from fraud and regulatory fines.
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IT security and tech
When it comes to safety and usability, the technological solution must be:
- Secure: 2FA, data encryption, multi-role accounts
- Reliable: regular backups, geographical distribution
- Manageable: web-based GUI, transaction analytics
- Easy-to-integrate: AWS cloud-based out-of-the-box solution
Having in place the above, FinchGuard has integrated leading service providers to automate almost all of your daily routine:
- AML/KYC/KYB: SumSub
- Cloud infrastructure: AWS
- Blockchain analytics (KYT): Crystal*, Scorechain
- Crypto custody: Copper, Fireblocks*
- API integration with payment institutions: BCB Group, ClearJunction, Intergiro*, NexPay
- API integration with trading venues: Binance, Bitfinex, Coinbase, Finery Markets, Kraken
- Reporting: Slack, email
FinchTrade AG COO, Lesya Margris says:
Proper AML monitoring is a big challenge for any financial institution. The matter becomes more complicated when you have to do both: comply with Swiss regulation and deal with high-risk digital assets. To get rid of daily routine and being able to accurately identify the risks, we’ve created elegant solution providing transparent and user-friendly suite for crypto compliance – FinchGuard.
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