In a December 9 CipherTrace-ACFCS Webinar on “How Cryptocurrency Intelligence Tipped the Scales in 2020 Sanctions Evasion,” over 500 attendees from various Financial Institutions were asked if they felt confident detecting cryptocurrency related payments flowing through their institutions and/or investigations.
Over three-quarters—78.2%—of attendees responded that they do not feel confident in detecting crypto-related payments flowing through their institutions.
When asked if they feel confident detecting cryptocurrency related payments flowing through their financial institution and/or investigation, 78.2% of respondents disagreed.
Conversely, when asked if sanctions violations factor into their decision when they or their client pay ransomware, more than 80% of respondents said yes. However, the ability to accurately detect crypto-related payments and risk rate addresses is a pivotal first step in understanding whether a ransomware payment poses a sanctions violation risk.
In 2021, bank examiners and FinCEN will focus on virtual currency exposure when assessing the effectiveness of bank AML programs. Financial institutions must be able to identify institutional and peer-to-peer virtual currency-related transactions and understand how their institutions interact with emerging virtual asset service providers (VASPs).
CipherTrace for Financial Institutions (CTFI) training helps banks develop a prudent and risk-based approach to your interactions with the virtual currency economy. Our next training is January 7. Interested parties can register here: https://ciphertrace.com/certified-examiner-training#CTFI