ComplyAdvantage and Elliptic have developed a new blockchain analysis and transaction monitoring tool that is set to assist crypto firms in detecting and avoiding financial crime.
The solution is powered by Elliptic’s crypto anti-money laundering (AML) monitoring platform – Elliptic Navigator. It allows crypto firms to undertake continual AML monitoring, fraud and sanctions strategies that will help the industry avoid customers and clients who present a risk of involvement in financial crime, including the financing of terrorism.
The partnership comes as the ability to monitor crypto transactions has become considerably more challenging with the introduction of new services such as NFTs (non-fungible tokens), privacy wallets, and decentralised finance (DeFi) networks.
In response, more regulations have been published by the Financial Action Task Force (FATF) and the European Commission to provide greater certainty for any crypto assets that are not covered by existing financial services legislation.
By combining the two worlds of fiat and crypto risk assessment by integrating Elliptic’s blockchain analytics into the ComplyAdvantage platform, users will be able to consolidate their risk management processes, deep dive into blockchain transaction history and risk scoring, and reduce the time and cost spent on integrating compliance workflows between fiat and crypto.
New capabilities within the ComplyAdvantage platform include:
- Detect high-risk crypto transactions – Speed up compliance checks, minimise manual intervention, and reduce costs with automated transaction risk scoring based on Elliptic’s blockchain analytics.
- Identify high-risk customers – Monitor your customers’ crypto activity across all of their crypto transactions. Detect suspicious activity early, using sophisticated analytics and risk indicators from Elliptic’s dataset.
- Trace source and destination funds – Review where a transaction came from, or where it is being sent, by leveraging Elliptic Navigator’s blockchain tracing capabilities to determine the ultimate source or destination of funds.
- Simplify SARS submissions – Maintain a full audit trail of crypto transactions and export complete, accurate records to submit Suspicious Activity Reports (SARs) with ease.
The AML platform Elliptic Navigator is powered by Elliptic’s comprehensive data engine that has collected, labelled, analysed, and risk scored blockchain data over the course of the last 8 years. With 98% of daily crypto transactions monitored, crypto businesses and financial institutions rely on the service to understand and act on risk exposure to crypto by applying regulatory compliance rigour.
Powered by ComplyData, ComplyAdvantage’s hyperscale technology helps to detect transaction monitoring events while uncovering hidden risks throughout the customer lifecycle, helping fintechs to maintain a level of compliance oversight and integrity.
This reduces dependence on manual review processes and legacy databases by up to 80% and improves how businesses screen and monitor clients and transactions.
“Empowering businesses with bank-grade payments risk solutions that integrate fiat and crypto capabilities is a critical step towards shaping a future of finance that includes virtual assets in a secure and trusted way,” said Simone Maini, the CEO of Elliptic. “Our partnership with ComplyAdvantage is an exciting opportunity to develop robust solutions that provide businesses with deep insight into a broad range of cryptoassets.”
“By working with Elliptic we now offer a more comprehensive blockchain analysis transaction monitoring solution for our rapidly growing base of crypto customers,” said Charlie Delingpole, Founder and CEO of ComplyAdvantage. “Data is key to preventing financial crime and our hyperscale approach to risk management is enhanced through valuable partners like Elliptic.”