A Guide to Anti-Money Laundering for Crypto Firms
Paxos is a financial institution specializing in blockchain technology whose goal is to facilitate the movement of digital and physical assets. With the company in a period of rapid growth and expansion, Paxos needed a compliance solution that could scale with it. The company was using cutting-edge technology to deliver its core products and was looking for innovative solutions to streamline their compliance operations.
Industry: Financial Technology, Blockchain
Product: Customer Screening & Ongoing Monitoring, Transaction Monitoring
ComplyAdvantage was able to immediately tackle several issues that Paxos faced. The suite of FinCrime products were built using cutting-edge technology that integrates via a 2-way RESTful API. The API was able to seamlessly fit into Paxos’ AML screening and monitoring workflow.
Rather than having to manually monitor for any changes in risk status for new and existing customers, Paxos’ compliance team was able to automate the process with ComplyAdvantage’s search algorithms and dynamic AML risk database. That freed up the company’s compliance team to focus on whether those customers flagged by the screening solution fit within Paxos’ risk appetite.
In determining their risk appetite, Paxos also wanted a customer screening solution that included adverse media/negative news. The breadth of coverage and categorization were important elements when selecting a vendor. ComplyAdvantage’s structured profiles, FATF-aligned categorization and entity-based alerts gave Paxos the additional insights needed to screen and monitor clients.
While Customer Screening and Monitoring was the original product that Paxos implemented, they quickly found themselves needing a transaction monitoring product. Their overly manual transaction monitoring workflow had become unmanageable. The company’s in-house tool was unable to track metrics or deliver a sophisticated audit trail, and it was reliant on batch processing, which meant that Paxos had to devote extended periods of time analyzing transactions each month. Paxos wanted a solution that had built-in logic and automated their monitoring processes.
Using ComplyAdvantage’s Transaction Monitoring solution, Paxos was able to reduce the time spent reviewing transactions and remediating alerts. With ComplyAdvantage, Paxos saw an 80% improvement in efficiency.
Disclaimer: This is for general information only. The information presented does not constitute legal advice. ComplyAdvantage accepts no responsibility for any information contained herein and disclaims and excludes any liability in respect of the contents or for action taken based on this information.
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