Crypto Currency Laundering plays a vital role. In the era where technological advancements the Fintech sector has found itself at the forefront of this boom. From mobile banking and online stock trading platforms to unequivocally the most coveted one – cryptocurrency. Instantly crypto currency arises.Therefore, it does not require any third party. All the transaction that takes place in crypto currency systems will jointly be verified in the private network. The progress of technology that is taking place is growing significantly. It affects the economic development in terms of financial technology at large. Hence, the need for cash has been decreasing rapidly as the use of digital money or digital currency is increasing day by day.

Criminals use dirty money

Criminals use crypto money laundering to hide the illicit money by using different type of methods. Additionally, criminals readily exploit the fast-moving pace of technological advancement with financial transactions, using new payment methods such as cryptocurrencies, rapidly gaining acceptance worldwide. 

Crypto currency Susceptible to money laundering

There are a lot of reasons why crypto currency are susceptible to money laundering. Therefore, individuals and criminal organization can hide their true identity. By conducting the transaction anonymously.

Risk in Crypto Currency Laundering

 Crypto asset system or exchange has the potential to display risks that can be exploited. Hence,while banks have a distinct and heavily-regulated global system of legal protections and obligations, the crypto asset market isn’t as universally protected or regulated. Risk is associated in crypto currency laundering are:

• Source of Funds

Through KYC Regulations the funds transaction takes place. Similarly, multiple banks can tie up with single crypto wallet.

• Risk within specific jurisdiction

In some geographical areas, there is a fraction of the amount of AML or KYC regulations needed. Therefore, alongside a lack of full implementation of preventive measures. The existence of regulatory bodies creates opportunities that can be exploited by criminal groups. 

Overview of Certified Anti-Money Laundering Professional Program

Riskpro Learning has launched a new certification program named Certified Anti-Money Laundering Professional (CAMP) for the compliance, AML professionals. To meet the regulatory needs in the emerging market environment. Additionally, Certified Anti-Money Laundering Professional regarded as one of the best international certifications in the AML domain. Hence, to gain the global recognition for the course, Riskpro Learning Academy has entered into the agreement to offer certification program to the global compliance officers.

The Certified Anti-Money Laundering Professional Program is a very unique certification program that offers a lot of benefits. As well as flexibilities to the international community who are working in the AML, compliance domain. Hence, Certified Anti-Money Laundering is interesting experience for the compliance professionals.

The aim of launching this program is to put forth the aspect of crypto currency laundering. While doing the program, this topic will help the aspirants to understand the meaning of different terms like crypto currency, crypto asset. Why crypto currency laundering sounds interesting for the criminals, how do crypto currency crimes take place.

Conclusion

Cryptocurrencies are a relatively new innovation, but they have quickly transitioned from a niche market to global commodity. They have been abused in a number of illicit and illegal ways.

Every organization needs AML Investigation. The people who are working in the financial service industry are aware of the Anti-Money Laundering Compliance and Investigation that takes place at large. Money Laundering is not easy to identify as the criminals use different strategies to hide the real source of funds. Over the past few years, money laundering has been a severe issue. Both the financial institutions and the government are searching for combatting money laundering.

Anti-Money Laundering

AML laws require that financial institutions report any financial crime they detect to relevant regulators.

Anti- Money Laundering Investigation

The Anti-Money Laundering Investigation involves a lot of critical thinking when the AML investigator conducts the investigation to determine the transactional activities that are taking place. Anti-Money Laundering Investigation plays a major role in the AML process. Therefore, its very important to understand the process involved in conducting a constructive and through AML investigation.

While doing the AML investigation, one would also be able to understand the suspicious, illicit activities that are taking place.

Anti-Money Laundering Investigation Process

For doing any investigation, there is a process that one needs to follow. Following is the AML Investigation Process:

• Trigger Event

The trigger event is generally regarded as the suspicious activity report (SAR) or a suspicious transaction that needs to be monitored. The trigger event brings t the eyes of the investigator while doing the investigation. SARs are generally more informative than alerts as they contain information about what the submitter has observed or their opinion.

• Understanding the customer

It provides the overall understanding of the activities that needs to be assessed, evaluated and understood.

• Understand the Activity

Under this step a holistic and high-level view of the activity for the relevant review period is undertaken to determine whether the activity in the accounts appears to be in line with your understanding of the customer their business or occupation.

• Elimination of the Norms

In alignment with the previous steps, the activity in all of the accounts under review that clearly is commensurate with what would be expected (normal) by the customer is neither considered unusual or suspicious (from an ML, TF or sanctions perspective) and it is filtered out to enable the investigator to focus on the remaining activity.

• Understanding the remaining activity to conclude if suspicious or not

AML Investigation list has considered the remaining activity. It also includes the trigger event, analysing it by incorporating it.

• Report and consider Divesting

In the AML Investigation process this is the alst step. In this step one submits the SAR/STR, but to also consider divesting the relationship if the risk of maintaining is outside of an organization’s risk appetite.

Overview of Certified Anti-Money Laundering Professional Program

Riskpro Learning has launched a new certification program named Certified Anti-Money Laundering Professional (CAMP) for the compliance, AML professionals to meet the regulatory needs in the emerging market environment. Certified Anti-Money Laundering Professional regarded as one of the best international certifications in the AML domain. To gain the global recognition for the course, Riskpro Learning Academy has entered into the agreement to offer certification program to the global compliance officers.

The Certified Anti-Money Laundering Professional Program is a very unique certification program that offers a lot of benefits and flexibilities to the international community who are working in the AML, compliance domain. Certified Anti-Money Laundering is interesting experience for the compliance professionals.

The aim of launching this program is to provide the aspirants to know the one of the aspects i.e. AML Investigation by doing this program. The aspirants will understand the overall AML investigation process. Hence, it will also help to provide guidance in recognizing, investigating the suspicious activities that are taking place in the organization.

Additionally, it will also discuss instructions on implementing and maintaining an enterprise-wide compliance program.  In addition, it will give a road map in investigating, monitoring suspicious activities. As well as recognizing red flags that pose present and future challenges for regulated businesses.

KYC and EDD plays a vital role in the AML domain. Know Your Customer is the due diligence and bank regulation which the financial institutions and other bodies shall perform to identify its potential clients. In the recent years Know Your Customer policy has came into existence as an important strategy to fight against money laundering. The financial Institutions inmost of the countries have to identify their clients. The main objective of this policy is to look after the originators of anti-economic crime that is taking place in the country. As well as keep a look on the audit trail of any money that flows in the banking system unknowingly.  However, a closer look at both the international and many of the national anti-money laundering strategies reveals that their regulatory instruments do not address both these purposes for combating money laundering.Therefore, KYC and EDD goes hand in hand.

Hence, for examination of customer risks, Know Your Customer is a critical component. “KYC” refers to the steps taken by financial institutions to:

• Discover customer’s identity
• Understand the activities of the customer
• Perform a risk-based approach for monitoring the customer’s activities

Definition of KYC

Know Your Customer enables the banks to know their customers and their financial dealings to be able to serve them better. The term KYC can also reference the regulated bank practices that are similarly used to verify clients’ identities.  Banks and companies of all sizes have become big supporters of KYC. It is increasingly common for banking institutions, credit companies, and insurance agencies to require that their customers provide them with detailed information in order to ensure that they are not involved with corruption, bribery, or money laundering.

Importance of KYC in the Banks and Financial Institutions

The KYC procedure comes into existence when the bank customers open the account. The purpose of KYC is to reduce the risk of identity theft, money laundering, financial fraud, and the financing of criminal organizations. The importance of KYC in banks and other financial institutions have strong KYC procedures in place so they can ensure that their clients are not involved in money laundering or the financing of criminal organizations. 

Following are the elements for having an effective KYC in banks.

• Customer Identification Program
• Customer Due Diligence
• Ongoing Monitoring

The importance of KYC is a complex undertaking that involves the collection of documents which show proof of identity (government issued IDs), establishing and verifying customer identity, and screening the identity information against political exposure, sanction lists, criminal lists, and unreliable customers lists.

Impact of KYC Compliance

KYC Know Your Customer regulations apply to financial service providers such as banks, payment companies. Know your client check, which is the first step of Anti-Money Laundering programs, also prevents the potential risks by verifying the customer identity. 

With the development of technology, crime techniques and risks also change. Financial institutions need to follow KYC regulations and Anti-Money Laundering laws to detect and prevent crime risks that organized crime organizations have developed using technology.

Enhanced Due Diligence

International definition of Enhanced Due Diligence is not provided. As a result, the financial institutions are at a very large risk. KYC and EDD are the 2 important concepts.  Enhanced Due Diligence means an advanced KYC due diligence process that provides further risk investigation. It highlights the risk that regular customer due diligence process will never reflect.

This is an ongoing process the existing customer has the potential transition into higher risk categories. High-risk entities are haunt by the financial sector. A major problem during EDD is understanding how much information about a customer is necessary.

Factors of Enhanced Due Diligence

Following are the EDD factors:

• Customer Jurisdiction
• Nature of Customer Business
• Customer activity
• Customer Transaction Value
• Payment Methods

Enhanced Due Diligence in Banking Sector

The banking industry is very dynamic. Regulations and technologies in this sector are changing very fatly. EDD plays a vital role in the banking sector.  High-risk corporates such as banks need to control the Enhanced Client Due Diligence program carefully. These measures are preferred by banks to avoid penalties for money laundering. As well as to avoid penalties for non-compliance with regulations, and even to protect their reputation.

Overview of Certified Anti-Money Laundering Professional Program

Riskpro Learning has launched a new certification program named Certified Anti-Money Laundering Professional (CAMP) for the compliance, AML professionals to meet the regulatory needs in the emerging market environment. Certified Anti-Money Laundering Professional regarded as one of the best international certifications in the AML domain. To gain the global recognition for the course, Riskpro Learning Academy has entered into the agreement to offer certification program to the global compliance officers.

The Certified Anti-Money Laundering Professional Program is a very unique certification program. It offers a lot of benefits and flexibilities to the international community who are working in the AML, compliance domain. Certified Anti-Money Laundering is interesting experience for the compliance professionals.

The aim of launching this program is to put forth KYC and EDD aspects. This program covers the 2 aspects. KYC aspect will enhance the knowledge of KYC. Hence, KYC and EDD is the crucial aspect in CAMP program. The aspirants will also get to know the different types of KYC requirement. Enhanced Due Diligence is another aspect that is covered in this program. How EDD reviews are conducted is covered in this aspect.