Global regulators and governments of leading economies are speaking every day more loudly about the need to tighten control over cryptocurrencies in order to prevent them from being used for money laundering and terrorist financing. In January, then-US Treasury Secretary-General candidate and former head of the Federal Reserve, Janet Yellen, said that cryptocurrencies were of “particular concern” to her because of their potential to be used for money laundering and terrorist financing.
“I think we really need to examine ways in which we can curtail their use and make sure that anti-money laundering doesn’t occur through those channels.”
In April, the press secretary of the White House, Jen Psaki, said that President Joe Biden agrees with Yellen on the issue of cryptocurrencies. The words of the White House gave rise to rumors among crypto investors that US authorities were planning to tighten cryptocurrency regulation. A tweet that the US Treasury is accusing several financial institutions of laundering money in cryptocurrency caused chaos in the cryptocurrency market and went viral, collecting more than 5,000 retweets. Crypto investors in a panic rushed to sell their digital assets, causing a drastic price drop of bitcoin and other cryptocurrencies. Rumors never were confirmed, but the panic that gripped the crypto market suggests that crypto investors feel extremely vulnerable in the face of AML requirements.
Cryptocurrencies were created to return control of assets to their owners by removing intermediaries such as banks from the value chain. But along with rights and control, investors faced a higher level of responsibility. In the case of fian transactions, the control over AML requirements is fulfilled by banks. But how can one be sure of the purity of his crypto coins?
Being an unwitting participant in a criminal money laundering scheme is one of the nightmares of crypto investors. After all, such participation threatens both the loss of funds or their possible arrest, and the loss of reputation when it comes to business. With the influx of institutional investors into cryptocurrencies, the issue of AML compliance becomes even more acute.
AMLBot service was developed to check the purity of digital coins and make sure that they have not been noticed in criminal money laundering schemes. It is a service designed to prove that particular coins do not have anything in common with illicit activities and money laundering operations.
AMLBot is a robot designed to counteract money laundering through cryptocurrencies. The service collects data on transactions passing through selected crypto wallets and looks for links to transactions seen in illegal criminal activity. With the help of this bot, bona fide cryptocurrency owners, companies that accept payments in digital coins, and custodial services can verify the purity of accepted cryptocurrency funds and make sure that they are not used in fraudulent money laundering schemes.
It facilitates the online scoring of crypto addresses created by a team of financial technology specialists in line with global anti money laundering (AML) requirements. Their algorithm analyzes more than 10,000 open sources and 2,500 plus scam addresses in real time to give results in just above 30 seconds.
The AMLBot service does not require integration into internal systems or installation of additional software. Verification is carried out through the website of the service. The user needs to specify the cryptocurrency address that needs to be verified, and click the “Check” button. AMLBot will automatically collect information about incoming and outgoing transactions made, compare the wallet address and transaction data in it with several databases to which it is connected, and generate a report indicating the presence of suspicious transactions. In the final report, the user will receive detailed statistics on the crypto wallet, the number of suspicious transactions and even the shares of coins passed through this address that could be related to illicit activities.
Although cryptocurrencies are still often mistakenly considered anonymous money, the blockchain provides even more options than the standard payment system for verifying the purity of coins. As blockchain technology offers a public ledger transparent to all, this aspect helps to identify financial crime and related transactions.