Only 22% of bankers and financial investigators are confident about recognizing crypto-related payments
- In a CipherTrace ACFCS webinar on December 9th on “How Cryptocurrency Intelligence Tipped the Scale in 2020 Sanctions Evasion”, over 500 participants from various financial institutions were asked if they felt secure about recognizing cryptocurrency-related payments made by their institutions and / or or investigations flow.
- Over three quarters – 78.2% – of the participants responded that they do not feel secure about recognizing crypto-related payments flowing through their institutions.
When asked if they feel confident about recognizing cryptocurrency-related payments flowing through their financial institution and / or investigations, 78.2% of respondents disagreed.
- Conversely, more than 80% of those questioned answered the question of whether violations of sanctions are included in their decision if they or their customers pay for ransomware. However, the ability to accurately identify crypto-related payments and risk rate addresses is a critical first step in understanding whether a ransomware payment is a sanction risk.
- In 2021, Bank Auditors and FinCEN will focus on virtual currency exposure when assessing the effectiveness of bank AML programs. Financial institutions need to be able to identify institutional and peer-to-peer transactions in virtual currencies and understand how their institutions interact with emerging virtual asset service providers (VASPs).
- CipherTrace for Financial Institutions (CTFI) training helps banks develop a prudent, risk-based approach to their interactions with the virtual currency economy. Our next training is on January 7th. Interested parties can register here: https://ciphertrace.com/certified-examiner-training#CTFI