How to be confident in the purity of your transactions: from fiat to crypto
Whether you are an owner of a crypto startup or manage a traditional business, you need to pay attention to this guide on how to protect your business and assets. Let’s find out what is the best way to protect your assets and what services to use for this.
One of the most reliable ways to protect your business and assets is transaction monitoring. This is a procedure that has a lot of pitfalls. Therefore, a lot of troubles appear while adopting transaction monitoring. To protect your business from available transaction compliance-related troubles, we have prepared a guide that will help you adopt transaction monitoring in time and avoid different troubles that appear during this procedure. In addition, you will get to know what types of transaction monitoring exist and why you need to implement this service.
Let’s consider what transaction monitoring is and what particularities it has. Its main purpose is to track and analyze suspicious transactions in real-time or daily. This procedure enables verifying the addresses of assets and checking whether it was involved in money laundering or not. In addition, this is a requirement under Customer Due Diligence and is used to track transactions with fiat money (EUR, USD, GBP, etc.) as well as digital assets (BTC, LTC, ETH, and much more).
Transaction monitoring will help you protect your assets against involving in suspicious and illegal actions, including drugs trading, the porn industry, prostitution, ordering killing, and much more. This will keep the pureness of your funds and help enhance your reputation among your partners and customers on the market.
Why do companies need to check their transactions?
Companies all over the world adopt transaction monitoring for two essential reasons:
- The first one is anti-fraud. Payment fraud and scamming are widespread for both the fiat world and crypto-assets world. Whether this is the fiat money or digital assets world, fraudulent activities include phishing, account hacking, get-rich-quick schemes, scams, false chargebacks, and much more. Transaction monitoring is a procedure that will help you protect your assets against suspicious actors and malicious attacks.
- The second one is regulations and rules according to the cryptocurrencies. Transaction monitoring is a necessary condition for companies that fall under the rules of the AML regulations. This obtains fintech companies as well as other designated businesses, including gambling, gaming services, real estate businesses, insurance companies, and much more.
In other words, each financial company or related businesses need to introduce an AML policy specifying all the financial risks and verifying all their clients accordingly. In some cases, companies need to have special software to monitor transactions and verify clients, especially if it’s necessary to monitor a huge number of transactions at the same moment. One of the most reliable and high-quality AML services is AMLBot providing you with the possibility to track a huge number of transactions using API integration. It ensures the implementation of the AML-service in any business and multiple transactions monitoring.
So, businesses need to apply transaction monitoring and other AML-services in order to protect their financial state as well as the reputation that is easy to destroy while becoming a focus of a fraud-related scandal.
How to protect your assets: from fiat to crypto
As usual, in the world of fiat money, transaction monitoring contains the assessment of the type, size, nature of the transaction, compatibility with the customer’s risk profile as well as previous history of the transaction.
Transaction monitoring of fiat includes several important points:
- Basic KYC of the customer includes blacklist and watchlist screening;
- Transaction analysis is the monitoring of previous and future transactions, identification of unusually scale, frequent, or uncommon transactions.
- Risk assignment is specifying the risk level of transactions based on the business policy of the company.
- Delivering reports. Regulators require the reports for a period of five years.
Let’s consider what transaction monitoring means in the world of cryptocurrency assets.
When it comes to cryptocurrency assets, transaction monitoring is a more complex procedure. This is caused by the high risks of cryptocurrency transactions because of their anonymity. While using cryptocurrency, you never know whether they were involved in the illegal operations or not. If your cryptocurrency was involved in illegal operations, including purchasing drugs or killing, trading of children, porn industry, and much more, your wallet can be banned on the cryptocurrency exchange. Therefore transaction monitoring plays a crucial role for the owner of the cryptocurrency who takes care of their reputation.
So, cryptocurrency transaction monitoring is a procedure that has the purpose to identify all the addresses where your cryptocurrency was sent and received. While purchasing the crypto transaction monitoring, AMLBot service will track all the addresses where your cryptocurrency was. As a result, you will find out a level of risk in percent. One of the main benefits of the transaction monitoring offered by the AMLBot service is free first transaction monitoring.
When it comes to a growing number of high-risk crypto transactions, companies want to automate transaction monitoring. For this, API integration is used. Whether you want to check your cryptocurrency once or monitor cryptocurrency in an ongoing way, AMLBot service will cover all your needs. You can order one transaction monitoring or API integration in order to implement a transaction monitoring service into your business.